Even though it is not yet Halloween financial analysts and retail experts are already working to predict holiday spending. With an unstable economy and uncertain times ahead most shoppers will be keeping tight budgets, and not making extravagant purchases. According to a recent Accenture survey "One quarter of shoppers (24 percent) plan to have a 'thrifty' holiday season and one in five (18 percent) admit that they will be 'focused on necessities', just 6 percent admit to planning 'extravagant' or 'unrestrained' holiday spending." In this type of market, where consumers are being conservative with their holiday budgets gift givers want to ensure that they give "targeted" gifts. These are gifts where the givers' dollar is stretched and the giver is sure the receiver is going to use and enjoy the gift. Gift cards are great examples of "targeted" gifts, they are meaningful, and guaranteed to be enjoyed. Allowing a friend or employee to enjoy dinner with their family, or to splurge on a new outfit is a win/win; a low risk purchase for the giver and a high reward for the receiver. With 43% of survey respondents claiming that they have less income than last year, and historic economic swings, it is going to be a year of low risk gift purchases. Remember the value of gift cards as you make your holiday purchases this year, whether it be for your friends, or employees.
For more information on the recent Accenture survey click here.