With shoppers around the world planning to shop early for their gift cards, PayNXT360 expects it is time for restaurants and big-box retailers to start pushing the sales of their gift cards to expand their market. Based on PayNXT360’s analysis, shipping delays and global supply chain crisis due to covid restriction is likely to lead to increased consumer interest in gift cards, especially for the ones of restaurants and retailers.
It is expected that multi-brand gift cards and restaurants are expected to top consumers' shopping lists in this holiday season. The global pandemic and unavailability of vaccines affected the restaurant gift card sales during the last holiday season. However, with public places, including restaurants opening back for business worldwide, the restaurant gift cards category is expected to see increased consumer interest during the 2021 holiday season.
Anticipated shortage in gift products, retailers are focusing on gift cards for increasing market share
Large retailers such as Macy's, Best Buy, Target, and Walmart, are predicting a shortage in traditional gift products availability led by the global supply chain crisis. Therefore, increasingly putting effort to secure enough gift card inventory early to meet the increased consumer demand during the 2021 holiday season.
According to PayNXT360, the gift cards segment is expected to play an important role during Q4 2021 to counter the supply chain crisis for retailers. Notably, from the start of October 2021, retailers have been pushing the sales of gift cards as part of their holiday campaigns.
Moreover, PayNXT360 projects that the multi-brand category gift cards outperform other categories during the holiday season in 2021. Apart from this, gift cards that bundle together brands, for instance, that combine retailers and restaurants, are also expected to gain more consumers' interest in the 2021 holiday shopping season.