Post-holiday shopping reached new peaks in January as a flurry of gift cards descended in December. Retailers that positioned themselves well for the sales surge have been reaping its rewards, launching into 2022 with a hearty slice of the holiday shopping pie.
COVID-19 and now, the omicron variant, continues to affect many facets of our lives, including how we shop. Discover the factors that are fueling post-holiday spend and learn how to continue capitalizing on the opportunity it provides.
Supply chain pains push people to purchase gift cards
Major issues in the international supply chain erupted with the arrival of the pandemic as factories closed and transportation routes were disrupted. The supply chain crisis has continued ever since, exacerbated by worker shortages and record-setting bottlenecks at American ports. Empty store shelves, out-of-stock items, and shipping delays have become much more common. To avoid these hassles during the holiday season, many Americans filled their stockings with gift cards instead of physical presents.
Gift cards fill the gap & boost post-holiday shopping
The popularity of giving gift cards for the holidays has been growing for years, but the trend skyrocketed in 2021 with an estimated 27% increase in gift card sales during the holiday season.
With a blizzard of new gift cards in circulation, retailers saw increased spending in January. These gift card shoppers end up spending 40% more than the value of their gift cards (an average of $59) during their post-holiday shopping sprees. This effectively extended the traditional holiday shopping season, which no longer ends at Christmas but carries on well into the New Year.
How Cardlytics partners can make the most of gift card trends
The beginning of the year has historically been a slow season for marketing campaigns. But our insights show this is no longer the case. January is not the time to ramp down advertising budgets. Here’s why:
- Retailers that do not run holiday gift card promotions miss out on 37% of annual sales volume.
- Gift cards sales take advantage of “payment shift,” avoiding credit card fees by driving sales onto gift cards.
For retailers that want to leverage this new holiday shopping trend
s, connecting with shoppers is essential—and a partnership with Cardlytics makes it easy. Our native ad platform works within banks’ digital channels, providing brands with consumer purchase data for precise, personalized targeting. Such unparalleled insight on buying behavior drives powerful marketing results, whether you want to attract new shoppers, engage your existing fans, or improve customer retention. Contact us today to learn how Cardlytics can help you meet your 2022 marketing goals.