117% Increase in Online Sales as Physical Cards Decline
- Online gift card and e-voucher sales increased by 117% year-on-year in H2 2020
- B2C saw a 34% growth, B2B grew by 292%
- Market share for digital products doubled to 32.5%
- Sales in other channels declined during the pandemic
- Direct sales dropped significantly for retailers and leisure operators
- Leisure operators faced a 74% decline in B2B direct sales
- Store-specific gift cards now account for 60.4% of market share
- Over 50% of shoppers redeem gift cards within a month, 98.6% within a year
- Gift card industry worth £7bn in the UK
- Opportunity for retail and leisure businesses to grow
- Digital gifting popular among Gen Z due to tech passion and gaming
According to the Gift Card & Voucher Association (GCVA) and KPMG UK, online gift card and e-voucher sales surged by 117% during H2 2020 due to Covid restrictions. Both B2C and B2B sectors experienced growth, with B2B seeing a 292% increase year on year. The digital market share doubled to 32.5%, while other sales channels declined. Retailers and leisure operators faced significant drops in direct sales, particularly leisure operators with a 74% decline in B2B sales. Store-specific gift cards now make up 60.4% of the market. Redemption rates remain high: over 50% within a month, 98.6% within a year. The £7bn UK industry offers growth opportunities for retail and leisure businesses.
Factuality Level: 9
Factuality Justification: The article provides accurate information from reliable sources (GCVA and KPMG UK), presents data in a clear manner, and includes relevant quotes from experts in the field. It does not contain any misleading or sensationalist statements, nor does it include personal opinions presented as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about the increase in online sales of gift cards and e-vouchers during the pandemic, as well as insights into market trends and consumer behavior. It also includes expert opinions from industry professionals. However, it could benefit from more analysis or discussion on potential long-term implications or consequences of these changes.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the growth of online sales of gift cards and e-vouchers during the pandemic, impacting retailers, leisure operators, and the wider economy.
Financial Rating Justification: The article highlights the increase in online gift card and voucher sales during the pandemic, which has affected various businesses and industries such as retail and leisure. This impacts financial markets as it reflects consumer behavior and spending trends.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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