TORONTO; Dec. 11, 2006 – Consumers are putting gift cards on their holiday wish lists and plan to spend more than a gift card's value when they redeem it, according to the findings of an Accenture (NYSE: ACN) survey of approximately 500 consumers in Canada. The survey found that gift cards are used widely. Almost three out of four respondents (62 percent) said they have given or received gift cards, with the majority of the gift cards being for apparel or entertainment such as books, movies and music. Half (50 percent) of respondents spend $26-$50 on a gift card, while approximately one-third (32 percent) spend $11-$25. The survey also found that the vast majority (96 percent) of consumers purchase gift cards at the issuing store, whereas only 8 percent purchase gift cards via the Internet and 3 percent buy them by telephone or mail order. One in five respondents (20 percent) said they spend more when buying a gift card than they would when buying a gift, and slightly more than half (51 percent) of respondents said they spend more than the value of the card when redeeming a gift card. Almost one-third of the respondents (29 percent) said they would prefer to receive a gift card than a gift, 27 percent said they have no preference between receiving a gift or a gift card and 11 percent said they would prefer to receive a gift than a gift card. "Gift cards provide retailers with an opportunity to capitalize on consumers' purchasing habits," said Janet Hoffman, managing director of Accenture's Retail practice in North America. "Retailers should look at Canada as a distinct consumer market and maximize on the gift card marketing opportunity to increase revenues." More than four out of five respondents (81 percent) said they like having design options for their gift cards, and one-third (33 percent) of respondents said they would be more likely to purchase a gift card if the retailer offered a variety of card designs. The most popular events for giving gift cards are birthdays, selected by 84 percent of respondents, with "thank you" gifts and Mother's Day a distant second and third, selected by 20 percent and 19 percent of respondents, respectively. More than half (58 percent) of respondents said they purchase gift cards when they don't know what else to buy, and 48 percent said that buying gift cards is more convenient than buying gifts. A greater number of men buy gift cards out of convenience than do women (63 percent vs. 53 percent). More than six in 10 respondents (62 percent) said they use gift cards to treat themselves to something they wouldn't normally buy. About one-quarter (24 percent) of respondents said they spend their gift cards in less than one month, whereas twice as many respondents (48 percent) said it takes them between one and three months to spend their gift cards. Two-thirds (66 percent) of respondents said they spend their gift cards on their first shopping visit. The growing popularity of gift cards has created a secondary market, where consumers can sell cards they don't want at a discount. However, less than one in five respondents (18 percent) said they knew they could buy pre-owned gift cards at a discount. Nearly three-quarters (72 percent) of respondents said that concerns over fraud would prevent them from purchasing a previously owned gift card from a source other than a known retailer. "Gift cards have the potential to change retail as much as online shopping has," said Hoffman. "Retailers need to understand the changes and be able to adapt to them -- whether that means how signage is placed, when new inventory is delivered, the design of the card, the number of sales people on the floor or the type of advertising and promotion planned during the year." Methodology
The Web-based survey of 498 Canadian consumers was fielded in October 2006. About Accenture
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills, and technologies to help clients improve their performance. With approximately 140,000 people in 48 countries, the company generated net revenues of US$16.65 billion for the fiscal year ended Aug. 31, 2006. Its home page is www.accenture.com. Contact:
Sarah Thompson
Accenture
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