Indian retailers are expecting strong gift card sales to finish the year, which they hope will offset declining foot traffic at stores. Gift card sales already have been strong this year. A recent study points to a 145 percent growth over the past year. Uplift from gift cards are especially important to retailers, according to the study:
Retailers are keen on gift cards owing to the significant increase in average uplift. Uplift is the amount spent by an individual over the card value. The average uplift is currently at 150 percent, with giftees spending at least 70 percent more than the gift card value.
The popularity of gift cards among consumers also causes company to use gift cards more for their incentives programs.
The study notes that all leading brands, across categories such as apparel, luxury accessories, food and beverage, cinema are adding new variants to their gift card offerings.
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