Annual Survey Shows Gift Card Spending Level to Increase This Holiday Season.LOUISVILLE, Ky. -- An annual survey of adult gift card purchasers and recipients recently conducted by Stored Value Systems (SVS SVS - OS/VS2 ), a national leader in electronic gift card programs, shows that consumers intend to spend an average of $248 on gift cards during the coming holiday season, an increase from $223 in 2004 and $183 in 2003. Additionally, the percentage of purchasers for whom a gift card is a planned purchase from the minute they make their list has jumped dramatically from 69% in 2004 to 84% in 2005. "The survey reinforces a trend we've seen over the last two years," Bob Skiba, SVS executive vice president and general manager, said. "We continue to see a larger number of buyers who intentionally choose a gift card to ensure the recipient gets something he or she would enjoy. And the convenience factor is not far behind." The annual survey, now in its third year, is a random national sampling of adults over 18 years of age and is conducted through telephone interviews. This year's findings also revealed that the percentage of those who use gift cards in the U.S. is remaining steady: 7 in 10 have either purchased or received a gift card, and of the 3 in 10 who have not, one-quarter say they are likely to make a first purchase this holiday season. These results are consistent with previous years' findings. Other key findings from the survey include: --On average, the number of cards purchased in the past year has increased from 4.5 in 2004 to 6.5 in 2005. --The number one occasion for gift card purchases is birthdays (81%) and, second, the winter holidays (67%), which include Christmas, Kwanza and Hanukah. --The average value of gift cards purchased in the past year is $40, a fairly steady level for the past three years. --The importance of the appearance of the card saw an 11% increase. --Among those who have received gift cards, almost three-quarters use their cards up completely. Those who don't leave "a few pennies on it." More than 8 in 10 discard it when its value is depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d . --One-third of gift card recipients redeem the entire value of the card within one month of receipt. All but about 6% have redeemed it after one year. --Department stores, restaurants and clothing stores are the preferred places to receive gift cards. Editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : A copy of the survey highlights as well as graphs showing three key findings are available electronically by contacting Deby K. Samuels at dsamuels@comdata.com. About Stored Value Systems Since introducing the first-ever magnetic-striped retail gift card to shoppers in 1995, Stored Value Systems, Inc. (SVS) is one of the world's leading providers of electronic gift cards and other card-based transaction programs. International retailers rely on SVS to create customer loyalty, increase sales and strengthen their competitive position in the retailer marketplace. Headquartered in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , SVS is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Comdata(R) Corporation. For more information, visit www.storedvalue.com. About Comdata Comdata(R) Corporation (www.comdata.com) is a leading business-to-business issuer and processor of payment cards, primarily in the retail and transportation industries. Comdata's range of products and services include fleet, fuel, purchasing, T&E, payroll/reimbursement, EBT EBT See: Earnings Before Taxes , gift and loyalty cards and processing. A full-service merchant processor, Comdata's platforms support both its proprietary card networks as well as processing for any card tender a merchant may accept. Headquartered in Brentwood, Tenn., Comdata employs more than 1,500 people nationally and internationally. Comdata is a wholly owned subsidiary of Minneapolis-based Ceridian Corporation (NYSE NYSE See: New York Stock Exchange : CEN CEN - Conseil Européen pour la Normalisation. A body coordinating standardisation activities in the EEC and EFTA countries. ). About Ceridian Ceridian Corporation (NYSE: CEN) is an information services See Information Systems. company serving businesses and employees in the United States, Canada and Europe. Ceridian is one of the top human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. outsourcing companies List of Outsourcing Firms<ref name="who" /> Revenue (USD) Logo Company Headquarters Country of Largest Employment Service $3300 million in each of its markets, and offers a broad range of human resource services, including payroll, benefits administration, tax compliance, HR information systems and employee advisory programs. Through its Comdata subsidiary, Ceridian is a major payment processor and issuer of credit cards, debit cards debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. and stored value cards, primarily for the trucking and retail industries in the United States. www.ceridian.com |
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