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Gift Card Trends And Statistics

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Page 1: Gift Card Trends And Statistics

© Fifth Third Bank All Rights Reserved

Your Processing Needs,Our Experience,

One Powerful Partnership.

Gift Card ProgramGift Card Program

Page 2: Gift Card Trends And Statistics

© Fifth Third Bank All Rights Reserved

It is estimated that there will be 2.6 Billion Gift Cards in market by 2007

Load Volume is estimated to be approximately $137 Billion by 2007

Gift Card Represented over 10% of all holiday sales in 2005

* Now Boosting Sales In January and February

Gift Card Trends and StatisticsGift Card Trends and Statistics

Page 3: Gift Card Trends And Statistics

© Fifth Third Bank All Rights Reserved

Have you ever used any of the following types Have you ever used any of the following types

of plastic cards?*of plastic cards?* 87%

39%

67%

48%

59%

46%

62%59%63%

83%

57%

33%

44%

19%

61%

27%

7%6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Retail GiftCard

PrepaidPhone Card

Debit Cards ATM Credit Cards MembershipCards

LoyaltyCards

RestaurantGift Card

PrepaidCellularCard

Smart Cards

2005 2001

Gift Card Trends and StatisticsGift Card Trends and Statistics

* Data Received from MT&L National Consumer Survey, 2006

Page 4: Gift Card Trends And Statistics

© Fifth Third Bank All Rights Reserved

Gift Cards Trends and StatisticsGift Cards Trends and Statistics

Percentage of consumers who spend more than the face value of the gift card:

• Age, 18-24 yrs. = 51%• Age, 25-34 yrs. = 71%• Age, 35-44 yrs. = 60%• Age, 45-54 yrs. = 59%• Age, 55-64 yrs. = 53%

Page 5: Gift Card Trends And Statistics

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Gift Card Trends and StatisticsGift Card Trends and Statistics

Consumers reported spending an additional $18.37 over the face value of the gift card

• Age, 18-24 yrs. = $14.39• Age, 25-34 yrs. = $17.58• Age, 35-44 yrs. = $24.73• Age, 45-54 yrs. = $17.80• Age, 55-64 yrs. = $15.52

Page 6: Gift Card Trends And Statistics

© Fifth Third Bank All Rights Reserved

Gift Card Trends and StatisticsGift Card Trends and Statistics

Although most gift card holders spend the value of the card within one month, Breakage is still a major value factorHow long do you have a gift card

before you use it?

Less than 1 month

47%

1 –2 months 32%

3 – 6 months 15%

6 – 12 months 4%

Over 12 months 2%

Page 7: Gift Card Trends And Statistics

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Gift Card Trends and StatisticsGift Card Trends and Statistics The majority of people (87%) spend the entire value of a gift card before discarding it. In

2001 93%.

The remainder say that “there’s very little value left on it” when they discard it without exhausting its value.

(By the time these people throw it out, there’s less than $2 left on the card, on average)

Page 8: Gift Card Trends And Statistics

© Fifth Third Bank All Rights Reserved

Gift Card Trends and StatisticsGift Card Trends and Statistics

For what type of occasions have you given someone a retail gift card?

84%

86%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Valentine's Day

Easter

Other

For college

Father's Day

Mother's Day

Graduation

Baby Shower

Wedding present

Christmas

Someone's birthday

2005 2001

Page 9: Gift Card Trends And Statistics

© Fifth Third Bank All Rights Reserved

Fifth Third’s Five Differentiators• One Stop Shop for all payment

processing

• Best in class customer service and relationship management

• Our back office reporting tools are the most sophisticated, robust and flexible in the industry

• Continued investment in the gift card product

• Experienced Fifth Third team dedicated to the growth and success of the merchant’s gift card program

Why Merchants are Choosing Why Merchants are Choosing 5/35/3

Page 10: Gift Card Trends And Statistics

© Fifth Third Bank All Rights Reserved

Some of Our Partners...Some of Our Partners...

AutoZone Buehler’s Supermarket Big Y Foods Bob Evans Cardinal Health Carrows Coco’s Bakery

Restaurant Coffee Bean & Tea Leaf Damon’s Grill Dean & Deluca Dollar General Eat’n Park First Watch Frisch’s Big Boy Gold Star Chili

AutoZone Buehler’s Supermarket Big Y Foods Bob Evans Cardinal Health Carrows Coco’s Bakery

Restaurant Coffee Bean & Tea Leaf Damon’s Grill Dean & Deluca Dollar General Eat’n Park First Watch Frisch’s Big Boy Gold Star Chili

Graeter’s Harley-Davidson Heinen’s Fine Foods Hobby Lobby In-n-Out Burger LaRosa’s Pizzeria Mapco Express Rainbow Apparel Roche Brothers Sally Beauty Skechers Skyline Chili Steak ‘n Shake The Fresh Market Thorntons

Graeter’s Harley-Davidson Heinen’s Fine Foods Hobby Lobby In-n-Out Burger LaRosa’s Pizzeria Mapco Express Rainbow Apparel Roche Brothers Sally Beauty Skechers Skyline Chili Steak ‘n Shake The Fresh Market Thorntons