The gift card market at Christmas

Insights gift card

Emilie

2/16/24

Unsurprisingly, Christmas remains the key moment of the year for gift cards. Many brands report record-breaking volumes, reaffirming that gift cards are still among the top three most popular gifts for French consumers. No longer a secondary product, the gift card is now a strategic lever—at once transactional, marketing-driven, and relational.

But the 2024 season revealed a subtle yet decisive shift. Faced with inflation, tighter budgets, and more deliberate purchasing behaviors, consumers are changing how they shop. More than ever, gift cards are chosen for their balance between pleasure and spending control. Increasingly, consumers use them as a way to give meaningfully—without overspending.

In this context, brands can no longer afford to manage gift cards based on instinct alone. A more sophisticated, segmented, and performance-driven approach is now essential.

French E-Commerce at Christmas 2024: Key Insights

In 2024, French consumers spent an average of €414 on Christmas gifts—a slight drop of €12 compared to 2023—while maintaining a stable average of seven gifts per person. The overall picture remains mixed: despite ongoing economic pressure, purchase intent increased, signaling growing consumer confidence.

Inflation continues to reshape shopping behavior, with consumers adopting more structured habits. Around 75% planned their holiday purchases in advance, with a significant portion concentrated around Black Friday. Unsurprisingly, digital channels dominated: 79% of French shoppers planned to buy online, yet 82% also intended to visit physical stores, underlining the resilience of brick-and-mortar retail in the shopping journey.

Price remains a key consideration for 39% of consumers, while price comparison is now a reflex for nearly everyone.

Amazon remains the leading platform, with over 52% of shoppers intending to buy Christmas gifts there. In-store, E.Leclerc and Cultura remain among the most popular retailers.

Black Friday continues to be a central driver of holiday sales: nearly 66% of French consumers took advantage of the event, rising to 83% among those under 35.

A variety of strategies were used to optimize gift budgets. In 2024, nearly half of French consumers planned to use cashback offers, gift cards, or second-hand purchases. One in two even intended to gift a refurbished or pre-owned product, signaling a lasting shift toward responsible consumption.

Flexible payment options are also becoming more mainstream: 26% are considering installment payments, while 11% would consider taking out credit to finance their holiday spending.

Despite this level of planning, last-minute shopping remains a constant. One in ten French shoppers still buys gifts at the last minute—a figure that climbs among those under 35, typically due to lack of time or inspiration. This behavior continues to be a structural trait of French holiday consumption.

Christmas 2024 in the UK: Moderate Recovery and Digital Acceleration

The UK retail market saw a modest recovery in Christmas 2024, with +2.3% growth in retail sales over the seven weeks leading up to December 20th, driven by a strong +6.1% surge in e-commerce. Digital now accounts for nearly 30% of total Christmas spending. The average household gift budget reached £352, buoyed by rising disposable income.

Black Friday played a pivotal role, with 54% of consumers shopping early, spreading their purchases across November. Electronics, home goods, and toys performed well, while apparel declined—impacted by an unseasonably warm autumn.

Price remains a primary driver of purchasing decisions. Online comparison tools, click & collect, and second-hand gifting continued to grow, especially among younger shoppers. In fact, about one in three Britons gifted a second-hand item in 2024.

Amazon continues to dominate online, but omnichannel retailers like John Lewis and Argos gained share thanks to effective hybrid strategies. In physical retail, customer experience fueled foot traffic in major shopping centers—particularly during the final weekend before Christmas.

In summary, the UK market confirms three key trends:

The rise of digital commerce
The strategic importance of November promotions
The emergence of a more selective, value-driven consumer, increasingly focused on services and utility

Christmas 2024 in the United States: A Record Season Driven by Digital and Opportunistic Shopping

The 2024 holiday season set new records in the United States, with retail sales rising by +3.8% year-over-year. Growth was led by e-commerce, which surged +6.7%, totaling over $240 billion during the holiday period. Mobile dominated the digital landscape, with 54.5% of online purchases made via smartphones.

Consumers balanced early planning (fueled by October events like Amazon’s Prime Big Deal Days) with last-minute shopping—10% of total holiday spend occurred in the five days leading up to Christmas. The use of Buy Now Pay Later (BNPL) solutions skyrocketed, reaching $18.2 billion, a historic high.

Most product categories saw moderate growth:

Apparel: +3.6%
Jewelry: +4.0%
Electronics: +3.7%
Notably, gift cards gained traction, with more than half of households choosing to offer them.

Buoyed by strong employment and wage growth, the average holiday budget hit $902 per person. Still, consumers made conscious trade-offs:

68% bought second-hand items,
many opted for group gifting or homemade presents.

Amazon maintained its dominant position, but omnichannel retailers like Walmart and Target performed strongly thanks to click & collect and fast delivery options. Newcomers like TikTok Shop and Temu gained ground in the low-price gift segment, though they didn’t overtake established players.

Ultimately, customer experience proved decisive: flexible pickup options, AI-powered personalization, and practical services won over consumers seeking value, convenience, and a touch of magic. The biggest winners were the brands that managed to blend technology with holiday spirit.

Christmas 2024 in Italy: Tradition, Caution, and Omnichannel Progress

Despite ongoing economic fragility, Italians embraced the festive spirit. Roughly 80% planned to buy gifts (+6 pts vs. 2023), with an average spend of €207 per person. While the season remained modest, it was stable—driven by food & wine, toys, books, and beauty products.

Black Friday played a major role, with over half of consumers shopping in late November, smoothing out December’s typical peak. While around 10% made all purchases online, the dominant model remained hybrid: 63% combined online and offline channels.

Marketplaces like Amazon.it, Zalando, and eBay led digital sales, while local retailers adapted via WhatsApp, Google Shopping, and Facebook.

After years of inflation, Italian consumers adjusted their habits:

Prioritizing quality, usefulness, and durability
Showing less interest in second-hand goods, which still lack cultural appeal
Relying on the “tredicesima” (13th month salary) to finance gifts

Notably, 63% contributed to charitable initiatives, highlighting a growing sense of responsible consumption.

On the experiential side, Italians remain deeply attached to the emotion of the holidays—from Christmas markets to family shopping rituals. At the same time, they increasingly appreciate digital services: wishlists, reliable delivery, and mobile-first experiences. Younger generations are accelerating e-commerce and innovation adoption, while Boomers remain loyal to neighborhood shops.

Christmas 2024 in Germany: Caution, Uncertainty, and a Return to Essentials

Germany’s 2024 holiday season was marked by extreme prudence. While nominal retail sales increased by +1.3%, the market was virtually flat in volume, with an average gift budget of €297 per person. 24% of Germans actively reduced spending—reflecting ongoing tension despite a slight rebound in purchasing power.

E-commerce declined by –4.2%, confirming a negative trend that began in 2023. Consumers largely ignored Black Friday promotions, preferring everyday low prices over impulsive deals. Only select categories held up—children’s toys rose by +2.7%, while fashion and electronics declined sharply.

In response to persistent inflation—especially on groceries—households made clear budget trade-offs:

Prioritizing practical gifts, vouchers, promotions, and discounts

Marketplaces like Amazon and Otto captured most online sales, to the detriment of independent retailers and legacy brands. 53% of non-food retailers expected a worse season than 2023.

Despite this, the cultural connection to Christmas markets and family traditions remained strong. Still, overall spending was held back by a sense of general uncertainty.
Consumers—while financially solvent—chose caution. Seniors were the most generous, while young adults imposed tighter limits on their budgets.

Gift Cards at Christmas 2024: A Strategic Engine, Not Just a Product

The Consumer Gift Card Channel

Gift cards remained one of the most popular gift choices among French consumers in Christmas 2024. Adoption of e-gift cards continues to grow, with over 16% of consumers choosing digital formats.

A Seasonal Staple

Christmas accounted for 39% of annual gift card sales in 2024. A significant portion of this volume was concentrated in the final days of the season—46% of December sales occurred in the last week, with the digital gift card dominating these late purchases.

Fast, mobile-friendly, and easy to personalize, the e-gift card has become the go-to option for last-minute shoppers. In some retail sectors, it now accounts for nearly half of December sales. Sitting at the crossroads of logistical efficiency and emotional urgency, it ticks all the boxes for procrastinators—provided it’s well-promoted.

This concentration confirms a deeply ingrained seasonal use case. But while the reflex remains, average basket values are changing:
The average Christmas gift card value dropped to €68, compared to €100 for the rest of the year.
This decline reflects a shift toward budget-conscious gifting—more recipients per euro spent. As a result, brands must go beyond face value and track the incremental revenue generated during redemption.

Top 3 gift card sectors by sales volume:

Consumer electronics
Food, beverage & dining
Travel & tourism

Gift Cards as a Trigger for Upsell

Data shows that 49% of activated gift cards led to an additional payment, averaging €66. In some verticals, this supplemental spend exceeds 150% of the card’s original value.

This proves that gift cards aren’t just redeemed—they’re a catalyst for higher-value purchases. Consumers often use the gift card as a springboard to buy better, more aspirational products they wouldn’t purchase otherwise.

Black Friday: The First Sales Peak

Black Friday played a pivotal role once again. In verticals like home goods, cosmetics, sports, and baby products, up to 37% of gift card sales for November occurred during Black Friday week.

These purchases are primarily intended as Christmas gifts, creating a post-holiday redemption cycle that drives January revenue.
In 2025, this trend is expected to intensify, with Black Friday extending throughout November, and Cyber Monday falling late—on December 1st.

Underleveraged Marketing Potential

A concerning signal: marketing campaigns specifically promoting gift cards remain rare, yet their impact is significant.

Brands that integrate gift cards into their promotional strategies—especially in luxury and home decor—see significantly higher upsell rates, with average additional spend reaching €210.

In these cases, the gift card becomes more than a medium—it’s a tool for premium positioning. It allows people to offer more for the same budget, or even indulge in self-gifting, all while feeling like they’ve scored a good deal.

The Corporate Gift Card Channel

On the B2B side, direct gift card sales to businesses remain underexploited.
Despite representing 24% of annual volume at Christmas—with a peak during the last two weeks of November—this channel lacks structural maturity.

The average corporate order is around €9,000, with an average card value of €90. Volumes saw a slight decline this year.

Yet given the favorable URSSAF framework, tax incentives, and the recurring needs of CSEs and HR departments, this channel should be a strategic pillar.

Currently, few brands have:

A dedicated B2B purchase flow
A clear, scalable offer
Automated follow-up and nurturing sequences

This lack of infrastructure limits growth, despite the high accessibility of the opportunity.

Third-Party Distribution: High Leverage, High Risk

Finally, distribution through third-party platforms—CSE networks, loyalty programs, and reward portals—accounted for 42% of total gift card sales during the holiday season.

This channel offers strong leverage but is highly sensitive to execution.

Poor placement, outdated visuals, lack of personalization, or missing e-cards in the last-minute catalog can result in missed conversions.
On the other hand, brands that:

Keep assets fresh
Integrate cards into mobile wallets
Manage post-distribution reactivation campaigns

… consistently deliver high performance, with complementary payment rates above 50%.

A Full-Fledged Infrastructure, Not a Secondary Product

Christmas 2024 confirmed that the gift card is no longer just a product. It’s a multi-functional infrastructure—marketing, emotional, and transactional—that acts at every stage of the customer lifecycle: