Every holiday season feels important for retailers, but this year, the pressure is different. Shoppers are showing signs of caution in response to inflation and ongoing economic uncertainty, but they’re not pulling back completely. In fact, according to a recent survey by Blackhawk Network (BHN), 60% of consumers say they plan to spend the same or more this holiday season compared to last year. The shift retailers should focus on is how they will spend: more deliberate, more digital, and more value-focused.
Consumer spending isn’t frozen; it’s driven by prudence. Americans are being deliberate and discerning, choosing how and where to spend more strategically. Our research shows that more than one-third of consumers have already made or plan to make changes to how they shop due to the state of the economy. Many are turning to traditional deal-seeking behaviors such as buying on sale (63%), choosing store brands (52%), buying in bulk (36%), and using coupons (36%). One growing tactic is using stored value— including gift cards, loyalty rewards, and digital wallets—to stick to a budget.
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Gift cards aren’t just another item at checkout. They’re a resilient, multipurpose tool that helps shoppers manage spending and helps retailers drive revenue.
Shoppers are spending smarter, not necessarily less
While 78% of consumers say they’re concerned about inflation and the economy, they remain committed to celebrating the holidays meaningfully. But there is a catch: they are much more selective about where and how their dollars are spent.
Instead of cutting holiday gifting altogether, shoppers are trimming in other areas. 82% report planning to reduce spending on everyday essentials to protect their holiday budgets. Nearly half say family and children’s gifts remain non-negotiable. This shows that while budgets are constrained, generosity isn’t.
The gift card advantage in a value-driven market
Research shows a clear consumer shift: gift cards aren’t just last-minute purchases. They’re purposeful, value-driven choices. Nearly one-third of consumers now buy gift cards for personal use, viewing them as a practical way to budget, plan ahead, and manage everyday expenses.
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By GlobalDataThe same mindset applies to gifting. Gift cards create opportunities rather than limitations by allowing gift givers to contribute meaningfully to something their recipient truly wants from their favorite store or brand. A gift card creates excitement of being closer to owning something they have their heart set on. This approach empowers recipients, allowing them to decide exactly how and when to treat themselves.
Gift card purchasing data from BHN confirms that gift cards are resilient amidst economic slowdowns: spending on gift cards in the entertainment, electronics and toys, home, recreation and travel and fashion categories is up when compared to last year. In today’s economy, gift cards are a welcome and appreciated choice. They allow the recipient to delay spending until it’s needed, give the recipient control of product choice, and make generosity more manageable for the giver.
For retailers, that creates a win-win. Gift cards provide immediate revenue, will bring shoppers back through the door, and build stronger brand relationships. By offering flexible, value-conscious options, retailers position themselves as supportive partners during a challenging economy and help earn lasting customer loyalty.
Strategic moves for retailers this holiday season
Retailers hoping to capitalize on the resiliency of gift cards this holiday season should make a few moves now:
- Start Promotions Early and Often: Shoppers are extending their holiday shopping window into early fall—October has become the new December. Use gift cards strategically to lock in sales early, offering promotions such as “buy $50, get $10” or targeted bonus-card offers tied to pre-season shopping.
- Create Cross-Category Offers that Drive Loyalty: Pair gift cards with complementary seasonal merchandise—think school supplies bundled with gift cards for upcoming holiday purchases, or meal solutions paired with entertainment-focused gift cards. These cross-category promotions encourage larger baskets and future visits.
- Maximize Digital and Mobile Channels, Leverage AI Search: Enhance mobile apps and digital storefronts with frictionless gift card buying, instant gifting via text and messaging platforms, and AI-powered personalization. AI-powered search can also improve the shopper’s experience—rather than searching for a specific gift card or product, shoppers can simply search for something like “gifts for my mother-in-law who loves gardening,” etc. A seamless digital-first approach meets younger consumers exactly where they shop.
Act now to capture holiday resilience
Despite economic headwinds from inflation and cautious consumers, shoppers will still make the most of the holiday season. This year, look at gift cards as resilient instruments uniquely suited to today’s complex market dynamics. Retailers that recognize and act on this early will secure lasting wins, not just this holiday season but beyond.
About the Author: Brett Narlinger is Head of Global Commerce at Blackhawk Network, a global leader in branded payments and gift card solutions.
