United Kingdom Gift Card and Incentive Card Market Report 2024: Strategic Partnerships and Promotional Initiatives from Major Retailers Like Marks & Spencer and Tesco Spurs Growth - Forecast to 2028 - ResearchAndMarkets.com

The "United Kingdom Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.

The gift card industry in the region is expected to grow by 7.7% on annual basis to reach US$10.8 billion in 2024. The gift card industry in United Kingdom will continue to grow over the forecast period and is expected to record a CAGR of 6.0% during 2024-2028. Gift card market in the country will increase from US$10.1 billion in 2023 to reach US$13.7 billion by 2028.

This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.

The UK gift card sector is experiencing significant growth and innovation, driven by strategic partnerships and promotional initiatives from major retailers like Marks & Spencer and Tesco. Regulatory measures ensure consumer protection through clear terms, manageable expiry conditions, a cooling-off period for online purchases, and guidelines for lost or stolen cards. This evolving landscape underscores the sector's commitment to enhancing customer experience and adapting to market demands.

Key Developments in the Gift Card Sector in the United Kingdom

Numerous important product launches in the gift card sector have recently occurred in the United Kingdom, reflecting the growing demand and innovation within the market.

Product Launches and Innovations

Marks & Spencer and Runa Partnership: Marks & Spencer reported a significant increase in gift card revenue, attributed to its partnership with Runa, a digital value payments infrastructure provider. This collaboration has enabled Marks & Spencer to streamline its ordering process and expand its customer base, resulting in a 245% surge in gift card revenue in 2023.

Tesco's Christmas Gift Card Initiative: As part of its efforts to support customers amid the cost-of-living crisis, Tesco launched a promotional campaign offering £1 million in gift cards to Clubcard members. This initiative included a contest where customers could win vouchers to cover holiday shopping expenses, enhancing customer engagement and driving store traffic.

Strategic Partnerships

Marks & Spencer and Runa Partnership: Marks & Spencer reported a significant increase in gift card revenue, attributed to its partnership with Runa, a digital value payments infrastructure provider. This collaboration has enabled Marks & Spencer to streamline its ordering process and expand its customer base, resulting in a 245% surge in gift card revenue in 2023.

Pandora's B2B Gift Card Program: In late 2023, Pandora launched a digital gift card program specifically for corporate gifting, collaborating with InComm Payments. This initiative allows businesses to purchase gift cards for employees or clients, available exclusively through the InComm Connect B2B platform, with values ranging from £20 to £200.

Regulatory Changes

Consumer Protection Regulations: The UK continues to enforce consumer protection laws that govern the sale and use of gift cards. Businesses are required to provide clear terms and conditions (T&Cs) for gift cards, which must be easily accessible to consumers. This includes information on how the gift card can be redeemed, its expiry date, and any limitations on its use. Ensuring clarity in T&Cs helps prevent disputes and protects consumer rights.

Expiry Dates: While there is no specific law mandating expiry dates for gift cards in the UK, retailers can set their own terms. However, these expiry conditions must be clearly communicated to consumers at the point of sale and on the gift card itself. If no expiry date is specified, the retailer may face claims for breach of contract if they refuse to accept the card after a reasonable period.

14-Day Cooling-Off Period: Consumers purchasing gift cards online are entitled to a 14-day cooling-off period during which they can cancel the purchase, provided the gift card has not been used. This policy aligns with broader consumer rights regulations in the UK, allowing consumers to change their minds about online purchases.

Liability for Lost or Stolen Cards: Under UK regulations, businesses are not required to refund lost or stolen gift cards. However, companies are encouraged to provide clear guidelines on how to handle such situations, which can enhance customer trust and satisfaction.

These regulatory measures reflect a commitment to protecting consumers in the gift card market, ensuring they have clear information and fair terms when purchasing and using gift cards in the UK.

Key Attributes:

Scope

United Kingdom Closed Loop Gift Card Market Share by Key Retailers

• Tesco Plc
• Associated British Foods Plc
• Next Plc
• J Sainsbury Plc
• Wal-Mart Stores Inc
• TJX Cos Inc, The
• Wm Morrison Supermakets Plc
• Amazon.com Inc

Total Spend on Gifts in United Kingdom

• By Consumer Segment (Retail and Corporate)
• By Product Categories (13 Segments)
• By Retail Sectors (7 Segments)

Gift Card Market Size by KPIs across Consumer Segments in United Kingdom

• Gross Load Value
• Transaction Value
• Unused Value
• Average Value Per Transaction
• Transaction Volume
• Average Value of Card Purchased
• Number of Cards

Gift Card Market Size by Consumer Segment in United Kingdom

• Retail Consumer
• Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)

Digital Gift Card Market Size in United Kingdom

• By Retail Consumer
• By Retail Purchase Occasion
• By Corporate Consumer
• By Corporate Purchase Occasion
• By Company Size

Gift Card Market Size by Retail Consumer in United Kingdom

• By Functional Attribute
• By Occasion
• Festivals & Special Celebration Days
• Milestone Celebration
• Self-Use
• Other
• Value by Purchase Channel

Gift Card Spend by Consumer Behavior and Demographics in United Kingdom

• Consumer Purchase Behaviour
• Gift Card Buyer by Age Group
• Gift Card Buyer by Income Level
• Gift Card Buyer by Gender

Gift Card Market Size by Corporate Consumer in United Kingdom

• By Functional Attribute
• By Occasion
• Employee Incentive
• Sales Incentive
• Consumer Incentive
• By Scale of Business

Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in United Kingdom

• Food & Beverage
• Health, Wellness & Beauty
• Apparel, Footwear & Accessories
• Books & Media Products
• Consumer Electronics
• Restaurants & Bars
• Toys, Kids, and Babies
• Jewelry
• Sporting Goods
• Home & Kitchen Accessories & Appliances
• Travel
• Entertainment & Gaming
• Other

Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in United Kingdom

• Ecommerce & Department Stores
• Restaurants & Bars
• Supermarket, Hypermarket, Convenience Store
• Entertainment & Gaming
• Specialty Stores
• Health & Wellness
• Travel

Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in United Kingdom

• Gift Card Online Sales
• Gift Card Offline Sales
• 1st Party Sales
• 3rd Party Sales
• Sales Uplift

For more information about this report visit https://www.researchandmarkets.com/r/ndiik4

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