Gift cards have become a popular gift-giving option in recent years. A gift card is a stored-value card, either in physical form like a plastic card or in digital form that can be used as an alternative to cash at a particular store or establishment. Gift cards are issued by retailers andother businesses as part of their marketing and promotional strategies. They provide options and flexibility to the recipient to choose their own items while locking them into spending the value at their store. This makes gift cards an effective way for businesses to build loyalty and increase sales.
The global gift card industry has seen substantial growth, with markets projected to reach a total value of over $2 trillion by 2027. Much of this growth has been driven by increased consumer preference for gift cards as easier, more personalized options compared to traditional gifts. Brick-and-mortar retailers have capitalized on this trend by prominently displaying gift card racks at checkout lanes and other high-traffic areas as an impulse purchase item. This article will explore the question: are gift cards commonly sold in brick-and-mortar retail stores?
Types of Gift Cards Sold in Stores
There are a few major types of gift cards commonly sold in retail stores:
Retailer Branded Gift Cards
The most popular type are retailer-branded gift cards that can only be used at the issuing retailer. For example, department stores like Macy’s and Target, big box retailers like Best Buy and Home Depot, and specialty retailers like GameStop all offer their own gift cards for use exclusively at their stores. The advantage for the retailer is it locks in future spending at their brand.
Restaurant Gift Cards
Many restaurant chains like Starbucks, Panera Bread, and Olive Garden sell their own branded gift cards usable at any of their locations. These are popular for food and beverage gifts.
Open-Loop Gift Cards
Open-loop or network branded gift cards like American Express, Visa, and Mastercard can be used anywhere that accepts those payment types, providing more flexibility. However, they tend to have purchase fees and other restrictions.
Gift Card Malls
Some retailers dedicate entire sections of their stores to gift cards, with card racks displaying hundreds of options for different brands, restaurants, experiences, and more. This “one-stop shop” format makes it easy for customers to purchase multiple types of gift cards without having to visit several stores.
Major Retailers Selling Gift Cards
Gift cards are sold at most major brick-and-mortar retailer chains in the United States. Here are some of the most prominent:
| Retailer | Details |
|---|---|
| Walmart | Walmart sells a very wide variety of retail, restaurant, and entertainment gift cards at their checkout lanes and customer service desks. |
| Target | Target has a large display of gift cards for sale at checkout and also offers online ordering of gift cards for in-store pickup. |
| Kroger | The Kroger family of grocery store chains sells retailer-branded and third-party gift cards in grocery sections. |
| CVS | CVS pharmacy stores sell gift cards for retailers, restaurants, travel, and more near their registers. |
| Rite Aid | Similar to CVS, Rite Aid pharmacies display a variety of gift card options for customers to purchase alongside other items. |
| 7-Eleven | 7-Eleven convenience stores sell gift cards for popular brands including gaming, dining, entertainment, and gas. |
| Sam’s Club | In addition to its own gift cards, Sam’s Club offers third-party gift cards to members with bulk purchase discounts. |
| Costco | Costco warehouses sell retailer-branded gift cards in bulk quantities at lower per-card prices. |
This table shows just a small sample of major national and regional chains that typically offer gift cards in their brick-and-mortar stores. Beyond these examples, most department stores, specialty retail stores, supermarkets, drug stores, convenience stores, wholesale clubs, malls, and more also sell gift cards to customers as common purchase items.
Gift Card Display Locations in Stores
Gift card displays are strategically located in high visibility and high traffic areas of stores to attract customer attention and impulse purchases. Some typical gift card display locations include:
Checkout Counters
The checkout line is one of the most common places for gift card displays. This takes advantage of customers having to stand in line with time to browse options and make last-minute purchase decisions. Stores will showcase gift cards in racks, on countertops, or hanging displays.
Customer Service Counters
Standalone customer service desks or counters also often have gift card selections as added convenience for shoppers already stopping there.
Store Entryways/Exit Doors
Gift card offerings may be displayed on racks or kiosks near the entrance or exit doors of retail locations to catch shoppers coming or going.
Special Gift Card Sections
Some stores designate a specific area or aisle just for gift cards, showcasing the full selection in one place rather than scattering displays throughout the store.
End Caps
Gift cards are frequently promoted through end cap displays at the ends of aisles, using the high visibility space to highlight specific options.
Electronics/Gaming Sections
Stores like Target and Walmart tend to place gift cards for gaming, electronics, and entertainment near relevant merchandise departments.
Holiday Displays
Gift card offerings and promotional signage are heavily incorporated into holiday displays for seasonal boosts in sales.
Benefits of Selling Gift Cards for Retailers
There are a number of beneficial reasons why most major retailers choose to sell gift cards in their brick-and-mortar stores:
Increased Revenue
Gift cards represent essentially guaranteed future revenue for the retailer when shoppers redeem the value, rather than cash that could be spent anywhere.
Customer Loyalty and Retention
By selling gift cards, retailers create loyalty and retention by giving cardholders reason to keep coming back and spending within their brand.
Brand Awareness
Third-party gift cards featuring other brands help increase overall brand awareness and partnerships for retailers.
Impulse Purchases
Gift card placement capitalizes on impulse buying behavior, with shoppers picking them up while waiting in line without initial intent.
Cost Effective Promotion
Gift cards allow retailers to run promotional campaigns and discounts without cutting into immediate bottom lines.
Gift Convenience
Shoppers appreciate the ease and convenience of grabbing gift cards without having to walk store aisles.
Reduced Hassles
Gift cards avoid hassles like returns or exchanges by putting purchasing power in the recipient’s hands.
Customization Options
Many retailers allow customization with personalized gift card messaging to increase perceived value.
Overall, gift cards are win-win for both shoppers looking for convenient gifting solutions, and retailers seeking ways to increase brand loyalty and revenue opportunities. Their popularity and widespread availability in brick-and-mortar stores reflects this powerful mutually beneficial dynamic.
Growth Trends for Retail Gift Cards
Recent industry trends point toward continuing growth and innovation when it comes to gift cards sold in retail stores:
Digital Gift Cards
Digital gift cards have risen in popularity due to their convenience and flexibility. Retailers are incorporating e-gifting into apps and online stores.
Customization
From personalized messages to custom designs, customers increasingly want to make gift cards their own. Retailers are expanding personalization options.
Experience Gifts
Gift cards for experiences like restaurants, travel, and entertainment are seeing strong interest over traditional retail cards.
Corporate Gifting
Businesses utilizie gift cards for customer loyalty programs, employee rewards, and marketing incentives.
Reloadable
Reloadable gift cards encourage ongoing engagement from customers by allowing them to add value instead of discarding.
Prepaid Cards
General purpose prepaid cards without retailer restrictions give flexibility like open-loop cards.
As gift cards become more digitized and customizable, and tie into experiences beyond just merchandise, retailers have major opportunities to take advantage by innovating their gift card strategies and offerings in-store.
Conclusion
In conclusion, gift cards have clearly become a staple purchase item sold at most major brick-and-mortar retailers. The overwhelming majority of department stores, supermarkets, drugstores, wholesale clubs, specialty shops, restaurants, and other chains display and sell gift cards in their physical locations. Strategic placement in high visibility spots targets impulse buying and supplementary purchases as customers wait in line or pass by. Retailers are increasingly embracing gift cards as a key sales and marketing tool due to the inherent benefits of driving loyalty, guaranteed future revenue, brand exposure, reduced hassles, and gift convenience for shoppers. Ongoing trends like digital and customizable cards, growth in experience gifts, and corporate gifting programs point to strengthening growth for retailers offering gift cards both in-store and online into the future. So the next time you visit your favorite chain retailer, look around and you will almost certainly spot gift card offerings throughout the store aimed at attracting your impulse purchase.
