The Gift Voucher Shop (GVS), the company behind the One4all multi-store gift card brand, has reported record growth of 33.2% in redemptions in 2016, as consumers spent more on travel, phones and electrical items during the year.
In total, €114 million of GVS vouchers were redeemed in 2016 compared to €85.8 million in 2015. In December the value of redemptions rose to €35 million from €27.9 million in the same month a year ago.
More than double the value of redemptions was spent on travel in 2016 compared to 2015, with the value of redemptions increasing by 42% in the hotel and spas sector. The trend of increased redemptions continued in 2017, with February showing a 16% year-on-year increase.
The rise in redemptions is due to the overall sales growth of 21%, One4all recently reported, which the company has attributed to a range of factors. These include a heightened awareness of the BIK scheme that is now at €500, the addition of a number of high profile retailers to its already large network, an improved online purchasing process and wider distribution of sales outlets for the gift card.
The second-half of 2016 saw a weakening in consumer sentiment and the trend of online shopping continued to grow. This is in contrast to the record rise in redemption figures in the first months of 2017.
Commenting on the figures, Michael Dawson, CEO and founder of One4all, said: “It has been a record year for One4all, which has been helped by the increasing breadth and scope of our retail offering. As the longest established omni-channel gift card provider in the country, One4all is delighted to see an increase in trade for retailers and another rise in corporate sales.
“This is a great boost for retailers, particularly in the SME sector, as consumer sentiment weakened in the second-half of 2016 and more people moved to online shopping. Gift cards promote shopping locally and encourage spending. This is clearly a welcome for many of our retailers,” he added.
“It’s also clear from the statistics that there has been a change in consumer spending habits, with more people opting to spend their rewards on holidays and hotels and luxury spas. This shows a growing confidence in the outlook of the consumer,” Dawson concluded.
© 2017 - Checkout Magazine by Donncha Mac Cóil
