Gift Cards Top Holiday Wish Lists, With Total Spending Estimated at $31.74 Billion

Consumers want gift cards this holiday season, but are reluctant to ask for them, finds a survey from CashStar Inc., a Portland, Maine-based company that specializes in e-coupons and digital gift cards.

Meanwhile the National Retail Federation forecasts that consumers will spend $31.74 billion on gift cards this holiday season.

In the survey of 1,100 U.S. consumers, CashStar found that 60% said gift cards were on their wish lists this year. Those who said they felt guilty about asking for a gift card were 30%, for reasons such as they don’t like to ask for anything, it feels like asking for cash, and it doesn’t feel personal enough.

The survey also found that 55% prefer receiving gift cards rather than a physical gift.

The National Retail Federation survey found the average consumer will spend $172.74 to buy gift cards this holiday season, up from $163.16 in 2013. Total gift card spending is forecast to reach $31.74 billion.

The survey of more than 6,500 consumers also found that shoppers will spend an average of $47.87 per card, up from $45.16 last year.

Older consumers—65 years old or more—will spend the most on gift cards, at an average of $204.59. Younger consumers, between 18 and 24 years old, will spend the least, an average of $113.75, the NRF says.

Consumers look to specific merchant types for gift cards, with 37.7% of them planning to buy a gift card from a department store, and 34% buying one at a restaurant. Other popular gift card merchants are coffee shops, 20.6%; entertainment, 18.1%; and electronics, 18.9%. Consumers could choose more than one merchant type.

Most consumers—47.9%—plan to buy between one and four gift cards this holiday season.