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At Runa, we're monitoring industry trends to provide our customers and partners with relevant, actionable insights. The recent GCVA Consumer Report has offered a valuable perspective on the retail landscape and gift card trends shaping 2025.
The report paints a picture of cautious optimism, with retail spending growth projected to improve significantly. After a modest 1.6% growth to £450.9 billion in 2024, the forecast indicates a potential 2.9% increase in 2025. This significant jump is driven by several key factors and spending trends.
Here's what we learned from the GCVA consumer report:
Positive Economic Outlook Fuels Retail Growth:
After a modest 1.6% growth to £450.9 billion in 2024, the GCVA forecasts a robust 2.9% increase in retail spending for 2025. This positive outlook is attributed to strong wage growth observed in 2024 and a more stable inflation environment compared to recent peaks. However, the report acknowledges that this benefit won't be universally felt, with households facing increased mortgage payments likely to experience financial strain.
Grocery Sector Leads the Charge:
The food and grocery market is expected to be a key driver of this growth, with a projected 4.1% increase to £202.4 billion. The report suggests a reduced inclination towards discount retailers, as mainstream grocers have successfully adapted by offering a wider price range, flexible purchasing options, and compelling loyalty programs.
Digital Gift Cards Continue Their Ascent:
The report highlights the continued dominance of digital gift cards. This trend underscores the growing consumer expectation for seamless cross-channel purchasing and redemption. A significant 53.8% of respondents now expect gift cards to be usable across all of a retailer's sales channels.
Multi-Store Gift Cards Gain Popularity:
Consumers are increasingly drawn to the flexibility offered by multi-store gift cards. The proportion of buyers opting for these cards rose to 39.5% in February 2025, compared to 34.7% in February 2024. This trend addresses consumer concerns about the perceived limitations of single-store gift cards.
Experience, Leisure, and Gaming Thrive:
Experience, leisure, and gaming gift cards have experienced strong performance. The demand for experience and leisure cards, encompassing activities like hotel stays, spa breaks, and dining, has surged, fueled by their perceived thoughtfulness and the planning of social activities and holidays, as well as valentine's day. Gaming gift cards have also seen a boost, likely driven by Christmas-related gaming hardware and software purchases, particularly for popular titles.
Supporting Local Businesses Through Gift Cards in The UK:
The report reveals a strong trend of consumers using gift cards to support local businesses. A remarkable 30.1% of respondents expressed their intent to purchase gift cards to support favored companies, more than triple the 13.1% recorded in February 2024. This indicates a growing awareness and desire to bolster local economies.
The GCVA consumer report provides valuable insights into the evolving retail and gift card landscape, highlighting key trends that will shape consumer behavior in 2025.
These insights provide practical, actionable strategies for platforms looking to optimize their rewards, incentives, and payouts. The accelerating shift towards digital gift cards underscores the necessity of robust digital delivery and management systems. Integrating multi-store gift card options can significantly enhance platform appeal by offering greater flexibility and choice to recipients. The strong performance of experience, leisure, and gaming gift cards presents an opportunity to diversify reward catalogs, catering to a wider range of preferences and maximizing engagement.
These trends highlight the importance of:
- Digital Excellence: Delivering instant, seamless payout experiences.
- Recipient-Centric Choice: Offering diverse payout, reward and incentive options, including multi-store and experiences, to maximize reward appeal.
- Universal Redemption: Ensuring effortless spending across all retailer channels or working with a partner like Runa who can assure this for you.
- Comprehensive Payout Access: Providing a wide range of retailer options, both global and local. This is made easier when you integrate with a provider who can give you access to thousands of options through a single integration.
You can read the full GCVA Consumer Report here.
