Holiday Spending 2025: Why Gift Cards Are the Smartest Choice for Shoppers

Every holiday season brings pressure for retailers, but this year the stakes are different. Shoppers are cautious due to inflation and economic uncertainty—yet they aren’t pulling back entirely. A new survey from Blackhawk Network (BHN) reveals that 60% of consumers plan to spend the same or more than last year, but with one key shift: spending is becoming more deliberate, more digital, and more value-focused.

Shoppers Are Spending Smarter

While 78% of consumers say they are worried about the economy, they remain committed to celebrating the holidays. Instead of cutting gifting, many are reducing spending on essentials to protect holiday budgets. Nearly half of shoppers say gifts for family and children are non-negotiable, showing that generosity still matters despite tighter wallets.

Consumers are leaning into deal-seeking behaviors such as buying on sale (63%), choosing store brands (52%), and using coupons (36%). A growing tactic is stored value—gift cards, loyalty rewards, and digital wallets—which help households stay on budget.

Gift Cards: A Practical and Resilient Choice

Gift cards have evolved from last-minute add-ons to purposeful, value-driven purchases. Nearly one-third of consumers now buy gift cards for themselves as a tool for budgeting and planning everyday expenses. For gifting, cards provide flexibility—recipients can choose what they truly want, when they want it.

BHN data shows gift card spending is up across entertainment, electronics, toys, travel, and fashion categories. In today’s climate, gift cards deliver three clear benefits:

• Recipients gain choice and control
• Shoppers manage generosity within their means
• Retailers secure immediate revenue and future foot traffic

Retailer Strategies for the Season

• To maximize gift card demand, retailers should act early:
• Launch Promotions Early: Shoppers are starting holiday shopping in October. Offers like “buy $50, get $10” lock in early sales.
• Bundle and Cross-Sell: Pair gift cards with seasonal items such as school supplies, holiday décor, or meal kits to drive bigger baskets.
• Go Digital and AI-Powered: Enhance mobile apps and online platforms with instant digital gifting, text-based delivery, and AI-powered search to personalize gift suggestions.

Holiday shoppers may be cautious, but they’re not retreating. Gift cards stand out as resilient tools that balance consumer value with retailer growth. By leaning into promotions, digital convenience, and loyalty-driven offers, retailers can turn this challenging season into a long-term win.