Happy Midweek, !

This week we dive into the liquor store boom, leaving a huge demand opportunity for gift card retailers to tap into.

We also delve into gift card scamming issues, which the FTC is still struggling to regulate.

In seasonal insights, Mother’s Day keeps a sustained rise in gift card spending with an average spend per person of $24 in 2024 .

— Consumer 150 Team

The Liquor Boom Continues

Americans are spending more than ever at beer, wine, and liquor stores, with retail sales nearly tripling since 2000. The biggest spike? 2020, when consumers stocked up during lockdowns—and the trend hasn’t slowed down since. Whether it’s premiumization, at-home mixology, or just inflation doing its thing, one thing is clear: alcohol retail is a high-growth category.

Gift Card Tip for Retailers:
Tap into this demand by offering themed gift cards for craft beer lovers, wine enthusiasts, or cocktail connoisseurs. Limited-time promotions (like “Holiday Spirits” or “Summer Sips” gift cards) can drive seasonal sales and encourage repeat purchases. Bonus: digital gift cards make last-minute gifting easier—because nothing says "I forgot to buy a present" like an e-gift card for whiskey.

Seasonal Insights: Mother’s Day Spending on Gift Cards Keeps Climbing

Mother’s Day gift card spending in the U.S. continues its steady upward trend, with average per-person expenditures increasing nearly 100% since 2009. Consumers spent $24 per person in 2024, slightly down from the peak of $26 in 2023, but still significantly higher than pre-pandemic levels. The consistent growth—averaging 4% annually, signals that gift cards remain a top choice for consumers looking for convenient, flexible gifting options.

This sustained rise presents a major opportunity for businesses looking to capture a larger share of the market. With digital gift cards gaining popularity, brands can drive engagement through seamless e-gifting options, personalized messaging, and loyalty integrations. The data shows that even in uncertain economic climates, consumers are willing to spend on thoughtful, easy-to-redeem gifts, making gift cards an essential revenue driver.

For retailers and software providers, the focus should be on enhancing the user experience, from mobile-friendly purchases to automated delivery and redemption. With demand peaking around key holidays, businesses that streamline their gift card offerings will capture more sales and boost brand loyalty. 

Case studies: Subtle suggestion driving engagement

James Allen nailed the art of subtle suggestion with this brilliant gift card campaign! By encouraging users to “drop a hint” about their dream engagement ring, the brand gamified the shopping experience while making proposals easier (and way less stressful). 

The incentive? A $2,500 gift card, turning the hint-droppers into potential buyers and keeping engagement high. With just three simple steps, customers seamlessly interacted with the brand while nudging their partners toward the perfect ring. 

This campaign wasn’t just about winning a gift card, it was about creating the ultimate engagement experience with a touch of fun and zero guesswork!

Gift Cards: Scammers’ Favorite Currency

Gift cards aren’t just for last-minute holiday shoppers—they’re also a top choice for scammers. According to the FTC, fraudsters stole $124M using gift cards in just the first nine months of 2020, with Target, Google Play, and Apple gift cards being the most exploited.

Despite efforts to crack down on these schemes, scammers keep finding new ways to trick consumers. The FTC is pushing for stronger protections, but until regulations catch up, one rule stands: If someone asks you to pay with a gift card, it’s a scam.

Tip for Retailers: Train employees to spot red flags, such as customers buying large amounts of gift cards under pressure. Display clear warnings at checkout and online, and provide an easy way for victims to report fraud. Retailers can also work directly with law enforcement and the FTC to help track suspicious transactions and limit fraudulent activity.

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