The holiday season is a magical time filled with family, friends, and the joy of giving. There’s nothing quite like the thrill of watching your loved ones light up as they unwrap their gifts. But finding the perfect present can be a daunting task, which is why many people turn to gift cards. They’re easy to pick out, convenient to send, and offer recipients the freedom to choose something they truly want.
According to a recent report from the National Retail Federation, gift cards consistently top consumers’ holiday wish lists. But where exactly is the strongest demand for these versatile gifts, and which types of gift cards are most favored? To uncover these insights, the Esri Data Development team crafted a comprehensive gift card demand map using its Market Potential Index (MPI) data covering all US census tracts. The MPI estimates the expected local consumption rate for gift cards in a census tract relative to the national average.
Additionally, to identify which types of gift cards are most sought after—including categories like coffee shops, discount stores, restaurants, and department stores— the team employed Esri’s ArcGIS Online predominant mapping technique. This feature allows for quick comparisons of multiple attributes to highlight areas of highest demand. For an added touch of holiday spirit, cities with festive, holiday-themed names were included on the map.
Join us as we unwrap the findings and explore where the greatest demand for gift cards lies!
What You Discover
Our analysis reveals some interesting trends in gift card preferences across the US. The map shows that dark green areas indicate a high demand for restaurant gift cards, particularly in the Northeast, where adults show a strong preference for dining experiences. Meanwhile, in the western part of the country, the demand for discount store gift cards reflects a practical approach to shopping.
Areas mapped in red indicates that no single category of gift cards dominates in terms of demand. These areas show similar Market Potential indices across gift card categories, indicating that the purchase rate measured relative to the US is comparable to each other. However, underlying purchase rates can vary significantly.
Festive Facts about Holiday Named Cities
We can’t help but spotlight a couple of the holiday-themed named cities featured on the map. These towns for example, exhibit these gift card behaviors.
In Santa Claus, Indiana more than 14 percent of adults choose to purchase restaurant gift cards which yields an index of 139. This means consumers are 39 percent more likely to purchase these relative to the rate for the US. This indicates that consumers are more likely to enjoy a festive meal in the town named after the jolly man himself. The demand for coffee shop and department store gift cards is also above average in this town.
In North Pole, Alaska, more than 39 percent are more likely to purchase gift cards at discount stores. Like Santa Claus, Indiana, this represents an expected consumption rate significantly higher than the national average. This could indicate consumers are likely to stock up on essentials for those long cold winters.
Making the Most of Market Demand Data
Leveraging demand data, particularly related to gift cards, can significantly enhance marketing strategies—especially during the holidays. Gift card promotions not only generate immediate revenue at the point of sale, but they also encourage customers to spend beyond the card’s value. They also attract new clientele who may not have previously visited your store and promote repeat visits from loyal customers, fostering brand loyalty. Gift cards can even play a pivotal role in inventory management, enabling retailers to clear excess stock and promote seasonal products effectively.
Esri’s U.S. Market Potential data, updated annually, provides insights into consumer behaviors, preferences, and demand for thousands of products or services such as gift cards.
Interested in learning more about Esri’s Market Potential Data?
Check out the ‘Use and Interpret Market Potential Data’ Tutorial
Learn more about getting started with Esri’s demographic data
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