National Use Your Gift Card Day

Don't let those gift cards go to waste — treat yourself to something special, try a new restaurant or shop.

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Activate dormant gift card balances by reminding consumers of unused cards and incentivizing redemption with limited-time bonus offers or complementary purchases.

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Find Your Forgotten Gift Cards: A 3-step guide to locating and redeeming unused holiday gift cards before expiration
Spend Smart This January: Retailers offer bonus rewards when you redeem gift cards on premium items
Gift Card Swap Party Ideas: Host a fun trading event with friends to exchange unwanted cards for retailers you actually love
The $1B Problem: How retailers are fighting gift card waste with redemption incentives and extended expiration dates

History

Most people don’t realize that retailers and online shops score big when they sell gift cards. And that’s because tons of them don’t actually get used!

Maybe they get lost in the shuffle of various cards and gifts that are exchanged, or maybe they have been tucked in a drawer and then forgotten about until they pass their expiration date. It is estimated that at least $1 billion gift cards go unused each year!

Falling just three weeks into the month of January, National Use Your Gift Card Day acts as a reminder to get out those gift cards left over from the winter holidays and redeem them for all kinds of cool stuff!

Many people spend a ton of time during November and December doing lots of shopping and gift giving for other people.

But now is the time to head out to that department store, shoe store, specialty gift store or online shop and have a heyday doing some shopping for yourself.

Sometimes people are gifted with cards that can be redeemed at restaurants, movie theaters or even a mini-golf place where they are meant to be used for entertainment.

National Use Your Gift Card Day is the perfect time to head on over to the bowling alley, Dave & Buster’s or The Olive Garden to redeem that generous gift card from Aunt Betty!

National Use Your Gift Card Day was started in 2020 by Tracy Tilson, who founded an LLC to support the movement. The event was established in collaboration with a number of retail companies.

How to celebrate

Use Those Gift Cards

The most obvious and ideal way to celebrate National Use Your Gift Card Day is to gather up those gift cards and use them. Maybe it’s a five dollar stocking-stuffer gift card to get a free cup of coffee at Starbucks. Or perhaps it’s a gift card for a bookstore where you can spend hours browsing and deciding which book to buy.

Host a Gift Card Swap

Some people who get gift cards are not fond of the places where their gift cards came from. National Use Your Gift Card Day could be a good time to gather a group of friends or coworkers for a gift card swapping party. Simply have everyone bring the gift cards they don’t want to use and then negotiate trades based on who prefers what retailers or restaurants. It’s a great way for everyone to leave with something they really want!

FAQ

How much gift card value goes unspent annually?

Consumers fail to redeem a significant amount of gift card value each year, with estimates ranging from $3 billion to over $29 billion. These discrepancies arise from different data collection methodologies across surveys and studies.

Why do gift cards pose a financial liability for retailers?

Unredeemed gift cards represent a liability on the balance sheets of retailers because they are prepaid by consumers but only translate into revenue when redeemed. Managing these liabilities is crucial for maintaining accurate financial reporting and optimizing cash flow.

What are common strategies used by retailers to encourage gift card usage?

Retailers often employ strategies such as targeted promotions, special discounts, and reminder campaigns to encourage spending of gift card values. These proactive measures not only drive redemption but also often lead to additional consumer spending beyond the card value.

Does using a gift card lead to additional consumer spending?

Using a gift card frequently results in additional spending, as consumers tend to purchase items exceeding the value of the card. This behavior increases average order values and benefits retailers by boosting sales.

How do seasonal shopping patterns affect gift card sales?

Gift card sales are highly seasonal, peaking during the holiday season as a popular gift choice. This pattern impacts retailers’ sales strategies and inventory planning significantly, with subsequent spikes in card redemption occurring shortly after the holidays.