The take-up of gift cards and vouchers looks to have become a growing driver in retail sales, “continuing to outshine broader retail trends in the second half of 2024”.

That’s according to the latest research from, who else but the Gift Card & Voucher Association (GCVA) and KPMG UK. 
 
Data from GCVA’s members shows that in the last six months of 2024, gift card and voucher sales surged 11.39% on a like-for-like basis, marking the first double-digit growth since H1 2021.

Retailers saw an 11.3% uplift in gift card sales, with grocers leading the charge with the sector seeing sales soar 20.48%.

Physical gift cards remain popular particularly for festive gifting, with over half (54%) of consumer sales from retail stores and 22% from gift card malls, sales increasing 5.6% and 13.6%, respectively.  

Digital gift cards also hit a significant milestone. For the first time, they claimed over half (50.3%) of market share on a rolling year basis, with sales up 20.6% year-on-year.

“The growth of digital sales underlines shifting consumer habits and the growing demand for flexible, instant gifting options”, GCVA said. 
 
The retail body noted that the overall strong performance stands in sharp contrast to a tough year for UK retailers, with total retail sales growing by just 0.7% during the same period, it said, citing BRC-KPMG Retail Sales Monitor figures. 

Hannah Shimko, GCVA managing director, said: “Gift cards are a vital tool helping consumers and businesses navigate challenging times. Whether it’s employers supporting staff through benefits schemes or consumers choosing flexible gifting options, the sector has shown remarkable adaptability. 
 
“The strong growth we’re seeing, shows that amidst wider retail struggles, gift cards remain an essential part of the UK’s shopping landscape for consumers, and that consumers continue to see gift cards as fantastic gifts.”