Franchising News
Starbucks On Track For Record Gift Card Sales
Written by Tim Morral
Published: 12/24/2013
The popular coffee franchise expects to set a new record for gift card sales and activations this holiday retail season.
Gift cards have always played a big role in holiday retail sales. But for Starbucks, gift cards are a convenient way for consumers to delight loved ones with coffeehouse treats--and a key driver of holiday revenue for the Starbucks franchise.
As reported in the Franchise Herald, MarketWatch recently revealed that Starbucks is on track to set a new record for holiday gift cards in 2013, with both sales and activations expected to surpass previous levels.
"One in every 10 American adults received a Starbucks Card last holiday season, and we're on track for another record performance in Starbucks Card sales, as we celebrate our 13th year of offering Starbucks Cards," said Adam Brotman, chief digital officer at Starbucks. "
Starbucks forecasted that the heaviest days for gift card sales would be Thursday, December 19, and Monday, December 23.
Since launching the program twelve years ago, Starbucks has sold $16 billion in gift card sales on 450 million cards, purchased across 27 countries. The past year has been particularly successful for the program with $4 billion of the $16 million in total sales occurring over last twelve months.
For small business owners, it's important to recognize that the popularity of gift cards is not limited to Starbucks or other large brands. When sold through point of sale displays and other merchandizing tactics, gift cards can drive impulse purchases as well as planned gift purchases during the holidays.
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