DALLAS, Jan 12, 2004/ FW/ --- Gift cards used to be known as the “gift of last resort.” Usually chosen for the “person who has everything,” or when the gift giver is just stumped for ideas.

During last year’s holiday shopping season, retail experts Bain and Co. estimated that consumers could spend up to $45 billion on gift cards alone this holiday season, a 20 percent increase over 2002.

As January unfolds, gift cards are breathing new life into the holiday retail season, so finds Deloitte's new Post-Holiday survey.

The survey, which polled 3,658 consumers in early January, found that 59 % of all consumers received a gift card or certificate this holiday season, and that by January 5, 2004, 50 percent of gift card recipients had already redeemed some or all of their cards.

"For retailers, the January shopping spree has to be the best present of all," said Tara Weiner, National Managing Partner of Deloitte's Consumer Business Practice.

"Consumers were out there shopping with their gift cards in hand the morning the stores opened on December 26. By early January, they already had made a significant dent in redeeming their cards. This added to retailers' gains for December and should continue to drive sales into January."

According to the survey, on average, consumers received 2.5 gift cards that had a combined value of $106.

For those consumers that have already redeemed their gift cards, most spent the full face value of the card. The average value of the redeemed card was $47.50, and the average that was spent in the store on that day was $47.20.

"The good news for retailers is that roughly one in five (21 percent) consumers spent more than the face value," said Weiner. "And if they spend more, they're likely to spend nearly twice as much as the face value of the card."

Respondents who spent more, spent a hefty 89 percent more than the average face value, $90 versus $47.50.

The survey findings also indicate that those most likely to spend more are, in large part, baby boomers -- consumers between the ages of 35 and 64.

Because half of the respondents had not yet redeemed any of their cards by January 5, and because 37 percent of the consumers who had redeemed still had some unused balances on their cards, retail sales for January are likely to receive an additional boost from these redemptions.

Consumers said they expect to use nearly all of their gift cards by the end of this month. Of the 2.5 cards received, consumers said they expect to have 2.4 redeemed by January 31.

More than half, 55 percent, of consumers said they will buy gift cards for others during the remainder of 2004. Other findings on gift card purchasing behavior include:

"Gift cards, which can be spent online or in stores, boosted post-holiday sales," said Weiner. "They are the perfect present. Consumers indicate they prefer to receive a gift card rather than an unwanted present, especially during the holiday season."

According to Weiner, gift cards offer consumers greater convenience and choice in purchasing their gift. It also provides an opportunity for retailers since consumers oftentimes spend twice as much as the value of the gift card.

The majority of 2003 holiday shoppers were able to find the products they originally set out to purchase, however, 21 percent of respondents said they did experience some inventory unavailability while shopping.

"Future holiday shoppers should see less inventory shortages due to enhanced supply chain merchandising innovations, such as Radio-Frequency Identification (RFID)," noted Weiner. "This revolutionary technology is rapidly being embraced by manufacturers and retailers alike. RFID will help suppliers meet demand more effectively, and as RFID technology is further adopted, shoppers will be more likely to find the colors, sizes and styles they so desire, especially during highly trafficked shopping seasons and sales."

"So what's the moral of this holiday season? A gift card is a perfect gift," says Weiner.