Tesco Bank can reveal it reached a record £0.5bn in gift card sales in the financial year ending 28 February 2021.

The 65% year on year increase was achieved through a combination of in-store and digital sales.

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The growth in sales was driven by several enhancements made by Tesco Bank to its gift card proposition in 2020. These include:

  • Sales of Tesco gift cards in support of the UK Government’s Free School Meals initiative to offer free meals to 1.3m vulnerable children in England. As part of the scheme, parents of children who usually receive free school meals can get supermarket vouchers worth £15 per week, per child. The initiative now supports 22,500 schools and Tesco has helped provide over 62m free school meals that were redeemed using Tesco Gift Cards.

 

  • Launch of the dedicated Volunteer e-gift card in May 2020. The e-gift cards provide elderly, vulnerable, and self-isolating customers with a safe and contact-free way to allow others to pay for and collect their weekly shop. The launch of the new service was accelerated to meet customers’ needs in response to the coronavirus pandemic.

 

  • The launch of a service which allows customers to purchase personalised digital gift cards from major third-party brands online. The innovative digital gifting solution allows customers to purchase digital gift cards from brands including Apple, Google, Costa, Spotify and Asos and to personalise them with a message and digital unwrapping. The service gives meaningful gifting experiences to customers at a time when many can’t see friends and family in person, underlining the Bank’s commitment to develop products and propositions which are more closely aligned with the needs of Tesco shoppers.

98.6% of gift cards being spent within the first year of being gifted

 Mark Loch, Group Payments and Money Services Director, Tesco Bank, said:

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“The world around us is changing rapidly and with it so are our customers’ gifting and shopping habits. Our strong increase in sales highlights that gift cards have become an increasingly popular way for our customers to let their loved ones know they are thinking of them.

“With 98.6% of gift cards being spent within the first year of being gifted, they provide the recipient with a great level of choice, minimising the risk of buying an unwanted gift and the need to return or exchange at a time when many are unable to get to the shops.”