Gift cards have long been a favorite item on holiday shopping lists, and as we approach Black Friday 2024, this trend shows no signs of slowing down. According to a report by Capital One, an impressive 64% of U.S. shoppers are planning to purchase gift cards to give as gifts during the holiday season. With inflation continuing to drive up prices on many consumer goods, gift cards present a reliable alternative to physical presents. This is especially true in 2024, as retailers offer deep discounts and enticing promotions on gift cards, making them one of the hottest commodities this Black Friday.
At BigBoxBlog, we closely follow trends in retail and consumer behavior, and we can’t help but notice the surge in popularity of gift cards. From the perspective of a consumer, gift cards are a simple yet effective way to save money while securing a thoughtful gift. From the retailer’s point of view, gift cards can drive foot traffic, boost sales, and create customer loyalty – if done correctly. But are these holiday offers really as good as they seem? Let’s take a closer look at the 2024 Black Friday gift card deals and examine their impact on both shoppers and the broader retail landscape.
The Allure of Black Friday 2024 Gift Card Deals
Gift cards are practically synonymous with Black Friday shopping. While you can buy them at any time of the year, retailers tend to offer their best deals during this shopping season. What makes Black Friday such a prime opportunity for gift card shopping? It’s the combination of strategic discounts and special promotions that make gift cards an attractive option. During Black Friday, you’re likely to find promotions where you get bonus gift cards with your purchase or even discounted gift cards for specific retailers.
Take Apple, for instance. Apple has traditionally avoided direct discounts on its products, but Black Friday is when they step up by offering free gift cards with qualifying Apple product purchases. This year, depending on the item purchased, customers can score Apple gift cards ranging from $50 to $200. The appeal here is obvious: you’re essentially getting a discount on an already popular product, which can be redeemed for future purchases, creating a win-win situation for shoppers. However, as BigBoxBlog.com experts note, there are limitations to these deals. The gift card amount is usually tied to the value of the product, which means you won’t be getting a massive discount on high-end Apple items.
This leads us to our first observation: while these deals sound good, the actual value may not always align with consumer expectations. As we saw with previous years, some retailers’ Black Friday deals on gift cards can feel more like a marketing tactic to draw in customers rather than offering genuine savings.
Who’s Offering the Best Gift Card Deals in 2024?
Let’s take a look at some of the top Black Friday gift card deals expected in 2024. These are the kinds of promotions that retailers are banking on to drive traffic to their stores (or websites).
1. Best Buy
Best Buy is well-known for its gift card offerings, and this year is no different. Customers can receive up to 20% off various gift cards, including DoorDash, Chipotle, and H&M. Best Buy’s approach is smart: it covers a wide variety of consumer interests, from dining to fashion to tech, which ensures that they appeal to a broad demographic. As retail experts, we view this as a savvy strategy. Not only do these deals attract diverse shoppers, but they also create opportunities for cross-selling additional products during the holiday shopping season.
However, while the percentage discounts look tempting, the actual dollar savings may not be as significant. For example, a 15% discount on a $50 gift card for DoorDash translates to a $7.50 saving, which, though notable, is unlikely to make or break most shoppers’ decisions.
2. Costco
Costco is no stranger to lucrative Black Friday deals, and 2024 is no exception. The warehouse giant is offering up to $70 off certain gift card bundles. Examples include $500 Southwest gift cards for $430, and $75 for $100 worth of Domino’s gift cards. What’s particularly appealing about Costco’s gift card deals is the value you’re getting in bulk – something not all retailers can offer. Costco tends to appeal to price-conscious shoppers who appreciate volume savings, and these gift card deals tie perfectly into that value proposition.
On the downside, Costco’s membership requirement may deter some potential customers who don’t want to pay for an annual membership just to access these deals. Furthermore, while the savings are substantial, they are often restricted to a specific set of gift cards, leaving out some of the most popular retailers or brands.
3. Target
Target is offering a variety of Black Friday gift card deals in 2024, with bonuses ranging from $10 to $30 in free Target gift cards on specific purchases. Popular items like Nespresso coffee machines, Ring Doorbells, and GoPro HERO13 cameras are all part of this promotion. This type of deal is beneficial for customers who are already planning to buy these items. Not only do they get the product they want, but they also receive a bonus gift card that can be used for future purchases.
The downside, however, is the limited scope of the promotion. The “eligible purchases” clause means that only certain high-ticket items qualify for the bonus gift card offer. This could make the deal feel restrictive for consumers who had hoped to find more flexible options.
4. Sam’s Club
Sam’s Club is another big player in the gift card game, offering up to 25% off select gift cards when purchased online. This kind of discount is significant, especially if you’re looking to purchase gift cards for multiple people. However, the catch here is that these offers are only available to Sam’s Club members, a common theme with the retailer’s Black Friday promotions. Non-members are excluded from these deals, which can alienate a large portion of potential shoppers who aren’t willing to pay for a membership just to score some savings.
This membership-only requirement is something we at BigBoxBlog.com see as a double-edged sword. While it drives membership sign-ups, it also limits the deal’s reach. Non-members may feel left out or resentful, and ultimately, this could impact long-term customer loyalty.
5. Neiman Marcus
Neiman Marcus is known for its high-end offerings, and its 2024 Black Friday gift card deals are no different. This year, customers can receive anywhere from $50 to $1,250 in gift cards with a minimum spend on regular-price merchandise. While this promotion sounds fantastic for luxury shoppers, it’s important to note that the minimum spend requirements can be steep, making it less accessible to budget-conscious consumers.
For those who do meet the spending requirements, this offer is a great way to score a high-value gift card for future purchases. However, many consumers may find the high barriers to entry a bit off-putting. Retailers like Neiman Marcus should carefully consider how these deals are structured to ensure they appeal to a wide range of income brackets.
The Bigger Picture: Why Gift Cards Are Booming This Year
The rise of gift cards in 2024 comes at a time when inflation is impacting consumer spending, and the holiday season is expected to be more expensive than ever. Retailers understand this, which is why many are opting to offer gift cards as a way to maintain sales figures while alleviating some of the financial pressure on shoppers. Gift cards offer a simple, no-fuss alternative to physical gifts and are less affected by supply chain issues, a concern that’s still on many consumers’ minds.
However, as we’ve seen with some of the Black Friday gift card promotions, retailers must tread carefully. Offering deep discounts and generous bonuses can attract more customers, but poor execution can lead to dissatisfaction. Some consumers might feel the deals are too restrictive or lack the true value they expect. For retailers, this means walking a fine line between enticing promotions and ensuring customer satisfaction.
Conclusion: A Strategy for Both Retailers and Shoppers
At BigBoxBlog.com, we believe that Black Friday gift card deals are a win-win for both retailers and consumers when executed thoughtfully. For retailers, gift cards drive sales, attract new customers, and promote repeat business. For shoppers, they provide a predictable, budget-friendly option for holiday gifting. However, the best deals require careful consideration. Shoppers need to understand the nuances of each deal, such as minimum spend requirements and membership restrictions, to ensure they’re getting real value. Retailers, on the other hand, must be cautious not to oversell deals that are too limited or complex.
For both sides, it’s about balancing the convenience and flexibility of gift cards with the desire for genuine savings. As Black Friday 2024 approaches, we’ll be watching how retailers continue to adapt their strategies to meet the evolving needs of their customers, and whether gift cards continue to hold their place as the holiday season’s most popular—and potentially most profitable—offering.