Thursday, December 23, 2010
In the First Data SpendTrend Bi-Weekly Closed-Loop Prepaid Cards analysis, First Data Corp. said gift card activation levels declined as spending dropped off overall in the first half of December 2010 and recession wary consumers remained cautious when it came to gift giving purchases.
First Data reported that during the first two weeks of December, year-over-year dollar volume on activations dropped off 0.3 percent, compared to activation growth of 8.6 percent in November. Additionally, overall year-over-year dollar volume growth of redemptions slowed to 3.9 percent in December, down from 5.9 percent in November.
However, First Data reported that card activation levels in the casual dining and quick service restaurant (QSR) categories showed increases. QSRs posted 18 percent growth in December, up from 16.5 percent in November. Casual dining also produced dollar volume growth in December – 10.7 percent – an increase over November's growth of 8.1 percent, First Data said.
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