UK consumers waste an estimated £250 million each year on store gift cards that go unused, according to industry data. Annual gift card sales total over £4 billion, with roughly half purchased as personal gifts and the remainder bought by businesses.
Around 6% of the value on these cards is never spent, partly because many cards expire after a fixed period, sometimes as short as one year. The UK Gift Card and Voucher Association notes that some retailers extend the expiry date each time the card is used.
Andrew Johnson, director general of the association, told BBC Radio 4's Money Box that for retailers, gift cards represent a liability on their books, so it makes financial sense to remove that liability at some point. However, he stressed that most people use their cards within six months, and retailers benefit when customers spend an additional 40% beyond the card's value.
Unused balances often result from small leftover amounts, such as a £20 card used for an £18.99 purchase, leaving £1.01. Many cardholders are unaware of expiry dates, which are often printed in small text on the back of the card. Consumer Mick Wannell recounted being told his card was empty after not being used for two years, despite having unspent money.
The association reported that in 2011, retail gift card sales totalled £2 billion, with an additional £2.18 billion purchased by businesses for promotions or staff rewards. Consumers are advised to check expiry dates by visiting the retailer or contacting them online or by phone.
