Tesco Bank hits record £0.5 billion in gift card sales

Tesco reached a record £0.5 billion in gift card sales during the financial year ending 28th February 2021.

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

Key here were sales of Tesco gift cards in support of the UK government’s Free School Meals initiative, covering 1.3 million vulnerable children in England.

Our range of Gift Cards are proving more popular than ever with shoppers. In the recent financial year we saw record sales thanks to several enhancements made to our Gift Card proposition in 2020. https://t.co/9Ou0TMrPsj
— Tesco Bank (@TescoBankNews) April 22, 2021

As part of the scheme, parents of children who usually receive free school meals can get supermarket vouchers worth £15 per week, per child.

This now supports 22,500 schools and Tesco has helped provide over 62 million free school meals that were redeemed using its gift cards.

The grocery giant also launched a service which allows customers to purchase personalised digital gift cards from major third party brands online, including Apple, Google, Costa, Spotify and Asos.

Mark Loch, Group Payments and Money Services Director, Tesco Bank, says: “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.”

He concludes: “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.”