Gift cards are an increasingly popular gift. Two-thirds (66%) of shoppers plan to purchase them this year, up from 57% in 2005 and 55% in 2004, according to the survey. Those planning to purchase apparel remained steady at 68% in 2006 and 2005, only a slight increase from 66% in 2004.

As the appeal of gift cards among consumers grows, employers are even taking notice and increasingly using gift cards to reward staff. In support of this growing trend, according to the survey, a third of employees (32%) say they would like to receive a gift card as a reward for a job well done this year; only cash and checks were more sought-after gifts from an employer. More than one in four consumers (28%) say they currently have a gift card in their wallet or at home.

Tracking gift card growth over three years of holiday shopping, the American Express Gift Card survey shows that holiday shoppers' acceptance of gift cards has had a major effect on the retail landscape, particularly in the all-important fourth quarter. Its rise has impacted what shoppers plan to buy and when, as well as when they plan to redeem their gift cards for merchandise – a factor that is extending the once finite holiday sales period beyond the fourth quarter.

Post-Holiday Redemptions
By letting people get what they want for the holidays, gift cards have changed the dynamics of post-holiday shopping. According to the survey, a majority (56%) say they return fewer gifts when they receive gift cards. A third (32%) will redeem their gift cards within a month, and nearly one in four (23%) will redeem their cards within six months. Seven percent say they plan to redeem gift cards during the post-holiday week.

What are consumers waiting for? According to the survey, gift card receivers are waiting for time to go shopping (32%), waiting for “the perfect item” or something special they want to buy (28%), or for a “sale at my favorite store or tax-free shopping” (18%). When gift cards are redeemed, one in three will use them to buy something for someone else (34%); others will re-gift the card (8%).

“While the post-holiday shopping season is traditionally dominated by gift-exchangers and bargain-hunters, retailers should expect to see a growing number of consumers armed with gift cards and shopping with a different mind-set,” said Valerie Soranno Keating, President, American Express Travelers Cheques and Prepaid Services. “Gift cards come with the unspoken permission to buy something special, and consumers will be looking to use gift cards less on close-outs and more on luxuries – the latest fashions, the just-released CD, those hard-to-get tickets, or a day at the spa.”

Among those planning on purchasing gift cards, two thirds (66%) want the receiver to choose his or her own gift, and a large majority (57%) say that the option of giving gift cards has changed how they think about shopping. Seven in ten (73%) say they finish shopping faster with less stress. Shoppers also say they will go to the mall and stores less often, including Thanksgiving weekend (60%), some will likely get their holiday shopping done earlier (59%) although other shoppers say they plan to start later because they know they can always get a gift card (45%).

Consumers surveyed said the people they are most likely to give a gift card this season are aunts, uncles, cousins or other relatives (58%), a friend or acquaintance (56%), a child or friend's child (54%), someone who has provided a service in the past year such as a babysitter, teacher, housekeeper, or postal worker (43%), or a parent (40%). One in four will receive a gift card (25%) because they are considered “hard to shop for.” One in five (20%) will receive a gift card in combination with another gift.

A fact destined to upset etiquette mavens, the survey also shows that more than two thirds of gift card purchasers (66%) say they don't expect to receive the traditional thank you note, call, or e-mail from the card's recipient.

Season's Top Five Gifts
As gift cards rise in popularity, the American Express Gift Card survey finds that previously must-purchase merchandise has shifted, accordingly. This season's top items are:

• Apparel (68% steady from 68% in 2005 and 66% in 2004)
• Gift Cards/gift certificates (66% up from 57% in 2005 and 55% in 2004)
• Toys/Games (64% up from 63% in 2005 and 60% in 2004)
• Music/CDs/DVDs (63% up from 62% in 2005 and 58% in 2004)

Other popular items this year include cash (46%), perfume/cologne, cosmetics (43%), books/magazines (37%) jewelry (35%), hardware and tools (34%), housewares and appliances and experiential gifts (both 30%).

One in three consumers (34%) say they plan to do most of their shopping during the month of December. Others (25%) say they are last-minute shoppers, tending to do their shopping a few days before the December holidays, while one in five (21%) say they plan to do most of their shopping the day after Thanksgiving.

Survey Methodology
The American Express Gift Card Survey is based on a nationally representative sample of 1,013 Americans age, 18+, and 655 of them who plan to purchase a gift card/certificate this coming holiday season. The poll has a margin of error of +3.1% and +3.8%, respectively. The survey was conducted via telephone by International Communications Research from October 11 – October 15, 2006.

The American Express Gift Card can be redeemed at U.S. retailers and restaurants that accept the American Express Card. It lets the recipient choose from millions of things and experiences, making it the ideal solution for the upcoming holiday season -- unlike store gift cards, instead of one place, the American Express Gift Card is good all over the place and gives endless ways to make everyone happy. The Gift Card is available in denominations ranging from $25 to $500 and is replaceable if lost or stolen for a fee. American Express Gift Cards are available online at http://www.americanexpress.com/gift, and nationwide at tens of thousand of locations, including supermarkets, drug stores, shopping centers, banks and American Express Travel Service offices. For a complete list of participating locations visit
http://www.americanexpress.com/gift. Terms and conditions apply to gift cards. Not for use at car rental, cruise lines, casinos or ATMs.

About American Express
American Express Company (www.americanexpress.com) is a leading global payments, network and travel company founded in 1850.

American Express is a leader in consumer prepaid products. In addition to the 115-year old American Express Travelers Cheque - the preeminent brand welcomed worldwide - the Company issues other prepaid products including the Travelers Cheque Card, Cheques for Two, Gift Cards, Gift Cheques, and a range of corporate incentive prepaid products through American Express Incentive Services.

Contacts:
Robert Sherman
212.640.6221
Robert.A.Sherman@aexp.com