The company says that more than $25 billion has been loaded onto its gift cards since they were launched a decade and a half ago. Starbucks is saying it’s on track for “another record performance” in gift card sales this holiday season.
The money raked in by Starbucks gift cards is approaching the size of a small country’s economy.
The company says that more than $25 billion has been loaded onto its gift cards since they were launched a decade and a half ago.
That’s about the gross domestic product of Trinidad and Tobago — a relatively prosperous, energy-producing nation off the Venezuelan coast.
A fifth of that amount was loaded onto Starbucks cards just in the fiscal year ended in October, which points to a big acceleration in recent years. And that snowball is still rolling, with Starbucks saying that it’s on track for “another record performance” in gift-card sales this holiday season.
Most Read Business Stories
- Seattle-area small businesses applying for federal coronavirus loans see potential and problems
- REI keeps stores shut and furloughs many of its workers for 90 days; CEO gives up pay for six months
- Seattle area's March home prices jumped, before coronavirus pandemic took hold
- Boeing urged by Washington's congressional delegation to take bailout money, pay workers
- Grocery workers are dying of coronavirus
The cards, in addition to giving indecisive shoppers a break, are a critical component of Starbucks’ bid for growth. They bring people who might not otherwise go to Starbucks into the store, giving the Seattle company the opportunity to win them over. It also represents a big cash advance for the company and good visibility of its costs in the month ahead.
Then there’s extra cash the company pockets by selling its “premium” cards — such as a sparkling $200 card embellished with blue Swarovski crystals, which comes with only a $50 load.
Demand for the cards reaches a fever pitch on Christmas Eve, as procrastinators procure them en masse. Last year, 2.5 million cards were sold Dec. 24 in the U.S. and Canada, a half-million jump from the previous year. Starbucks says it anticipates breaking that record this year.