Shell Holiday Promo Helps Spark 62% Jump in Gift Card Sales

A successful holiday promotion helped Shell Oil Products U.S. sell more than $25 million in gift cards at service stations last year compared to $13 million in 2003.

A wintery theme helped drive holiday sales of Shell gift cards

During the holiday promotion, which ran from Dec. 1-31, a special-edition card was designed with a snowman on a tropical beach in values of $25, $50 and $100. The offer was promoted at the Shell Web site, and supported with P-O-P displays, display racks, window clings and external station signage.

More than one-third of Shell's gift card sales at the service station level came during the promotion period, the company said. Shell gift card sales overall were up 62% in 2004, totaling $117.6 million. Those sales include B-to-B sales, the service station network and retail sales through Safeway and Walgreens stores.

In addition to other consumer promotions throughout the year, Shell increased its B-to-B marketing targeting automotive, sales and marketing, human resources and general business. Ads appearing in numerous B-to-B and consumer magazines touted the cards as great promotional and employee incentive gifts.

"The fact that 75% of all Americans live within five miles of a Shell-branded gasoline station is undoubtedly a key factor in the success of our program," said Carolyn Yapp, Shell's manager, Cards and Payment U.S., in a statement. "At a time when gift cards in general are becoming increasingly attractive as a gift-giving option, there is real value in being a part of our large coast-to-coast network of conveniently located stations."

Shell said it plans to move forward with enhanced gift card sales in 2005 by building on the 2004 program and experimenting with new concepts. For example, it plans to test a reloadable gift card to see if demand is there, the company said.

Participation in the Shell Gift Card program is voluntary in the company's network of approximately 13,000 independently managed Shell-branded sites. The number of retail locations selling Shell Gift cards increased more than 260% during 2004, the company said.