Gift Cards Popular With Givers, Merchants
Consumers will spend an average of $203 on gift cards during the 2007 holiday season, up from $186 in 2006, according to Comdata Stored Value Solutions.
Card recipients will most likely redeem their cards over two visits, so there will probably be more store traffic and sales potential.
“Consumers are finding more things to like about gift cards, including the increasing availability of gift card malls, special packaging and expanded uses, such as budgeting tools and discount opportunities," said Bob Skiba, executive vice president of Comdata, in a statement.
Most gift cards are still purchased in specific retailer locations. The Comdata study, like others, confirms that the second most popular purchase location for gift cards is online.
More than one-fifth of gift card buyers in 2006 made their purchase at gift card malls. More than one-quarter are expected to do so this year
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Friday, November 02, 2007 | 0 Comments
Gift Cards Boom winter season
Remember when the holiday shopping season ended when the holiday was over? No more.
"It never ends!" laughs retail analyst Wendy Liebmann of WSL, a retail analyst firm. "It just goes ooooon and ooooon and ooooon …"
In January, the nation's retailers used to rake out the aisles, restack all of the unsold sweaters and throw the sheets on a big table for the biannual White Sale. But now January is growing in importance. Retail sales rose 10.5% in January this year vs. 2005, when they rose 7.5%. In 2004, January sales rose 6.1%.
Retailers are restocking shelves with fresh merchandise and selling early, early spring fashions before most consumers have tossed their Christmas trees out on the curb.
All because of a small plastic card — the gift card.
"January is no longer a dead month," says Dan Horne, a marketing professor at Providence College in Providence. "Now, retailers are holding back hot items to entice consumers coming into their stores in January bearing their Christmas gift cards."
Friday, October 12, 2007 | 0 Comments
