Like last year, gift cards will be the most requested gift during the upcoming holiday season. According to the National Retail Federation’s (NRF) 2008 Holiday Consumer Intentions and Actions Survey, 54.9% of consumers would like to receive a gift card this holiday season, as compared to 53.8% last year. Gift cards will be the most requested gift this year, followed by books, CDs, DVDs, videos or video games (50.0%) and clothing or accessories (49.8%).
A study conducted by NRF indicates that shoppers’ main reasons for buying gift cards were that the latter enable the recipient to choose their own gift (25.4%) and that gift cards are easier and faster to buy than traditional gifts (12.6%). Some of the consumers noted that they are enticed to buy gift cards by retailer incentives (6.3%) or because they are easier to ship than traditional gifts (6.7%).
With the growing popularity of gift cards continues to grow, NRF offered gift card tips for consumers:
1. Shoppers should be aware of the fact that there are big differences between store-issued and bank-issued gift cards. According to NRF, none of the gift cards from America’s 25 largest retailers have expiration dates and 84% have no fees. On the other hand, bank-issued gift cards, malls, and credit card companies often add expiration dates as well as transaction fees.
2. It is important to buy gift cards from reputable retailers in order to ensure that a recipient receives the card’s full value. Shoppers should refrain from buying gift cards from online auction sites.
3. In the US, gift cards that go unused for more than a few years are often treated as "abandoned" property. Therefore, consumers should spend their gift cards within the first year of purchase.
4. One-fourth (25.4%) of the respondents said they would be less likely to buy gift cards because they think the gift is impersonal. However, there are ways to personalize a gift card such as packaging it with other small items you know a person would like.
5. Keep your receipt. Some retailers are able to reissue a lost gift card if consumers have kept the original purchase receipt.
By: Rachel Lieberman, Israel Diamond Industry Portal
