Friday, January 21, 2011

Retailers count on gift cards to shore up their January sales

Did you buy or receive a gift card recently?

In a post-holiday survey by ICSC (International Council of Shopping Centers) consumers said 14.5% of their total holiday gift purchases were in the form of gift cards or certificates, up from 13.1% in 2009. That was the highest since 2007, when the reported average share was 14.7%.

ICSC predicts only 36.3% of gift cards will be redeemed this month, down from 45% last year and 46.4% in 2009.

Tolu Babalola, spokesman for GiftCardRescue.com, which buys unwanted gift cards and lets people exchange them for others, believes more consumers are putting off redemption because of new federal gift card rules. The rules limit expiration dates to five years after purchase and prohibit dormancy fees for non-use until after the first year. As of Feb. 1, the dates and fees also must be disclosed right on the cards.

You can read more at USATODAY.com article:

Happy Shopping !

Gail

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