Gift Card Rush Will Boost Holiday Sales Figures
Below is a MRR and PLR article in category Home Family -> subcategory Holidays.
Gift Card Surge Expected to Boost Holiday Sales
Summary
Holiday shopping in 2005 has exceeded expectations, but retailers are now gearing up for another significant trend: gift card redemption.According to Hitwise, an online intelligence service, the market share for U.S. Internet searches including "gift card" rose by 32% for the week ending December 10, 2005. The National Retail Federation projects a 6.6% increase in gift card sales, reaching $18.48 billion, with the average consumer spending $88 on gift cards, which accounts for 15.6% of their holiday shopping budget.
The Popularity of Gift Cards
Gift cards are a favorite for those challenging to shop for or those seeking a quick and easy purchase. They allow buyers to choose a fitting budget and recipients the convenience of selecting what they truly want. Some view gift cards as impersonal, preferring to hand-pick unique presents for loved ones. However, for many, they are the perfect choice, often with specific store preferences from family and friends.Benefits for Retailers
For retailers, gift cards extend the holiday season. Sales aren't recorded until the card is redeemed, which boosts figures in January. Additionally, consumers often spend 15% to 50% more than the card's value when redeeming them.Potential Drawbacks
Challenges with gift cards include inactivity fees and expiration dates. Some retailers reduce card values by charging fees after a period of inactivity. Consumer dissatisfaction has led to state legislation limiting such practices. Though there is no federal regulation, Congress members Joe Barton and Charlie Bass have urged the Federal Trade Commission to examine retailers' gift card policies.A Lasting Trend
Is a gift card too impersonal, or is it the ideal gift? This remains a personal choice. However, with projected annual sales reaching $90 billion by 2007 (Ernst & Young 2005), gift cards are undeniably here to stay.You can find the original non-AI version of this article here: Gift Card Rush Will Boost Holiday Sales Figures.
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