Consumers Seek Bargains
Rather Than Gift Cards
The
National Retail Federation predicts a 5.6% decline in sales of gift
cards this holiday season, the first drop in six years. (Sales of
gift cards are expected to hit $24.9 billion this season, down from
$26.3 billion last year.)
Fewer people said they planned to buy gift cards this year—53.5%
compared with 56.6% in 2007. Many said they preferred to buy an item
on sale instead of a gift card, which doesn’t go on sale.
The
average amount shoppers spend on holiday gift cards is also expected
to decline by 5.7% to $147.33 according to the National Retail
Federation.
A
drop in gift card sales could have a significant impact on
retailers, who now restock their shelves after Christmas in
anticipation of shoppers coming in to redeem gift cards.
