Gift card sales continue to decline in US
Forecasts for holiday gift card sales in the US have gone into negative territory for the second consecutive year, according to a survey from the National Retail Federation (NRF).
NRF’s 2009 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, revealed that holiday shoppers plan to spend slightly less on gift cards that last year with the spend falling to $139.9 from $147.3. And last year holiday gift card sales fell nearly six per cent to $24.9 billion.
Negative publicity over fees, expiration dates and concerns that companies may go out of business have hurt the category as much as the downturn in the economy and high unemployment.
To improve matters retailers are offering gift card incentives. Tracy Mullin, NRF president and chief operating officer, stated: “Though gift cards never go on sale, many retailers are offering incentives on these popular items to help bargain-hunters stretch their budgets even farther.”
The survey also found gift recipients will likely receive gift cards with lower values than last year with the average value per card expected to be $39.8, compared to $40.5 in 2008.
