Gift Cards on the Rise

 According to a recent study by The International Council of Shopping Centers and Goldman Sachs, gift card spending rose to nearly 18% of total holiday spending in 2011, the highest percentage since 2006 and up from 14.6% last year and 13.1% in 2009.

 This is good news – not only for large retailers,  but even small companies are seeing gift cards as a tool for increasing sales and gaining new customers.

 According to the National Retail Federation’s consumer survey completed in November, holiday shoppers were expected to spend an average of $155.43 on gift cards, the highest sum since 2007 and up from $145.61 last year. Total gift-card spending for the 2011 holiday season was expected to total $27.8 billion.

 Much of that increase in gift card sales will be seen via electronic delivery methods such as Facebook, mobile phones and retailer web sites.

 About 57% of retailers who offer gift cards expected an increase in gift card sales this past holiday season, up from 47%last year and 32% in 2009, according to accounting and consulting firm BDO’s November survey of retail-industry chief marketing officers.

 Many retailers used gift cards as on-the-spot incentives in stores during the height of the shopping season.  Teen retailer American Eagle Outfitters Inc. handed out $10 cards with any gift cards purchase, to be redeemed between Dec. 24 and Jan. 25.

 For the full article, please click here: http://www.latimes.com/business/la-fi-gift-cards-20111228,0,4887455.story