New Gift Card Promotions Debut at Retail Chains
source: http://online.wsj.com/article/SB10001424052748703790404574467233298063934.html?mod=googlenew...
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Retailers are turning to new gift-card gimmicks as they try to lure shoppers into their all-too-empty stores and increase holiday sales to recession-scarred consumers.
(Holmes, E., & Zimmerman, A., 2009, October 13, par.1)
Gift-card sales have long been highly profitable for retailers. Customers tend to buy full-priced goods and spend more than face value in stores. But this year, the cards are taking on an important new role: lure customers into stores without incurring the margin-busting discounts of last year. Some are adding special services or features to gift cards. Others are discounting the cards, knowing that some are never redeemed.
(Holmes, E., & Zimmerman, A., 2009, October 13, par.3)
Fees, restrictions and expiration dates on gift cards have tarnished their reputationsfor some gift-givers, said Dave Sievers, retail practice leader at Archstone. Pressure from consumer groups and pending legislation have helped changed certain practices that were unpopular with shoppers.
(Holmes, E., & Zimmerman, A., 2009, October 13, par.7)
Target, the cheap-chic retailer, has created $25 cards that double as toys, including a cheese-patterned gift-card/remote control that kids can use to make a Santa mouse that comes with the card zoom around in a tiny shopping cart. Costco Wholesale Corp. is offering cards that function like manufacturers' discount coupons, letting shoppers buy $100 worth of a product for, say, $80.
(Holmes, E., & Zimmerman, A., 2009, October 13, par.9)
Retailers that give away cards to drive traffic to their stores hope shoppers will spend more than the face value of the free card. On average, gift card recipients spend 40% more than the value of the card, according to Dan Horne, a professor of marketing at Providence College who studies gift card trends.
(Holmes, E., & Zimmerman, A., 2009, October 13, par.14)
[Wii gift card shown: daddyodeals.com]
(Holmes, E., & Zimmerman, A., 2009, October 13, par.1)
Gift-card sales have long been highly profitable for retailers. Customers tend to buy full-priced goods and spend more than face value in stores. But this year, the cards are taking on an important new role: lure customers into stores without incurring the margin-busting discounts of last year. Some are adding special services or features to gift cards. Others are discounting the cards, knowing that some are never redeemed.
(Holmes, E., & Zimmerman, A., 2009, October 13, par.3)
Fees, restrictions and expiration dates on gift cards have tarnished their reputationsfor some gift-givers, said Dave Sievers, retail practice leader at Archstone. Pressure from consumer groups and pending legislation have helped changed certain practices that were unpopular with shoppers.
(Holmes, E., & Zimmerman, A., 2009, October 13, par.7)
Target, the cheap-chic retailer, has created $25 cards that double as toys, including a cheese-patterned gift-card/remote control that kids can use to make a Santa mouse that comes with the card zoom around in a tiny shopping cart. Costco Wholesale Corp. is offering cards that function like manufacturers' discount coupons, letting shoppers buy $100 worth of a product for, say, $80.
(Holmes, E., & Zimmerman, A., 2009, October 13, par.9)
Retailers that give away cards to drive traffic to their stores hope shoppers will spend more than the face value of the free card. On average, gift card recipients spend 40% more than the value of the card, according to Dan Horne, a professor of marketing at Providence College who studies gift card trends.
(Holmes, E., & Zimmerman, A., 2009, October 13, par.14)
[Wii gift card shown: daddyodeals.com]
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- groups:
- The Retail Sector
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- tags:
- Best Buy, Target, Costco, Saks Fifth Avenue, 1 more
