Gift Cards: The gift we love to hate
You know what I just realized about all the Christmas presents I received just this past year? I didn't get a single gift card.
It didn't even occur to me to think about it until I read this interesting report from WSL Strategic Retail’s How America Shops®...Everyday Pulse on gift card popularity passing its peak.
I used to pick them up for my nieces and nephews because it was so easy, but then it just started feeling impersonal. Instead of being able to point to a well-worn, beloved stack of Dr. Seuss books I got them, I'd sit there wondering what they bought with the cards I gave them. It made me feel like a very neglectful aunt so I stopped being lazy and started looking for real presents again.
Apparently, I'm not the only one who fell out of love with gift cards. According to WSL, the percent of holiday shoppers who gave gift cards has dropped significantly year on year from the 60 percent in 2003 level to 44 percent in 2007.
Here are WSL's top five reasons:
They’re the easiest cut to make when you have less money to spend. With the cost of living going up as energy prices soar, food prices keep going up and lenders making it harder for consumers to borrow, the gift card as stocking stuffer or extra gift was easy to cut. WSL says 58 percent of those making over $100,000 bought gift cards for holiday 2007 compared to 34 percent of those making less than $50,000.
Gift card fatigue is creeping in. Even as 58 percent of adults said they loved gift cards, 41 percent of them said they'd rather have cash. In the same vein, 74 percent said they always use the gift cards they receive, but 39 percent said they still have tom gift cards hanging around in their wallet or purse for months after receiving them.
You still need to supplement purchases with cash when using gift cards. Getting a $25 gift card to a clothing store is practically useless since most things you'll want to buy will cost more than that. WSL said that 60 percent of adults and teens report that they spend more than the value of the gift card.
Buying presents and shipping them on-line has gotten easier and cheaper. A few years ago, gift cards filled a need for last minute, easily purchased gifts. Last year, WSL said confidence in on-line sites is much higher and free shipping made it easier to find and send a gift instead of a gift card.
Customizing is the upcoming trend in gift giving. The ability to personalize everything from Nikes to stamps and M&Ms to purses made givers feel like they were being much more thoughtful instead of giving impersonal gift cards.
I will admit when I wasn't quite sure what to buy for one particular person, I resorted to a Barnes & Noble card, but only because I knew she loved reading and has every book under the sun so it was best to leave the choice up to her. So I don't rule the gift card out.
But I do give gift giving more thought nowadays. How's about it? Do you still love the gift cards or do you find yourself avoiding them more, too? Do you think gift cards are passe?
(Illustration courtesy stock xchng)
A native of Vietnam, 
Comments
I misread part of this briefly to understand that for some, gift cards keep costs down. Turns out it doesn't say that (must slow down!), but I think that's a pretty valid point. Instead of gifts that creep up beyond the price points we set, which they habitually do for me, they might actually close the book on a gift with a generous amount. It might work with some recipients who really do want and enjoy them, especially people you don't know what to buy for and end up spending more than necessary. (Hello, Christmas 2007!)
Posted by: mary | March 3, 2008 2:14 PM