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Digital gift cards are taking over the industry

February 11, 2014

Consumers who buy gift cards online are now able to receive their card instantaneously.

Consumers who buy gift cards online are now able to receive their card instantaneously. According to a recent report, digitally-distributed customizable gift cards may be becoming more popular than their physically tangible counterparts. 

Citing a study conducted by InComm, Internet Retailer recently reported that more than half of all individuals who bought gift cards online during December 2013 decided to have the cards delivered to them digitally, shunning the need for physically tangible representations of the funds. This illustrates how the standards of online shopping are changing the way that consumers approach certain products, even.

A recent decision made by RadioShack further displays how the e-commerce sector is effecting the entirety of the retail industry. The company is opening its first “concept store,” which aims to implement the use of tablets and other mobile devices to move sales forward, according to a recent report from Mobile Commerce Daily.

Joe Meisel, managing partner at Theory House, spoke to the news outlet about how brick-and-mortar store outlets such as RadioShack need to move their strategies for increasing revenue forward to better compete with online retail outlets. 

“This is Darwinian retail at its best – RadioShack knows it has to evolve in order to survive,” Meisel told Mobile Commerce Daily. “While they have strong name recognition, they are considered to be a purveyor of all things past, instead of current technology trends. As such, it has more to overcome to get shoppers through their doors than a new retailer.”

Consumers at the concept store will be able to use tablets, for example, to research and test products – such as speakers – in the same way they would if they were shopping online instead of at the locations, according to the report. 

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