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Gift cards are vital for retail success

October 26, 2011

One of the most popular gifts this holiday season will be gift cards, which give recipients the ability to purchase whatever item they want. The chance to give consumers these plastic payment methods is vital for retailers hoping to target the indecisive gift-giver.

One of the most popular gifts this holiday season will be gift cards, which give recipients the ability to purchase whatever item they want. The chance to give consumers these plastic payment methods is vital for retailers hoping to target the indecisive gift-giver.

According to many merchant services experts, many stores find that when people come in to spend the funds on the card, it results in other purchases. In a recent interview with NJBiz.com, Strategy and Style Marketing Group founder Karen Fluharty said that giving shoppers these options was key.

“What the shopping centers (are) finding is consumers who get gift cards as a gift during the holiday season — or anytime, generally — will spend above and beyond what the gift card is worth, contributing even more than the gift card sale itself,” Fluharty told the website.

There are other indicators that this gift method is gaining popularity. In its “2011 Midyear Gift Card” update, First Data Advisors reported that overall use of prepaid gift cards rose 8.8 percent during the first six months of the year. 

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