Declines in Gift Cards, Self-Splurges Hurt Retailers

By Matt Cantor,  Newser Staff
Posted Dec 10, 2008 4:57 PM CST
Declines in Gift Cards, Self-Splurges Hurt Retailers
In this 2007 file photo, last minute shoppers carry bags the day before Christmas in New York.    (AP Photo)

Naughty or nice, America’s retail stores can’t look forward to two of the holiday season’s usual boons: gift card sales and “self-gifting” splurges, MarketWatch reports. About 44% of shoppers say they will not buy gift cards this year, up from 26% last year, a marketing study says. Meanwhile, people are being stingy with themselves as they shop for others.

Self-gifting this year is down to 30.7% from 55% a decade ago, the survey by America’s Research Group and UBS found. Traditionally, gift cards provide a windfall for retailers: They draw recipients into stores and often result in extra spending. The cards brought in $26 billion in sales last year.
(More retail stories.)

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