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Merchandising Your Gift Cards Tim Smyth Gift Card sales have become all the rage in the past decade and the numbers prove that customers are purchasing them in increasing numbers. As an example, the National Retail Federation’s Inaugural Graduation survey, conducted by BIGresearch, suggests that last year gift cards represented over 31% of the Graduation gifts given (second only to cash at almost 60%). One-third of Americans will purchase at least one graduation gift this year and the average consumer buying graduation gifts plans to give a gift to two graduates. With the average spent per gift of $50 this represents a huge potential. By doing some quick math, this survey suggests that for every 1,000 of your customers, Gift Cards represent a $10,000 revenue opportunity - just for Graduation Gift Cards! How large a share of your customers’ gift spending are you picking up? How much time and effort are you spending “merchandising” your gift cards?
Evan Wise, Management One April 2008
Every industry and every store has good times and bad. When the industry tide is rising it is easy to be lulled into the belief that you are really doing the right things and making the right decisions. Too often that leads to complacency that translates, into a lack of vision, creativity and experimentation with new ideas. After many years of a great retail environment, many retailers are beginning to suffer from that rising tide mentality now. Customers are tired of the same thinking, designs, promotions and shopping experience. The time is ripe for a new creative and exciting retail idea. Where is that idea?
Who's Minding the Store? Tim Smyth
Based on the industrywide spiraling decline in customer service, I am more encouraged than ever about the future for independent retailers who are paying attention and minding their store.
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