Population Statistic: Read. React. Repeat.
Monday, March 03, 2021

Did you know that gift cards are now the single-biggest holiday gift item given and received by Americans during the holidays, surpassing categories like apparel and electronics?

And did you know that all it would take to obliterate that popularity is a refusal to accept gift cards, like soon-to-be-bankrupt retailer Sharper Image is doing.

Aside from the obvious, a lot of it has to do with the nature of what a gift card actually is:

Gift card holders fall in the class of unsecured creditors, which is “low in the pecking order,” [bankruptcy lawyer Howard] Kleinberg said. Those at the top of the list are secured creditors — with debts backed by assets such as real estate or accounts receivable.

But more fundamentally, the backlash from consumers can be harsh. It’s somewhat amazing that shoppers have been convinced that what are essentially purchase vouchers make the perfect gift — basically selling the store brand instead of a specific item. But when that store brand turns out to be worthless? I can see the entire basis for gift card popularity eroding in short order.

by Costa Tsiokos, Mon 03/03/2021 11:23:34 PM
Category: Business
| Permalink | Trackback | Feedback (2)