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The gift card
industry is exploding!
The
gift card industry, predicted to total $30 billion this
past season, has arisen out of nowhere. Who would
have thought that in 2007, the most popular Christmas gift
was not a toy, but a piece of plastic that might represent
a toy. Gift cards solve a dilemma for millions of people
who simply can’t decide on a gift or want to skip the
shopping experience – while getting credit for a
thoughtful gift.
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the same type of cards you see offered by the large
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In the
last decade, as advances in technology made gift card
programs practical, the gift card industry began a
meteoric climb. National Retail Federation statistics show
that gains were modest -- 0.6 percent (2004) and 6.4
percent (2005) – until jumping 55 percent to $24 billion
in 2006.
As gift
cards become increasingly convenient, more personalized
and more sought after, retailers have seen huge increases
in gift card sales this past holiday season. The fifth
annual National Retail Federation (NRF) Gift Card Survey,
(conducted by BIGresearch) found that gift card sales
totaled almost $27 billion this holiday season,
compared to $24.8 billion in 2006. Additionally, the
average consumer spent more on gift cards than they did
last year ($123 vs. $116 in 2006).
“It is no secret why gift cards are the most popular item
on consumers’ shopping lists," said NRF President and CEO
Tracy Mullin. “Many consumers pulled back on spending for
themselves this year and are hoping to receive a gift card
so they can purchase something they may have had their eye
on for months.”
According to a recent NRF survey, gift c |