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Thanks Janes, Cypress, and scoop,
I understand well the economics of it all. The money has to be accounted for sometimes. It's going to be spent. Shoot, it's better for the retailer. How many of these gift cards are never redeemed. That's all profit for the retailer. Does it not count if the money is spent in January? Crying because you did not do well in December when you have tons of gifts cards outstanding does not make sense either? Look, most people would bitch even if they hung them with a brand new rope.
posted by
sarooster
on January 5, 2007 at 2:14 AM
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I was also confused by this but I think the two commentors
have answered the question, thanks
posted by
scoop
on January 4, 2007 at 7:34 PM
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SAROOSTER
Economic sense yes but can hurt the retailer. The retailer cannot book the sale in 2006. The consumer can wait for after Christmas sales to spend the cards. There is always the chance the consumer will spend the gift card in a different store than bought from thus leaving the original store out of the loop.
posted by
Cypress
on January 4, 2007 at 7:31 PM
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sarooster, I'm a slow learner, perhaps because it wasn't until this past
Christmas season that I learned retailers don't include the sale of gift cards into the final count for that season; rather, they account for the gift card when it is redeemed. So if more and more people are giving gift cards and buying fewer items it will make the Christmas sales less but one would assume it would increase the overall sales throughout the year. Not only that, but how many people only purchase the amount of the card? Give me a $25 gift card and I will buy something that costs $40 or more . . . .
posted by
JanesOpinion
on January 4, 2007 at 7:31 PM
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