A convenient Christmas

Since her heart surgery, Shirley Hobbs of Benton just isn't up for the Christmas shopping rush this year. So how does she plan to buy gifts for her slew of children, grandchildren and the other hodgepodge of in-laws and friends?

Gift cards.

"It's easier than shopping and that way you can let them pick out things they like," said Hobbs, 70. "For my grandchildren, I don't even know what kind of music they like. So I can give them a gift card and they can pick out things they know they like instead of them having to take the gift back."

The popularity of gift cards is on the rise again, according to a survey recently released by the National Retail Federation. Total gift card sales are expected to rise 6.6 percent this holiday season to $18.5 billion, up from $17.3 billion in 2004, according to the survey. The survey of 7,128 consumers from Nov. 2 to 9 had a margin of error of 1 percentage point.

The average consumer will spend $88.03 on gift cards, or nearly 16 percent of the total holiday budget, the survey found.

"Gift cards take the guesswork out of giving and, since they take up minimal shelf space, they are easy for retailers to stock and display," said Tracy Mullin, NRF president and CEO.

More than 75 percent of consumers surveyed said they would buy at least one gift card and 52 percent said they want to receive gift cards this year.

Retailers do not count gift cards as sales when they are bought but count them once they are redeemed for merchandise. The cards are issued by stores, malls and banks. The store cards can be used only at that chain's stores. The NRF recommends that consumers check the policies of each retailer or store where they plan to buy a gift card to find out whether they charge fees if the card is inactive for a long time or if it has an expiration date.

"We sell more every year," said Gary McDowell, manager of the J.C. Penney store in Cape Girardeau. "Gift cards have become a huge, huge business."

Normally, J.C. Penney will average 2 percent to 3 percent in sales of gift cards on an average day. But during the holiday shopping season, they will run as much as 10 percent.

McDowell said he believes that's the case because people are harder to buy for.

"It's easier to give them a gift card and let them go buy what they want," he said.

Tom Crosnoe, the manager at FYE, the music and movie store at Westfield West Park, said employees see an increase in gift-card sales every year.

"We sell a ton," Crosnoe said, noting that maybe 5 percent of the store's sales are gift cards. "I guess it's convenient. Parents don't know what their kids are listening to nowadays. People don't know what to buy, so they buy gift cards."

Robin Hester, the store manager at the Cape Girardeau Hastings, said gift cards are also an increasingly appealing option for employers to give to their workers.

"One company bought $2,000 worth to give to employees," Hester said. "It's about convenience. It never expires. They can use it whenever they want for whatever they want."

smoyers@semissourian.com

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