While I'm not big on inducing panic, I have been hearing some rumblings on the news and online lately about being wary of giving gift cards this holiday season. And because I think that this information makes sense, I wanted to share it with you.
It should come as no surprise that many retailers are struggling right now, and many companies are predicted to be filing for bankruptcy after the first of the year. According to Reuters, under current bankruptcy laws, retailers do not have to honor their gift cards once they file for creditor protection in bankruptcy court. That means it would be worth it to think hard about which retailer gift cards you are going to purchase this year (if any) before doing so.
I personally love to give gift cards because they are easy and usually appreciated, but this year I think I'm going to try harder to come up with alternative gift ideas for those on my list. And if I can't come up with any ideas, cash might be the way to go. That is not to say that I'll go totally gift card free...there are several "big box" and grocery store chains who are still doing well financially, and I am comfortable purchasing gift cards from those stores. It is the "mall" type stores that are going to make me think hardt. Do an Internet search if you are interested in seeing which stores are doing well vs. not so well. It is pretty enlightening.
On the up side, we should be seeing some great sales and bargains over the next couple of months, which is yet another reason why consumers will be buying less gift cards this year (according to this article). And if you do give (or receive) gift cards this year, it may not be a bad idea to encourge the recipient of your gift (or yourself) to go out and spend them right after Christmas...just to be safe.
What are your thoughts? Gift cards or not this holiday season?
6 comments:
Good post, Marcy!
I wonder if it's safer to buy the gift cards from your bank instead.
And, the CVS ECB deal next week (Buy 3 Amex Cards get a $10 ECB) will probably be safe, ya think?
I know the Linens N Things closure burned several people around us! They weren't honoring those gift cards once they announced their Chapter 11 status.
I've also heard this and it makes me think twice about giving gift cards.
Definetly something to think about!
I usually buy my teenage nephews gift cards each and every year...this year they are getting cash instead. I am just to nervous to give gift cards this year!!
In fact I have a few in my wallet that I plan on using up in the next few weeks...you just never know!!
Another alternative is the VISA gift card. My brother buys these for us. They can be used ANYWHERE a charge is taken and work great. There is a small fee to open one but safer than cash if you have to mail it and my boys love them. He also said his Walmart now has rechargable ones (not sure the details yet on those that are VISA). I haven't looked into them myself, I just thought I'd pass this info on. Our news also stated these are a safe way to go since there are no store names on them.
I got this list in my email this morning:
Circuit City filed Chapter 11
Ann Taylor 117 stores nationwide closing
Lane Bryant, Fashion Bug ,and Catherine's to close 150 stores nationwide
Eddie Bauer to close stores 27 stores and more after January
Cache will close all stores
Talbots closing down specialty stores
J. Jill closing all stores (owned by Talbots)
Pacific Sunwear closing all stores (also owned by Talbots)
GAP closing 85 stores
Footlocker closing 140 stores more to close after January
Wickes Furniture closing down
Levitz closing down remaining stores
Bombay closing remaining stores
Zales closing down 82 stores and 105 after January
Whitehall closing all stores
Piercing Pagoda closing all stores
Disney closing 98 stores and will close more after January.
Home Depot closing 15 stores 1 in NJ ( New Brunswick )
Macys to close 9 stores after January
Linens and Things closing all stores
Movie Galley closing all stores
Pep Boys closing 33 stores
Sprint/Nextel closing 133 stores
JC Penney closing a number of stores after January
Ethan Allen closing down 12 stores.
Wilson Leather closing down all stores
Sharper Image closing down all stores
K B Toys closing 356 stores
Lowes to close down some stores
Dillard's to close some stores
I received this today:
Dear Valued Client:
It has come to our attention that false and misleading information, regarding our Company and our store closure program, is circulating on the Web, as part of a hoax to scare consumers away from purchasing gift cards. Ann Taylor is a financially strong Company that operates nearly 1,000 Ann Taylor, LOFT, Ann Taylor Factory and LOFT Outlet stores across the U.S. In January 2008, we announced plans to close some underperforming stores, as part of a strategic restructuring program to make us an even stronger Company that can continue to serve you in the future. Our gift cards continue to be a popular and great option for gifting this Holiday season and can be redeemed at any of our stores, as well as online at anntaylor.com and anntaylorLOFT.com. We look forward to serving you again soon!
Kay Krill
President and Chief Executive Officer
Ann Taylor Stores Corporation
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