Retailers fall in love with gift card programs during Valentine's Day
February 04, 2014
Valentine's Day is a great time for small and midsize retailers to use gift card programs to maximize seasonal sales.
Consumer businesses have the opportunity to increase profits in February, as most people take advantage of the holiday to purchase gifts for loved ones. This year, enterprises must be especially sensitive to spending habits in light of current economic conditions. A recent report from the National Retail Federation has found many Americans are not quite ready to open their wallets on Feb. 14. Proper Insights and Analytics conducted a survey for the organization that determined only 54 percent of nearly 6,500 individuals have plans to celebrate the holiday this year, compared to 60 percent in 2013.
Among those consumers who do expect to celebrate Valentine's Day, gift cards may be a particularly cost-effective option. In fact, Ebates, an online shopping deals website, reported that these redeemable purchase alternatives are the No. 1 gift on men's Valentine's Day wish lists. Thirty-seven percent of women also claimed they would happily accept a gift card from a loved one this month.
By offering these options, retailers will have the chance to generate a substantial boost in sales, even while most Americans are averse to spending so freely.