December 2008
Boston, MA

Mercator Advisory Group Viewpoint:

Innovation Loves a Crisis - Economic Uncertainty Drives Gift Cards of all Shapes, Sizes and

In a challenging economic climate, consumers are shopping with tighter budges and are aggressively seeking the best deals during these holidays. It is anticipated that this will be one of the slowest shopping seasons in decades, with declines in sales across various product segments including gift cards. Consumers have been wary of gift cards, in particular, given the recent increase in the number of retailers claiming bankruptcy. In hopes of boosting card sales and encouraging revisits and additional spending after the holidays, several retailers are offering a variety of creative incentives for gift card purchases.

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