The verdict is in – or so it would seem – gift cards are officially dead. Well, that might be the impression we are supposed to get from the latest stories surrounding gift cards on the nightly news. Impending bankruptcies, massive store closings, shortage of elves and reindeer, and who knows what other factors will weigh-in on this hot holiday topic before its all said and done. I actually did not know Hallmark was in that much financial distress! Oh, wait – not those kind of gift cards, the other ones. OK, that makes more sense!
Yes, it would seem that there is reason for concern that the gift card you bought at Circuit City for your brother-in-law might not be worth the paper envelope you “wrapped” it in when he goes to redeem it in January on the latest electronic gadget. And the list is a long one this year as a host of retailers are suffering from the current economic crisis:
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 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 more 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
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
Loews to close down some stores
Dillard’s to close some stores
Additional information can be found here: (read with your own discretion)
http://www.snopes.com/politics/business/bankruptcies.asp
http://www.snopes.com/politics/business/storeclosings.asp
Couple that with the ever-present opportunity for theft, and we might just want to go back to stuffing impersonal wads of cash into those other hastily chosen, commercially poetic expressions of forced holiday sentimentality – the aforementioned “Hallmark” card.
But seriously, I think the stories about struggling retailers do make me consider other options. Say for instance, shop at stores that are stable financially. Crazy I know, but over-reacting and following impulsive crowd behavior has never been one of my strengths. When the implications are that I will spare the innocent lives of my children, grandchildren, and generations to come by avoiding the dreaded gift card purchase, I chuckle.
No matter what type of purchase we are making we should always use common sense and apply a bit of wisdom and street smarts. Understand the difference between bankruptcy and closing some stores in a large retail chain. The later may even be a sign of fiscally responsible management…hmmm almost an oxymoron isn’t it! If a store is actually going out of business you should use caution no matter what you are buying, gift cards or otherwise. Ask yourself if you are going to be able to get service on that Super 42″ Plasma HD flatpanel TV you got for $899 if the local “Superbuy” goes out of business as well. Truth is, gift cards from reliable merchants and bankcard providers will continue to be honored and will continue to be a viable gift alternative for this holiday season and years to come.
