Gift cards are more than a gift for consumers, they also create greater profit for merchants. But who does the burden fall on when a company goes bankrupt? “Gift Card Girlfriend” and GiftCards.com spokesperson, Shelley Hunter says that retailers should do a better job at courting gift card owners in both “the good times and the bad.” Here’s an excerpt from the Wall Street Journal story:
Shelley Hunter, who blogs about gift cards and retail bankruptcies on her website Gift Card Girlfriend, says retailers can and should do a lot better.
"The root of the problem here is poor communication with gift card holders, which begins well before the retailer files for bankruptcy. Despite the misconception that merchants prefer outstanding gift cards never be redeemed, the opposite is more likely. Various statistics show that people who shop with gift cards often overspend the cards’ value, shop full-priced merchandise rather than sale items and make multiple visits to use the full value of their cards. In many states, unredeemed gift card dollars eventually are transferred to the state anyway, so it behooves merchants to court gift card owners and get those dollars back into their stores."
To read the full article, click here.