Should I be considering gift cards as a long-term profit center? What kind of future does this SKU have in c-stores?
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Gift cards are a segment with still a lot of upside potential for retailers. First, according to the National Retail Federation (NRF), gift cards are now the third most requested gift behind media products and apparel. Second, the gift card industry is growing at an explosive rate driven by broader retail availability and wider consumer usage. In fact, a recent survey conducted by the NRF revealed that holiday sales are up approximately 34% versus last year and that nearly eight out of ten consumers planned to purchase at least one gift card this holiday. There is also less liability with gift cards as retail shrink is mitigated by the fact that the cards' value is not present until they are scanned by a cashier.
