Gift cards a holiday hit

Northwestern Financial Review, Jan 15-Jan 31, 2005

Gift cards proved to be a hot gift this holiday season. The International Council of Shopping Centers said gift cards accounted for 11 percent of all retail sales in December, and totaled more than $20 billion. The National Retail Federation concurred that gift card sales were significant, but put the dollar total at $17.3 billion.

One survey found that 27 percent of people who receive a gift card use it within a week, and 31 percent use it within a month. Meanwhile, some state legislatures are considering legislation to prohibit or restrict fees associated with the cards that kick in after months or years of dormancy.