In between her barista duties, taking orders and making holiday coffees and drinks, Naomi Smith has been swiping little colorful cards through her cash register more often than not.
"I think my swiper here is about done, I've done so many gift cards,"said Smith, manager of Starbucks in Kirkwood Mall.
A recent national survey shows the popularity of gift cards surging again this holiday season. According to National Retail Federation data, consumers will spend a total of $24.81 billion on gift cards this season, compared to $18.48 billion last year, which ultimately will help pump slow sales in January and February.
Individual consumers also will spend more on gift cards, according to the survey:$116.51 this year as opposed to $88.03 last year.
And North Dakota retailers can expect similar trends, says Mike Rud, president of the North Dakota Retailers Association.
"Ithink the trend's continuing,"Rud said. "Ithink it's becoming more and more popular. It's just really easy."
Most major retailers in the area have made gift cards a quick and easy gift, lining aisles with colorful and clever choices of the little cards. And it works, they say.
"I think customers use them for the ease of shopping, convenience,"said Lisa Engelstad, marketing manager for Kirkwood Mall. "Also, a lot of corporations we find are using them, as awards and business incentives."
Mall gift certificates expand that ease of gift buying, give the gift-receiver more options to buy from, Engelstad says. The certificates come in any even dollar amount up to $50 for Kirkwood Mall, Engelstad said.
Engelstad expects to see a more than 3 percent increase in certificate sales this year.
Gateway Mall has the same program, with gift certificates up to $100, said on-site manager Cheryl Hansen. But with their recent transitions, such as new stores and new construction, she expects gift card sales to be a little slower in Gateway this year.
Mike Lund, store manager of Herberger's, says nearly 10 percent of seasonal sales are in gift cards. If the current trends in his store keep up, he says, this year will be stronger than last year.
"And it makes January a better month, also,"Lund said.
Gift card and certificate sales don't play into a store's sales goals for the season. Rather, money is officially spent when the cardholder returns to buy after Christmas, thus pumping up the slow post-holiday months.
Gift cards aren't just for clothing stores anymore, either:Restaurants, movie stores and theaters, coffee shops, photographers, even fast food chains are offering that little bit of extra buying power.
More people are asking for them each year, according to NRFreports:Of 8,090 people polled during the first week of November, nearly 80 percent said they plan on buying at least one gift card this season, and more than half said they'd like to get one this year.
Although gift cards may make a no-brainer gift, the National Retail Association does warn about unethical practices, or the potential for theft.
Truly, many retailers have little in the way of theft protection for their gift cards; once the card is stolen or lost, it's gone.
"We don't have theft protection, but we're very careful to ask for ID when we're redeeming it,"Lund with Herberger's said, adding that most of the time, a thief won't be willing to show identification.
And their gift cards are behind the cash wrap, away from the hands of would-be crooks.
Kirkwood Mall gift certificates are the same way, says Engelstad.
"Once they leave our place, it's just like cash,"she said.
The NRFwarns that some states have "abandoned property"laws pertaining to how long a gift card can go unused. But North Dakota Legislature last year passed SB2335, which says retailer-specific gift cards and certificates must retain their monetary value for six years before expiring.
More recently in the news, however, has been a gift card scam pertaining to stolen serial numbers on cards. In Ohio, the Associated Press reported a scam where gift card serial numbers were written down by crooks, who later called in the serial numbers to see if the card had been activated.
If so, they'd use the activated serial numbers to purchase items at the retailer's online stores.
"It's not where they leave the gift cards or how they display them,"said Kathy Grannis, spokewoman for NRF. "It's the personal information on the back of the cards."
If serial numbers and call-center numbers are available on the card, it's easier for a crook to take the information.
To counter this, many retailers may move to personal pin numbers under a scratch-off section on the cards. But changing systems in the middle of the season is costly, Grannis said.
Grannis said gift-givers should hold on to receipts just in case, and that many retailers are most likely willing to issue a new card if a serial number has been stolen.
Doug Kautzmann, manager of Target, said it hasn't happened here.
"I've never encountered that here at this store,"Kautzmann said.
Generally though, consumers should be comfortable with giving gift cards this season. In fact, recent concerns haven't stopped coffee customers from sharing the wealth with their friends, says Smith.
"Even if you're not a coffee drinker, we have tons of items. The sky's the limit with a gift card,"Smith said. "Even my little girl wants one."
(Reach reporter Crystal R. Reid at 250-8261 or at crystal.reid@;bismarcktribune.com.)
Posted in Local on Saturday, December 9, 2006 6:00 pm Updated: 9:57 am.
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