gift

INCREASING YOUR GIFT CARD SALES
Gift card use has grown by more than 50 per cent among small businesses in the past few years and is expected to grow by 20 per cent annually for the next four to five. The average consumer currently spends about $200* on gift cards each year, and roughly 50 per cent of recipients spend more than the face value of the card. "We've seen explosive growth in gift card popularity over the past 10 years," says Daniel A. Baer, a partner with Ernst & Young. "Because gift cards can be used for both non-essential and essential items, we're going to see a lot of them in this type of economy." So, how can you creatively and cost-effectively use and increase your gift card sales this season? Read on to find out. 1. "Display gift cards all around your store," says Retail News columnist and retail makeover coach Barbara Crowhurst. Remind customers that you offer gift cards when they're checking out and when they can't decide what to buy. "Train your staff to talk about gift cards to each customer. You'll be surprised how many you can sell just doing this." Don't forget to put them in stockings and hang them from your displays and Christmas trees. 2. Hold a contest. When customers purchase a gift card, automatically enter them into a draw to win a free gift card. This promotion has worked extremely well to increase gift card sales for Tasha Hilderman, the co-owner of Border City Building Centre in Lloydminster, Alta., a 2005 CGTA Retailer of the Year winner.3. Use gift cards to thank your best customers and to make charitable donations. You're not out any money until they're redeemed and the gift prompts the recipient to visit your store.4. Package them effectively. Sell card-sized gift boxes so the recipient has something to unwrap. Or, like Hilderman, give customers a small organza gift bag with a hot chocolate package when they spend $50 or more. This tactic increased the store's average gift card sale by $20. "It was well worth the $1.20 cost of materials," says Hilderman.Note: Retailers who sell a lot of gift cards see a dramatic shift in their business when the cards are redeemed, which is typically in January. Don't disappoint them with an empty store. "During the past two years we've been cleaned out in January because we get so many gift cards being redeemed," says Hilderman. Now, she arranges for more stock to arrive in January and orders items that people tend to buy for themselves, rather than others, such as purses and jewellery. *Source: Moneris SolutionsThis article is the fifth in a series we've developed to help you transform your store into a super-selling winter wonderland this holiday season. Stay tuned for advice culled from our favourite contributors on preparing for your post-holiday sales in the December 8th edition of Retail News Now!