It's hard to predict when and which retail stores will cut back or close completely, so a warning for holiday shoppers.
Many retail experts warn to keep in mind store closings when shopping this season if you plan on using gift cards. "If you look at what is happening with a lot of the larger retailers, the Bombay Company, Sharper Image, Circuit City have all filed for bankruptcy so those cards are then considered unsecured debt so the consumer does not get anything back from them," said Texas Tech Professor of Marketing Debbie Laverie.
Laverie says last year $26 billion was spent on gift cards and this year's projection is supposed to drop by $2 billion.
"Gift cards are easy gifts to give but I think shoppers would want to think of other alternatives this year or make sure that where they are buying them from they are large retailers in good standing," said Laverie.
If you receive gift cards, expers suggest you use them right away.
|2008 Holiday Helper|