So just how important are gift cards in today’s retail industry? This week, the Canadian POS Corporation has been making the point that gift cards are incredibly important pieces of any retailer’s success. The point that we’ve been driving home is that there are benefits to selling gift cards all year round. Naturally, gift cards sales pick up during the end-of-year holiday season. All sales pick up during the holidays.
But gift cards have become so popular that some retailers are accepting ones issued by other stores! Just a week into the new year, Global News consumer reporter, Sean O’Shea revealed that The Hudson’s Bay Company was willing to allow consumers to trade in their gift cards from other stores in order to make purchases at The Bay. Now, that’s an advertising strategy we haven’t thought of before!
According to O’Shea, Hudson’s Bay’s Gift Card Advantage program gives customers offers for cards that they wish to trade in. Tiffany Bourré is the company’s director of external communications. “This program will be a first in the Canadian marketplace, as current exchange programs only offer a prorated cash equivalent,” she was quoted as saying in an interview with Global News.
“The retailer’s program is being managed by CardSwap, Canada’s most prominent gift card swapping business,” adds O’Shea, who cites the company’s president, Frances Ho as declaring that the gift card industry is currently worth $8 billion. CardSwap is a Toronto-based company that allows shoppers to trade in cards they don’t want in exchange for cash. “It also allows consumers to buy gift cards for desired retailers for less than full market value,” informs O’Shea.
“You come to our site, have the gift cards with you, and you’re going to get an offer for the gift card right there on the spot,” Ho is quoted as explaining, “Fill in your information, mail us your cards and then we send you a cheque.” With this option available to the public, it makes the selling of gift cards even more of a viable option for small business owners. You may be wondering how.
Is there a purpose of selling gift cards if they won’t necessarily be redeemed in your store? Of course! Keep in mind that when you sell a gift card in your store, you’re making money no matter what. If the gift card recipient never redeems the card, you profit. If the gift card recipient redeems the card, you profit. Remember too that most gift card redeemers spend more than the value of their cards. Selling gift cards is simply a win-win situation.
And The Hudson’s Bay Company is taking advantage of that. It’s time you take advantage of that too. At Canadian POS Corporation, we offer our clients the opportunity to sell gift cards in their own stores. They are known to encourage repeat business, attract new customers and boost sales all year long. Our gift card program is the perfect solution to lay claim to your stake in a new era of consumer spending.