More consumers purchased gift cards this holiday season for friends and loved ones, giving people the ability to redeem them for products and services.
According to a survey from the International Council of Shopping Centers and Goldman Sachs, gift cards accounted for 18 percent of spending during the holiday season this year and jumped 14.6 percent from last year. Redemption of the cards is likely to help the stores offering them because sales are not counted until a person uses them in the store.
One way that brands are hoping to encourage people to use the payment method is by sending out emails. According to marketing firm Responsys, 22 percent of retailers will send out reminders to people telling them about gift cards.
"With inventory levels high, retailers will be anxious for consumers to redeem their gift cards," said Chad White, the firm's research director, in an interview with The Los Angeles Times.
Some brands have been handing out gift cards to entice customers into buying certain products. Radio Shack recently gave out a $100 gift card with every purchase of Apple's iPad 2. Customers were given a $50 Visa gift card and a $50 Radio Shack card to spend on items or services of their choice.
