November 15, 2024
Business

Gift-card proliferation spurs buying, reduces returns

Deep discounts and gift cards brought northern New England shoppers out in force early Monday morning.

At a Target store in Concord, N.H., the hot items were half-price holiday wrapping and decorations. Shoppers were seen pushing carts heaped with lights, Santa-emblazoned serving bowls and everything Christmas.

“We are going from a small house to a much bigger house so we needed lots of new decorations,” said Kim Carpenter, who – with help from her daughter – was guiding three overflowing shopping carts through the parking lot.

With 364 days until next Christmas, the Alton, N.H., woman wasn’t worried she’d lose interest in her choices during the intervening year. “I’ll be excited, because it’s all new and all the lights will work,” she said.

Inside, shoppers swarmed the Christmas aisles.

“I’ve been wanting these all year,” said Bonnie Longbal, of Concord, as she picked up a set of candle-topped stocking hooks.

Next door at Best Buy, those craving a high-tech fix wandered the aisles of stereos and flat-screen televisions.

Kevin Desmond headed for the store right after getting off his overnight shift as a dispatcher for a grocery distributor. The 24-year-old Concord man had $450 worth of gift cards he was eager to spend on a high-definition television.

“Everybody knew that I wanted flat-screen TV, but they didn’t know which one to get, so I ended up with gift cards,” he said.

Other shoppers also praised the flexibility of gift cards.

“I think they’re the best because you don’t have to return things, you can buy what you want,” said Marc Guild of Tilton, N.H. Guild said his $125 worth of gift cards were destined for a new car stereo.

Similar spending was going on in Maine, where a couple of dozen shoppers waited outside the South Portland Target for the 7 a.m. opening.

Early shoppers were there to exchange gifts, use their gift cards and buy seasonal items on sale such as ornaments, wrapping paper and artificial trees, said store manager Adam Hobson.

“It’s definitely crowded for a Monday morning,” said store manager Adam Hobson. “I’d say it’s as crowded as other years the day after Christmas.”

Retail sales analysts predicted post-Christmas shoppers would spend more this year than last because of the soaring popularity of gift cards. According to ShopperTrak RCT Corp., the week after Christmas accounted for 10 percent of holiday sales last year, but analysts expect that could increase to 14 percent this year.

James Gerety, manager of the Bangor Mall, said about 17 percent of all gift cards are redeemed the week after Christmas, according to the International Council of Shopping Centers.

At The Maine Mall in South Portland, marketing director Ellyne Fleshner said the parking lot was crowded when stores opened at 8 a.m. She reported “wall-to-wall people” in the early afternoon.

The day after Christmas is no longer just a day for returns, she said.

“The people coming in didn’t have bundles in their hands, so I assume they’re here to shop,” she said.


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