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The Honolulu Advertiser
Posted on: Wednesday, December 26, 2007

Gift-card shopping's a potent retail force

By Greg Wiles
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Stores and restaurants are preparing for a rush of gift-card recipients.

DEBORAH BOOKER | The Honolulu Advertiser

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CHECK EXPIRATION DATE ON CARDS

Many people try to use their gift cards and certificates within a couple months of receiving them. That way there's little chance they can lose or forget about having them.

If you don't plan on using your card right away be sure you check if the card has an expiration date.

You generally have at least two years to use the card or certificate: Hawai'i law requires merchants, restaurants or services to honor them for at least that long, from the time they were issued.

The law also prevents sellers from charging service or dormancy fees.

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Major malls will open at 7 a.m. today with the expected rush of shoppers clutching ill-fitting and unwanted Christmas gifts to return to stores.

But among the throngs will be a large contingent of shoppers who have emerged as a potent force in post-Christmas retailing — people with gift cards and certificates. Just as the day-after-Christmas has become known as a hectic shopping day for folks returning gifts, it too is becoming commonplace for people to shop using cards and certificates.

This year the giving of gift cards was expected to jump nationally, with the National Retail Federation forecasting sales would climb around 6 percent. An NRF survey found 56.6 percent of consumers planned to buy gift cards or certificates as gifts and that the average amount spent on these gifts will be $156.24 versus $146.20 last year.

"We don't have the numbers in yet, but they seem to be doing very well," said Fred Paine, general manager of Pearlridge Center, the state's second-largest shopping venue at 1.4 million square feet.

"It seems like each year we dispense more of them than the year before."

There are indications that Hawai'i may be following the national trend and that a late rush of gift-givers pushed many to opt for gift cards and certificates. Some retailers report a late start to the holiday shopping season because people were watching University of Hawai'i football games the day after Thanksgiving and the following Saturday. There also was a spell of wet and windy weather that might have damped shopping and shifted some gift-buying forays into late December.

On Monday, Wal-Mart Stores' seven locations opened dedicated express check-out lines for people buying gift cards. California Pizza Kitchen's Kahala Mall location ran out of gift cards Sunday despite attempts to get more.

"We're completely out," said Eddie Spencer, California Pizza Kitchen senior general manager at Kahala. He said the rush for cards began two weekends before Christmas and included people who looked rushed to finish shopping.

Spencer said gift-card sales had jumped more than 40 percent this holiday season compared with 2006.

The restaurant was one of many retailers experiencing a spike in card sales late in the season.

"I know a number of tenants have been doing phenomenal with their gift-card sales," said Kelly Kauinana, Kahala Mall marketing director. She said the mall will open at 9 a.m. today to handle the after-Christmas crowds, with Macy's opening its doors two hours earlier. Last week the department store chain sent out promotional cards to frequent customers touting its traditional Dec. 26 sale, offering a $10 off coupon on sale or clearance merchandise bought before 1 p.m.

It also advertised an extra 50 percent off clearance kids clothes and up to 75 percent off selected diamond jewelry.

Kauinana said besides Macy's, she expected RadioShack to do well with people coming in to find cords, attachments and items that plug into iPods and other gadgets they've gotten as gifts.

But the traffic from gift-card recipients should continue into January, Kauinana said.

Paine expects the same at Pearlridge.

"We now look at January as the second season," said Paine, who's been in retailing for 20 years.

"When I started out January was just a dead month, nothing happened."

But now "It's become this phenomenon with gift cards, returns and sales."

Reach Greg Wiles at gwiles@honoluluadvertiser.com.

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