Gift card watch: consumers buying more gift cards

Retailers may be able to breathe a small sigh of relief when it comes to their gift card business.

According to a recent report by The Hartman Group, the number of consumers purchasing gift cards has significantly increased over the past six months. This interesting finding suggests that consumers may actually view gift cards as practical gifts in this tough economy. If this trend continues for the remainder of the year, it could spell good things for sales of gift cards at the holiday gift-giving season.

However, the report also notes that while more consumers are purchasing gift cards, consumers are actually spending less on gift cards. The study suggests that the lower rate of spending on gift cards can be attributed to consumers’ poor views of the economy. In addition to that, almost half of consumers are reluctant to purchase gift cards due to the myriad of retailer and restaurant bankruptcies.

We’ll be following what’s happening on the gift card front over the course of this year. Be sure to stop back for updates!

[via The Hartman Group: Gift Card Buying Trends, 2009]

Survey says! Americans more positive about industries in '09

According to a recent Gallup poll, Americans are more positive about most major businesses and industries this year, after being more negative nearly across the board in 2008.

Some notable findings from the poll include:

- The computer industry remains the most positively rated at 62 percent, but the restaurant industry follows not far behind at 57 percent.

- The figures for the restaurant industry are up 6 percentage points over the 2008 numbers.

- The biggest gainers since last year are the grocery industry, the airline industry, and the federal government

- The banking and automobile industry scores continue to drop over this year.

[via Gallup]

This Week in Circular-ville: Back-to-School

The Back-to-School season is an important time of year for many retailers, and there continues to be a lot of buzz about BTS 2009 due to our country's economic situation. As the countdown to the first school bell begins, SBC Advertising's Consumer Lab takes a look at the circulars from this past Sunday. Here's who was promoting what in their weekly ads (as distributed in the Columbus Dispatch):

Grocery

Meijer

"We get high marks for low prices" tagline with a "Back to School 2009 Mom Approved" stamp. Featuring all licensed backpacks at 40% off.
Includes:

• All Falls Creek Kids' Shoes at 14.99
• 25% off all licensed Lunch Bags and Totes
• Buy $10 in any combination of Kellogg's, Keebler, Sunshine or Eggo Products and get $10 off instantly on any one backpack.

Layout: Licensed backpacks, lunch bags and shoes in a school locker setting.

Drug Store

Walgreens

"Major in Savings" tagline. Featuring a .49 cent sale on school supplies. Also features .49 cent coupon's for Mars candy, and Big Roll Bathroom tissue. Also:

• Offering BOGO on bindgers, and Buy 1 Get on 50% on Mead Five Star notebooks.

Some grocery and cosmetic items also featured.
Layout: Traditional drug store look that is cluttered and unfocused.

Office Supply

OfficeMax

"Back to School for pennies." 20% off everything you can fit into a standard size brown grocery bag (printed ON the actual brown grocery bag).
Layout: Drawn schools supplies, and a back to school check off list.

Staples

"Staples = Savings. Huge Deals!" Features .25 cent black + white composition books, and $1 school supplies.
Also features

• Dell laptop for 499.98
• savings of 25 - 50% on all backpacks, and
• TI calculator for 89.99.

Staples is having a Teacher Appreciation Day '09 this Saturday, August 22 at 9am until noon.
Layout: Looks like layout is on a notepad. Design is cluttered and difficult to read.

Department Store

Sears.

"Life. Well spent." tagline and a "Get your jean on sale" promo featuring name brands like Levi's, BONGO, South Pole, and Canyon River Blues. Promoting layaway AND Christmas Club Card, where customer adds money and earns a 3% reward.
Layout: Young couple in an air guitar, and singer pose. Selena Gomez sweepstakes event is also promoted. Not as clutter as Kohl's ad.

Kohl's

"Back-to-school sale saving is in session." Features Avril Lavinge promoting the exclusive Abbey Dawn brand, including a new fragrance. Promotion is an extra 15, 20 or 30% off everything with Kohl's charge.
Layout: Avril Lavinge is on the cover, solo. Busy, rock-n-roll vibe.

JCPenney.

"Schooled in: Style. Smart looks for less." features young couple with Decree brand clothing. Promotion is Buy 1, get 1 for $1.00 Junior's Decree Tops and Bottoms. Also introducing Decree for guys with $14.99 tee or vest, and $24.99 straight-leg jean.
Layout: Young couple in simple, model-like pose. Cleanest ad of all the department stores. More singularly focused, too.

Craft

JoAnn

"Value is a bright idea." featuring back to dorm items such for storage and décor.

• Typical 40% coupon is available, plus a 609% off of custom framing.
• Additional decor items and dollar deals are featured as well.

Layout: Very feminine in bright pinks and orange, and feature a young woman organizing her space.

Discount

Wal-Mart

"Save money. Live better." No back-to-school specific headline on their circular. Features $348 Toshiba laptop and $1.50 school supplies.
Layout: very clean, and focused.

Target

"Expect more. Pay Less." Similar to Wal-Mart, no back-to-school specific headline is on their circular.
Features back-to-dorm items:

• $199 Magnavox 19" LCD HDTV
• $79 Haier 2.8 cu ft. stainless steel refrigerator
• $18 butterfly chair
• $3.50 bath towels
• $16 3-shelf bookcase
• $5 home pillow

Layout: Features a young woman in a contemporary setting interacting with many of the sale items.

Bottom line?

There's a lot of noise out there this time of year. It will be interesting to see who comes out on top. Our guess is that Wal-Mart's efforts (and extreme pricing) won't go unnoticed, while some of the department stores, like JCPenney may continue tostruggle to find their niche, despite their cleaned up brand image.