The gift that spends like money

Dec. 28, 2006
By JOSEPH M. DELEON News-Post Staff
jdeleon@fredericknewspost.com

   FREDERICK— Michael Foote, 18, won't have to worry about returning any unwanted Christmas gifts this year. The shopping spree and loads of gift cards he got Monday are exactly what he wanted.
     The Tuscarora High graduate spent Tuesday morning with his mother buying clothes from several department stores at Francis Scott Key Mall.
     Mr. Foote prefers gift cards because many family members don't know what clothes or CDs he'll like. This year's gifts included cards from Borders, Best Buy and iTunes.
     “It's the choice of stores that make a difference, because it shows they know what you like,” Mr. Foote said. “It's like a currency you can spend.”
     Mr. Foote was one of many Frederick residents who received gift cards to avoid having to return gifts they already own, are the wrong size or just out of style.
     Long considered impersonal, gift cards are now the gift of choice for a growing number of people, according to market research firm NPD Group.
     The only gift Mr. Foote's mother, Jocelyn Foote, had to return this year was a sweater she bought from Shenk & Tittle for her son, Andrew. It was the wrong size.
     Ms. Foote still prefers to take her sons shopping, but likes the choices gift cards give her sons.
     “When they get older, you want them to buy what they want,” she said.
     About 80 percent of holiday shoppers plan to use a gift card, according to the National Retail Federation. Last year, retailers reported 15 percent of holiday sales, more than $40 billion, toward gift cards.
     Retailers hope shoppers using gift cards will help boost end-of- the-year sales. Gift card sales are counted on the balance sheet after a card is redeemed.
     Shoppers should use gift cards sooner rather than later. Many cards carry fees that start when they're not redeemed in a certain amount of time.
     Susan Poling works in the banking industry in Frederick. She followed her two daughters to Macy's on Tuesday to return clothes that didn't fit.
     “I'm usually really good at buying things for them, but this time I wasn't,” Ms. Poling said. “I chose Macy's because it's new to Frederick.”
     Her 27-year-old daughter, Susan Poling, a paralegal in Charleston, S.C., needed to return two jackets her mom gave her.
     Susan's sister, Melanie Shah, 36, a teacher at Glade Elementary, wanted to buy her sister a pair of jeans from The Gap, but couldn't decide on a style. A $30 gift card did the trick.
     “Cards are almost the first choice now,” Susan said. “People prefer them because it's something they can use and not stick in the back of the closet.”
Ms. Poling's 5- and 7-year-old grandchildren won't have that problem. They surprised her by asking for gift cards this year.