More Gift Cards in January
We are all thinking about 4th quarter but let’s think about January for just a minute. It may have a noticable impact on December sales.
In tough economic times, people are more inclined to give money instead of gifts so that the recipient can spend it on what they need. That’s why a lot of young parents, kids and teens may be receiving money this year from parents and relatives.
This will mean cash, checks and gift cards. If that is the case, we will likely see a strong upsurge in gift cards and January redemptions.
Remember, this is discretionary money so, particularly parents, are going to use it to get the most they can out of a toy. This means that those toys that offer conspicuous “play value” should fare well.
This is also going to mean, ironically, that those who have inventory in January are going to pick up some nice business. Retailers may therefore want to think about buying late into December in order to replenish low stocks of goods. There could very well be customers for them in January.
The “fat lady” may sing a little later this year.
