A little gift card can go a long way

Buying me a gift must be a big pain. For one, I’m picky and will return them to the store with no hesitation. That’s because I’m practical, sometimes to a fault. I also hate clutter, so getting a present I don’t need, even if I like it, is not a gift if there’s nowhere to put it. And there’s nothing worse than trying to slap on the poker face in the early hours of the morning when I open up a box and see a ceramic snowman smiling back at me. Hello? Do you even know me?

If you did, you’d be buying me a gift card. It’s not that I’m anti-gift gifts. But I love gift cards. I like to shop, and shopping is much more fun and guilt-free when the purchases don’t end up on my balance sheet.

Gift cards are the most-wanted gift among women and ranked third with men, according to a Consumer Reports survey. The National Retail Federation’s annual holiday survey found nearly eight in 10 shoppers will spend an average of $156.24 buying at least one gift card this holiday season. Most of us will buy three or four.

The retail trade group estimates that $26.25 billion will be spent on these shiny pieces of plastic this season, up from $24.81 billion a year ago, although the group forecasts gift-card sales are slowing — up 6 percent this holiday season vs. 34 percent in the same period last year.

But gift cards still get a bad rap. Consumer groups have rightfully criticized some for having unreasonable fees and annoying policies regarding expiration dates and lost cards. Widespread coverage of those complaints by the media helped to persuade many retailers to reduce or eliminate fees. Several states have even passed gift-card legislation.

Cards issued by financial institutions accepted at many stores are exempt from the law as long as the fees and expiration information are disclosed. Most other gift cards bought after Aug. 1 of this year may not have any expiration dates or fees attached, even for nonuse.

Yet the negative feelings remain. Consumer Reports has a new campaign warning shoppers that cards worth as much as $8 billion aren’t redeemed, enriching stores. It cited Best Buy’s 2006 annual report, which stated income of $43 million from gift cards sold in and before 2006 and never spent. Target’s 2006 annual report said its “gift-card breakage” — the retail industry’s term for unused cards — was “immaterial.”

To me, failing to use a gift card isn’t much different from failing to wear an ill-fitting mock turtleneck or stuffing an unused toy in the basement. Perhaps I should have found the time to return the imperfect gifts. But that might not have worked, since some stores are adopting ever-stricter return policies and I didn’t have the receipts.

I suppose I could donate them to charity or re-gift them. Ultimately, they’ll end up in a landfill or incinerator somewhere, which is much worse than failing to hand over a small plastic card in return for a few cafe mochas.

It is hard for me to believe that 27 percent of gift-card recipients last year have yet to use them, according to the Consumer Reports survey. If the cards are unused because you hate the retailer, dig them out, get to the mall, and use those cards to buy holiday gifts this year. Or save them for yourself, but only after checking to make sure there will be no penalties for keeping them longer.

And if you think gift cards are impersonal or thoughtless, I respectfully disagree. With gift cards available for practically every retailer and restaurant under the sun, not to mention state parks, museums and various charities, it’s as easy to pick out the wrong gift card as it is the wrong DVD. And with some consumers feeling strapped by high gas and food prices, or a rising mortgage, a practical gift card may relieve some major stress. A gift card for a masseuse wouldn’t hurt, either.

Still not convinced? Let’s talk after you spend a few Saturday afternoons fighting for parking, wrapping presents and standing in line at the post office. I’ll be at home, mug in hand, watching “It’s a Wonderful Life” — thanks to the new and improved gift card.

XKara McGuire is a columnist with the Minneapolis Star Tribune.