Do you still have a bunch of gift cards in your wallet? You haven’t had the extra time to spend them yet? Well, don’t wait, or you may just be throwing money away!
No matter how big the retailer may be, if they go out of business those cards are worthless. Stores like The Sharper Image left many customers surprised when they filed bankruptcy and their gift cards were zeroed out. In addition, some gift cards start to charge you a fee if you do not use them within a certain period.
Gift cards have been the rage over the past couple of years. They seem like a perfect gift as the recipient can select the perfect item. While they do have their place, it is time to start reeling them in.
Be selective when using a gift card. You can prevent most problems by reading the fine print on the back of the card. As far as ensuring the retailer will still be around, you can look for these signs there is a problem.
1. The retailer is not stocking its shelves. Many holes in inventory will often be a sign of cash flow issues. The business can’t afford to pay its suppliers.
2. Many sales with very big discounts are another red flag of trouble.
3. Noticing that their name brand items are ending up in discounters like Ross, Costco, etc – this is especially true if these brands were rarely seen there before.
4. Other cost cutting measures like reducing maintenance on buildings, parking lots or websites.
In this struggling economy, there are certain to be some losers in the retail business. Don’t let this natural weeding out hurt you as a customer. With uncertainty in the business world, it is better to avoid “buying into the future.”
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