Before the bubble burst, there was hardly a hotter sector in retail than gift cards. Gift Cards had exploded into a $10 billion dollar industry and they were the hottest part of retail. Since then, everything has slowed including the gift card industry. They question now is, what role will gift cards play when the economy returns.
One key thing to note is that gift cards have taken on a bit of a different role in the current economy. Rather than being ways to give people fancy and exciting gifts, they are now being used as ways to give people the staples. Rather than a gift card to Nordstrom or iTunes, people now give gift cards for groceries and gas.
This could actually bode very well for the gift card industry. We predict at Giftcertificateguide that when the economy returns people will begin giving fun gift cards on top of the staples, making gift cards a bigger indsutry than ever. We have been wrong before but we feel confident in this prediction.
Added on 08/17/2009
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