MAY TRADE NEWS

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1st May 2008

Small retailers urged to embrace gift card schemes

Local retailers could increase their future business if they offer gift cards to their consumers, it has been claimed.

The Voucher Association (VA) said small retailers could generate more custom by offering cards and vouchers, providing an increase in profit for the firms and their wholesalers.

Andrew Johnson, director-general of the VA, claimed that gift cards helped generate future interest in independent retailers.

"Gift cards can help small businesses," he said. "If we look at the US, where gift cards are more popular than they are in Europe, then generally you will find that small businesses…are using gift cards to drive future business."

Mr Johnson also revealed that the scheme was relatively easy to implement, especially for online retailers.

"If it is purely online then you do not need the plastic, you could just do a virtual voucher or gift card," he added.

According the research by the VA and Giftex the average gift card spend is approximately £25.

    (c) 2008 Adfero Ltd.