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More than a token effort

Douglas Fraser | 10:25 UK time, Tuesday, 28 December 2010

Did you get a voucher as a Christmas gift? If so, you're not alone.

I spent part of Sunday shopping, and part of Monday reporting on shopping, and found the off-loading of vouchers seemed to be as important as the search for sale bargains.

This hunch was borne out by George Reader, centre manager at Silverburn shopping centre in Glasgow.

He reckons people are using tokens within families and between friends to bank their Christmas spending until prices fall with the start of winter sales.

And this week, they're keen to spend those tokens before VAT goes up to 20%.

That's a canny approach. But maybe there's more to it than that?

Could it say more about us, our choices and our relationships with friends and family: either that we know less about each other's preferences, or we increasingly respect each other's right, ability or freedom to make their own choices?

Could this voucher boom reflect the rapid decline of the cheque, as a means of gifting money?

Or could it be that the weather made shopping rather less pleasurable over recent weeks, so we minimised how much had to be carried home through the snow and ice?

Vouchers don't break when you slip and fall.

When you look at what's available through shop tokens, you can see that supply is driving some of this.

Shops such as WH Smith offer racks with scores of different options - magazine subscriptions of your choice, white-water rafting to be redeemed when it suits you, with brands and stores galore, much of it led by online retail such as Apple's iTunes.

It's a long way from the days when book tokens were the only major multi-store voucher.

They were first issued in Britain in 1932, and they're now digitised.

But they're yet to become usable to online book sales - could it be that traditional bookshops don't want another way for Amazon to gain market share?

That's not the only trend emerging from this year's retail splurge, as the British Retail Consortium warns that its members are downbeat about the prospects once these sales are over.

The John Lewis Partnership has found the trend is not only towards online sales, but a bit of forward planning too.

It reported Christmas Day visitors to its website up 25% on last year, and sales up 45%, as people took a two-day advantage of offers before the stores for clearance sales on Monday morning.

Demand subsided from 1pm to 4pm on Christmas Day, and then rose to its peak between 9pm and 10pm.

What were they buying? Luxury bedding led the way, and signs that people were already planning next year's splurge when this one still had a long way to run: packs of Christmas gift tags were the sixth best selling product.

Finally, from the US and Australia, another trend to the Christmas sales this year: "self-gifting".

After three years of austerity, stores are claiming people have spent December leaving at least a bit of their budget to spoil themselves.

And why not? The only people even more keen on people spoiling themselves are the shops where they do so.

Comments

  • Comment number 1.

    Like many people, I had to give tokens this year, because the abject failure of the supply chain to deliver through a few inches of snow, meant that my purchases of 'real' presents did not arrive in time for Christmas.

  • Comment number 2.

    The great thing about gift tokens or vouchers is that after Xmas when the shops drop the inflated prices they imposed for the festive season, the value of the voucher will stretch a bit further than the cash would have before Xmas. Designer clothes stores and the better known department stores are the biggest offenders in the "up for Xmas , down for the sales" culture. Joe public has now cottoned on to them and unless they play ball, they will be the losers.

  • Comment number 3.

    The reason is quite simple. With the ongoing march of globalisation and economic development, we live in an age where many of us (yes, not all, but still many) can purchase, say, a laptop, a 32" television, a stereo, or indeed any other kind of household possession without having to scrimp and save. What kind of present can most of us give that the recipient truly wants and can't obtain for themselves?

    Another driver is that the shops themselves have woken up to what fantastic financial sense vouchers make for themselves. When you buy a voucher from (say) HMV, they put £20 in the bank and you get a piece of paper. They earn interest; you give away the piece of paper. A massive proportion of these vouchers then get stuck in a drawer and forgotten about (daft, but true). So the shop gets a combination of an interest free loan and an outright gift of your cash. If only I could come up with such an evil scheme!

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