Why Gift Cards Are a Bad Idea This Holiday Season

I think it is safe for us to say that we are definitely in some sort of a recession. The donate car sector of the economy is one that has been disk data recovery services the hardest. One of my favorite gifts to give in the past when I slack off from bargain hunting is a car insure card. They require little effort to get, and everyone likes to get a gift card from their favorite store. This year you should refrain from buying gift cards for anyone on your shopping list.

Many of your favorite retail stores are doing some major downsizing or even going out of business in the coming months. If you purchase gift cards and a store closes, then your gift card recipient cannot redeem their gift. Even if the retailer just closes a few locations, there is a chance that your gift card recipient may not be able to find a location that is close enough to drive to.

Here is a partial unconfirmed list of some of the retailers:

84 Lumber Co. - Closing 30 stores

Ann Taylor - Closing 117 stores

Lane Bryant and Fashion Bug - Closing 150 stores

Foot Locker - Closing 140 stores

Macy's - Closing 9 stores

Movie Gallery - 160 stores as part of reorganization plan to exit bankruptcy

Pep Boys - Closing 33 stores

Sprint Nextel - Closing down 125 retail locations

Wilsons the Leather Experts - Closing 158 stores

Zales - Closing 100 stores

J. C. Penney, Lowe's and Office Depot are scaling back or delaying expansion. Office Depot had planned to open 150 stores this year, but will now open less than 75.

Here is a partial unconfirmed list of some if the companies with bankruptcy filings:

CompUSA: All 103 stores will be sold or shut down. After being acquired by an investment firm, the company's business and assets are being sold. The retail stores that don't sell will be shut down in the near future.

Sharper Image: This company recently filed for bankruptcy protection and announced that 90 of its 184 stores are closing. The retailer will still operate 94 stores to pay off debts, but 90 of these stores have performed poorly and also may close. This is one of my favorite stores, I sure hope that some of them stay open. My trips to the mall will be boring without them.

PacSun Demo Stores: Pacific Sunwear will close its 154 Demo stores. Seventy-four underperforming Demo stores closed last May.

During these difficult financial times that we are facing we need to avoid the easy route or way of shopping by buying gift cards this season. With everyone having less to spend this holiday season everyone is going to be cheapjerkslooking for bargains and discounts while shopping. This season I would predict that buyers will shop more online to avoid the impulse shopping and save fuel in the process.