Retailers concerned about low gift card sales

December 25, 2009 6:37:56 PM PST
Falling sales of gift cards aren't bringing much holiday happiness to merchants. Stores and shopping malls had hoped those who received the cards would shop with them after Christmas and increase sales.

However, business analysts say the recession has caused a second consecutive yearly drop in gift card purchases.

Merchants are also concerned that customers who do shop with gift cards may buy deeply-discounted merchandise that brings little profit to the stores.