Reply #42: Gift cards don't go into your sales figures

[jmowreader]

At least they don't go into mine. The reason for this is twofold:

1) Sales is the exchange of money for product. A gift card is simply a deposit of money; when the card is redeemed for product, it then counts as a sale.

2) If you're a regional or national retailer, gift cards purchased at one store can easily be used at a different one. Who would get the credit for the sale? The store who sold the gift card...or the store 500 miles away who sold the customer an item that she paid for with the card?

In my forays to spy on Wal-Mart, they often have signs advertising the "Reloadable Shopping Card." Apparently you're supposed to buy a gift card from Wal-Mart then use it yourself. Also. apparently a lot of freepers actually do this. This is so entertaining because Wal-Mart's making serious coin by investing the float--which is how American Express makes money on Travelers Cheques.