Financial Times FT.com

Survival fears weigh on US gift card sales

By Jonathan Birchall in New York

Published: December 10 2008 23:32 | Last updated: December 10 2008 23:32

US shoppers are shying away from purchases of store gift cards this holiday season, partly because of concerns that the retailers in question may not survive to see the cards redeemed.

The National Retail Federation estimated last month that total gift card spending will fall almost 6 per cent in November and December to $24.9bn – after growing at an average annual rate of more than 10 per cent for the previous four years.

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