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With the collapse of HMV we are seeing another high street retailer close its doors - sad news for their employees, but also sad for high streets around the country and for their former customers. We've seen a pattern of closures over the last few years, although some chains that have edged towards collapse have been saved at the last minute. The first part of this pattern is that gift vouchers and other forms of credit are halted, and shortly after, stores are closed, either selectively or wholesale.
Closure of so many retailers has left consumers with millions of pounds of worthless gift vouchers and gift cards. In these troubled times it really makes you think about the value of these lines of shop credit. The recent recsession has hit every retailer and it's almost impossible to predict who will go next. The worst part is that customers have loyally bought gift vouchers as a way of gifting money with the intention to buy something fun, so that the money doesn't just end up paying the bus fare or for a drink. However, these same customers would be heartbroken to learn that their gift was now worthless.
In hard times it really does beg the question as to whether you should gift vouchers or rather give money instead. While it may be considered vulgar to give money (who perpetuates that myth?!), at least money will keep its value, is universally accepted and immune to the collapse of individual stores.
If you want to gift money to your children, nephews, nieces or friends for their birthdays or other events, then consider carefully how safe that gift is. The store you have in mind may seem to be trading buoyantly but we tend to sit on gift vouchers...how will that store fare 6 months or a year from now? In this uncertain economic climate, perhaps it's time we saw a return to the traditional gifting of money. At least your hard earned cash won't be written off overnight at some time in the future...
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