Los Angeles (CA) – Store gift cards are popular presents during this holiday season, but did you know that companies are raking in huge profits because shoppers aren’t cashing them in. According to a survey done by Consumer Reports, gift cards are the second most popular gift, just behind clothing, but almost one billion dollars of cards have gone unused from last year.
The Consumer Reports surveyed 1000 adults about their shopping habits and found that gift cards were one of the most purchased gifts. It makes sense, the cards are easy to buy and wrap, but moreover they push the burden of choosing a more suitable gift to the recipient. Some may even call gift cards a “brainless” present.
Consumer Reports found that 23.3 million Americans forgot to use their gift cards from last year and those cards totaled $972 million dollars in unused funds. Many gift cards expire in one or two years, essentially turning the card into a worthless ornament.
After gift cards and clothing, the survey found toys and electronics were the 3rd and 4th most popular gifts.