Utahns can now do their holiday shopping where they do their grocery shopping.
Harmons Grocery Stores launched a new gift card service in November, allowing customers to buy gift cards from about 30 major retailers in a variety of sectors, from home improvement to apparel to dining.
But Harmons isn't alone. Smith's Food & Drug formally launched its gift card program a few weeks after the Harmons launch, with about 15 participating retailers plus American Express and MasterCard.
"We've just seen how the trend is becoming more and more popular as an alternative gift, in that the recipient can make their own choice (of products or services to buy), instead of maybe getting something they have to return," said Bob Harmon, vice president of marketing at Harmons. "This is something where they can go and make their own choices."
Deloitte & Touche USA reported in its 20th annual "Holiday Mood" survey shows that gift cards of all sorts will be shoppers' top purchases this season. Of the 17,440 people polled, Deloitte reported that gift cards topped the list for holiday shoppers. Sixty-seven percent said they expected to purchase an average of 4.9 gift cards for the holidays, up from 64 percent in 2004.
Retailers participating in the Harmons program include Bed Bath & Beyond, Nordstrom, Home Depot, Barnes & Noble and Olive Garden, as well as American Express gift cards that can be used where American Express cards are accepted.
The cards are sold at all 11 Harmons stores at check stands, specially marked kiosks and at other points in the store, Harmon said. Gift cards are available in varying denominations — depending on the agreements struck with individual vendors. Though launched in time for the holiday shopping season, Harmon said the cards will be available year-round.
So far, several thousand cards have been sold, exceeding the company's expectations, he said.
Smith's stores received their shipment of gift cards on Dec. 1, spokeswoman Marsha Gilford said, and the store began promoting its program a week later. Among the 15 vendors participating in its program are Staples, Lowe's, Pier One and the Chili's and Macaroni Grill restaurants.
Smith's did not comment on how many cards it has sold since its program launched, except to say that "gift card sales have been steadily increasing as we move closer to Christmas."
When asked why Smith's decided to offer the cards, Gilford said, "With the wide appeal of Smith's gift card participants, one could easily buy the eggnog and complete her shopping gift list in one visit. It is one more way to make our customers' lives a little easier."
Harmon said that gift cards are the "next step" for grocers hoping to provide more services to its customers.
"Gift cards are the next step in grocery store convenience for our customers," Harmon said. "There is not a large profit margin in gift card sales for Harmons, but it does provide something that our customers need. It's an extension of Harmons' existing services such as check cashing, postal services, dry cleaning and money orders. "
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