Why vouchers are the worst Christmas gift
GIFT hunters should think twice before buying vouchers for hard-toplease family and friends this Christmas – in case retailers go bust and refunds become an issue.
Shoppers are warned to think again as a survey reveals almost one in 10 people were treated to gift cards for shops which closed.
Watchdog Which? polled 2,000 shoppers to find seven per cent were given credit for a retailer that had gone bust since March 2020.
Spokesman Adam French said: “While gift cards might seem like an easy gift, our research shows you could be left high and dry if the company goes bust.
“If you receive a gift card, check the small print to find the expiry date and make sure you won’t face any unexpected charges if you don’t spend your voucher quickly.”
Researchers found two-fifths (38 per cent) were unable to redeem the full balance of a voucher, with an average of £25 left unspent.
And one in five (21 per cent) of them had a gift card for an Arcadia Group retailer.
These included Topshop and Miss Selfridge – who only allowed customers to pay for half of their order using the credit after they fell
into administration after Christmas last year. Shoppers had to fund the other half themselves.
Which? warned that administrators may refuse vouchers in a bid to save a troubled retailer.
The consumer champion also found some outlets are better than others at explaining when the gift card expires. More than half of recipients in the past year (53 per cent) had an end date clearly stated while a quarter (27 per cent) said it was unclear.
But the Gift Card and Voucher Association says the market is growing and was recently valued at £7billion. A spokesman added: “Given the turmoil of the past year-and-a-half, it’s understandable consumers may be wary.”
And he tried to reassure anyone scratching their head over gift ideas that the treat is convenient and avoids waste and unwanted items.
For those seriously hedging bets, multi-brand cards include one4all and Love2Shop. While other high street retailers and independents may offer their own vouchers.
It is still usually up to the recipient to cash in. The most common reason for not spending gift credit were not getting around to it (42 per cent) and not finding anything they wanted (28 per cent).