Wal-Mart's aggressive approach this holiday season involved more than low prices, increased advertising and upgraded assortments. Gift cards were a high priority too as Wal-Mart looked to satisfy the increasing number of shoppers who resort to giving gift cards as Christmas presents. These customers were given several options in stores as Wal-Mart positioned near the checkout area several large pallet displays loaded with 20 different gift card designs and metal boxes to hold them in addition to small accessories. A sign on the display also reminded customers how many days were left before Christmas.
To satisfy customers looking for a more differentiated approach to giving a gift card, Wal-Mart created a first-of-its-kind personalized gift card program. Customers upload a photo to Wal-Mart's Web site where it is sent to a store of their choosing and converted into a gift card for 88 cents. When customers pay for the card they also load it with a dollar amount.
According to senior vp/gmm Ronnie Hoyt, the idea came from a photo lab associate involved in a pre-holiday meeting where the topic of how many different gift card designs to offer was discussed. To execute the program, Wal-Mart invested $4 million in technology and hardware that enables photo labs to produce the cards.
The emphasis on gift cards is expected to boost post-holiday sales and profits as customers redeem cards for higher-margin goods that are returned at a rate less than merchandise received as gifts.
Article from: http://findarticles.com/p/articles/mi_m0FNP/is_23_44/ai_n15970572
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