Looking a Gift Card in the mouth?

Gift cards all you need to know

Many of us will be buying and receiving gift cards this Christmas. They have become big business since the first book token was issued in 1932. Whether you think it shows lack of thought (why not give cash instead of restricting the recipient?) or shows more thought by showing that they have chosen a particular store, it is now big business.  The voucher and gift card industry has grown into a £5.6bn a year operation in the UK according to the latest figures from the UK Gift Card & Voucher Association (UKGCVA). This up from 4bn in the previous year and is continually growing year on year.

Gail Cohen, Director General from the UKGCVA, says, “Research from The UK Gift Card and Voucher Association shows that 60% of members saw a growth in sales during H1 [first half of] 2016, and 4.44% growth compared to the same period in 2015.” This analysis is based on data provided by UKGCVA’s retail issuer members that agree to share their data.

The figure for the amount of unspent gift cards in the UK is £300 million, which accounts for just over 5% of the entire value of gift cards and vouchers in the UK. The UKGCVA says it is working with its members to increase consumer awareness around gift cards, with the aim of further decreasing this figure in the future.

Now that consumers can sell their gift cards they believe they will never use, this unspent figure may reduce. Zeek (that’s an affiliate link so if you use it and register at no cost then you and I should both get a payment!) is a marketplace website/app where gift cards can be bought and sold.  Sellers can set their own price and the bigger the discount, the faster the voucher sells. Typical discounts right now are between 5% and 25%. Zeek takes 7% of the selling price (£3 minimum). This compares favourably with auction sites, such as eBay, which which takes 10%. Zeek verifies the balance and expiry date of every card that is listed for sale.  Digital vouchers, which tend to be redeemed immediately, must be valid for at least a month. Physical vouchers, where you need time to get to the store, must be valid for at least 3 months.

A spokesperson for Zeek said that it sees thousands of new buyers and sellers join Zeek every day. November was their biggest ever month. 94% of vouchers sell within 24 hours. Department stores, supermarkets, Amazon and fashion always sell very quickly.

Zeek’s CEO and co-founder Daniel Zelkind said “Shopping with discounted gift vouchers is a simple way to cut the cost of the festive period and if Santa gives you a gift voucher you’ll never use, it’s easy to turn it into cash and buy something you actually want.”

Helen Dewdney, The Complaining Cow, consumer expert and author for How to Complain: The Essential Consumer Guide to Getting Refunds, Redress and Results! provides ten top tips regarding gift cards:

What should you be aware of when buying or receiving gift cards?

1) Always check the expiry date and spend quickly if you can so that you don’t forget it!

2) Make a note of the number. If you lose the card, the store should be able to trace the card, stop the amount and issue you with a new one.

3) If you return the item, whether you change your mind and the store allows it, or even if the item is faulty, the refund will be put back on a gift card.

4) It is unlikely that you will be able to use the card in store concessions but do check as this varies from store to store.

5) If the store goes bust it will be up to the administrators as to whether they will accept gift cards, so keep hold of them as it is unlikely but possible that they will be accepted. The purchaser may be able to get money back using Section 75 of the Consumer Credit Act if it was for more than a £100 and paid for on a credit card or using Chargeback if less than a £100 from your bank. The latter is a voluntary signed up to scheme rather than law.

6) When giving a gift card, also give the receipt which the recipient can keep in a separate place in case the card gets lost or stolen.

7) Check that you can use the card online.

8) Your consumer rights when buying goods or services are the same as when purchasing items with a gift card.

9) If your card has expired ask for an extension. There’s a chance the store may allow it.

10) Check the terms and conditions. Sometimes the expiry date is from when it is bought, last used or just checking the balance so you may be able to extend the gift card’s life time!

Will your Gift Cards keep on giving? for more details about gift cards and individual companies.

Don’t forget to use sites like Topcashback when you use the gift card online to save even more money!

Been given something other than  a gift card but still unwanted? See What to do with the ghost of Christmas Present?

How to Complain: The Essential Consumer Guide to Getting Refunds, Redress and Results!

 

 

Any problems with your purchases GET THE BOOK! How To Complain: The ESSENTIAL Consumer Guide to Getting REFUNDS, Redress and RESULTS!

 

 

 

 

Tesco on track to increase fake farms

Time for a bit of Tesco bashing, well it’s been a couple of months. (For those new to the blog see History with Tesco). I’ve seen the slides from a “Tesco Investor and Analyst Seminar”. The presentation doesn’t have a title which is pretty poor in the first place but moving on.

All quite dull really other than there’s a move to match price and quality of more products.

Tesco’s new strategy will increase its benchmarking of 500 product lines to a total of 11,000 lines. Yep 11,000 that wasn’t a typo.

product-architecture

Slide not make much sense? Maybe when someone was presenting it did. But key pointers are that Tesco says that it will match the quality and price (including “farm brands”) of at least 60% of Aldi and Lidl products and aim to ensure that the products are preferred to their Aldi and Lidl equivalents by at least 6 out of 10 customers.

Tesco brand products will be benchmarked against the quality of Sainsbury’s and the price against Asda, and aim to ensure that they are preferred by at least 8 out 10 customers. I feel I should put in a picture of a cat here.

8 out of 10 cats preferred food from a real farm

The finest* brand products will benchmark the quality against the market leader by product category (e.g. M&S/Waitrose) and there will be no specific price benchmark, it says to ensure that they can offer the best possible quality products. They aim to ensure that these products are preferred by 10 out of 10 customers. Well if there’s no price match that’s all rather pointless isn’t it?! Oh look it tastes as good as M and S but look pay even more. Great policy Tesco??

So does that mean more fake farms? This story about increasing ranges hasn’t been covered much in the media has it? So it’s not like we are going to be aware to check. Along come some more fake farms. Some people may even be fooled into thinking that Tesco has listened to criticism and brought in some new REAL farms!

When I quizzed Tesco on the point about increasing fake farms a spokesperson said, “Our exclusive fresh food brands have been very popular and we’re really pleased with the feedback we’ve had from our customers. Customers tell us they like the combination of market leading prices and quality right across the range.”

Maybe so, I buy some of the range and part from tomatoes which are frequently rotten the quality is fine, that isn’t what some of us have an issue with. The issue is the marketing.

When I interviewed Dave Lewis, Tesco CEO a couple of months ago I asked about fake farms:

but still play on insinuation?

So despite Fake Farms – A bad country smell that won’t go away… (providing information on just how close those names are to existing farms, what farms, Trading Standards and what customers say, it looks like there will be more fake farms on the way!

24th October 2017  Tesco pledges to back British farmers and help people eat more healthily committed to helping people eat more healthily. I’ll give them that they look to be imporving the way they work with British farmers but there is no mention of how they will promote British farmers over their fake farm brands.

What do you think?

Supermarkets: The good, the bad and the ugly

Supermarkets, love them or hate them, most of us use them. Most of us have opinions about them all too. I surveyed the public and found these top five hates of supermarkets:

  1. Queueing
  2. Rude staff particularly those talking to colleagues when they should be paying attention to the customer
  3. Companies not accepting responsibility – ‘we are sorry, how can we put this right’ not lame excuses or blaming customer
  4. Staff who don’t know what they sell or how things work
  5. Change dumped into your hands with screwed up notes and receipt to follow

There are no surprises here. People just want good service and all these issues relate to the ethos of the company and how well the staff are trained. Interestingly, all the issues that people rate the highest are related to service, not quality, products or prices.

So do prices and quality of food feature when we look at specific supermarkets? Here’s what the public thought, in summary:

Supermarket The best thing The worst thing
Asda Prices Customer service including the desk not being open when the store is
Waitrose Quality of food and range that you can’t get in other supermarkets Overpriced items that you can buy much more cheaper in other supermarkets
Sainsbury’s Quality of food Cost and the Nectar scheme
Morrisons Quality of food Overpriced and shelves often empty of offers
Tesco Clubcard Variable quality on food products
Aldi Value for money Disorganisation in clogging up aisles and not enough staff on checkouts
Lidl Good fruit and veg Having to watch “best before” dates as products may often be past these


Supermarket responses

Supermarkets were given the opportunity to respond to these findings. Here are the supermarket responses:

An Asda spokesperson said: “Our customers are at the heart of everything we do and listening to their feedback is what drives us on to do better every day. We’re grateful for this feedback and will continue to work hard to deliver even better prices, quality and service for our customers.”

A Waitrose spokesperson said: “We work to offer consistently good value, which we firmly believe is a balance between provenance, quality and price.”

Sainsbury’s did not provide any comment

Morrisons did not provide any comment

A Tesco spokesperson said: “Clubcard is a great way for us to say thank you to our customers for choosing to shop with us, and we know it’s something they really value. It remains one of the biggest reasons why people switch to shop at Tesco.”

An Aldi spokesperson said: “Our customers regularly tell us that they shop with Aldi for everyday low prices and an enjoyable shopping experience. Our efficient business model means our checkouts are 40% quicker than other supermarkets, which reduces queues and requires fewer staff, saving our customers both time and money.”

A Lidl spokesperson said: “We are proud to have unique measures in place to help reduce food waste in the home. This includes choosing not to print a ‘best before date’ on many of our fruit and vegetable items, instead opting to print a code showing the date that the product was packaged. By not having a ‘best before date’ on certain products, it allows the individual customer to assess the fruit or vegetable product by sight and feel, judging for themselves if it is to their liking.”

In Summary
For 6 out of 7 supermarkets price and quality was the best thing about individual supermarkets. For 4 out of 7 supermarkets, price and/or variable quality of products was an issue and for 3 out of 7 it was the quality of service.

Rewards are clearly becoming more important to customers. Tesco leads the way in this area with its Clubcard, offering the most points per pound and variety of how to spend them. In comparison Sainsbury’s reduced their points value on Nectar in April last year, with fewer choices to spend them on. This clearly hasn’t gone unnoticed by customers, given that is cited as the best thing about Tesco and the worst about Sainsbury’s.

Consumers are flocking to the discounters, which do not offer the same range as other supermarkets, so people will not completely stop using larger ones and discounters may need to look at more expansion of their product ranges. Supermarkets need to offer something over and above price. Price wars will have to end eventually and for supermarkets at the cheaper end of the market service is clearly an issue.

Marcus Williamson – editor of the website CEOemail.com which provides contact details for CEOs – says “The number of people seeking contact details for the CEOs of supermarkets is still alarmingly high. This suggests problems with customer services which could be resolved by better training and by empowering staff to make a difference.”

It’s clear that prices and quality form an important part of why people shop at a certain store but  it doesn’t stop them complaining about service nor does it stop people shopping around once prices settle down across the sector. The rise of collect and delivery services will need to also rise to the challenge of providing good customer service.

Shopping habits are changing and service will have to improve dramatically if supermarkets are to retain existing customers and gain new customers.

 

And if you have an issue with a supermarket or any other store and want redress, see Top 20 Tips on How to Complain and GET THE BOOK! How To Complain: The ESSENTIAL Consumer Guide to Getting REFUNDS, Redress and RESULTS!