| Visa Credit Cards |
| By Credit Federal |
Published
12/19/2007
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Visa Credit Card
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Visa Credit Card Offer and Store Rewards
Visa expects spending to increase as retail stores offer more incentives and rewards.
Visa Inc. estimates that after an unexpectedly strong start to the 2007 holiday season1, followed by a slowdown over the past few weeks, overall retail sales in the United States will recover as last-minute discounts and extended store hours attract value-conscious consumers. Compared with this point in the season last year, consumers are behind in checking off their holiday shopping lists2, but an extra shopping day this year combined with an increasingly savvy consumer creates more opportunity for a last-minute holiday sales push.
According to Wayne Best, senior vice president of business and economic analysis for Visa Inc, "We didn't expect retail sales to increase as much this season as in years past due in part to the housing market downturn and elevated energy prices, but attractive Black Friday sales helped buoy November sales which jumped by a higher than expected 5.3 percent year-over-year. Following a relatively strong Thanksgiving weekend performance, we're now seeing a bit of a lull due to high gas prices and increasingly savvy consumers - Americans know to hold out for deals, and we anticipate spending to increase in the final days of the shopping season as retailers respond with last-minute bargains."
Based on a thorough analysis of marketplace data and spending on Visa card products, coupled with a careful review of economic indicators, Best predicts that the following three trends will help drive holiday spending for the remainder of the season:
Given the success of Black Friday promotions, retailers are looking for additional incentives to bring shoppers into stores for the final shopping days. "Promotions such as one-day sales during the week and extended shopping hours will continue to be more likely to motivate holiday shoppers who seek out value this holiday season," Best said. "Retailers are also continuing to use loyalty programs aimed at affluent customers, offering perks such as after-hours shopping times and special promotions to help boost sales."
The unemployment rate remains steady at a low 4.7 percent* -- beyond full employment in the United States. Best predicts that the high number of Americans in the workforce, combined with their associated wage gains, will continue to translate to consumers' ability to spend during the holidays.
Despite the tight labor market and Americans' relative strong income growth, economic uncertainty is resulting in a value-driven consumer base as more shoppers; at all incomes levels, flock to discount stores. "Even affluent consumers are increasingly value-conscious right now, which is likely to help boost sales as retailers announce last-minute bargains," Best said. Additionally, with online retailers' free shipping deadlines quickly approaching, consumers will be looking to make their final Web purchases.
Following Black Friday, there are 32 days to the Christmas holiday this year. Compared with last year's 31 shopping days, consumers have an extra 24 hours to take advantage of last-minute discounts. "With Christmas Eve falling on a Monday this year, consumers may be more inclined to hold out for that last-minute deal, which may result in a late surge in sales," Best said.
Chase brand Visa cards can be used at millions of merchants worldwide that accept VisaŽ debit cards
Chase is helping to make holiday shopping a lot less stressful for consumers by offering Chase Gift Cards in its nearly 3,100 bank branches across the country. Chase customers can load any amount between $25 and $500 onto the card.
Recipients like Chase Gift Cards because they can be used at millions of merchants worldwide that accept VisaŽ and information about the card's current balance and purchase activity is just a phone call or a mouse click away using the contact information found on the back of the card.
This holiday season, consumers are expected to spend $26.3 billion on all gift cards, according to a recent survey conducted for the National Retail Federation. Perhaps more surprisingly, nearly all shoppers; 87.7%, said they would purchase two or more gift cards for the holidays.
"Gift cards are a popular holiday gift and a great way to stick to a budget," declared Ryan McInerney, head of marketing Chase's Consumer Bank. "The Chase Gift Card provides a convenient and easy-to-use product in an attractive package."
The card comes with an appealing packet that includes an envelope and a customizable greeting card with spaces to insert both the gift card and a 4-by-6-inch photograph. There are four different greeting card images - two geared to the winter holidays and two others for non-specific celebratory events.
The gift cards, which can only be purchased by Chase customers, are available year-round for a fee of $3.50 per card. The fee is automatically waived for Chase customers with a Better Banking, Premier or Premier Platinum checking account.
Consumers may also purchase the cards for themselves to use when traveling because the cards are accepted by millions of merchants worldwide.
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