Downtown gift certificates boost sales

By BILL O'BRIEN
bobrien@record-eagle.com

January 07, 2009 12:00 am

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TRAVERSE CITY -- Merchants got some bang from downtown bucks during a wobbly holiday shopping season.

Sales of Downtown Traverse City Association gift certificates soared to $192,425 this holiday season, up 25 percent from last year.

That's despite a national downward trend in holiday gift card sales. Some local merchants said certificates dedicated to downtown shops helped boost sales during a trying holiday shopping season.

"I think it brings people downtown who haven't been here before, or haven't been here in a while," said Marylou Zaloudek, who, with her husband John owns Americana Collection on East Front Street. She's noted more shoppers using downtown gift certificates at her gallery and gift shop, and said they also give them to employees as holiday gifts.

"The downtown has done a really good job of publicizing that they're available," John Zaloudek said. "It's been a rolling snowball type of thing."

The promotion was launched in the late 1980s and modified in 2002 so the certificates would be accepted at the various banks used by downtown merchants, said Colleen Paveglio, DDA marketing director.

Spending on downtown certificates more than doubled over the past five years, she said. Major employers like Munson Medical Center, Hagerty Insurance and the Record-Eagle distribute them as perks for employees.

"We had really a large increase this year, and we were surprised," Paveglio said. "We've worked hard to make them more customer-friendly and merchant-friendly."

Bill Brundage, human resources manager at Munson, said the hospital offers certificates to workers recognized through its "Munson Values People" program, along with gas cards and gift cards at the mall.

"They are a nice, popular item," Brundage said. "It's a great way to support the downtown, and the local community."

Other downtown merchants utilize certificates as promotional tools. Miner's North Jewelers sends certificates to some customers for supporting the store throughout the year.

"It brings a lot of people back in," said Debra Stanchik, inventory manager for the East Front Street store. "It's like a 'thank you' for shopping with us all year."

Certificates come in denominations of $5, $10, $20 and $25. The DDA also sold certificates online this year, with good results.

"Most of our online sales were from out-of-state," Paveglio said.

Kerry Glaesmer, owner of Votruba Leather Goods downtown, said his store received the most certificates between the Christmas and New Year holidays.

"We saw a fair amount of them," he said. "People seem to spend them as soon as they get them."

Glaesmer said a late surge of shoppers made for a decent holiday season, after the store struggled through one of its worst Novembers in decades, undermined by lousy weather and an even worse economy.

"November was bad," Glaesmer said. "But our last 10 days were pretty strong, so it wasn't as bad as I thought it would be."

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