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Jun 10, 2005 -- Money goes to waste on gift cards

Clark despises gift cards. They are a terrible waste of money and a complete rip-off. Basically, you’re taking real American money and turning it into a piece of plastic that can only be used in one store. They’re worthless in Clark’s opinion. And a recent story in Biz Journal publications showed the “breakage” figure of Home Depot’s gift cards. Breakage is the amount made from cards that were either not redeemed or only used in part. Home Depot made $43 million in breakage profit last year. Retailers know this is a great con they can play on their customers. Starbucks sold 21 million gift cards alone last year. Clark doesn’t get it. How can giving money be cold and crass, but a gift card is fine? Give the cash or give a nice greeting card instead. It’s much safer and cost effective.

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