Mall Gift Card Values Swallowed by Hidden Fees

According to the National Retail Federation (NRF), consumers will spend approximately 17 billion dollars in gift cards. Many people choose the convenience of mall gift cards, which generally can be used at any store in the mall. Some larger mall operators also allow you to use the gift cards at any of their nationally owned malls. I've traditionally purchased mall gift certificates, before the rise of the gift card, and was surprised to find most mall owners have extensive terms and conditions, as well as a number of fees that eat away at the value of the card. For instance:
* The Mills Corporation, owners of Stoneridge Mall and others, deducts $2.50 a month from the value of the card after the seventh month of issuance of the card. Although the Mills Corp. does not charge consumers a fee to purchase gift cards online, shipping charges range from $10.75 to $14.75. Expect to pay 25 cents just to check the balance of your gift card, unless you verify balances online.

* The Taubman Company, owners of Sunvalley Mall and others, deducts $2.00 a month from the value of the card after the 366th day of issuance. Just to purchase the gift card, there is a $2.50 fee per card. Gift Cards are issued by American Express Travel Related Services Company, Inc. and are only good at stores that already accept the American Express card.

* Macerich Properties, owners of Broadway Plaza and others, deducts $2.00 a month from the value of the card beginning with the thirteenth month after issuance. Just to purchase the gift card online, there is a $6.95 service fee. To check the balance of your gift card via telephone, the first call is free. Subsequent requests will set you back 50 cents an inquiry. If you need to talk to a real person, expect to pay $1.00 per inquiry. To avoid a balance-inquiry fee, check your balance online (free).

* Westfield, owners of Valley Fair Mall, San Francisco Centre, and others, also deducts $2.50 a month from the value of the card beginning with the thirteenth month after issuance. To purchase cards, whether online or at the mall, expect to shell out $2.00 per card. Online orders will be assessed shipping charge anywhere from $4.90 to $45.00! To add insult to injury, online orders are then assessed a third Processing Fee of $1.59 for one card, and more for addition cards. This particular fee is completely hidden to users until check out. Like Taubman, Westfield gift cards are issued by American Express Travel Related Services Company, Inc. and are only good at stores that already accept the American Express card.

* General Growth Properties, owners of Southland Mall and others, deducts $2.00 a month from the purchase of the card beginning with the thirteenth month after issuance. Each card will set you back $2.00 to purchase. If you loose your card, you'll be charged a $5.95 fee. Spend more than the card is worth? Expect a $15.00 transaction fee, per occurrence.

* Simon, owners of Stanford Shopping Centers and others, deducts $2.50 a month from the purchase of the card beginning with the thirteenth month after issuance. Each card will set you back $5.95 to purchase.

* Smaller independent malls may be a better bargain. Sacramento's Country Club Plaza Mall doesn't charge a monthly fee, and only charges $1.00 per card at time of purchase.

To protect yourself from hidden fees and unexpected charges, always read over terms and conditions before purchasing any gift card. Most have clearly spelled out fees and service charges, and reading them won't take much time to look over.

An alternative to mall gift cards may be gift cards issued by individual stores. For example, Macy's doesn't charge consumers to purchase a gift card, nor assessed a month fee after a set period. In California, all gift cards never expire.

For me, I think I'll just give my recipients cash.

Scott

Gottschalks For Sale?

According to Reuters, Fresno-based Gottschalks department store has hired USB Investment Bank to help it explore a sale or merger of the company.

Gottschalks is one of the very few independent family-run department stores in the country.

Department store consolidation has been in the works for decades. According to Kurt Barnard, president of Retail Forecasting consulting company, "the department store has lost much of its luster. They're struggling very hard to find an avenue that can lead [them], if not back to past glory, certainly onward to newfound success." According to TheStreet.com, department store stocks have underperformed the S&P 500's 139% rise over a period from 1994 to 2004, with Nordstrom up 128%, Saks up 73% and May Company up 47%. Meanwhile, Dillard's shares have fallen a whopping 52% in the past 10 years.

Gottschalks has just one Bay Area location (Antioch, Somersville Town Center). A second location in Danville's Blackhawk Plaza closed this year (due to being forced out by the shopping center).

Scott
Read the full story here.

Vintage Postcards: Penney's Court - Sunvalley Mall in Concord

Sorry folks for slow postings. I'm spending more time AT malls than writing about them this month. Expect things to return to "normal" after the new year.
Here we have another beautiful postcard showing the JC Penney court in Sunvalley Mall.

Boy howdy do I remember those escalators. The handrails were grey with ridges. I don't know WHY I remember that, but I do. It wouldn't surprise me if they haven't replaced the handrail track, yet.

The classic "Penney's" logo displays, with its "P" in blue. That sign survived intact until the Nineties! Even Sears had updated their red classic-script sign by then.

On the lower level in this area was the food court, which was removed at some point. I'd love to find a photo of that, since it's just a blurry memory. It wouldn't surprise me if there is a postcard floating around with it (I'll keep my eyes peeled).

The back of the card reads "Over 120 stores are located on the two levels of the mammoth mall at SunValley, the world's largest enclosed, air-conditioned shopping center."

This is the first postcard I've seen that actually spells out Sunvalley as "SunValley" (capital S and V). Was the area previously known as "Sun Valley" (two words?). It's a mystery.

I'm always pleased to find a gem like this, but sometimes disappointed that two malls dominated the postcard market: Sunvalley and Eastridge. Of course, they were the "largest in the world" at one point, but there are plenty of other malls that would show well.

Enjoy!
Scott

Read my guide to Sunvalley Mall

Visit the current Website.

See the aerial view.