Woolies scraps gift card expiry dates
WOOLWORTHS is scrapping expiry dates on all its gift cards, giving shoppers the freedom to choose exactly when they want to use them.
Woolies says all gift cards for use at its supermarkets and other retail outlets will be sold without expiry dates from 31 March. Expiry dates will also be lifted for Woolies gift cards bought from the end of March last year.
"Crazy"
woolies shareholder?
.
No, I have no shares at all, no money for that :(
Finally. Lets hope all other companies follow and this becomes across the board.
Very good decision for consumers.
Not so good for the companies (not that we care that much), as they need to keep the value of unused gift cards on their books as liabilities. That was why they had expiry dates.
Without expiry dates, the unused values may need to comply with the Unclaimed Monies Act perhaps?
the unused values may need to comply with the Unclaimed Monies Act perhaps
Gift cards are unsecured debt, so I highly doubt it
as they need to keep the value of unused gift cards on their books as liabilities
and? Its all just 'numbers' in the accounting system. I'm sure after x years they'll write it off, as the giftcard will most likely never to be used anyhow after this time and if it is, they'll just accept it.
Giftcards are a scam, only about 80% are ever used, so its just pure cream for companies on the 20% never claimed.
It's not the merchant's fault if they don't get used.
But its their fault they expire, hence why this chance, isn't so much as woolies being nice, it was the LAW that changed to say they have to have 3 years on them before they expire now!
Never saw a problem with depreciated cards after each year such as CPI+1%, expiry is rort
Good form from Woolies.
I think consumers will just pay for it in some other way.
how so? They already collected the money for the card. Its a dollar value.
As it was today, unused giftcards that have expired, that value just goes into system as pure profit!
Possibly if they feel they have to make up for the shortfall in profits from other areas.
It comes down to how they segment their finances. Is it just a profit cut off, or will it be immediately adjusted in other areas
Consumers already will pay for it in the form of time value of money. The longer you take to spend it, the less you can get for it.
50 cents 10 years ago might have got you a dim sim at the tuck shop, now 50 cents will get you nothing so consumers will eventually pay for it by holding onto it for longer
Well, it wasn't out of goodness of their heart! They were legally bound to make it at least 3 years from 31st Mar 2018
hush you….. applying sound reasoning to market washing statement by woolies!
I wonder when they will scrap the 5% discount. A lot of it would have been funded by unused balances.
From today,the expiry date extends to 30 Mar 2117,99 yrs later.Hopefully Woolies still lasts till then.
Crazy. Good for consumers I suppose.