According to a recent National Retail Federation survey, over 50 percent of respondents said they want to receive a gift card or gift certificate as a holiday gift. That makes it no surprise that Archstone Consulting expects gift card purchases to reach a record $35 billion this year, a 40 percent increase from $25 billion in 2006.

While some retailers may shy away from gift certificates, there are important benefits, such as attracting new customers, guaranteeing money will be spent in your store and letting the recipient get exactly what they want.

Here's what you can do as an independent retailer to cash in on the rising popularity of gift cards:

1. Professional Signage for Promotion
   Make sure you have professional signage near your register suggesting gift certificates/cards as the "perfect gift" if your customer is unsure of what to buy.

2. Offer Nice Packaging for Gift Certificates
   Purchase attractive envelopes and boxes to ensure the gift will look attractive and reflect the integrity of your store.

3. Educate and Reward Your Sales Team to Sell Gift Certificates
   If you track your sales reps' sales (which I highly recommend), then make sure they receive "credit" for selling gift certificates.

4. Mention Gift Certificates in All Your Marketing Efforts
   Remember to mention gift certificates on your website (and maybe sell them there too), in your newsletter, in your print advertising and in any other marketing efforts you have.

5. Don't Charge a Service Fee
   Consumers are getting smarter about not paying service fees to purchase gift certificates.. plus, it's looked at negatively anyway.

6. Check Local Laws Regarding Expiration Dates
   State laws very regarding the period of time you have to honor certificates. Ask your attorney or do a search online to determine the timing in your state.

Do you offer gift certificates in your store? If so, have you seen the popularity increasing over the past four years?

This weekend I was reading an interesting article in the Kansas City Star titled, "Retailers and Shoppers Aren't Waiting for the Traditional Christmas Season." The article states that according to a survey of more than 7,000 consumers (conducted by the National Retail Federation), about 40% of consumers planned to make holiday gift or seasonal purchases before Halloween. For retailers, this is exciting news which could signal a strong start to the holiday season.

However, one expert points out, "Retailers are looking to start the season earlier, but consumers just aren't ready. The hesitation comes in because there isn't that one must-have item coupled with the fact that consumers are conditioned to expect deeper discounts as it gets later in the season. Where's the incentive to shop early?"  

As an independent store owner, what can you do this holiday season to compete against the big box stores? Here are five ideas you should consider:

1. Compete against big box stores with value and service
   One of the most important reasons that consumers buy from independent gift shops is based on excellent customer service. Help them find the perfect gift and offer gift wrapping.

2. Create an exciting new store event
   Events are a great way to drive traffic to your store. Offer a class on how to "trim the tree," have Santa make a special visit to your store or have a local artist come visit and sign or personalize artwork.

3. Hold a creative sale
   Everyone loves a good deal. Use your store newsletter or a mailing to your customer list to send a coupon offering a special promotion, such as 20% off on a specific day or 20% off a specific product line (candles or ornaments). The main objective with discounting one item is to drive traffic to your store. Once the customer walks through the door, the goal is to up-sell the other great things you have.

4. Sell some gifts priced under $30
   I went to visit a friend who owns a gift shop in my area last weekend. I needed a hostess gift for a Halloween party, but I couldn't find a suitable gift under $30. I think it's critical to carry some units at a lower price point. Again, once a customer commits to buying one item it becomes much easier to up-sell them to a second. Set up a special display table for gifts under $30, or mix them throughout the store (make sure they're marked!).

5. Create reasons for consumers to buy early
   Consider coming up with some creative strategies to attract consumers into your store earlier, such as: free personalization of a gift, free gift with purchase over a certain amount or a coupon that can be used after the holiday season.

Make sure to check back this week to get some more ideas on creative store events.

I had the most amazing shopping experience this weekend. I was at Trader Joe's, a small gourmet grocery store with discount prices (for those of you who haven't heard of it before), and they were out of my favorite protein bar. I asked an employee if she knew when they'd get more in and she suggested that I speak to the store manager, who then went out of his way to order them. And this wasn't a fluke. Every time I go into Trader Joe's all of the employees are enthusiastic and excited to help the customers.

What does this mean to you as a cart, kiosk or gift store owner? You need to start out hiring talented sales people who are capable of delivering fantastic service. Then, as owner, you need to continually reinforce (at least weekly, if not daily) why it's so important to deliver impeccable service. When you set the bar high for your employees it gives them something to strive for, your customers will have an amazing shopping experience and you'll sell more in the end.

One of my friends who's been a retailer for 25+ years always shares his wacky employee staffing stories with me. And when I say wacky, I mean wacky! Every holiday season he operates 25-50 kiosks across the country, and one year he told me that an employee actually took down a portion of the kiosk to bring in a few items from home, including a recliner, small refrigerator and TV. He was caught three days after he "re-merchandised."

Yesterday, I heard a story on our local news station about a young artist who decided to construct an apartment at the Providence Place Mall in Rhode Island. He scoped out the space during construction, started storing supplies and two years later constructed cinderblock walls to create what he called a "luxury apartment" in the mall garage. He went undetected by mall security for an outstanding four years! Take a look at his video… it's really crazy.

Last week I blogged about five things I learned from our merchandiser during our $500 merchandising makeover (the makeover site is now live, so feel free to check it out) and one of our readers emailed me asking for advice on finding and hiring the right visual merchandiser. So I compiled a list of five tips…

Create a detailed description of the scope of the project.
I always believe in creating a roadmap for projects. You won't know who you're looking for until you understand what your expectations are for the project (re-design versus total makeover).  

Post the project on a number of websites.
Post the opportunity on various websites, including Craigslist and Monster and in local newspapers. Post in more than one place… different people read different things.  

Hire merchandisers with previous experience in retail.
I always specifiy that I'm searching for a visual merchandiser with a background in retail merchandising, but I also get applications from people who are aspiring to get into merchandising (or from home decorators) who think their work is applicable.  It might very well be, but why should you take the chance.  

Meet in person to review their portfolio.
It's easy to just interview the potential merchandiser over the phone and review a few images via email. However, I always recommend meeting with a potential merchandiser face-to-face. You want to make sure you have a chemistry with the person (i.e., feel comfortable and like their designs). Also, it's helpful if they give you a "guided" tour of the pictures they bring to validate their experience.

Start with a small project first.
Rather than completely overhauling the store, work with your merchandiser on a smaller project to ensure you like the quality of their work and the way they design.