In the last post, I talked about the classic economic paper, “The Deadweight Loss of Christmas” and how Marshalls gift cards didn’t have a large resale discount.
Out of curiosity, I went to search more about gift card values given the recent retail bankruptcies-
And the observations are quite interesting-
First, I was amused by Brooks Brothers gift card discount of 10%.
I thought that the discount is huge despite its bankruptcy. First, after COVID19 sort of ends and economy opens, people will go back to work. Second, good suits and clothing last for many years so I am surprised at the 10% discount. Some may worry that Brooks Brother may disappear but remember it has good brand value so it will not disintegrate.
In my opinion, the 10% discount seems a bit stiff.
Second, I checked out California Pizza Kitchen. Good pizza but a bit expensive and not the best business model during COVID19 lock down, 14% down-
Not bad for a bankrupt firm- It has a good pizza and relatively strong brand.
I might buy some CPK gift cards because we love CPK. She really likes it.
CPK is doing really well compared to Chuck E. Cheese’s gift cards, which are down 33%.
For sure, CPK has better brand and potential than Chuck E. Cheese.
Finally, we have Ruby Tuesday. Its gift cards are down 20%, not bad for bankruptcy.
I dined at a Ruby Tuesdays many many years ago- I was not really impressed although my friends liked it. But apparently, it has done well for some time.
I was doing more research on the restaurant and it seems that it is really in a hard place and a rock…
The gift card values should drop more because I don’t think Ruby Tuesday can come back in a meaningful way (Of course, I can be very wrong…).
Thank You Jesus for gift cards. Thank You Lord for the wonderful retailers.
I pray that You bless us and give us strength. Amen-
If you enjoy the content, you can support the blog through clicking the referral links that I use in my life: Acorns, Dropbox, Robinhood, American Express, evernote, and Scribd.
