Dave
12-19-2008, 10:28 AM
The owners of a big snazzy shopping center here won't let you use cash to buy a gift card - you have to use a credit card. I'm baffled. Why would they refuse cash in favor of plastic? Is this going to be a trend? If you go to the site you'll love the comment where someone talks about our gold-backed currency.
http://www.desmoinesregister.com/article/20081219/BUSINESS/812190356/1029
Jordan Creek Town Center owner won't accept cash to buy gift cards
By KAREN MRACEK • December 19, 2008
As more consumers rely on cash this year for holiday spending, one area mall is dealing strictly in credit and debit cards.
General Growth Properties Inc., owner of Jordan Creek Town Center in West Des Moines, is no longer accepting cash for purchase of the mall's gift cards.
The company implemented the no-cash policy Dec. 1, mall general manager Randy Tennison said. "General Growth made the decision based on what was in the best interest of the business," he said. He didn't elaborate on reasons for the change.
Chicago-based General Growth, which has been plagued in recent weeks by financial problems, sells American Express-backed gift cards that may be used at retail stores and restaurants throughout its 200 shopping centers nationwide. Jordan Creek Town Center charges a $2 fee for mall gift cards.
"When time is a valuable commodity, especially during the holidays, shoppers want the opportunity to swipe and go," Lesley Cheers, director of corporate communications for General Growth, said in an e-mail. "The majority of our gift customers have told us they like the ease of purchasing gift cards on credit cards."
The move to not accept cash surprised Tom Coates, executive director of Consumer Credit of Des Moines.
"There are a vast majority of people who are trying to pay down their credit cards and who are using cash this season," he said. "And now the mall is saying they aren't going to do business with them. I don't understand the logic."
The National Retail Federation released a survey Tuesday that shows nearly two-thirds of shoppers this season have primarily used cash, debit cards or checks to pay for holiday purchases, up from 64.5 percent last year.
"I can understand a policy of not accepting personal checks, because you could end up with bad paper and have to spend money collecting it, but to not accept cash, I would say is just asinine," Coates said.
But General Growth stands behind its policy.
"Those who use cash are a very small number," Cheers said.
Although gift cards are the most requested gift for the holidays, 24.3 percent of shoppers have purchased gift cards this holiday season, compared with 30.2 percent who had done so by this time last year, the National Retail Federation survey shows.
With fewer buyers, competition to get the gift-card dollars would be higher. "In this declining economic climate, I can't imagine why any mall would want to make changes that would discourage spending," Coates said.
Separately on Wednesday, General Growth said it received another extension on $900 million in loans for two Las Vegas properties.
Lenders agreed to place the loans in forbearance until Feb. 12 as the company looks to sell some of its assets or raise fresh capital to help pay upcoming debt maturities.
http://www.desmoinesregister.com/article/20081219/BUSINESS/812190356/1029
Jordan Creek Town Center owner won't accept cash to buy gift cards
By KAREN MRACEK • December 19, 2008
As more consumers rely on cash this year for holiday spending, one area mall is dealing strictly in credit and debit cards.
General Growth Properties Inc., owner of Jordan Creek Town Center in West Des Moines, is no longer accepting cash for purchase of the mall's gift cards.
The company implemented the no-cash policy Dec. 1, mall general manager Randy Tennison said. "General Growth made the decision based on what was in the best interest of the business," he said. He didn't elaborate on reasons for the change.
Chicago-based General Growth, which has been plagued in recent weeks by financial problems, sells American Express-backed gift cards that may be used at retail stores and restaurants throughout its 200 shopping centers nationwide. Jordan Creek Town Center charges a $2 fee for mall gift cards.
"When time is a valuable commodity, especially during the holidays, shoppers want the opportunity to swipe and go," Lesley Cheers, director of corporate communications for General Growth, said in an e-mail. "The majority of our gift customers have told us they like the ease of purchasing gift cards on credit cards."
The move to not accept cash surprised Tom Coates, executive director of Consumer Credit of Des Moines.
"There are a vast majority of people who are trying to pay down their credit cards and who are using cash this season," he said. "And now the mall is saying they aren't going to do business with them. I don't understand the logic."
The National Retail Federation released a survey Tuesday that shows nearly two-thirds of shoppers this season have primarily used cash, debit cards or checks to pay for holiday purchases, up from 64.5 percent last year.
"I can understand a policy of not accepting personal checks, because you could end up with bad paper and have to spend money collecting it, but to not accept cash, I would say is just asinine," Coates said.
But General Growth stands behind its policy.
"Those who use cash are a very small number," Cheers said.
Although gift cards are the most requested gift for the holidays, 24.3 percent of shoppers have purchased gift cards this holiday season, compared with 30.2 percent who had done so by this time last year, the National Retail Federation survey shows.
With fewer buyers, competition to get the gift-card dollars would be higher. "In this declining economic climate, I can't imagine why any mall would want to make changes that would discourage spending," Coates said.
Separately on Wednesday, General Growth said it received another extension on $900 million in loans for two Las Vegas properties.
Lenders agreed to place the loans in forbearance until Feb. 12 as the company looks to sell some of its assets or raise fresh capital to help pay upcoming debt maturities.