What did the Tower Group find out about gift cards?

The Tower Group found that gift cards have become a significant financial product, with billions of dollars in sales annually. They noted that gift cards offer convenience and flexibility for consumers while also presenting opportunities for retailers to boost sales and customer loyalty. However, the study also highlighted concerns regarding unredeemed balances, often referred to as "breakage," which can benefit retailers but may lead to consumer frustration. Overall, the findings underscored the growing importance of gift cards in the retail landscape.