So This Is Christmas...

...and this is my obligatory holiday post.

There's the oft-spoken complaint that Christmas has become too commercialized, but for me the true villain is the in-store gift card.

Retailers love them. They sell to the tune of $58 billion worth a year -- of which ten percent are never redeemed.  That's $6 billion in pure, unadulterated profit.  Furthermore, it drives additional sales as customers often redeem the cards for more merchandise than they're worth.

In 2008, gift cards accounted for 12% of all Christmas shopping (with a huge drop-off in 2009 attributed to customer worries the store might go out of business).  I'm sure they'll rebound this year.

Gift cards have actually ruined post-Christmas markdowns.  Once upon a time, stores slashed the prices of video games, electronics, tools, and clothes post-Christmas.  Now that consumers are armed with billions in gift cards, many retailers actually mark-up merchandise, diluting the value of the card and gouging everyone else.

Gift cards also ruin the office Secret Santa party, or as I like to call it "The Annual Exchange of iTunes Gift Cards".

I once worked in an office that conducted a "White Elephant Gift Exchange" -- the sort where you draw a number.  The lowest number unwraps a gift from the pile. The next number can either select a wrapped gift or opt for the one just opened.  The person who goes last, obviously, has their pick of the litter. The poor schmuck who goes first ends up with an over-sized novelty scented candle or a Chia Pet.  [Ed. Note: perhaps this is scientific evidence that scented candles and Chia Pets make shitty presents even if you're trying to be ironic. For those wondering, the most sought after gift during the exchange was a laser-guided room measure.]

So maybe ditch the gift card this year for something more personal. If you're that worried, attach a gift receipt. You're making them return to the store either way, so you might as well take a chance of getting something they might actual like and consider thoughtful.

If you're wondering what I want, it's this.  Or maybe this.  Or definitely this.