Buying gift cards isn't enough to save local businesses, experts say - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 51%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Experts say buying gift cards will only 'go so far' unless the government steps in to save local businesses hurting from coronavirus-related closures

alike are encouraging shoppers to purchase digital gift cards to help cushion the blow from the lack of physical sales.

Several people shared similar sentiments on Twitter this week, stating that the push to buy gift cards overlooks bigger-picture challenges, like long-term revenue recovery and the immediate impact on employees who are being laid off en masse around the country. "On one hand, [gift cards do] have the benefit of accelerating cash flow into the business," said Jonathan Treiber, CEO of the offer management platform RevTrax.

"Closed businesses need to focus first on cutting costs to stem the bleeding in the near-term — with any gift card sales viewed as a cushion or rainy-day fund — either to cover expenses in a prolonged shutdown or for when they return to full operations," he said. "Running out of cash during a rebound would be a very unfortunate predicament that businesses should do their best to avoid by conserving cash in the near-term.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Investor Bill Miller calls this market one of the best buying opportunities of his lifetimeInvestor Bill Miller, chairman of Miller Value Partners, joined CNBC's 'The Exchange' to discuses the current market climate. Absolutely agreed by ❤️-n-soul !!? mhinds0101 hay bill. everyday is ' the best buying opportunities of his lifetime' another profitable day for me. today's profits going to the food bank. good karma.
Source: CNBC - 🏆 12. / 72 Read more »