According to a recent National Retail Federation survey, over 50 percent of respondents said they want to receive a gift card or gift certificate as a holiday gift. That makes it no surprise that Archstone Consulting expects gift card purchases to reach a record $35 billion this year, a 40 percent increase from $25 billion in 2006.

While some retailers may shy away from gift certificates, there are important benefits, such as attracting new customers, guaranteeing money will be spent in your store and letting the recipient get exactly what they want.

Here's what you can do as an independent retailer to cash in on the rising popularity of gift cards:

1. Professional Signage for Promotion
   Make sure you have professional signage near your register suggesting gift certificates/cards as the "perfect gift" if your customer is unsure of what to buy.

2. Offer Nice Packaging for Gift Certificates
   Purchase attractive envelopes and boxes to ensure the gift will look attractive and reflect the integrity of your store.

3. Educate and Reward Your Sales Team to Sell Gift Certificates
   If you track your sales reps' sales (which I highly recommend), then make sure they receive "credit" for selling gift certificates.

4. Mention Gift Certificates in All Your Marketing Efforts
   Remember to mention gift certificates on your website (and maybe sell them there too), in your newsletter, in your print advertising and in any other marketing efforts you have.

5. Don't Charge a Service Fee
   Consumers are getting smarter about not paying service fees to purchase gift certificates.. plus, it's looked at negatively anyway.

6. Check Local Laws Regarding Expiration Dates
   State laws very regarding the period of time you have to honor certificates. Ask your attorney or do a search online to determine the timing in your state.

Do you offer gift certificates in your store? If so, have you seen the popularity increasing over the past four years?