Plastic from stores such as Best Buy act like debit cards, allowing the recipients to pick out their own gifts. They are growing in popularity as shoppers across a wide range of retailers seek gifts that are simple to select yet flexible enough to satisfy most recipients. The cards are just one of the options retailers have developed to help simplify gift selection. For example, retailers, such as Lands' End, have created an online gift finder to quickly suggest gifts for certain personality types.
Gift cards offer consumers ease of selection.
The gift giver only has to know what store the recipient likes, not a particular product. When consumers go to buy for themselves, they don't have a fixed budget. But when they go to get a gift they have a clear idea of what they will spend. Gift cards work for retailers as well because recipients pick exactly what they want so there are fewer returns. And with any luck, the recipient will make additional purchases.