PORTLAND, Ore. (AP) -- Forget the wish list. Shoppers may be giving the gift of necessity this holiday season, buying up cards for gas, groceries and even utilities to help friends and family through lean times.
The gift card has become ubiquitous during the holidays, providing an easy way for shoppers to make sure recipients get exactly what they want. But as job cuts grow, portfolios shrink and economic problems deepen, many people may just want help getting by.
"What we are finding in general is that practical gifts are in this year," said Ellen Davis, spokeswoman for the National Retail Federation. "So there's no dispute that will trickle into the gift card market."
Gift cards are once again expected to be the most-requested present for the season, the trade group said this week, even as total spending on them is expected to slip this year as shoppers limit how much they spend for the season.
People began using their gift cards more on necessities last year, Davis said, a trend that is expected to intensify this year.
One of the most popular uses for gift cards is to pay for gas, Davis said. And that is likely to grow, not just for gas stations, but at grocers, discounters, wholesalers and others retail outlets that sell gasoline.
Some grocers, like Safeway and Kroger, have promotions that offer gas saving incentives to the buyer who purchases the gift card -- so the giver gets something as well.
And some utilities say they are expecting that their gift cards and certificates, typically popular among aid organizations and as property manager-to-client gifts, will become more common for everyday consumers as people struggle to pay for heat or electricity.
Linda Wilson, spokeswoman for the Northern Wasco County Public Utility District in The Dalles, Ore., said more families who've never needed help are seeking assistance with their bills this year. When that happens, sometimes friends or neighbors will step in and help.
"It will not go to waste like another sweater or ugly tie," Wilson said.
While it's too early to track sales for the season, supermarkets, discounters and other retailers who sell life's necessities are still expecting strong gift cards sales amid the otherwise bleak season.
"We are seeing increased interest this year in gift cards as gifts," said Haley Meyer, spokeswoman for grocery chain Supervalu. "I think a big part of that is the economy, especially since every day brings another round of news stories about the tough economy."
Other major retailers such Wal-Mart Stores Inc. declined to say whether consumers were spending more of their gift cards on necessities such as groceries. Target said it doesn't have information on how consumers have or might be using the cards in certain categories.
But Kroger Co., the nation's largest traditional grocery chain, said it sold out of its holiday-themed gift cards last year. Kathy Kelly, the company's president of personal finance, said Kroger saw double-digit growth in gift cards following a stimulus check promotion this year that hasn't dropped off and is likely to carry through to next year.
