Like last year, the purpose of this measure is to bolster French consumers’ purchasing power while providing much-needed support for local, independent merchants. Many of these retailers are counting on the festive season to recoup revenue lost since the start of the health crisis in 2020.
Boosting French consumers’ purchasing power these holidays while channeling earmarked funds to French merchants
Every year, employee gift vouchers inject nearly €2 billion into the French economy, helping to support merchants. According to a report by trade association A3C [Association professionnelle des émetteurs de chèques- et cartes-cadeau, which represents 90% of the market], 80% of this additional business directly benefits independent retailers and specialty stores.
Following the French government’s decision to once again raise the exemption ceiling for gift vouchers this year, from €171 to €250 until the end of 2021, this extra business looks set to grow.
Patrick Langlois, Managing Director, Northern Europe and France at Edenred, said: “We welcome the government’s decision, which will benefit a considerable number of employees. It’s something we’ve been calling for alongside our merchant partners, who are still reeling from the health crisis. A higher exemption ceiling for employee gift vouchers from works councils and companies again this year is excellent news. It’s a smart way to support French consumers’ purchasing power over the holiday season, while directing their spending toward earmarked channels like local merchants and independent stores.”
Highly positive results in 2020
France’s finance ministry implemented a similar measure in 2020, when it doubled the exemption ceiling for employee gift vouchers. The initiative was a resounding success, helping to noticeably kick-start spending.
An online portal to join the Kadéos acceptance network today
Local merchants and independent stores can now join the Edenred network in just a few clicks via a specially designed online portal. They can then start accepting Kadéos gift vouchers, which are used by over 3 million employees for their holiday shopping.