The Bookseller reports continuing losses for Waterstones. Things may be improving but there is no sign of covering costs or intention to compete much online.
Sorry to say this but given the experience with HMV I do question whether gift vouchers are a sound idea. Deloitte may turn up again and they have their own ideas.
Could Exeter City Council organise a book token? Or some local government organisation? There is an advantage to a real high street with shops for CDs and books. But it needs some reassurance.