Lee, I am sorry that you were so ill-treated. Talk about casting pearls before swine! Fifty dollars is a chunk of change for anyone I know. I applaud you for not spending money for the gift cards at Wal Mart. That place is a pox on the land; just my humble opinion. It seems impossible that your employees are so poor that they do not know that Penny's has good quality clothing, household textiles and stuff.
When I was in school and working for Rita Riche's we would be given store gift certificates. One year, I think it was before the oil-embargo related recession, the store did so well that we were called to a meeting before the store opened and presented with a second gift certificate. Even with my calculating cynicism, I knew I had more to spend than I did before I was given the certificate and it helped me buy presents. I just cannot imagine what type of people would not be grateful for a personal gift like you gave. Are they maybe so illiterate that they don't know what they received? I thought gift cards were pretty well understood.
This is not meant to be an inappropriate question, but have you asked other department heads if they give any gifts and, if so, what they gave and what reaction they received? I would imagine anyone who hears of this will be shocked at the ingratitude, so I am wondering if this is somehow cultural. I don't mean like giving canned hams to Jews. I do not know the cultural makeup of your 10 employees, but could they feel that Penny's treats them rudely or has security tail them in the store or maybe is in a hiring dispute? Again, not your problem, but something that might be rippling through their ethnic communities and flared when they saw your gift? Hell, maybe they or family members have been banned from entering the stores because of getting into trouble by shoplifting or playing bank with returns, no fault of the stores or yours.
One thing I would definitely do is take this up with Penny's corporate office. They should know the reaction of your staff to such a generous gift and why you will not be giving their gift cards next year.
Best holiday wishes. You certainly were not a Scrooge to your employees, even if they lack the ability to see that. Tom