Retailers from Safeway to RadioShack are offering special discounts to lure consumers in and persuade them to spend some or all of their economic stimulus checks, the first wave of which were deposited into bank accounts this past week. The retailers are all hoping to persuade Americans, worn out by high gas and food prices and the weak housing market, to spend the money rather than save it or pay down debt. Polls have indicated that most recipients plan to use the rebates mainly to buy gas, food and other essentials that have become far more expensive in the past year- if they spend the money at all. That makes convincing shoppers to buy a new dress, flat-screen TV or living room sofa a much harder sell. With sales declining, some clothing and specialty retailers have been cutting prices for months. But this week, a few big names stepped up their efforts to try to turn the stimulus cash into extra sales. Wal-Mart Stores, for example, announced price cuts on everything from cereal to shampoo on Tuesday to coincide with the first round of payments. "The traffic is certainly busier these days in our stores," said Wal-Mart spokeswoman Melissa O'Brien, although she couldn't be certain the most recent price cuts were the source of the traffic increase. She declined to say whether sales had grown since Monday or whether the marked-down items saw significant gains in the past week. Safeway has announced its own plan to give a 10 percent discount on groceries to Club Card customers who cash their paper checks at the store. That program begins May 14. Other retailers are mailing special discounts to their most loyal customers. Lowe's mailed an offer Wednesday to its most active shoppers offering 10 dollars off their next 50 dollar purchase or 25 dollars off their next 200 dollar purchase when they turn their checks into its "project starter" cards.
Thursday, 08 May 2008 07:05
Local Retailers Offer Discounts To Coincide With Economic Stimulus Checks
Retailers from Safeway to RadioShack are offering special discounts to lure consumers in and persuade them to spend some or all of their economic stimulus checks, the first wave of which were deposited into bank accounts this past week. The retailers are all hoping to persuade Americans, worn out by high gas and food prices and the weak housing market, to spend the money rather than save it or pay down debt. Polls have indicated that most recipients plan to use the rebates mainly to buy gas, food and other essentials that have become far more expensive in the past year- if they spend the money at all. That makes convincing shoppers to buy a new dress, flat-screen TV or living room sofa a much harder sell. With sales declining, some clothing and specialty retailers have been cutting prices for months. But this week, a few big names stepped up their efforts to try to turn the stimulus cash into extra sales. Wal-Mart Stores, for example, announced price cuts on everything from cereal to shampoo on Tuesday to coincide with the first round of payments. "The traffic is certainly busier these days in our stores," said Wal-Mart spokeswoman Melissa O'Brien, although she couldn't be certain the most recent price cuts were the source of the traffic increase. She declined to say whether sales had grown since Monday or whether the marked-down items saw significant gains in the past week. Safeway has announced its own plan to give a 10 percent discount on groceries to Club Card customers who cash their paper checks at the store. That program begins May 14. Other retailers are mailing special discounts to their most loyal customers. Lowe's mailed an offer Wednesday to its most active shoppers offering 10 dollars off their next 50 dollar purchase or 25 dollars off their next 200 dollar purchase when they turn their checks into its "project starter" cards.
