The tax rebates are on their way—approximately $152 billion to families, individual tax payers and businesses. But the question remains: how will recipients handle the cash? Will they pay down debt? Tuck it away for a rainy day? Or, as our government hopes, turn into bug-eyed shoppers with thick wallets and few inhibitions?
The National Retail Federation estimates that approximately $42 billion will move into the retail sector, slightly less that the $47 billion spent on Valentine’s Day, Easter, and Mother’s Day combined.
While the verdict remains out as to how stimulating the stimulus package will be, many retailers are taking a proactive approach. Topping Wal-Mart’s 18-months free interest on purchases over $250 announced in January, Sears (K-Mart/Lands End) and Kroger Co. are offering consumers a 10% bonus if they purchase a gift card using the entire amount of their stimulus check, which translates into $30, $60, or $120 of free money.
Consumers are cautious: Surveys indicate that they’re eating out less, spending less on groceries, and shopping more at discount stores. The key word here is discount. Consumers may be shopping more cautiously but they are still shopping. However, they are looking for value and savings.
Savvy retailers are not only looking for innovative ways to market their products, they are finding new and creative ways to source goods. They are on the Internet looking for new vendors. They are actively searching out opportunities that can build their bottom line.
Tools like OffPriceShowrooms.com and tradeshows like the Off-Price Specialist Shows offer retailers easy and convenient access to quality apparel and accessories at below-wholesale prices. It’s all about buying power. Your customers save when you save.
