Wal-Mart: Shoppers redeeming holiday gift cards for basic grocery items rather than iPods, DVDs

[Amerigo Vespucci]

Weak January Dashed Retailers’ Gift-Card Hopes

http://www.nytimes.com/2008/02/08/business/08shop.html

By THE ASSOCIATED PRESS
Published: February 8, 2008

Here is a sign of how shaky the economy is becoming: Wal-Mart says its shoppers are redeeming their holiday gift cards for basic items — pasta sauce, diapers, laundry detergent — rather than iPods and DVDs. Merchants had hoped that shoppers with gift cards would provide a lift after a slack holiday season, partly because they tend to spend more than the value of the card. But that did not seem to happen last month, and retailers are feeling the pain.

On Thursday, the nation’s retailers turned in their worst January in almost four decades as high gasoline and food prices, the slumping housing market, tighter credit and tougher job prospects pushed some consumers to the edge.

Sales at 43 retailers surveyed by the UBS-International Council of Shopping Centers rose just 0.5 percent in January, well below a forecast of 1.5 percent.

The results, based on same-store sales — those at stores open at least a year — followed a 0.7 percent growth pace in December and were below the 2.1 percent gain for all of 2007. “Gift cards are being used as a secondary way to save,” said Burt P. Flickinger III, managing director of the Strategic Resource Group, a retail consulting firm in New York.

[jlake]

1. I'm sorry that people's budgets are so tight.

But I am glad the gift cards are coming in handy and being used for something USEFUL.

[Radical Activist]

2. Ironic considering all the good paying jobs Walmart sent to China.

More people would be in better shape if it wasn't for Walmart.

[jedgarbauer]

3. U.S. "Stimulous Package" - Pelosi's Parachute

LOL. The Stimulous Package. Pelosi says Senate needs to approve ASAP. Is that so we can borrow 150Billion, financed buy China to stimualate China??? What a frickin joke. We've been sold out by the bastards that said they would impeach Bush.

"Wal-Mart says its shoppers are redeeming their holiday gift cards for basic items — pasta sauce, diapers, laundry detergent — rather than iPods and DVDs."

Good thing the folks who pay no taxes can go out with OUR money and their new $600 checks to buy Chineese products like Ipods, DVDS and Chineese made Walmart stuff!

Thanks Nanci!!!!

[dsc]

4. actually the OP suggests you are totally wrong

If these gift cards are being spent on food, diapers, etc.; then, why wouldn't the checks be spent the same way?

[SpiralHawk]

5. The republicons have totally trashed America's economy

and put Americans and our great, great, great grandchildren deep deep deep in debt.

Thanks a pantload for your "conservative" economics, you republicons you...The word 'conservative' is just another phony republicon propaganda lie...

[Craftsman]

6. My wife and I are planning to spend out money on debt and our rainy day fund

Things are to shacky for a spending spree.