As the closely-watched Black Friday weekend winds down, a National Retail Federation survey conducted over the weekend confirms the expected: more people spent less. According to NRF’s Black Friday shopping survey, 195 million shoppers visited stores and websites over Black Friday weekend, up from 172 million last year. However, the average spending over the weekend dropped to $343.31 per person from $372.57 a year ago. Total spending reached an estimated $41.2 billion.
According to the survey, nearly one-third (32.2%) of shoppers purchased toys, an increase of 12.9 percent from last year. Additionally, more people purchased sporting goods (12.6% vs. 11.4% last year), personal care or beauty items (22.4% vs. 19.0%) and gift cards (21.2% vs. 18.7%). The most popular purchases were of clothing (0.9%) and books (40.3%), which remained nearly unchanged over last year.
Apparently more shoppers headed out for bargains while it was still dark outside – proving that the effects of turkey stuffing wear off rather quickly. According to the survey, nearly one-third of shoppers (31.2%) were at the stores by 5 AM - good grief.
As millions of shoppers gear up for Cyber Monday, one-fourth of Americans shopping over the weekend (28.5%) were shopping online – that means with some form of plastic.
So, as you prepare to embark on apparently the most non-productive output day for the American worker, here are a few sites to consider on your quest for the perfect deal.
Gottadeal.com – their motto is, “Why Pay Retail?” and claim to update their site several times each day
PriceGrabber.com - an Experian company
CyberMonday.com – powered by Shop.org which is a division of the National Retail Federation
Sunday, November 29, 2009
Sunday, November 22, 2009
Happy Thanksgiving & Happy Shopping!
So here we go – Black Friday is almost upon us. Arguable the biggest shopping day of the year – at least the shopping day with the most hype. Well, given the Great Recession, there are some signs that things a wee bit different this year…
1. According to NRF’s 2009 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, U.S. consumers plan to spend an average of $682.74 on holiday-related shopping, a 3.2 percent drop from last year’s $705.01.
2. Though Americans were less inclined to purchase gift cards last season, the popular gifts retain their spot at the top of the list among gift recipients. According to the survey, 55.2 percent of adults would like to receive a gift card this holiday season, with clothing (48.8%), books and DVDs (48.6%) and electronics (33.2%) among other popular choices.
On the flip side, a recent poll by Consumer Reports revealed this about gift cards:
1) Most people don't want them: While 46 percent of people plan on buying gift cards, only 15 percent said they want to receive them as gifts.
2) 25% of the people polled haven't used the ones they got last December: During the 2008 holidays, about half of adults received a gift card, but one in four hadn't redeemed at least one of the cards as of last month.
3) 65% of adults who received a gift card in 2008 typically spend more than the value of the card, up from 58 percent in 2007.
4) Store-specific cards may limit gift choices: Forty-one percent of those who have unused gift cards from last year said that they hadn't found anything they wanted to buy.
5) Many cards carry fees: Consumers may have to pay an upfront fee to purchase a card, but there are also monthly "inactivity" fees that can slash the value of the card if the recipient doesn't use it within a specific time frame.
This will be less of a concern next year when The Credit Card Act of 2009 goes into full effect. It prohibits gift cards issued by banks or retailers from expiring for five years; and bans inactivity fees for the first 12 months. But the Act won't cover cards purchased this holiday season.
So Black Friday is coming whether I like it or not. And gift cards are going to play a big part of shopping this year whether I like it or not. So I guess all I can do today is to offer you something fun. Click on this video and enjoy “Straight No Chaser”… and relax….
1. According to NRF’s 2009 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, U.S. consumers plan to spend an average of $682.74 on holiday-related shopping, a 3.2 percent drop from last year’s $705.01.
2. Though Americans were less inclined to purchase gift cards last season, the popular gifts retain their spot at the top of the list among gift recipients. According to the survey, 55.2 percent of adults would like to receive a gift card this holiday season, with clothing (48.8%), books and DVDs (48.6%) and electronics (33.2%) among other popular choices.
On the flip side, a recent poll by Consumer Reports revealed this about gift cards:
1) Most people don't want them: While 46 percent of people plan on buying gift cards, only 15 percent said they want to receive them as gifts.
2) 25% of the people polled haven't used the ones they got last December: During the 2008 holidays, about half of adults received a gift card, but one in four hadn't redeemed at least one of the cards as of last month.
3) 65% of adults who received a gift card in 2008 typically spend more than the value of the card, up from 58 percent in 2007.
4) Store-specific cards may limit gift choices: Forty-one percent of those who have unused gift cards from last year said that they hadn't found anything they wanted to buy.
5) Many cards carry fees: Consumers may have to pay an upfront fee to purchase a card, but there are also monthly "inactivity" fees that can slash the value of the card if the recipient doesn't use it within a specific time frame.
This will be less of a concern next year when The Credit Card Act of 2009 goes into full effect. It prohibits gift cards issued by banks or retailers from expiring for five years; and bans inactivity fees for the first 12 months. But the Act won't cover cards purchased this holiday season.
So Black Friday is coming whether I like it or not. And gift cards are going to play a big part of shopping this year whether I like it or not. So I guess all I can do today is to offer you something fun. Click on this video and enjoy “Straight No Chaser”… and relax….
Monday, November 16, 2009
Online Banking Is a Must Now
We’re about to enter a new year and a new decade. It’s funny about new decades – they also seem like a fresh start – time to put the bad things of the previous decade in our memory chest and look forward to what the next 10 years will bring.
Remember Y2K? Seems like yesterday that many people were calling for the end of civilization. I remember thinking as a grade school student that when the next century arrived, I would be 43 years old and that seemed so far away. Now I’m wishing I was 43 again – particularly with the knowledge I’ve gained over the last 10 years.
So what will this new decade bring in terms of personal money management? One new direction I’m recommending is a change in attitude about online banking. I think we need to now view this as a necessity in our money management approach and no longer a luxury or “cool tool.” And with technology improvements and “apps”, mobile banking places the information right in your hands, anytime, anywhere.
With the changes in credit card usage and availability compounded with a higher level of debit transactions, we need to be more aware of bank balances sooner and not wait for the paper monthly statement. With the crazy configuration of overdraft fees and holds on transactions, you might be racking up unnecessary fees and losing money needlessly.
And since the use of plastic is an integral part of our world now – from subway tokens to coffee purchases – you better have a good idea what’s in your account before you swipe. And let’s not forget the fraud and card compromise potential with all of this swiping.
Here’s what I’m suggesting to kids that they do each morning:
· Brush your teeth
· Run a comb through your hair
· Eat a good breakfast
· Check your text messages, tweets & Facebook page
· Check your bank balance
Now go off and embrace the new decade and all of the opportunities it presents!
Remember Y2K? Seems like yesterday that many people were calling for the end of civilization. I remember thinking as a grade school student that when the next century arrived, I would be 43 years old and that seemed so far away. Now I’m wishing I was 43 again – particularly with the knowledge I’ve gained over the last 10 years.
So what will this new decade bring in terms of personal money management? One new direction I’m recommending is a change in attitude about online banking. I think we need to now view this as a necessity in our money management approach and no longer a luxury or “cool tool.” And with technology improvements and “apps”, mobile banking places the information right in your hands, anytime, anywhere.
With the changes in credit card usage and availability compounded with a higher level of debit transactions, we need to be more aware of bank balances sooner and not wait for the paper monthly statement. With the crazy configuration of overdraft fees and holds on transactions, you might be racking up unnecessary fees and losing money needlessly.
And since the use of plastic is an integral part of our world now – from subway tokens to coffee purchases – you better have a good idea what’s in your account before you swipe. And let’s not forget the fraud and card compromise potential with all of this swiping.
Here’s what I’m suggesting to kids that they do each morning:
· Brush your teeth
· Run a comb through your hair
· Eat a good breakfast
· Check your text messages, tweets & Facebook page
· Check your bank balance
Now go off and embrace the new decade and all of the opportunities it presents!
Monday, November 2, 2009
Don't Be a Lab Rat
Amid mixed economic signals this month, banks have kept annual percentage rates on their credit card products unchanged this week, leaving the national average APR on new credit card offers steady at 12.28 percent, according to CreditCards.com
However, recently banks have indicated their desire to “experiment” with changes to the terms and conditions for their card products – ahead of the new regulations on the not-so-distant horizon. Translation: you better be reading the fine print material in your mailbox.
Annual fees for credit cards are a rarity today, but more cardholders may soon have to decide between paying them or forfeiting their cards. Bank of America this month said it is "testing" annual fees of $29 to $99 on select customers starting next year. Customers were chosen based on "risk and profitability," but the company has not explained how it decided who charged $29, versus $99, or anything else in between.
Citigroup also notified a "small number" of customers in August that they'd be charged new annual fees.
These “experiments” come as the credit card industry searches for ways to make up the revenue it stands to lose as a result of new regulations. As part of the sweeping new reforms that go into effect in February, banks will be limited in how and when they can hike interest rates and fees.
This has left card issuers to examine their portfolios for accounts that aren't very profitable - or so they claim. For example, the type of account most sited is those cardholders who never carries a balance -- and never pays late fees or financing costs.
However, the interchange fees from the transactions should at least account for the cost to carry the account on the books, so I’m not convinced that these accounts are unprofitable – translation – that they lose money. They just don’t make as much money as those accounts that carry balances.
I’m seeing stories of folks who get these notifications who say, “I’m just closing them out now.” If those closed accounts have high credit limits, that action negatively impacts your score – hence the point of an earlier post. Credit scoring needs to go – at least not be the deciding factor in lending anymore.
To be continued…..
However, recently banks have indicated their desire to “experiment” with changes to the terms and conditions for their card products – ahead of the new regulations on the not-so-distant horizon. Translation: you better be reading the fine print material in your mailbox.
Annual fees for credit cards are a rarity today, but more cardholders may soon have to decide between paying them or forfeiting their cards. Bank of America this month said it is "testing" annual fees of $29 to $99 on select customers starting next year. Customers were chosen based on "risk and profitability," but the company has not explained how it decided who charged $29, versus $99, or anything else in between.
Citigroup also notified a "small number" of customers in August that they'd be charged new annual fees.
These “experiments” come as the credit card industry searches for ways to make up the revenue it stands to lose as a result of new regulations. As part of the sweeping new reforms that go into effect in February, banks will be limited in how and when they can hike interest rates and fees.
This has left card issuers to examine their portfolios for accounts that aren't very profitable - or so they claim. For example, the type of account most sited is those cardholders who never carries a balance -- and never pays late fees or financing costs.
However, the interchange fees from the transactions should at least account for the cost to carry the account on the books, so I’m not convinced that these accounts are unprofitable – translation – that they lose money. They just don’t make as much money as those accounts that carry balances.
I’m seeing stories of folks who get these notifications who say, “I’m just closing them out now.” If those closed accounts have high credit limits, that action negatively impacts your score – hence the point of an earlier post. Credit scoring needs to go – at least not be the deciding factor in lending anymore.
To be continued…..
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