Bad sign: Shoppers use gift cards for groceries

[Contrary1]

They think January was bad? Just wait until all the gift cards are cashed in.

Hurry up with them thar rebate checks Georgie...Wally World be needing itself some serious financial stimulation.



"WASHINGTON - Here's a sign of how shaky the economy has become: Wal-Mart says its shoppers are redeeming their holiday gift cards for basic items — pasta sauce, diapers, laundry detergent — instead of iPods or DVDs.


Merchants had hoped shoppers armed with gift cards would provide a lift after a dismal holiday shopping season — partly because shoppers tend to spend even more than the value of the card. But that didn't 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 gas and food prices, a slumping housing market, tighter credit and a tougher job market pushed 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 the original 1.5 percent forecast..."

http://www.msnbc.msn.com/id/23046118/

[Donkeykick]

1. Exactly What People Will Use Those Checks They're Getting Too!

Pay Bills! (Not Going To Do One Thing For The Economy!):eyes:

[madrchsod]

2. we got about 75 dollars of wally bucks

and we bought food...i buy better stuff that i really need at my local charity shops..

[Nitrogenica]

3. That's what we did with our Target gift cards.

My wife and I spent it all on Dog, Cat, and Human food.

[Coyote_Bandit]

4. Hey

I did that!

Was given something for Christmas by a very repuke extended family member that came from Wally World. Something that I didn't like and didn't want. Came with a barcode but no receipt. Since no receipt was to be found I could only exchange it for a Wally World shopping card. Used that shopping card for some loss leader staples.

[napi21]

5. It sure took a long time for the media to recognize just how tight

things were here in the real world! It's been a long time since we had "disposable income" of any amount, and when gas increases by 100%, groceries increase almost 40%, utilities increase 20%.....where the hell did they think the $$ was going to come from?

[rasputin1952]

6. Most people have finally realized that the stuff the RW was

shilling isn't going to come about.

The vast majority of workers received little to no tax relief, their expenses have risen dramatically, workloads have increased...and the dollar has tumbled. People are hunkering down for a stormy season.

Class Warfare...You Bet! Nothing "trickles down" it gushes up, and when people feel the pinch, they defend themselves.