Retailers vie for rebate cash

By JEROME R. STOCKFISCH
MEDIA GENERAL NEWS SERVICE

Published: May 15, 2008

If Americans aren’t sure what to do with their economic stimulus checks, major retailers are happy to offer suggestions.

About $100 billion in tax refunds are zipping through the direct-deposit system or will hit mailboxes soon. The federal government - and retailers - are hoping most of that cash will be pumped into the sagging economy.

Discounts and special programs are already under way at some stores, and you can expect an advertising barrage to commence, said Rick McAllister, head of the Florida Retail Federation.

“An infusion of cash this large into the economy makes all retailers more competitive,” McAllister said. “There will be promotions and sales that are timed with these checks.”

Americans who filed 2007 tax returns and earned less than $87,000 individually or $174,000 for married joint filers will receive checks ranging from $300 per individual up to $1,200 for families. Those with kids could collect more - $300 per child.

A National Retail Federation survey suggests about 41 percent of consumers plan to spend their windfall, which would provide an immediate $43 billion boost to the economy. Twenty-eight percent of respondents said they will pay down debt, and 19 percent said they will save it.

Some retailers are making it as easy as possible to spend that check. Wal-Mart and its sibling Sam’s Club stores, along with Lowe’s home improvement centers, will cash them on-site with no fee.

At Radio Shack, those making a minimum $50 purchase get a 10 percent discount, and will have the balance transferred to a prepaid MasterCard that can be used wherever those cards are accepted, including at ATMs. That will help what spokeswoman Wendy Dominguez called the “under-banked,” those who might not have traditional banking services and would otherwise have to rely on check-cashing services that charge up to 5 percent.

McAllister of the state retail group hopes, of course, that the majority of the new money ends up in stores. As for paying down debt or banking the money, “all of those are good things,” he said.

“We hope a good portion of that is spent in the economy,” he added. “We all need a little boost right now.”

Wal-Mart
Will cash tax-rebate checks on site with no service charge. Also applies at sibling Sam’s Club warehouse stores. Will offer sale prices on grocery and consumable items.

Sears
Stretch Your Check promotion will add 10 percent bonus to value of any gift card bought with a government check. The gift cards, with no expiration date, can be used at any Sears Holdings Corp. store, including Kmart, Land’s End or at a Sears auto center.

Radio Shack
For minimum on-site purchase of $50, will offer a 10 percent discount. The balance of the customer’s rebate check will be converted to a prepaid MasterCard that can be used wherever those cards are honored, including ATMs.