By Anna Fiorentino
afiorentino@eagletribune.com
November 23, 2008 02:09 am Dave Bruce took his first virtual golf swing inside Best Buy in Salem on Monday afternoon. He thinks the Nintendo Wii might be the perfect Christmas gift for his live-in grandchildren, ages 5 through 13 — and for himself. It also might be the only gift. "Instead of a lot of gifts, like usual, this year we'll probably do one big gift like this for all of us to enjoy," the Salem resident said. "Our 401(k) is gone, our stocks are depleted. We have to think long-term now." Bruce, a retired military officer and stay-at-home grandfather, says his wife makes "good money" as a consultant. Still, like many others this holiday season, he is being forced to come up with creative alternatives to traditional present giving. Amid shrinking stocks, foreclosures, limited credit options and the highest unemployment in years, shoppers have had to get thrifty. That means sticking to clearance racks, scouting out one-day sales, making gifts, shortening lists, and searching for deals online. Bruce plans to cash in his American Express membership rewards points for low-priced gift cards instead of the vacation he'd planned on taking with his wife. "They're the simplest gifts and in the smallest amounts, but it's all we can afford this year," he said. Shoppers spending more carefully Despite the economic slow-down, the average shopper is projected to spend $832 on Christmas presents this year, according to the National Retail Federation — a 1.9 percent increase over last year. It's how patrons are spending their money that's changed. More than 40 percent of shoppers surveyed said sales or promotions are the largest factor in determining where to shop, and 70 percent plan to do some shopping at discount stores. "No one is canceling Christmas because money is tight, but consumers will be sticking to their budgets and looking for good deals when deciding where to spend this holiday season," said Tracy Mullin, the National Retail Federation's president and chief executive officer. Just ask Angela Tobin of North Andover, Mass., who browsed the sale rack at Old Navy in Methuen, Mass., on Monday. "To better manage my money, I started my Christmas shopping earlier this year," Tobin said. That also allows her to take advantage of the pre-Black Friday deals many stores are offering. Tobin plans to cut costs even more by making fudge for friends and extended family. To others she'll present hand-crafted ornaments made by her kids, who also expect an abridged version of present opening Christmas morning. "My son is into Legos, but the price of them is out of control," she said. "Things just seem more expensive this year." Prices can be deceiving in a slump. In reality, this year red tags are everywhere, especially in stores like Tweeter, which is closing all locations after filing for bankruptcy; Linens 'n Things, which closed last week; and Circuit City, which filed for bankruptcy protection earlier this month. In fact, most major retailers have already plastered signs outside their stores seeking to coax shoppers with pre-holiday bargains. In Methuen, KB Toys directs customers to buy three toys and get a fourth free. A few storefronts down, at Borders, $2 bins are brimming with books. And the Marshalls and TJ Maxx clearance racks continue to grow. Layaway makes a comeback But it was Kmart where Darline Orlando of Salem, an unemployed, single mother of a teenager and 6-year-old twins, kicked off her Christmas shopping Tuesday afternoon. "I already told the kids Santa is having a hard time this year," Orlando said. Her Christmas wish is to land a temporary retail job offering an employee discount to carry her through the holidays. Orlando came to Kmart for the first time in years for one reason: "I heard on the radio they had a layaway program," she said, pushing a cart full of toys. "Besides, keeping the presents here is better than having the kids look for them at home." While Kmart has offered layaway for years, the program went virtually unnoticed by customers until last month, when it became the subject of the store's ad campaign. It helped contribute to the 2008 layaway comeback. The Kmart campaign, coupled with an announcement last week that Sears will offer layaway for the first time in 20 years, has brought the programs back into focus. Most other department and big box stores, with the exception of some TJ Maxx and Marshalls, and Burlington Coat Factory, eliminated layaway in the last decade. Customers like Orlando who have been hard hit by the economic downturn have started using layaway programs as an interest-free credit option. Most require a small down payment and that items be paid for in full, through regular installments, before they are taken home. It's just one in a series of strategies consumers are using during the year's busiest shopping season, as they seek to cushion the impact of the global economic crisis. "No one will get gifts but my kids," Orlando said. "That's just the way it has to be this year." Kids gifts for under $25 Crayola Color Wonder Light Up Brush (mess free, paints only appear on special paper), $19.96 at Wal-Mart Hannah Montana Backstage Makeover Set, $19.88 at Wal-Mart Lego: Star Wars, $19.99 at KB Toys Blue Hat Toy Company Kids Bilingual Laptop, $19.99 at Macy's Hello Kitty Little Girl Tiered Skirt, $22.80 at Macy's Greendog Boys Full-zip Fleece Hoodie, $14.98 at Macy's Adult gifts for under $25 Joe Boxer Cable Knit Robe, $23.99 at Kmart Leatherman Micra Multi-Tool, $19.99 at Kmart Stephen King's "Just After Sunset" (hardcover), $16.80 at Borders "Giada's Kitchen: New Italian Favorites," $19.50 at Borders Vector Weatherband Radio/Flashlight Combo, $19 at Home Depot Krups Fast Touch Coffee Grinder, $19.99 at Macy's
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