Post-holiday sales may offer real deals

It’s no secret that retailers have been more than a little desperate this year. I actually spotted an ad for American Eagle Outfitters offering free shipping and 20 percent additional savings for customers who placed an order on Christmas Day! But with 44 percent of Americans primed to hit the stores between now and New Year’s, the discounts that have been so impressive to begin with are promised to be even steeper as merchants make a last-ditch effort to unload their inventories. 

For hard-core shoppers, today is the real Black Friday. Many stores like Kohl’s opened at 6 a.m. or earlier, and planned to stay open well past their usual closing time. But before you rush off to the mall, here are a few tips to make the most of your post-Christmas bargain hunting: 

• You’ll generally save the most today and tomorrow.
That’s because the day or two after Christmas are among the most trafficked shopping days of the year as many consumers look to return those unwanted presents and redeem their gift cards. Stores don’t want you walking out with those refund bucks in your wallet, so they tempt you to stick around with some of their juiciest deals. 

• Shop early in the day for added savings.
You can often save money by shopping during certain hours of the day, usually when stores tend to be less busy. It’s a marketing tool used by more and more retailers. For instance, Brooks Brothers, the fancier clothier, is offering 15 percent bonus savings to consumers who shop before 1 p.m. 

• Don’t be mislead by massive discounts.
Who doesn’t like a incredible deal? The ads for post-holiday sales promise savings of 70 percent or more. But don’t let the heady numbers fool you. The lofty discounts don’t generally apply to everything in the store, only to clearance, discontinued, or holiday merchandise. 

• Compare online and in-store sales.
They may not be the same. For example, Best Buy’s Web site featured an exclusive 3-day sale, with saving of as much as 55 percent, on items like electric shavers, coffee makers, GPS systems, and fitness equipment – deals you won’t find at any Best Buy store. Be sure to check the online price against the store price so you don’t waste a trip. 

• Beware of fine print.
A large ad for Kmart, for example trumpeted take an “extra 10% off almost everything.” Below the headline, in small type read, “excludes toys, electronics, entertainment, & fitness & sports.” That doesn’t sound like “almost everything” to me. 

• Look for downloadable coupons. I scanned dozens of Web site ads and found a wealth of valuable coupons for bonus savings. At Macys.com, for instance, there were two coupons, one good for an extra 10 to 20 percent off through Dec. 30, and another for $10 off a $25 purchase until 1 p.m. today, tomorrow, or Sunday.

Last-minute gift ideas for stragglers

If you haven’t finished shopping by now – and our most recent Consumer Reports Holiday Poll suggests at least 10 percent of us still have a ways to go – you’re probably desperate for ideas.

You can tell time is running out by latest round of ads, which are aimed squarely at those with no time to dilly-dally. On Tuesday, for example, I spotted my first Walmart TV commercial promoting the chain’s e-gift cards, which can be ordered as late as Christmas morning and delivered to the recipient’s inbox within hours (props to Walmart for telling consumers that the cards never expire and have no fees).

Similarly, commercials depicting husbands, girlfriends, and children painstakingly searching for the perfect present have been replaced with 30-second spots by stores planning to stay open round the clock through Christmas Eve.

With so many retailers embracing marathon hours in hopes of salvaging this dismal holiday shopping season, we procrastinators have one last chance at redemption. To give you a few ideas, I asked our marketing experts for the most popular product searches on ConsumerReports.org. In November, this is what visitors and subscribers researched the most (in descending order):

1. GPS systems
2. Tires (admittedly not a great gift to put under the tree)
3. Vacuum cleaners
4. Humidifiers
5. Luggage
6. Digital cameras
7. Cell phones
8. Space heaters

The ABCs of gift returns

Even before a single present had been exchanged, nearly one in five Americans — nearly 40 million people — say they expect to return at least one gift they receive this holiday season. If you’re one of them, here’s what you need to know before getting on line:

• You’ve got time. A recent survey by the National Retail Federation suggests that many retailers will be adhering to more generous merchandise return policies during the holiday season than for the rest of the year. In general, expect most retailers and Web sites to waive their usual deadline for product returns, typically a week to 30 days, and give you until Jan. 31 to seek a refund. Amazon.com, for example, says products purchased as early as Nov. 1 are eligible for extended return privileges. If you’re unsure of a specific store policy, examine the bottom of your receipt or check the store’s Web site.

• You’ll need a receipt. Despite longer grace periods, many retailers are tightening return policies. Merchants have in the past been fairly generous in taking back goods without a gift store or gift receipt — offering shoppers who can’t produce documentation at least store credit for the lowest price the item sold for — but now we’re seeing more chains say they won’t take anything back without a receipt. Last spring, we reported that if you try returning something to Target without a receipt, two separate policies apply. There’s the retailer’s posted 90-day return policy and then there’s its unwritten return policy. According to the posted policy, you’re simply out of luck if you don’t have a receipt and Target can’t verify the purchase through its electronic “receipt look-up” system, as might be the case if you paid cash or received the item as a gift.

But for items costing up to $35, there’s another “hidden” option that you won’t see. Customers can get store credit, provided they show a driver’s license or other government-issued identification and haven’t already used this option twice during the year. Make sure you understand a store’s entire policy. For online returns, you’ll need a packing slip (typically included in any gift order) and return authorization number. When giving a gift, keep all original packaging and tags.

• You’re being watched. Return fraud will cost retailers an estimated $11.8 billion in 2008 and $3.54 billion during the holiday season alone. Shoplifting – particularly organized criminal behavior in which groups of people pilfer goods and then try to bring them back for a refund -- has prompted some major retailers to implement computerized return authorization systems to help them decide whether to deny your return. The systems take into account factors such as how much time has elapsed since your last return, the number of items you’re returning, the dollar value of the goods, as well as your overall return history, whether you have provided receipts in the past, and the number of stores you’ve sought returns from.

• Clear your good name. If your return is denied and you don't know why, you may have been incorrectly flagged by a store's computer for committing "return fraud." You might be able to correct the matter by e-mailing the Retail Equation (formerly known as The Return Exchange), a company that monitors returns for many retailers, at ReturnActivityReport@TheRetailEquation.com.

• Think twice before opening that package. Merchants can’t resell as new any item after the box has been opened, so they penalize you for doing so. Such policies for electronics gear like camcorders, TVs, digital cameras, and computers have been around for a long time, and typically range from 10 to 15 percent of the purchase price. Special orders, if they can be returned at all, may also be subject to restocking fees. Our advice: Don’t open the package if you don’t want what’s inside. Items like computer software, music CDs and movie DVDs aren’t generally returnable for another title after the seal has been broken. Some stores, though, will give a partial refund. 

• Know where to return it. If you bought an item online and the merchant has a brick-and-mortar counterpart, check the Web site to see if you can take back the merchandise to the store and avoid repackaging, a trip to the post office, and shipping fees. For example, you can return merchandise bought from Macys.com to any Macy’s store, but don’t try doing it the other way around. Conversely, Sears will take back any merchandise bought online from Land’s End’s Web site and vice versa. (Sears owns Lands’ End.)

Find the values in compact cameras

A few weeks ago, using prices and performance scores for superzoom cameras, we introduced the Consumer Reports Value Index™, a new tool to make it easier for you to find those products that offer good value. We also offered versions on LCD and plasma TVs, to help you choose among those competing flat-panel technologies; portable GPS navigators, to help you find your way; and, most recently, cordless drills, a popular holiday gift.

This week, we offer a Value Index for compact cameras. Based on a snapshot of online prices taken earlier this week, the Value Index plots price against overall score for compact cameras we’ve tested. Then it places the sets into value zones –

— Higher, Medium, and Lower — based on the price and performance of all cameras in those categories. Products on the upper right side of the chart offer better values than those further to the left and bottom.

To use the Value Index, first roll your mouse over a circle to find out more about the model it represents. To learn more about a model, subscribers can click on its name to go to its page, which includes our expert review, a detailed breakdown of the model’s overall test results, Reliability data, user reviews, and a link to compare online prices for that model. (The average price shown on the model page may differ from the one in this chart, due to timing.)

Which set should you buy? For more on that decision, you might want to check the complementary post by our Electronics colleagues.

The Value Index is a work-in-progress for us, and we’re working hard to improve this feature. If you have any feedback —  or would like to tell us whether you got any value out of this — please share your thoughts in the Comments, below.

9 tips for last-minute shoppers

With so many consumers delaying their shopping until just before Christmas, it’s especially important to stay focused, so you don’t stress out or go overboard. As of Dec. 7, only 56 percent of Americans surveyed in our national Holiday Poll had even begun to shop, while another 44 percent will be hitting the malls in the week between Christmas and New Years.

Here’s some advice to keep you on track:

1

Don’t panic.

This year, we’ve seen unprecedented price-cutting and perks like free- or reduced-price shipping, buy-one-get one free deals, and flat percentage discounts off purchases of a specific dollar amount. There’s no reason to believe the wheeling and dealing is going to end any time soon. Today’s bargains are likely to be here tomorrow. Many cash-strapped Americans we surveyed, in fact, plan to wait until after Christmas to buy big-ticket items like HD television sets because they think prices will drop further. If inventories remain large, the deals might be sweeter down the road.

2

Stick to your budget.

As the holiday looms closer, many of us become bundles of anxiety. Our palms start to sweat, our breathing quickens, and we get queasy. I call it restless shopper syndrome, and it stems from an irrational concern that the gifts we’ve bought are inferior, inadequate, or somehow insufficient. The temptation to run out to the store hours before Christmas is powerful. And that’s when we’re most vulnerable to go way off budget to buy some bauble or extravagance without the proper thought. Step back and take a deep breathe. If time is running out and you still have names to cross off your list, read on.

3

Give the gift of time.

The worst economic crunch in modern times is affecting just about everyone. Many of us simply have less to spend on gifts than in past years. If you’re cutting back on spending — and 37 percent of the people in our survey said they planned to — why not give the gift of yourself? By babysitting for a couple that rarely has a chance for a night out, for instance, petsitting, or  offering to take over some everyday chores – you’re showing how much you care in a deeply personal way that’s bound to be appreciated.

Charities jump on gift-card bandwagon

With fees, expiration dates, and other gotchas, gift cards can be more nuisance than gift. And charity gift cards and certificates are no exception.

Charity gift cards are like traditional gift cards, but instead of redeeming them for products or services, recipients use them to make donations. Although sometimes offered for use at a single charity, the cards typically are sold by networks that act as middlemen, forwarding the money when cardholders select from hundreds or even thousands of nonprofits. We’ve seen cards available with values of $10 to $10,000.

Like many other gift cards, charity gift cards usually have fees. Issuers, nonprofits themselves, charge around $5 to buy the cards and another 3 percent to 15 percent when card holders redeem them. Other drawbacks are hard-to-find terms and conditions and expiration dates (after which the issuers take the money for their own operations.)

Most cards can’t be redeemed for cash, and any tax deduction typically goes to the purchaser, not the recipient.

Once a card holder designates a charity, some issuers take up to four months to forward the donation, a delay that charity watchdog American Institute of Philanthropy criticizes as unwarranted.

Don’t let high shipping fees sour a good deal

This year, I’ve received more e-mails for free- and reduced-price shipping on Internet purchases than ever before. And I’m not the only one getting deluged by such deals. The National Retail Federation (www.nrf.org) estimates that as many as 78 percent of merchants will dangle some sort of free shipping incentive this holiday season.

Free shipping is no doubt a great incentive to buy. But I’m a realist, too, and understand that companies can’t always afford to swallow the costs. However, I draw the line at retailers that use delivery fees as a profit center. A bargain price on merchandise can easily be sunk by above-normal fees for shipping. And in my book, $92 in fees on a $200 order qualifies as high.

Here’s how a recent experience went down. I needed to stock up on ink for my Epson R2400 photo printer. The machine requires eight separate ink cartridges, which have a going rate of around $12 to $15 each, according to the comparison site Pricegrabber, which was my first stop on this shopping trip. But I thought I could do even better, so I dug deeper.

Consumer Reports poll: Slumping economy has Americans changing holiday traditions, delaying shopping

With more and more families facing financial challenges, nearly 70 percent of Americans are economizing on their gift-giving this season, according to the third and final installment of Consumer Reports Annual Holiday Poll. Specifically, 37 percent of those surveyed said they’re setting a spending limit, 14 percent are making homemade gifts, and 6 percent have decided not to exchange gifts at all. In fact, cost-cutting is such a big deal that 12 percent of respondents said they’re already scheming to re-gift at least on present they receive. Bah Humbug! 

Besides cutting back, more consumers are putting off shopping. Until now, the shopping pace had been similar to the pattern we observed during the past two years. But the pace has slowed. As of Dec. 7, only 56 percent of Americans had begun to shop. That’s down 6 percentage points from the same time in 2007, and 10 percentage points lower than in 2006. 

Regardless of how far along Americans are, 29 percent don’t anticipate finishing shopping until Dec. 23 or later; 10 percent don’t expect to be done until moments before Christmas Eve turns into Christmas Day. 

But even the holiday itself won’t mark the end of the shopping season, as 44 percent of those surveyed expect to hit the malls during the week between Christmas and New Years to take advantage of sales and focus on buying gifts for themselves. 

The nationwide survey of 1,000 Americans, conducted by the Consumer Reports National Research Center, revealed that shoppers plan to spend an average of $740 each; one in five told us they intend to spend $1,000 or more. The figures closely mirror those of 2007.   

 

Related: - Americans look forward to a happy, but less plentiful, holiday season - Electronics holiday buying: Down but not out - Holiday shopping off to a slow start; big Black Friday predicted

Resist that new credit card discount

While shopping this holiday season, you might be tempted to save by signing up for retailer charge cards. After all, who hasn’t been enticed by a smiling cashier offering a 20 percent discount on everything you buy today if you’d just take the card.

But think carefully before you agree, especially if you’re about to finance the purchase of a home, car, or other big-ticket item. Taking on new cards can ding your credit score, potentially making it more difficult to get a loan than it already is in the current recession. That’s especially true if your credit score isn’t good to start with.

“If your score is not so hot, it’s in the 600s, and you are trying to improve it, you might want to be more cautious about opening new retail accounts during the holidays,” says Craig Watts, spokesman for Fair Isaac, the company that invented the FICO credit score.

Adding just one new card will cause your score to drop by at least several points for several months. As you add more cards, you may create what Watts described as a “pattern of urgently needing credit,” causing a significant decline in your score. The effects are strongest and prolonged for those who have lower scores.

Along with affecting your cost and eligibility for a loan, a lower score can increase the amount you’ll pay for insurance, since some insurers equate lower credit scores with higher risk. Indeed, after signing up for three new cards one holiday season, one of our staffers was informed by his insurer that the resulting lower credit score made him ineligible for the company’s maximum discount for auto and home coverage.—Anthony Giorgianni

KB Toys latest to file for bankruptcy

If you have gift cards or certificates, merchandise to return, or any other business at KB Toys, now would be a good time to take care of it.

The retailer filed for bankruptcy protection with the United States Bankruptcy Court for the District of Delaware today and said it plans to liquidate all of its stores. It was not immediately clear whether KB Toys would continue to make good on gift cards or other outstanding consumer obligations.

Our check of three KB Toys stores Thursday evening (in Yonkers, N.Y.; Sacramento, Calif.; and Fort Worth, Texas) found that they were still accepting gift cards and returns. However, when we tried to use a gift card to make a purchase at the company’s Web site, a notice said that the site was unable to accept KB Toys.com gift cards due to “system issues” and advised visitors to check back in 24 hours. The site was no longer selling gift cards.