Survey: Luxury stores not having a happy holiday

The financial worries that have plagued many shoppers for months seem to have finally reached into the upper echelons. Upscale retailers such as Saks, Nordstrom and Neiman Marcus are all starting to feel the effects of the weakened economy. With high gasoline prices and and a falling real estate market, some who once felt confident shopping in these stores are starting to head for the discount retailers.

The last few years introduced the public to the concept of "masstige," luxury items aimed the masses. Luxury retailers that once catered to only the wealthiest, found that more and more people in the middle income range were clamoring for their products. The aspirational consumers, the ones who want to move steadily upward, are now retreating from the luxury stores they once flocked to. Nordstorm, Neiman Marcus and Coach have all reported slowdowns in their sales.

The wallet-watching is expected to continue among the wealthy. The American Affluence Research Center's most recent survey found that households with an average income of $256,000 are planning less spending in the future and are more focused on  "preservation of capital." And as we mentioned at the start of November, a survey by Unity Marketing showed that luxury consumer spending is at the lowest point in two years.

Bluetooth headsets: Good stocking stuffers?

While a mobile phone may not be at the top of your holiday shopping list, there's one accessory that may appeal to many of your always-connected cohorts: A wireless Bluetooth headset. Prices for headsets have continued to drop, and what was once a luxury item can now be purchased for as little as $30. Of course, smaller headsets, or those with advanced features, can easily top $100, so a Bluetooth rig, depending on cost, can function as either a stocking stuffer or a primary gift. Here's some advice on shopping for headsets. ConsumerReports.org subscribers can also review our Ratings of 34 models, including some stereo headsets suitable for music playback.

Give a micro loan this holiday season

Looking for a holiday gift that will really keep on giving? How about turning a loved one into a humanitarian financier by giving them a Kiva.org gift certificate?

Recipients redeem their certificates to make “micro loans” directly to small entrepreneurs in 37 developing countries. Once the loan is repaid, the lenders can re-lend or withdraw the money, ultimately using it for that MP3 player or anything else they want.

It’s all done through the San Francisco non-profit group’s Web site, which features a profile of every entrepreneur seeking to raise him- or herself out of poverty.

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ShopSmart's top sites for holiday shopping

Our sister publication, ShopSmart, just launched a new site, filled with excerpts from the magazine's current and previous issues (along with a handy link to a new online subscription form). If you're not familiar with ShopSmart, you should definitely take a look. The featured item on the site right now is ShopSmart's guide to great web sites for holiday shopping. Among the picks:

• BuyDig.com, for electronics
• Oliebollen.com for kids
• Crane.com for stationery
• Taschen.com for books

Check out the full list here.

Toy test: Kids pick the season's top sellers

 

We asked 40 children, ages 6 through 12, to check out the fun factor in 24 toys that are expected to be hot holiday sellers this year. They range in price from less than $10 to $200. After a day of unstructured play, we asked the kids to tell us whether they liked or disliked each toy, and to choose a favorite. Based on that, we came up with this year’s list of hot toys, in order of popularity. >> More

Holiday lights: Are LED's a better deal?

Is it a bright idea to use LED lights for the holidays? We compared LED and incandescent bulbs in three sizes — mini, C7, and C9 — determining how much it cost to light strings totaling 50 feet for 300 hours. We also exposed the bulbs to moisture, hot and cold temperatures, and UV light, and sent each type of bulb to an independent lab that measures brightness. Read on to find out which kind of bulb is better for your lighting needs this holiday season.

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Cyber Monday record: $733 million

As expected, online sales on "Cyber Monday," November 26th, hit a new record, of $733 million, according to numbers released by ComScore. However, despite marking the first day in which total ecommerce sales broke $700 million, Cyber Monday's record isn't likely to last for long. As it did last year, that number is expected to be eclipsed shortly by even higher one-day figures. "We expect that a number of individual shopping days during the coming weeks will surpass the Cyber Monday total, with some days potentially surpassing $800 million," said comScore chairman Gian Fulgoni. That number still doesn't come close to Black Friday's sales figures, which some put as high as $10 billion.

Pick the right gift card for your holiday shopping

The Office of Consumer Affairs of Montgomery County, MD, just released its fifth annual gift card survey, and the results won't surprise anyone who has kept track of our reporting on gift cards. The agency recommended 18 of the 22 retailer gift cards it reviewed from late October to November.

But the Consumer Affairs office said all of the 30 bank-issued cards it examined continue to have purchase and processing fees, expiration dates and other gotchas, some of which were not properly detailed despite disclosure-related lawsuits brought by the Federal Trade Commission and 2006 guidance issued by the federal Office of the Comptroller of the Currency.

The report’s criticism of gift cards, particularly those issued by banks, mirror many of the problems we identified in our recent gift card report. Bank-issued cards bear a major credit logo and, unlike retailer cards, can be used at most merchants that accept that brand of credit card.

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Top 5 Cyber Monday myths

If you didn't get your fill of shopping this weekend, you've still got today, Cyber Monday, to hunt for bargains. Actually, you've got a few weeks, though it is worth checking out some of the deals being touted today. Before clicking that "Buy" button, however, be sure to review our Top 5 Cyber Monday myths:

1. You can get the best deals today.
Yes, there are some great deals to be had if you shop right now. Dozens of stores are offering free shipping and discounts on purchases. But many of those offers don't end today. For example, at the top of the official Cyber Monday Web site (sponsored by the National Retail Federation, which created the "holiday" two years ago) is a link to Apple's online store offering free shipping on all purchases with the tag "today only." However, Apple routinely offers free shipping for orders over $50, so unless you're planning on picking up something for less than that (not an easy task, given that the cheapest new iPod is $79), there's no reason to hop online and buy it today. Similar issues apply with many other merchants, so be sure to read the fine print before you rush into a purchase.

2. Cyber Monday is the busiest day for online shopping.
Sure, it's busy. In fact, according to ComScore networks, last year's Cyber Monday was a record day, with $608 million in online sales. But by December 25th, that record had been broken over 10 times, with the trophy going to December 12th, at $667 million.

3. If you don't shop today, hot products will be sold out.
This one's tricky. Yes, some hot items may sell out today, or over the next few days. And, the closer you get to the holidays, the more likely it is that some "must-have" gifts might be harder to come by. So, if there's anything you absolutely have to buy, and you're afraid it's going to sell out quickly, go ahead and place that order soon — though in most cases, that doesn't mean today.

4. You should shop online today if you want to get your gifts before the holidays.
Because Christmas falls on a Tuesday this year, you can order gifts from many retailers as late as December 18th and still get them delivered on time using standard shipping (and some offer overnight shipping as late as December 22nd). However, if you're shopping for Chanukah, you may want to get busy. The Festival of Lights starts next Tuesday.

5. If you shop at work today, your boss is not going to be pleased.
Sorry, this one isn't a myth. According to the National Retail Federation, 54 percent of workers will shop at work today. Headhunters Challenger, Gray & Christmas (yes, that really is their name) estimate that workplace shopping may cost the economy almost $500 million in lost productivity. So, if you must shop today, do it on your lunch break, so both you and your boss will save a few bucks. (And before you shop, be sure to check out these tips from ShopSmart!)

Happy Buy Nothing Day!

Yes, we're aware that we've been going over (and over, and over) Black Friday info for the past couple of weeks. So here's something for those of you who want to do something other than shop today. It's Buy Nothing Day, an annual event organized by the Adbusters Foundation, which seeks to declare a "24-hour moratorium on consumer spending." Events include the Credit Card Cut-Up, where volunteers stand in shopping malls and volunteer to help consumers clip their cards; and the Zombie Walk, in which the "cheerful dead" wander around malls. More information is available at Adbusters.org.

Of course, if you're not into cutting up cards or getting dressed up in zombie gear, you can also join Consumers Union's “Twelve Days of Safe Shopping” campaign, and call on manufacturers, retailers, and government agencies to develop effective measures to prevent unsafe products from reaching store shelves. But we won't hold it against you if you opt to go zombie instead.