Consumer Conundrums: It Was a Coupon Christmas, Or Oh, How the Market Has Changed
Last updated Friday, January 9, 2009 8:49 PM CST in Business
By Lana F. Flowers
THE MORNING NEWS
The last time I worked in the Morning News business section, I did a Sunday column detailing construction and development.
It was the real estate halcyon days of 2004 through 2006, when Pinnacle Hills Promenade was under construction and courting tenants. Developers had grand dreams of building condos that sold for upwards of $300 per square foot.
Well, I'm back covering business after being on the education beat for two years, and the market has changed.
Unemployment rose. Housing prices declined across the country. Gasoline prices rose dramatically, then plummeted just as dramatically. Pinnacle Hills Promenade has empty spaces as retail tenants went bankrupt, got bought by another firm or simply closed.
The focus of the column has changed, along with the changing market.
Rather than writing about growth and development in the construction and real estate sectors, I'll write about consumer conundrums.
If there's something you always wanted to know about retail stores, taxes, restaurants, unemployment or other business and consumer topics, e-mail me at lflowers@nwaonline.net and tell me what's on your mind.
I get paid by the hour to research these things, so you can kick back and spend time with your family -- or search for a job.
A Coupon Christmas
Stock analysts and retailers themselves forecast a bleak Christmas shopping season, heralded by early, deep discounts.
The forecast clearly came true Thursday, when many retailers released sales reports for the four or five weeks spanning December and early January.
Wal-Mart Stores Inc. international division reported sales dropped 10.4 percent compared with the year-ago period. Sam's Club sales were down 2.1 percent. U.S. store sales were up 4.3 percent, but shoppers bought mostly groceries and health items, while passing up jewelry and clothes.
Wal-Mart, known for its "Save money, live better" campaign, might have lost business to shoppers who had a pocketful of coupons and sought discounts elsewhere.
Little Rock-based Dillard's Inc. had a buy-one, get-one free men's suit sale that ended Dec. 7. My husband, Jesse Flowers, bought four suits, several ties and accessories for about $1,300, including tax and alterations.
JC Penney sent three, $10 off coupons to one address within two weeks between late November and mid-December. This was on top of sales like corduroy pants for $13.99 and ladies' shirts for as $7.
Victoria's Secret sent two $10 off coupons to one address on Black Friday, the day after Thanksgiving that kicks off the holiday shopping season.
It's so named because it is the day retailers typically make a profit and go into the black.
Victoria's Secret also gave Secret Santa gift cards to Black Friday shoppers. The cards were worth $10 to $500 and redeemable on a future purchase.
Express, New York and Co. and Borders also regularly sent coupons by e-mail or snail mail to potential customers.
Restaurants participated in the coupon and savings blitz as well.
Mimi's Cafe mailed coupons for a free Just Enough meal with purchase of a Just Enough meal, which feature smaller portions than other menu items.
Colton's, a steak house, sent coupons for $2 off lunch and $5 off any purchase.
Olive Garden and Red Lobster commonly put coupons in Sunday newspaper supplements, usually good for $4 off two dinner entrees.
Bonefish Grill offered diners $10 off.
About 4.6 million people collected unemployment benefits in December, according to the U.S. Department of Labor. There also were 160,000 fewer jobs, for those still strong enough to look for work.
The restaurants and stores got us all used to deep discounts and extra coupon savings. Let's see what they do now that the holidays are over and people have less reason to spend money, as more of them lack jobs.
Sephora is a bellwether. The cosmetics emporium sent an e-mail Wednesday inviting customers who are part of its Beauty Insiders program to come to stores Saturday from noon to 6 p.m. to get 10 free samples of various products.
Borders e-mailed a coupon last week for 20 percent off any item through today.
And Red Lobster already put more coupons in the Sunday newspaper supplement on Jan. 4 in the Morning News.
How will this coupon culture, the epitome of cheap is chic, bode for retailers' January sales?
Wal-Mart releases its January sales figures on Feb. 5 and its fourth-quarter and year-end sales on Feb. 17. Other retailers will report sales between then and March.
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