Shopping Scoop: How to Save This Holiday Season
Nov. 25, 2006 — -- With the holiday shopping frenzy in full swing, shoppers want to know how and why they can get the most bang for their buck. Retail analyst and shopping expert Lori Wachs answered all of your questions in an online chat, giving her tips on how to make the most out of this shopping season.
Boutiques or Big Stores?
Q: I'm about to embark on a shopping trip and I'm wondering, do you think small, independently-owned boutiques have better sales than big department stores? My town has a lot of small retailers that sell really cute stuff, but I'm wondering if I'm really getting the best value for my money when I shop there. Do department stores tend to mark things down more than small stores?
A: As you get further into the season you might want to turn to the boutiques, but at the start of the season the department stores are more likely to be more promotional early on.
Sale Prices
Q: A store like Kohl's seems to have a sale every day. How do you find out what the best prices or sale is for that store. I went for lowest prices of season one week, then next week there was 50 percent off. Seemed almost exactly like same prices.
A: Stores like Kohl's operate as every-day promotional retailers with over 80 percent of what they sell done at sale price. While it's difficult [to tell] which is going to be the ultimate sale, since they largely sell apparel and other soft lines, it's a pretty safe bet that the closer you get to Christmas the more promotional they're going to be. However, they're more likely to have sold out of the hottest items of the season.
Credit Cards Versus Debit Cards
Q: Are there any benefits to using debit cards over credit cards? What about cash? Is one better than the others?
A: Debit cards are great for the financial discipline that they impose because you can't spend money that isn't there. However, when it comes to purchase protection you can't beat credit cards, as they often provide theft protection within the first 90 days and provide extended warranties for many products.
In addition, in a dispute with a retailer on a purchase, credit card companies will place the money in escrow and help to resolve the dispute.
Most Popular Gifts
Q: What will be the most popular gifts this year? For men? Women? Kids? What's the hottest toy right now?
A: Hot toys this season are TMX Elmo, Princess Genevieve Barbie, Bratz dolls, the Nintendo Wii.
We expect it to be a very good year for flat-panel TVs as prices on most models have come down 30 percent from a year ago, which puts opening price points for 40-inch screens at around $1,000 and 50-inch screens at around $2,000.
In terms of fashion items, we're expecting a strong sweater season with the longer sweater that's either belted or layered over skinny jeans.
Gift Cards
Q: Is it better to buy gift cards from stores or ones from credit card companies like Visa or MasterCard? I really like the flexibility that the gift cards from credit card companies offer.
A: Gift cards are probably a case where it's better to go to the actual store than to buy from the credit card companies. Often, the credit card companies charge shipping fees, while typically the stores do not. In addition, the credit card companies are more likely to charge inactivity fees and give expiration dates, whereas the store retailers typically do not.
Best Time to Shop
Q: Here's my problem. Every year, I try to hit the "black Friday" and other sales for good deals. But whenever I go to the stores, they're all packed! What's the best time to shop where there ARE NOT a lot of people but good deals are still around?
A: You should definitely check with your mall as almost all of them offer extended holiday hours. Your best bet will probably be late at night or first thing in the morning once you get past the initial Thanksgiving weekend.
In addition, 40 percent of holiday sales are done in the final two weeks, so try to get most of your shopping done ahead of time.
Computers
Q: I want to buy a laptop computer for a relative for Christmas. Should I purchase one now, or will better sales come along in December?
A: Generally speaking, consumer electronics don't get much more promotional as the season progresses. This year is a bit unusual because Microsoft is about to launch its new Vista platform, which means that most computers will start to come down in price as we get closer to the launch date, which is early in 2007.
Now or Later?
Q: Is there anything I should WAIT to buy until after Christmas? A PlayStation3, for example? An iPod? Or maybe cold-weather gear like down coats?
A: IPods have largely not been a promotionally priced product, and Apple has typically waited several months after the new year to introduce their new products.
In terms of the PlayStation3, you probably won't have much choice but to wait, given the short supply.
If you can wait until after Christmas to buy cold-weather gear, you will definitely find better promotions as the retailers have to clear out of this merchandise by the end of January to make room for new spring merchandise.
Shopping Online
Q: I live in an area of the country that's NOTORIOUS for its harsh winter weather. I'd much rather do my holiday shopping online than have to clean off the car and brave the usually icy roads. So, what are some good sites to visit to buy things like toys, clothes, electronics? And when do they or will they have sales? I want to make sure my gifts arrive by Christmas and I'd rather not pay extra for shipping, but I'm willing to wait a little while if some good online sales are coming up.
A: Most sites this year are offering free shipping up until December 18th. Minimums apply, but in the past it had been consumers' no. 1 complaint about shipping, and retailers have really responded with free shipping.
It will definitely pay to frequently check the retailers' Web sites throughout the holiday season as they plan on changing their promotions frequently.
In terms of good Web sites, typically it will be the same as your favorite stores to shop, as brick and mortar retailers have, by far, the largest market share of the online market. You probably want to check Amazon as well, as they have an extremely large selection and also score at the top of customer service surveys.
Online Versus Real Stores
Q: I'm torn between shopping online and at real, "brick-and-mortar" stores. Where will I get the better deal? Plus, stores like Target and Macys sometimes have different selection/sale online as opposed to in their regular store. I'm tempted to go for brick-and-mortar sales because the discounts seem deeper, but I'm not sure if that's the way to go.
A: Actually, I was surprised to learn that many retailers are offering equal discounts as their online sites and their stores this year. And they'll have Web busters online just like they'll have door busters in the store.
And those super early bird specials that you'll find on Black Friday will be limited to the stores, but most other promotions will be really similar.
Many of the retailers that I've spoken with say that their best customers shop both online and at their stores, and they just want to use each channel as they see fit.
Added to the convenience of online shopping is the ability to instantly compare prices through search engines such as shopping.com and mysimon.com.
In addition, there's a Web site called cybermonday.com which posts promotions from almost 400 retailers.