Retailers hungry for a piece of rebate pie
LOS ANGELES (Reuters) - More than $150 billion will land in shoppers’ hands later this year in the form of tax rebate checks and businesses hoping to boost lagging sales are devising plans to make sure they get some of those dollars.
Spend, not save, will be the message and companies from Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research) to JetBlue Airways Corp (JBLU.O: Quote, Profile, Research) will court consumers with extra cash in their pockets with promotions and special marketing campaigns.
While some companies will focus on the fun of “free” money, others will highlight bargains to stretch out that check.
J.C. Penney Co Inc (JCP.N: Quote, Profile, Research) Chief Executive Myron Ullman told Reuters the message to female shoppers will be: “We have what she wants.”
The checks will hit mailboxes during the summer when Penney has a surge in back-to-school marketing, Ullman said, adding: “We believe she’ll get more for that rebate check with us than she will with anybody else.”
Wal-Mart, the world’s largest retailer, expects a “rapid response” after consumers receive their money.
“I would like to think that, as in the past, we have gotten at or more than our fair share of our checks,” Wal-Mart Chief Financial Officer Thomas Schoewe told Reuters.
The tax rebate checks, part of a broader $168 billion economic stimulus package signed by President Bush on February 13, pay up to $600 for individuals and $1,200 per married couple. An additional $300 per child will go to families with kids.
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