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The tax rebates are on their way—approximately $152 billion to families, individual tax payers and businesses. But the question remains: how will recipients handle the cash? Will they pay down debt? Tuck it away for a rainy day? Or, as our government hopes, turn into bug-eyed shoppers with thick wallets and few inhibitions?
The National Retail Federation estimates that approximately $42 billion will move into the retail sector, slightly less that the $47 billion spent on Valentine’s Day, Easter, and Mother’s Day combined.
While the verdict remains out as to how stimulating the stimulus package will be, many retailers are taking a proactive approach. Topping Wal-Mart’s 18-months free interest on purchases over $250 announced in January, Sears (K-Mart/Lands End) and Kroger Co. are offering consumers a 10% bonus if they purchase a gift card using the entire amount of their stimulus check, which translates into $30, $60, or $120 of free money.
Consumers are cautious: Surveys indicate that they’re eating out less, spending less on groceries, and shopping more at discount stores. The key word here is discount. Consumers may be shopping more cautiously but they are still shopping. However, they are looking for value and savings.
Savvy retailers are not only looking for innovative ways to market their products, they are finding new and creative ways to source goods. They are on the Internet looking for new vendors. They are actively searching out opportunities that can build their bottom line.
Tools like OffPriceShowrooms.com and tradeshows like the Off-Price Specialist Shows offer retailers easy and convenient access to quality apparel and accessories at below-wholesale prices. It’s all about buying power. Your customers save when you save.

By Bob Nordstrom

The latest issue of Off-Price Apparel magazine has been put to bed and should be arriving in subscribers’ mailboxes in a couple of weeks. The winter has been tough up here in the northern climes and the economic news we’ve been inundated with hasn’t lightened our winter load. But the off-price industry is a unique animal in the apparel industry. For some, economic pain can mean gain, as was reflected by the performance of various off-price retailers and discounters during the past holiday season. In addition, attendance and buying activity at the February Off-Price Specialist Show in
Las Vegas was very strong. Smart retailers, and the list grows as new buyer attendance continues to increase, know that sniffing out the below wholesale deals they find at the Off-Price Show is one of the best ways out there to build margin and remain competitive in a tough market populated by savvy consumers.

The feature article in the upcoming issue of Off-Price Apparel focuses on these issues. Titled “Economic Woes: Pain Means Gain for Some Apparel Retailers,” the article solicits the comments of four experts in the financial field on the current state of the economy and how it affects retailers in general and off-price retailers in particular. This article and others can be found atwww.offpriceshow.com.