Big-box chains are devising crafty ways to coax stimulus checks into their cash registers
Beginning on May 2, more than 130 million Americans will open their mailboxes to find tax rebate checks, ranging from $600 to $1,200 per household. Retailers across the country desperately want a piece of that action in a U.S. economy flirting with recession, and the sales promotions tied to the government cash injection are already coming fast and furious. "We are going to start to see retailers raise the stakes in terms of types of promotions they are going to offer around rebate checks," says Scott Krugman, spokesperson for the National Retail Federation.
Big-box retailers
Sears and Kmart, both of which are under earnings pressure, and national grocery chain Kroger (KR) will give customers gift cards in exchange for their entire stimulus check starting in May. To entice shoppers to hand over up to $1,200 in full, the retailers are adding 10% to the rebate total. "Every major retailer that has a gift card could execute this kind of initiative," says Ann Raider, head of retail partnerships for Affinity Solutions, a company that develops retail rewards programs.
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