Black Friday Update

A correspondent in Chicago reports to us that Black Friday line-ups in the downtown area are relatively thin. Photos above from the Northbrook Mall, taken shortly after opening at 8 a.m., show a moderate crowd in the Apple Store, but nothing to write home about. This is what an Apple Store in Toronto looks like on a normal day!

As for the "deals", we're told that, quote, "the marketing of the sale is better than the sale itself." Keep in mind that this might not hold true for every retailer in every U.S. city. But in this particular case, Black Friday "crowds" are a bit disappointing.

We're getting mixed messages from other sources: some stores appear flooded with shoppers trampling over one another...literally. In one Wal-Mart store in NYC, an unfortunate employee reportedly died due to the pushy crowds! (Though Wal-Mart only confirms that a "medical emergency" caused the retailer to close that store's doors). Some are claiming that it is in fact the bad economy that has forced them to come out and weather the crowds today: getting a "deal" might not have been so necessary before; but now, shoppers are willing to wait in long line-ups just to save a few bucks.

But other reports claim that retailers are cautious about how things will inevitably turn out. Even in shops with big crowds, people tend to be looking for that one fantastic deal, snagging it, and heading home versus prior years where they might have picked up a few extra items on the way to the check out.

Stay tuned for more information as it becomes available...

Happy Black Friday...Or is It?

As our neighbours south of the border roll out of bed with their bellies full of turkey and all the trimming, many will surprisingly still find the energy to get out there and shop today, known as Black Friday.

Historically, Black Friday, the day after the U.S. Thanksgiving holiday, is one of the busiest shopping days of the year, when retailers bring out the big guns, so to speak, with amazing deals and discounts. But it's more important than you might think, often determining a company's profitaiblity for the entire year. Some speculate that Black Friday could account for as much as 50% of a retailer's yearly profits! With the economy in the current state that it is, there's no doubt that many are crossing their fingers that shoppers will come, and that this year won't be a disappointment.

The National Retail Federation (NRF) has relatively high hopes for the day: while the organization is not expecting record-breaking numbers, it does anticipate a 2.2% growth in spending. Not exactly a very healthy increase (in fact, it's the lowest it has been in years), but it's better than one might expect given the financial crisis.

A preliminary NRF survey forecasts that up to 128 million people will be shopping today, and into the weekend. 49 million of these are definitely putting on their shopping shoes, while the remaining 79 million are waiting to see whether the "deals" are worth the trek into the city. Last year, 135 million people said they would go shopping on Black Friday weekend.

Interestingly, the NRF, like many other research companies, points to the falling gas prices as positively effecting the retail landscape. People perceive the savings on gas as some extra money in their pockets. Still, the defining factor on consumer's minds this weekend is price, price, price. So good deals are more important than ever.

"Shoppers who held off on buying a DVD player or winter coat over the last few months will find that prices may literally be too good to pass up," explains Tracy Mullin, President & CEO of the NRF.

Hopefully, Mullin is right.

It doesn't end on Sunday, though. Since the Web has become such a dominant force in the retail industry, the Monday following Black Friday has been coined "Cyber Monday", where at-home shoppers can take advantage of deals online. The advantage here is, of course, the ability to avoid the thrill and confusion of packed sales floors and long line-ups. Shop.org finds that more retailers will be offering Cyber Monday promotions this year than they did last year (83.7% vs. 72.2%).

Official Black Friday results won't be released until 4 p.m. this Sunday. But already, many local news outlets are reporting healthy turn-outs, with people waiting in lines from the early morning hours.

Still, we won't know how the retail industry has fared until the mass hysteria is over, the inventory has been accounted for, and the receipts tabulated. More than ever, this weekend is critical for the U.S. retail industry: it could, in many ways, make or break a retailer.

"Ripping" Vs. "Sharing"

The debate about strict copyright laws, digital downloading, and the illegal "sharing" of music has gone on for some time. You shouldn't be able to make a back-up copy of a CD, say some, because that's copyright infringement. You shouldn't be able to download music from a legal Website and then burn it to more than one disc because, again, that's copyright infringement. Apparently digital downloading has caused this horror in the music industry. Yet today, I witnessed something that had me scratching my head. After lunch with a couple of colleagues, they wanted to pop into HMV to grab some "new" music for their iPods. Sick of the same old, same old, they decided to swap: you buy a few CDs you like, I'll buy some I like, and then we'll trade. Hmm...makes sense, right?

To the pro-copyright camp, they just violated the very sanctity of music. How dare you buy CDs and trade music like that? Essentially, that means you got every CD half-price, right? But from the pro-digital, evolution of music standpoint, what they've done is just opened each other's eyes to new music they may never have bothered to buy, in physical format or otherwise. Now not only is there a greater appreciation for different types of music, but there's also the increased chance that they'll like what they hear, and add a new artist to their radar for future purchases. What a concept!

On that note, I was pleasantly surprised to see that there were new CDs available for as little as $12.99, and even $10! The last time I recall, new releases were, at best, $13.99 or $15.99. There were even some pretty good CDs selling "two for $12" or $25. Not bad. Still, I hesitated to buy anything, thinking that I'd just download the specific tunes I want and make a "mixed" CD (only one, of course. God forbid I make one for a friend as well). But at the prices they're at, it's almost worth it to buy the media (especially for the potentially better quality) and save myself the time.

I can't believe I'm saying it, but maybe CDs will return to profitability as people decide that they can't be bothered, or don't have the time, to compile a list of tunes, download them, and burn them to a CD as normal practice. If it isn't a hobby, it can certainly get time-consuming. And iPod owners know how expensive it can also get buying tune after tune, not realizing how much they add up until you get the dreaded credit card bill!

I could be way off base here, but it's food for thought, nonetheless.

On another note, Happy Thanksgiving to all of our readers in the U.S. We wish you all the best on this wonderful holiday. Eat, play, and be merry!

Beware of False "Sales"

The other day, I read about a hidden camera investigation that discovered that two retailers were re-labeling products with higher price tags than the original then claiming to mark them down to "liquidation" pricing. How common is this, and is it worth it for retailers?

Coincidentally, I was shopping with a friend this past weekend when I commented that a rack that claimed to offer "buy one, get one half off" blouses had obviously hiked up the price tags of the shirts first, making the supposed deal quite sour indeed. How did I know? Because it's a store I've shopped at before, and am privy to what the pricing normally is.

I understand fine print: the whole idea of grabbing customers in by advertising "SALE" in big letters in the store window, only for them to realize when they get close that below the gargantuan word is a line that reads "on some items", or something to that effect. But downright deception -placing fake tags on product - is just wrong.

As mentioned above, I suspected the possibly deceptive pricing at the store this weekend only because I am a relatively frequent shopper at that retailer. Is it worth it to lose your loyal customers just to grab money from a few unsuspecting one-timers? I'd think not, but perhaps this activity is more prevalent than we realize.

In fairness, this particular hidden camera investigation targeted a pair of retailers (yes, Circuit City was one of them) that were already going out of business (or closing some stores, at least) and were now being handled by liquidators. In the case of Circuit City, the reporters were lucky enough able to compare pricing in the "liquidation" stores with actual, still-in-business Circuit City locations. You can already guess which stores had the better pricing.

Still, hopefully this story will make other retailers think twice before relabeling products before a sale; whether it'll be your last in the business or not. As for consumers, be weary of "liquidation" sales: it appears that you're often better off shopping at regular stores that are offering you regular deals.

The full story of the investigation is a really interesting read, and provides some really useful insight into what could happen once a company is on its last legs. I'll bet you think twice now before you head down to a so-called "liquidation" sale!

Please...Stop the Spam!

It appears that lately, the amount of spam arriving to my e-mail inbox is growing exponentially. Not only am I summoned daily by ScotiaBank, CIBC, and important security alerts from PayPal (often three or four times in a row), but I'm now also being approached in French! I'm not sure what's caused the upsurge as of late, but I've heard the same complaints from many others. When will it end?

Typically, my e-mail spam filter picks up these messages, but these particular ones seem to be passing through quite easily. One tells me of refugees in Ghana that have a significant amount of gold they'd like me to help find a buyer for. Another contains the typical spiel: dad died and left me $4.5 million, yadda yadda yadda, I need to find a foreign investor to deposit the money in your bank in order to gain access to it. But I've noticed a considerable number of them now promising "easy money" with work from home projects. Playing on the weak economy? I'm not sure, but these spammers sure are stooping to new lows, and coming out in full force.

And this is just my office account. Don't even get me started on my personal Rogers e-mail account! There, I can learn about cheap meds (including yes, Viagra), designer watches at discount prices, how to get a degree online, and my personal fav: an e-mail with a subject line that reads "Internet scammers have stolen your money? We will help to get it back!" Sure you will.

The amount of e-mail spam is truly getting sickening. Some just contain gibberish, like one that included the following text: Nothing there that would stop a halfcrippled hun cutting off, with a razorfaced arrow, the bow instant so, standing at some centre to which shall van of that host, while the rear was protected a suitable bridegroom his daughter possessed of.

Seriously?

Never open an e-mail from someone you don't recognize, and never, ever, EVER click on a link or double-click to open a file contained in an e-mail that looks even remotely suspicious. Banks, credit card companies, and courier services will never send you e-mails asking for account changes or advising of a package unless you've requested it. In this case, it'll be sent directly to you from a real person, and will contain YOUR name in it, nor Dear Sir or Maam.

Spam is annoying, but it has the potential to be devastating if you don't delete instantly it and move on. If you're worried that it might be legitimate, pick up the phone and find out. It's not worth the trouble to take your chances.

Accessory Incompatibility: My Old Accessories Won't Charge My New iPod!

Have you ever bought a consumer electronics gadget, purchased a bunch of accessories for it, and then discovered that once you upgraded to the latest model of your main device, the accessories no longer worked? I recall a few years ago, a colleague of mine complained of this very issue with his Sony Ericsson mobile phone: he had a proprietary 12-volt charger, a second AC charger, and even a desktop dock. But as soon as he upgraded to the latest Sony Ericsson model, he realized the company had changed its proprietary connector. All of his previously-purchased accessories were now useless.

The other day, we received an e-mail from a frustrated consumer with a similar problem. He had just invested in the latest, fourth-generation iPod nano. The connector itself hadn't changed. But he discovered that while his old Belkin FM transmitter and a speaker system from another manufacturer worked with the player, they wouldn't simultaneously charge it as they had with his old iPod. Angry and upset at the fact that he didn't know this prior to buying the new player, he came to us.

"I read an article that it was due a change in hardware but said nothing more," he wrote. "Maybe with the larger screen (smaller unit), more juice is being used and it cannot support the charge. But wouldn't it help it to hold a charge longer? And bottom line is that this issue does not seem to be addressed by Apple anywhere online."

Apple could not be reached in time for comment, but Greg Milkovich, Country Manager for Belkin Canada, confirmed to us that Apple did indeed change to 5-volt USB charging internally in October. Manufacturers were notified that Apple would be making this change so they had ample time to devise new, compatible accessories.

Milkovich says that all of Belkin's current power and FM transmitters use the 5-volt USB charging, but yes, some of the company's legacy products (and obviously legacy products from other manufacturers) will not charge the new models.

"This is the same for all manufacturers as we were all complying with the previous 12-volt firewire standard," Milkovich explains. "This is similar to the video change that Apple made last year where you used to have video out of the 3.5mm but is now out of the 30 pin."

So why the change? Sure, it works out well for third-party accessory makers (not to mention Apple itself) because they can market and sell a whole slew of fancy, new accessories (something they arguably would have been doing anyway). But it also leaves consumers who might have eaten up docks, transmitters, and other gadgetry like hotcakes frantically setting up eBay accounts to salvage some bucks from these now obselete items.

A third-party source (who asked not to be named) predicts two main reasons for the spec change: one being cost improvements, and the other being size. "The smaller size of the USB 5-volt allows for sleeker/smaller design," the source tells me.

So while dealing with incompatibility from one iteration of a product to the next can be frustrating, keep in mind that sometimes the changes made are essential for the manufacturer to make improvements to other aspects of the device. And with technology being so prolific these days, early adopters are bound to find someone who still has the previous generation product, and would welcome your now obselete accessory with open arms.

What Will They Think Of Next?: Bring Back the Mix Tape

Anyone who grew up in the '80s or early '90s will have given a girlfriend/boyfriend, potential love interest, friend, or family member that popular gift of a "mixed tape". Yes, before the CD, and then the downloadable MP3 format became popular, the cassette tape was king. People popped them into this cool device called a Walkman, listened to tunes blasting from a square-shaped player hoisted atop their shoulder, and flipped them from side A to side B to get a whole new listing of songs (accessed only by a tedious manual fast forward/rewind process: no song skip with these babies!) Today, about two decades later, a company called fi-hi aims to bring this format back, but with a modern twist.

Called the usB-Side Mix'D Tape, the device is designed to look exactly like a cassette tape. But there's a secret: it's actually a USB flash drive, with a connector that flip-outs from its side. Then, just connect it to your PC and load up all your digital files, including music, as well as documents, videos, or images onto the gadget's 512 MB of internal memory. Now you have a nostalgic "mixed tape" for your love; and you can even add your own personal touch via the two included labels.

Aside from the mixed tape, the device can obviously also be used for sharing other data, or for transferring files back and forth. The inconspicious tapes are also great for storing or backing up sensitive data. A thief might grab USB drives, CDs, and your PC, but whose going to swipe your old tapes and 8-tracks?

Business persons might also find good use for these stand-out flash drives. They can contain promotional materials for distribution (in the same way many companies already use standard-designed USB keys); press kits, or flyers.

The "tapes" work with either PC or Mac, and come with their own little gift box for US$15 ea. at http://www.fi-hi.com/. I must say it's a pretty cool idea, and will certainly be a conversation-starter for anyone who receives them. But buyer beware: in case you didn't realize, they won't actually play in old cassette players!