Black Friday, Holiday Shopping Looking Up...Considering

You've probably been bombarded with the words "economy", "downturn", and, (yikes!) "recession" over the past few months but, as Tracy Mullin, President & CEO of the National Retail Federation (NRF) puts it, "no one is canceling Christmas because money is tight." To the contrary, while customers will be tightening their belts a bit, they're still going to be out there shopping like they do every other year. They'll just be more mindful of snagging the best deals.

The NRF says that price will play by far the largest role in purchasing decisions this holiday season, with 40% of respondents to its Holiday Consumer Intentions and Actions Survey citing sales or promotions as what they'll be looking for. This year represents the smallest increase in planned spending: up just 1.9% to US$832.36 per person vs. $816.69 last year. But the number is still up, which is a positive sign.

Shoppers will likely cut back on gifts for the family, says the NRF, because they feel their family will "understand their current situation". Surprisingly, however, many will still make personal purchases, waiting until the holiday season to take advantage of the best deals. Overall, the NRF expects holiday spending to increase 2.2% to US$470.4 billion: not too shabby, considering.

As for Black Friday, which is one of the busiest shopping days of the year and scheduled to take place on Friday, November 28 (right after Thanksgiving), the NRF projects that shoppers will be gravitating more toward "personal and practical gifts" instead of big-ticket items this year. The Federation cites things like DVDs, CDs, and books as being most popular in the technology category (55.6%), followed by gaming consoles, Blu-ray players, and other like items (30%). (Funny enough, HD DVD players actually outsold Blu-ray players on Black Friday last year!)

Consumers will be changing one other thing this year: more will be opting to pay by cash instead of credit. But with good enough deals, they will fork over the dough.

Given the number of e-mail notifications I've received over the last few days about product price reductions, it appears that retailers (and manufacturers) are working hard to offer enticing enough deals to keep customers in the shops. Remember: if you don't shop while the economy is in a downturn, you'll only make it worse! (Some may call that female logic, but I digress).

In retrospect, it's eye-opening to think that at this time last year, retail prices were dropping drastically due to the strength of the Canadian dollar. Meanwhile this year, price drops are happening for a completely different, and opposite, reason. But on a positive note, it just goes to show that things happen in waves, and for every downside there's an up. I'm confident that holiday shopping will be just as hot this year as it was last; leading up to bigger and better years to come!

Happy Shopping!

Gift Cards Could Suffer From Economic Woes

I received an e-mail today - one of those forwarded chain notes I often get. It supplied a list of retail stores, and warned recipients not to purchase gift cards as Christmas presents from these companies because they have announced plans to close up shop by January 2009. This got me to thinking: will gift cards, a typically popular holiday gift, suffer in wake of the current economic climate?

An Ipsos Reid study conducted around Christmas-time last year found that 88% of respondents like receiving gift cards. In fact, 72% would rather a gift card than an actual gift! I don't think these numbers will drop this year simply due to fear that a store might close, but if e-mails like the one I received continue to circulate, it might just scare people off from buying gift cards.

The whole idea of a gift card is that the person can buy something they want. While it replaces an actual gift, what I've often found is that you end up spending more money than you otherwise would have with a gift card. Now if the recipient ends up getting nothing from the card because the company went out of business (a horrible experience: trust me, I've been there!), you've now both disappointed the person and lost a whack of money.

Will you be buying gift cards this year?

As an aside, I thought it funny that the most often-requested gift item I've heard over the past few months from family and friends is in fact a gift card, but of a specific kind: a gas card! You know times are tough when filling up your car becomes a luxury!

What Will They Think of Next?: Solid Gold USB Drive

What do you do when the economy is in the dumps? You spend money frivolously on things that you don't need. OK, so a USB flash drive is certainly a useful accessory to have. But would you spend $600 on one?

A company called Super Talent Technology has introduced a limited-edition 18-Carat, solid gold USB drive called the Pico-C that it deems the "ultimate executive gift". Sure, it has neat features like a water-resistant design, ample 8 GB capacity, encryption software, and support for 200x (30 MB/sec.) transfer speeds. But is the use of gold really worth the extra, oh, $550 you're spending on the gadget? Oh wait: it also comes with a serialized Certificate of Authenticity and black velvet jewelry box; and you can have your name/logo laser-etched onto the device at no additional charge. Now that changes everything! (Insert sarcasm here).

I apologize to those who think this is the coolest thing ever, but I just don't get it. Perhaps there will be plenty of gift-wrapped holiday USB drives under the trees of IT geeks everywhere. But I can't imagine any gal (or guy, for that matter!) opening up a box with a gold USB drive and declaring in awe to their loved one or boss: "oh my, you shouldn't have!"

Nevertheless, if you think you know someone who would like one, they're available by pre-order for a limited time, and require 3-4 weeks lead time.

More Gifts for the Holidays

As I'm sure you can imagine, the magazine world lends itself to very timely deadlines, not to mention limited space within each issue. This means that, when it comes to a holiday gift guide, although I could fill an entire issue of here's how! magazine with the items I think would make great gadget gifts, I'm relegated to just a few pages (as is each other writer). Not to mention that, as Murphy's Law would have it, a cool new item always hits the market as soon as an issue goes to press.

We included a very extensive holiday gift guide in the just-released (literally hot off the press!) December Holiday issue of here's how! magazine. I covered the hot Gadget gifts, while editor Gordon Brockhouse wrote about his fav entertainment gifts; photo expert Peter Burian discussed his top picks in the digital imaging category; and self-professed PC geek, Frank Lenk, provided the latest and greatest in PCs, related accessories, and video gaming. Of course I'm not going ruin the surprise by revealing here what products were chosen. (If you're interested, pick up a copy at one of our participating retail partners; visit http://www.hereshow.ca/ for a list). However, as with jello, there's always room for more...

With that said, here's an appendage, if you will, to my here's how! gift guide: cool gadgets that would make great gifts for anyone (but especially the tech-savvy!) on your list:

TiVo: The company just entered the Canadian market, and many people want one just for the sake of getting one; even though they might already have a PVR from their cable or satellite TV provider. Why? 'Cause it's TiVo and it's supposed to be "cool". Although you can't record high-definition content with the Series2 model that will be selling in Canadian retail stores in time for this holiday season (bummer), you can still record up to 80 hours of standard-def content. If you don't mind that setback, along with the $200 price tag, go for it.

Blackberry 8800: I reviewed this phone a few months back, and loved it. Although I haven't yet jumped on the messaging phone bandwagon, this would be one of the models on my radar. It incorporates all of the standard Blackberry features, plus a media player, and the neat trackball for navigating menus. (Click Here, then click on the image to download the full issue of here's how! that contains a review of this smartphone on Pg. 89)

HTC Touch: Although I haven't yet played around with this phone (much less any phone from this relatively new handset manufacturer), there seems to be a lot of buzz about this model, in particular. Operating on the new Windows Mobile 6 platform, it serves as a smartphone with a neat, touch-screen interface. And, of course, it has some additional multimedia features that would appeal to the most tech-savvy friends and family members on your list.

Nintendo Wii: If you can get your hands on one this holiday season, Nintendo's family-friendly Wii gaming console will likely be an appreciated gift for kids, and even adults. It's great for fun parties (think of it as a modern-day Twister!); or even for those looking for a new, more motivating way to get in shape at home during the cold winter months. I tried my hand at the bowling game during the Wii's Canadian launch event last year, and it required just as much effort to play this virtual version as it does to actually bowl; but for the fact that the controller is much lighter than a 14-lb. bowling ball!

HD DVD Player for Microsoft Xbox 360: Speaking of gaming, like many other men in their 30s, my partner owns an Xbox 360 gaming console. To get these guys into the spirit of high-definition DVD, the HD DVD player attachment for the console is pretty much one of the most affordable options. However, you might want to wait it out and see which way this format war goes!

Sirius Stiletto 2: I'm a big fan of satellite radio, and the music fan on your list might appreciate a receiver and subscription to the service. Sure, he'll have to take care of installation in his vehicle (or simply use the FM transmitter option); but if you buy one with a home dock kit, he can instantly connect it to a home stereo and enjoy tunes around the house. The Stiletto 2 can also be used as an on-the-go, portable player, which makes it the most versatile of Sirius' current offerings.

Panasonic Globarange phone: These phones are neat because they operate as standard landline phones, but can also serve as VoIP phones, using Panasonic's own technology. If two people have a Globarange phone, which connects to a phone jack and/or Internet router via Ethernet, you can chat for free using your already active high-speed Internet connection. The service is currently available in 8 countries, including Canada and the U.S. Imagine buying one for you, and one for an overseas family member, or even someone in another province or across the border. The great part is that an account doesn't even need to be set up: just connect the phone system, and an ID number will pop up on screen. (Stay tuned to the upcoming December issue of Marketnews Magazine for more on Globarange technology).

Rubik's Revolution: This high-tech version of the 1980s phenomenon called the Rubik's Cube would make a great "fun" stocking stuffer for anyone on your list that's old enough to remember the original. It's designed the same way as the original model, with checkered squares all around, but houses several electronic games that test your speed and smarts.

Gift cards: When all else fails, gift cards are always a "safe" option. Sure, some complain that they aren't personal nor thoughtful enough, but as long as you know the mindset of your gift recipient, you'll know if it's a good idea to head straight to the cash register and pick one of these up; or spend hours in the store looking for that special something. According to a recent Ipsos Redi study, 72% of people said they'd rather a gift card than an actual gift.