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Tucson, Arizona | Published: 04.20.2008
Retailers who have been struggling in the economic downturn are seeking to persuade Americans to spend their economic-stimulus checks at their stores.
Kroger Co., one of the country's largest grocers, and department store operator Sears Holdings Corp. are already offering discounts and freebies to consumers who turn the rebate checks into gift cards.
Kroger, the parent company of Fry's supermarkets, said Wednesday it will offer shoppers an extra 10 percent of their stimulus checks through a gift-card program.
It works like this: if a customer turns over his $300 economic stimulus check for a Kroger gift card, he will receive an additional $30 on the new card.
Sears also will offer a 10 percent bonus to anyone who converts his check into a Sears or Kmart gift card.
Wal-Mart Stores Inc., the nation's largest retailer, is gearing up its customer-service centers to cash tax rebate checks in its stores and to run special promotions to encourage spending. Home Depot Inc. is planning a campaign to encourage shoppers to use their tax rebates to buy eco-friendly products such as programmable thermostats.
Many retailers have yet to announce any special promotions and some, like Target Corp., say they aren't planning to. But industry watchers say its likely more companies will announce ad campaigns and special deals as the weeks go by to try to persuade shoppers to spend.
Retailers who cater to consumers' needs rather than wants may see the most benefit, said Morningstar analyst Mitchell Corwin.
The checks, set to arrive in mailboxes and bank accounts beginning next month, are part of an $168 billion economic stimulus plan passed by Congress. Under the plan, individuals who have filed their tax returns for the year can receive up to $600 and families can get up to $1,200.
"It's a tough economy and retailers are going to be aggressive," said Mike Gatti, executive director of the Retail Advertising and Marketing Association, a Washington D.C.-based trade group.
● The Associated Press and the Chicago Tribune contributed.
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