Stimulus checks stimulating retailers' interest

Giant Food wants customers to get the most for their money during the economic stimulus check season.

The local grocer is advertising a new promotion to entice customers to stretch the one-time checks by spending at its stores. Shoppers can get a 10-percent-off coupon for their next purchase when they spend $200 or more in one visit.

Giant is not alone in its endeavor. In May, the Internal Revenue Service began pumping out millions of economic stimulus checks, setting off a slew of retail promotions inviting people to spend the government give-back.

Taxpayers will get anywhere from $300 to $600, and married couples can get up to $1,200. Parents will receive $300 for each child under 17. High-income taxpayers -- those who make more than $75,000 -- will get a reduced check, or may not get anything at all.

The influx of money into the market could not come at a better time for business owners, according to Tom Saquella, president of the Maryland Retailers Association.

"Retail sales in Maryland have been pretty much in the doldrums really since October, so I think a lot of retailers are hoping that the stimulus will at least put the consumer in a better frame of mind and sort of pull them out of their hibernation," he said. "I've been with the Retailers Association since 1985, and I think this has been the worst period for retailers."

The seasonal offerings vary widely, but many stores like Sam's Club and Wal-Mart are offering to cash stimulus checks for free, eliminating the need for some to pay a fee at check-cashing stores.

Lowe's, the second-largest home improvement store in the country, will cash customers' checks and is offering $10 "project starter cards" to shoppers who spend $50, or $25 cards to those who spend $250.

Abby Buford, a Lowe's spokeswoman, would not reveal which products will go on sale in connection with the stimulus checks, but said the company would promote them later in the month.

The company's biggest competitor, The Home Depot, is trying to persuade customers to spend their money on compact fluorescent light bulbs or "green" home improvements.

"For folks that want to use their tax stimulus checks on buying products from Home Depot, we're encouraging them to buy things that will save them money in the long run," said Craig Fishel, a company spokesman. "People are worried about money and the economy right now, and these products will help them save money in the future."

When customers cash their economic stimulus checks at Safeway stores, the grocer will give bonus card holders a 10-percent-off coupon to use within the next two days. Customers who can show proof of a stimulus check deposited directly into their bank accounts are also eligible to get the coupon.

"We're not mandating that people buy Safeway gift cards with their stimulus checks, but we're giving them additional ways to save," said Greg TenEyck, a Safeway spokesman.

Sears Holdings Corp. is offering a way for customers to save at all of its stores by converting their entire stimulus checks to company gift cards. Sears will add a 10 percent bonus to the card, so customers who received a $300 check, will get a gift card worth $330. The card will work at Sears, Kmart and Lands' End.

"The idea is to actually make your dollars go further," said Kirsten Whipple, a Sears spokeswoman.

"This provides some flexibility because it's not just Sears, it's not just Kmart. You can go to a Sears Auto Center and get your car fixed."

Whipple said the cards do not expire, so customers can use the money whenever they want.

Saquella, from the Maryland Retailers Association, said business owners are skeptical that the stimulus checks will do much to perk up business, but "it's the only game in town out there."

"Even if people use it to pay off their debt, it will increase their spending down the road," he said. "We hope it's a real plus."

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