Credit Hell - Retailers roadmap

When was the last time you purchased something at a major retailer, say a Sears, or a Lowes, or a Target or some other major retailer and had the cashier didn't ask you if you want to put your purchase on a credit card? You probably can't remember that far back.  That questions is usually the first thing that pops up on the cashier's screen after your item is scanned.  You see retailers want you to buy on credit, they don't want you to pay cash.  Customers who pay with cash spend less money.  Retailers view this as a Cardinal Sin.  Even more important, they want you to open up one of 'their' credit cards.  'Their' credit cards are special.  They earn the slightest bit of a percentage more if your charge is on one of 'their' cards.  Now, doesn't that make you feel special?

Studies have shown that people will spend more if they're putting it on a charge, even if they really can't afford more.  Some people are always trying to rationalize how they can swing the monthly payments, even if it's only paying the minimum amount due.  The fact that minimum payments earn the credit card companies sometimes thousands of dollars in interest isn't factored into their thought process.  The means the $900 HDTV may, in the end, cost you $1300 doesn't connect and retailers could care less as to how much their product is actually going to cost you.  They are in it for the moment, that second of instant gratification they get when your credit card gets swiped.  I wouldn't be surprised if the next major financial upheaval we are for to deal with ends up being directly related to personal, credit card debt.

 Do you think the credit industry really cares about your personal finances?  Hell no.  They love shoppers, those foolish people who can't say no to a perceived bargain.  As someone who works in retail, I see these people all of the time.  They can't wait to pull out the card at the first hint of a deal.  Do you think retailers give a hoot about your finances?  Hell no.  That's your problem, not theirs, no matter how attractive they make their 'special financing'  Once that sale has been finalized, you are indebted to the credit card company, not the retailer.  The minute that receipt prints out retailers wash their hands of you.  True, they don't force you to buy from them, but they also do absolutely nothing to dissuade you from making the purchase.

This is one of the problems with the American Economy.  Credit is the food it eats and the air it breathes.  Credit is the lover the economy takes to bed.  If people were to stop buy on credit the economy would crash.  Recovery from the last recession took so long because people chose to pay with cash rather run up their credit card debt.  I know, I work in retail.  The numbers of people using their debit cards increased dramatically and those relying on their Visa, Mastercard and Discover card decreased.  Of course that's changed now and people are backing to back to burying their asses in credit.  Eventually credit card debt will hit the tipping point, like an old, fat cow, and it will flip over.  Then everybody will be pointing fingers trying to place the blame on somebody else.  Maybe if retailers chose to slow down their growth, decided to be satisfied with less then 5% or 6%, perhaps be happy with only 3% the fall into credit hell might be averted.  Perhaps if people realized their debit will, at some point in time, catch up to them and voluntarily charged less.  Maybe if they understood how using their credit card to go to the movies was not such a good idea.  Shit, there are a whole bunch of perhaps' and maybes people are ignoring constantly.  To slow down economic growth would be un-American and we wouldn't want that now, would we.

Black Friday - fade to gray

For those of you who don't know it, and few there are, next week is Thanksgiving, at least here in the US.  Traditionally everybody eats turkey and watches football.  Traditionally, the next day, being a Friday, and marking the first day of the holiday shopping season, became known as Black Friday.  This is the day when retailers moved from the red side of their balance sheets to the black side.  This is the day when sales galore brought out shoppers by the millions.  This is the day which a number of companies started giving their associates as the 2nd part of their Thanksgiving Holiday.  Sad to say, but every year Black Friday becomes a little more gray.  One financial analyst blamed this on the growing popularity of Cyber Monday, that day when Internet sales trump those of brick and mortar stores.   That may be a portion of the graying, but not a major one, not yet at least.  No, the biggest reason for the changes in shade from dark to light has more to do with American Greed.

First it was Walmart opening late Thanksgiving day, and then Sears / Kmart jumped on the bandwagon.  The rational being "shit, if they're going to make money, we might as well too," and "hell, why should they rake in all the dough!"  Screw the holiday, they all wanted to get a jump on the competition.  Every year more retailers jump on board simply because if those customers spend all of their money at Target, and Walmart, and Toys-R-Us, they're not going to have any left to spend in your store.  Or, if they do keep a little aside it's most likely going to be for stocking stuffer bullshit, that inferior nickel and dime crap retailers put out simply because it's a dirt cheap deal.  Thanks to Sears Brand Central, if you're a brick and mortar store which sells appliances you're a day late and a dollar short, either that or you take a big hit on those $2000 dollar refrigerator and stoves.

There are a lot of people out there who really hate this commercialization of Thanksgiving.  As someone who work in retail, let me tell you a secret.  If you're open, people will shop.  Every year I hear a lot of moaning groaning because the Christmas stuff is up right after Labor Day and every year I see customers walking out the door with their newly purchased Christmas crap.  If it's for sale, people will buy it.  For those who don't understand it, this is American Capitalism.  Remember, it's all about making money - holidays be damned. 

The hell of holiday retail

As someone who works in retail, I can tell you the holidays bring mostly hell.  First of all there is the merchandising: somebody in corporate always knows the best way to merchandise no matter whether you are a high volume store or a low volume store, or even where the store happens to be located.  After you do you Christmas set you hear from two kinds of customers, those who love it and those who hate it.  A classic example is "every year it gets earlier."  These complainers don't seem to understand that if people didn't come in and shop the merchandise it wouldn't be displayed.  If they don't like this they need to start throwing bricks as those customers busily browsing away.  This year there were some customers who couldn't wait for the display to be set.  If they buy it early, it will be put out early.

If doors are open, they will shop

This year a lot of people pissed and moaned because some retailers were open on Thanksgiving day.  This is America and American Capitalism rules supreme.  Blame the shoppers, not the retailers.  If a Wal-mart or a Target opens their doors and customers show up, those doors are going to be opened.  If the doors are open, they will shop.  All you need to do is look at history.  At one time all of these United States had what were called Blue Laws.  Stores were not legally allowed to be open on Sundays.  Then supermarkets started staying open.  After a while large retailers began to take notice, Sears and Woolworth's and Montgomery Ward's and they thought, hhhmmm, if the supermarkets are making money then so can we and their doors started opening on Sundays.  Nothing is going to change.  This is America and Americans want to make money.  If that means retailers are going to need to be open on Thanksgiving, they are going to be open.  Americans also like to shop.  They like to think they are getting a good deal.  There is no going back to the way it was.

Back from Vacation - Thibaut Pinot AC from Rite Aid

Just in case anyone was wondering, I was on vacation, went on early morning walks with Gert to avoid the incredible afternoon heat, and relaxed, oh, and played Skyrim.

Does this guy look happy, he should!  This is Thibaut Pinot.

Who is Thibaut Pinot?  A 21 year old French cyclist.  This is his first Tour de France and today he won the Stage 8.  Was it a fluke, only time will tell.  I will tell you, I felt really good for him.

Five years ago I made a momentous decision, I had Central Air Conditioning installed in my 110 year old home.  I can not tell you how many times I've said to myself, "this is a very good thing," especially during the recent heat wave.  Yesterday it hit 101.  That's hot.  My neighbors do not have air conditioning, not even a window unit.  Well, they didn't until yesterday.  She works from home and felt she needed to condition the air in her "office."  So, did they go to a Home Depot to purchase their unit?  Or to a Sears?  No, they went to Rite Aid.  Rite Aid is a pharmacy.  They used to fill Max (the cat's) insulin prescription.  For the life of me, I cannot figure out why you would even think of going to a pharmacy to pick of an A/C Unit.  I do not understand their logic.