Disturbing story on the news. People are returning Christmas gifts en masse

[Horse with no Name]

This is UP 40%. Almost half. This cannot bode well for the retailers.

http://cbs11tv.com/consumer/shopping.returns.holiday.2.896787.html
>>>snip
During a recession ordinary people will sometimes do extraordinary things. You may have seen the numbers - holiday sales through Christmas Eve were down as much as 88-percent compared to a year ago. And today we learned that the number of people returning gifts is up 40-percent.

The economy has many North Texans trying to decide whether to keep the gift, or trade it in and use the cash.
>>>snip
"We are seeing more gift cards being used more on the grocery side – that they get from their exchanges," explained Target tore manager Aaron McKnight. "Just because food is something we definitely need right now, over something they we may want."

That type of 'savings strategy' is one customers at a North Dallas Wal-Mart store also reportedly use. Shoppers there pocketed a nice chunk of change on returns.

[dkf]

1. I didn't think it was possible for things to get worse for the retailers.

Apparently, I was sadly mistaken.

[EFerrari]

2. Thanks, BushCo!

I hope we can stay in power long enough to get our people back on their feet. :(

[sandnsea]

3. Yikes

I've got a griddle given to us by well meaning friends, but I already have one. I've been debating about returning it myself. In years past, I'd have just given it to one of the kids without a second thought. Yep, times are tough. I don't think I've ever seen people return gifts to buy food before.

[Liberal_in_LA]

4. Interesting. Thanks for posting this. Going back to read more.

[snot]

5. And TX is supposedly faring much better than most areas.

[Javaman]

19. We are starting to feel the effects.

layoffs at my job have begun. foreclosures doubled over last year. various construction projects have been canceled or "put on hold", which means canceled. The massively over build condo jungle downtown are now in serious shape to find buyers. (I call them, "tomorrows grain elevators").

Things are most definitely slowing here. In some cities more than others, but it's happening.

We were to have an additional rail line to start construction here from our downtown area to the airport. that was canceled. really dumb actually, they are taking that money and putting it into fixing the roads. sigh.

Bus lines are starting to be cut.

this is just the beginning.

[Tom Kitten]

6. All my gifts were useful and appreciated

bath towels, blankets, food (especially coffee beans!) phone card minutes...The worst year of my life financially but Christmas still managed to be good.

[HysteryDiagnosis]

7. The real war on Xmas begins. nt

[The Backlash Cometh]

8. Gee, I know those outlets that cater to the Latin American visitor must

be smiling, right about now. Since it's unlikely they're going to hop on a plane to return anything.

[undeterred]

9. I heard just the opposite on the local news-

fewer returns this year because people shopped carefully and bought less. Maybe it depends on the area.

[Bjorn Against]

15. Could it be different methodologies?

I am not sure how the data that was presented in the OP was acquired or how the data you heard on the news was acquired, but both could potentially be correct if they used different methodologies. It sounds like the story you heard simply said there were less returns because there were less purchases, this would make sense. My guess is that the OP however is referring to a greater percentage of the goods that were purchased being returned, because there was less stuff sold you could have an increase in the percentage of goods returned even if the total number of returns was down.

[undeterred]

17. The methodology for the local news was probably

talking to a couple of retailers!

[K Gardner]

10. Thanks for posting this. Hadn't heard anything about it.

[Kansas Wyatt]

11. "Shopping Economy" - When you produce nothing and under-employ people...

Eventually the money to SHOP runs out. They tried to put it all on credit cards for awhile, and then graduated to home equity loans, but that was eventually maxed out and shut down.

All these allegedly brilliant politicians and business people who guaranteed the "Shopping Economy" was the booming way to go that would last forever, should be stripped of everything and deported to the third world countries they exported all of the jobs to. Piss on all of them and let them rot in some third world slum, killing themselves for the very wages they thought was so impressive.

[KansDem]

12. Or, like the poor citizens of Zimbabwe...

These "brilliant politicians and business people" can mix cow dung with what little food they have to make it last longer...

Out of food, Zimbabweans eating cow dung

Harare, Dec 10, 2008 / 08:01 pm (CNA).- Caritas Internationalis is warning that the crisis in Zimbabwe is so grave that people facing crushing food shortages are mixing cow dung with their food.

With pressure continuing to mount on President Mugabe to relinquish his hold on power, Zimbabweans are suffering the consequences of his government’s policies.

Besides the lack of food, people are also suffering a cholera epidemic and crippling hyperinflation.

--more--
Catholic News Agency

[Mari333]

13. 'want' or 'need' is what it boils down to.

thats how I live. I dont buy anything I dont 'need'. that pretty much means the basics. everything else is a 'want'. people's priorities have changed drastically. If the big box stores want their sales to increase, they need to bring jobs back into the USA. Until then, this will keep happening. 8 dollars an hour is not a livable wage.

[spinbaby]

14. I have a friend who works for Wal-Mart

He confirms that they have an extraordinary number of gift cards being used for groceries.

[ProudToBeBlueInRhody]

16. Glad I don't work retail anymore

Returns are always the worst for asshole customers who act like it was your fault they were given or bought something no one wants or just wants money for. Especially if they have that much regard for gifts given to them in the spirit of giving.......

[Maru Kitteh]

20. As a single mother I chose to show more regard for my daughters needs above the "spirit of giving"

I took back gifts that were well intentioned but not necessary and bought food and clothing for my child. If that makes me an asshole with no regard for gifts given me in the spirit of giving so be it.

[ProudToBeBlueInRhody]

21. I'm talking about the customers who mistreat the people behind the counter....

.....because returning gifts for cash is almost always a pain in the ass, and again, people act as if it is your fault they got something from your store they didn't want.

As for the gifts your received, I'm sorry that people are buying you gifts, but don't know enough about you to realize you need money.

[Maru Kitteh]

22. You made no such distinction

and my daughter is now grown, growing, and adamant in her belief of the better angels of human nature.

[ProudToBeBlueInRhody]

25. You need to read it again.

"Returns are always the worst for asshole customers who act like it was your fault they were given or bought something no one wants or just wants money for."

An asshole customer is a customer who specifically acts like an asshole when dealing with any associate. It doesn't mean all customers are assholes, nor that all customers making returns are assholes. It means when you get a customer who is an asshole making a return, they are more obnoxious than usual, because story policy is not likely to make it so easy to just get them the hell out of there.

[HamdenRice]

18. Problem is your math is way off

The article says, "the number of people returning gifts is up 40-percent."

Then you incorrectly conclude, "Almost half."

That's just mathematically wrong. The article does not say that 40% of people are returning gifts; it says that the number of people who are returning gifts is "up 40%" which does not tell us what percentage of people are returning gifts.

For example, if 2% of people returned gifts last year, and 3% returned gifts this year, that would be only a 1% increase; but with a base of 2%, that would mean that returns were "up 50%" -- that is, 3% is 50% higher than 2%.

But 1% more people returning gifts is hardly a crisis.

In order for this story to make any sense, you need to know how many people returned gifts last year.

[itsrobert]

23. Thanks for your input

Quality post.

[Horse with no Name]

24. Parse all you want

It doesn't change the story a bit.
And, 40% IS almost half.
Parse that too.
The fact remains that people are hurting.
The fact remains that the cheerleaders for the TARP are continuing to try shitting in a cup and calling it applesauce to those of us that "just don't understand those complicated things like finance". Parse it all you want. The people are the collateral damages in your "analyses" and I bet if you ask them they would also concede that 40% is close enough to half for them.

[HamdenRice]

26. So you're saying you don't understand basic arithmetic and are darned tootin proud of it?

None of us can tell what percentage of people are returning gifts from the statement, returns are "up 40%" unless we know what they're up from. Is it up 40% from 1% or up 40% from 10% or up 40% from 20%?

That's not parsing. It's basic arithmetic.

[Horse with no Name]

27. Then talk to the folks at the newschannel

I'm sure they would be intrigued by your passion.