Saving Money

A customer with the Scan It! Mobile app on his iPhone shows a coupon for Tostitos chips while shopping at a Stop and Shop supermarket in Braintree, Mass., in 2011. A recent study suggests groceries can get customers to walk more aisles of their stores and, thus, spend more money if they get coupons or other deals on their smartphones. (Adam Hunger/Reuters/File)

Grocery stores use smartphone deals to spur sales

By Naomi Mannino, Guest blogger / 03.28.13

It's a commonly held belief amongst grocery store chains that the further a shopper walks into a store, the more likely it is that he or she will spend more money. But as it turns out, most shoppers actually end up covering less than half the area of an average grocery store, which equates to approximately 1,400 feet (or one-fifth of a mile, for you fitness buffs). So even though you may feel as if you're pushing your cart down aisles for hours, stores actually still aim to get us to walk around evenmore — and our own smartphones may be helping them accomplish this end.

According to a recent report published by the American Marketing Association, in-store coupons and deals sent to a consumer's smartphone can encourage them to walk around more — and in turn, spend more. The AMA study, conducted by Professor Sam Hui of the NYU Stern School of Business, used radio frequency identification (RFID) tracking to conduct a field experiment examining consumers' in-store travel and unplanned spending.

Shoppers in the study were sent mobile promotions while shopping (which a regular consumer might receive through a location-based app like FourSquare or a store-specific app), and the group found that the "walking theory" is true. The experiment showed that consumers, on average, spent $13.83 when they were sent a coupon that was for a product near their planned path, but a mobile coupon requiring shoppers to walk outsideof their planned path increased unplanned spending to $21.29. In general, walking an additional 55 feet in a grocery store increases unplanned spending by about $1, while strategically promoting three different product categories via mobile promotion may increase unplanned spending by more than 16%.

And while the study deals largely with mobile promotions and the opportunity they provide for real-time enticement for shoppers, the more traditional format of printed weekly flyers is designed to draw shoppers into specific areas of a store — outside of their usual path — in a similar fashion. ( Continue… )

A customer checks out the ready made food section at a grocery store in Cincinnati. A number of studies suggest that men have been shouldering more household duties, like grocery shopping, over the past few decades. (Al Behrman/AP/File)

Bringing home the bacon: More men doing the grocery shopping.

By Lou Carzolo, Contirbutor / 03.24.13

Almost 500 years after John Donne proclaimed that no man is an island, it can now be said that some men have a man aisle — a sign of the grocery-shopping times that illustrates how roles have shifted in 21st century families. This month, the National Retail Federation's Stores Magazine even reports that there's a change afoot in who's doing the shopping, though this shift first came to light via 2010 U.S. Census figures, which revealed 20% of fathers with preschool-aged children and working wives were the primary caregivers at home.

Yet, if the media needed more tangible proof, it found it in a somewhat silly place: the corner of a New York City grocery store dedicated to manly goods, and dubbed "The Man Isle" [sic] by the operators of Westside Market NYC. Media outlets such as the New York Post and Los Angeles Times couldn't get enough, though a closer look reveals that this "man aisle" is more marketing gimmick than manly substance. Check out the store photos posted by Business Insider and you'll see what we mean: Doritos? Ramen noodles? Teriyaki beef jerky? Hmmm. Could this really be the "caveman aisle" instead? ( Continue… )

A couple walk with Hermes shopping bags as they leave an Hermes store in Paris March 21, 2013. (Philippe Wojazer/Reuters/File)

Retail sales a pleasant surprise. Three takeaways.

By Laura Heller, Contributor / 03.24.13

With the first quarter of 2013 drawing to a close, February's retail numbers brought a surprise to many sectors. While analysts expected to see a continued dip in sales across the board — what with higher payroll taxes, sequestration, and rising gas prices — February actually saw a surprising increase in retail sales.

Retail sales jumped 1.1% in February, and even without factoring in expenses for gas, the industry saw a 0.6% increase. And despite the marginal increase, economists are pleasantly surprised that Americans are spending more on consumer goods like food and clothes.

A Bleak Start to 2013

Consumer spending in the beginning of this year was sluggish. Not only were retailers coming out of a holiday season where consumer spending was a huge disappointment, but thanks in part to higher gas prices, gridlock in Congress from the sequestration, and higher payroll taxes, consumers on average have had less disposable income to start out 2013. ( Continue… )

Water resistant earbuds from Pioneer. (Business Wire/File)

Choosing the right headphones

By Tom Barlow, Guest blogger / 03.23.13

Want to get in shape? Do it while listening to your favorite workout mix and you might find exercising fun! Even mundane chores like mowing the lawn and swimming can be enhanced by listening to some favorite tunes. Thankfully we live in the age of the MP3 player and the smartphone, so we're able to tote along all our music easily. The only other piece of equipment we need for a portable concert is the proper headphones.

However, the portable audio market is packed with different types of headphones, many of which are designed for specific purposes. So before you buy, here are some guidelines to help you pick the perfect pair of headphones for an active lifestyle.

Despite the amusing photo above, you're not going to want a pair of headphones that cover your ears like earmuffs, or ones the size of Oreos that rest on your ear while working out. These kinds of 'phones are made for stationary listening where sweat is not an issue. Instead, you'll want small earbuds or in-ear headphones. ( Continue… )

Bostonians cashed in their tech at the eBay Instant Sale Truck, shown last year in Cambridge, Mass. EBay shut down the program earlier this month. (Bizuayehu Tesfaye/AP Images for eBay Instant Sale/File)

EBay Instant Sale shut down. Three alternatives.

By Emily Dovi, Contributor / 03.17.13

If you want to trade in, say, an old cell phone, you can weigh its estimated resale value from a host of electronics recycling programs. But the number of these services has recently shrunk. The ever-popular Gazelle last year changed the type of gadgets it accepts to focus almost exclusively on more profitable Apple products, and just two weeks ago, eBay shut down its Instant Sale program.

Launched in October 2010 and grown from the idea of "resell, reuse, recycle," eBay Instant Sale partnered with reputable third-party AllTechWholesale to resell electronics purchased directly from eBay customers. Instant Sale offered consumers immediate quotes and payments for their electronics, which seemed to compliment the site's reputation for auctions and buy-it-now sales. All in all, the service had made 4 million offers in the United States since 2011. But it would appear that eBay's recent rebranding efforts aimed at generating a "more simplified and personalized selling experience" have at least temporarily suspended the trade-in program. ( Continue… )

People pass in and out of the JCPenney department store in the Mall of Victor Valley in Victorville, Calif.Initial reviews are positive for the retailer's attempts at rebranding by forming partnerships with designer brands. (David Pardo/Daily Press/AP/File)

Can JCPenney bounce back from its 'no sales' misfire?

By Lou Carzolo, Contributor / 03.16.13

Given all the backlash JCPenney weathered over eliminating sales in favor of "everyday low prices" (a policy they've since rescinded), you could almost predict that the retail giant would have to do something risky and daring to win disgruntled shoppers back — something "fresh," if you will.

So here comes JCPenney looking for some retail love by way of collaboration with Canadian apparel brand Joe Fresh. The line officially hits stores Friday, but fashionistas are already taking notice — the tops and shorts include bold blasts of color and assertive patterns that walk the tightrope between preppy chic and hipster spark. And it's not the only collaboration JCPenney has planned for 2013 and beyond.

Yet if embattled JCPenney CEO Ron Johnson — who has seen share prices plunge 60% in the last year under his leadership — thinks collaborations can reinvigorate the chain, he might want to call his fellow suits over at Target. While the latest Prabal Gurung line has been wildly popular, such collaborations haven't always been slam dunks with consumers. Not even big names like Jason Wu, Marc Jacobs, and Oscar de la Renta could entice Target shoppers to buy during its Neiman March collection; they came, they saw, they ignored. Why? ( Continue… )

Car dealerships are seen along Northern Blvd in New York in 2010. By taking advantage of credit-card balance transfers, you may be able to lower the interest rate on your auto loan. (Shannon Stapleton/Reuters/File)

How credit cards can save you money on car loans – and other debt

By Odysseas Papadimitriou, Contributor / 03.10.13

With the average consumer thousands of dollars in debt, it's easy to assume that very little short of a turbo-charged economic recovery will significantly improve someone's financial situation. But help could be available from an unlikely source:  a credit card.

Eight of the largest credit card issuers allow you to transfer your auto loan balance to a credit card in order to score a lower interest rate. Seven of them enable transfers from mortgages, student loans, small business loans, home equity lines of credit, and more, according to a recent CardHub.com study. We’re not just talking about a marginally lower rate.

 A number of cards offer interest-free introductory periods that last a year or more. If used strategically, these zero-percent balance transfer promotions?? could save you as much as $1,000 while expediting debt freedom. (Compare balance transfer credit cards at Card Hub.)

The first step is to identify your costliest debt.

Odds are your credit card will have the highest interest rate, in which case the best offer for you is clear:  the Slate Card from Chase. The Slate Card comes with what’s known as a free balance-transfer offer. It gives you a zero percent introductory interest rate for 15 months without charging either an annual fee or a balance transfer fee. You can use a credit card calculator to gauge the Slate Card’s potential savings for you. For the average household with a roughly $6,700 balance, it could eliminate up to $1,250 in unnecessary fees and finance charges. ( Continue… )

A compact florescent light bulb at the home of Carol Hayward in South Orleans, Mass. High upfront costs for LEDs may be lessening as manufacturers come out with cheaper models. (Mary Knox Merrill/Staff/File)

Would you switch to LED light bulbs if they were half price?

By Emily Dovi, Contributor / 03.09.13

Over the last decade in households across America, the compact florescent light bulb (CFL) has replaced many an incandescent bulb. And while consumers have had to make investments in such an energy-saving switch (of an average cost of $5 per bulb), most folks justify the upfront expense as Energy Star-qualified CFLs can save over $40 over their lifetimes in energy costs, and use about 75% less energy than cheap, traditional bulbs.

In addition to funny-shaped CFLs, LED bulbs too save on energy costs, though the public has been less keen on them, as price points for 40-watt bulbs begin around $20 a pop. But that may soon change as Cree, an LED chips and part maker, introduces a new line of low-cost LED light bulbs.

Already popular with owners of commercial and industrial buildings, Cree hopes that marketing its line of three new LED bulbs to consumers at affordable prices will spark a change in energy consumption behavior. The bulbs, to be sold at Home Depot, come in two output capacities — 40-watt and 60-watt — and are priced from $9.97 to $13.97. Even for the high-end 60-watt day light, that's a savings of at least $7 over other energy-efficient LED lights, which could additionally save energy-conscious consumers hundreds of dollars in electricity and cooling costs over a bulb's lifetime. Plus, all Cree's LED light bulbs come with a 10-year warranty.

And while there are other LED bulbs on the market that are priced to sell (Netherlands-based Lemnis Lighting sells a 200-lumen LED bulb for $5, as we've occasionally seen some notable discounts on more expensive options), there are few LED bulbs on the market with the same specs at as affordable consumer price points as Cree's.

We are all about investments in the environment and love long-term savings, and we're even more interested in saving money now. Cree's line of ultra cheap energy-efficient LED bulbs, while more expensive than incandescent and CFL lighting, fulfill all those requirements and just may be, as the company claimed in trademark, "the biggest thing since the light bulb." Will you make the switch to energy-efficient lighting? Is there enough long-term savings associated with switching to LED bulbs over CFL? 

A Safeway online shopping advertisement is shown at a Safeway store in San Francisco. For people who live in large cities, have a hard time getting to the grocery store, or already shop online frequently, online grocery shopping may be worth a try. (Paul Sakuma/AP/File)

Is online grocery shopping right for you?

By Naomi Mannino, Contributor / 03.09.13

There are some of us who love grocery shopping. Comparing products side-by-side according to ingredients; smelling, prodding, and tapping the produce; analyzing the meat fat patterns before making a selection, and so on. But if you're the type of shopper who gets easily aggravated by time spent rolling a cart down crowded aisles, waiting in checkout lines, loading up the car, and then lugging your haul inside, you may want to send your significant other to the store instead — or you could just try out online grocery shopping.

Wouldn't it be ideal to get groceries from your favorite local supermarket, without ever having to leave the comfort of the couch? An ever-growing number of grocers know the aforementioned pains for shoppers, and are thus offering ways for customers to order their groceries online, sometimes for delivery, other times for pickup. The move from overly-lit grocery store aisles to the digital realm is both a time-saver and a peaceful alternative to the hassles of the supermarket. But is online grocery shopping for you? Here's a checklist to help you find out; if any of these apply to you and your lifestyle, then the service might be worth a test drive.

You Live in a Large City

More and more supermarkets are experimenting with allowing customers to place their orders online. For example, Peapod — owned by Royal Ahold, a large chain of stores that includes Stop & Shop and Giant, among others — offers grocery delivery in major metro areas, mostly on the East Coast, and it will expand to additional locations in 2013. The Great Atlantic & Pacific Tea Company offers online grocery shopping for many of its A&P stores (after emerging from bankruptcy earlier this year) in the Northeast tri-state area, while Safeway — the fifth largest American supermarket chain — offers grocery delivery in markets nationwide under its own brand as well as its owned stores: Vons, Randalls, and Tom Thumb. ( Continue… )