Shop, but don't drop too much

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A consumer rests herself and her bags in Herald Square during the busiest shopping day of the year, Friday, Nov. 25, in New York. (JOHN MINCHILLO / THE ASSOCIATED PRESS)

Tale of the till

ONE of the reasons it's difficult to figure out just how much we spend during the holiday season is monthly retail figures collected by Statistics Canada are seasonally adjusted, meaning seasonal variations such as holiday spending are removed to provide a more accurate month-over-month statistical picture. For instance, retail sales in Manitoba for September 2010 were about $1.3 billion. In December last year, they were also about $1.3 billion. If you want to measure an increase in holiday spending -- if it's possible at all from the data -- you would look at December spending year over year. In that regard, spending is up. Manitoba retail sales for December were about $1.28 billion in 2009 and $1.2 billion in 2008. But keep in mind retail sales include gasoline purchases, automobiles and parts, and acquisition of goods and services by businesses themselves, so it makes a poor indicator, says Lanny McInnes, with the Retail Council of Canada.

 

Got points?

IF you've got a pile of loyalty points built up on your card and you want to use them to buy gifts this season, TD Canada Trust's Pamela Paddon says TD Rewards Cards holders need to redeem their points for gift cards and merchandise before Dec. 14. Delivery time is usually five to seven business days. For deadlines for other rewards programs, check with your own card provider.

 

Plastic protection

PURCHASE security and extended warranty are offered on many cards. Paddon says TD card customers receive 90 days' protection against loss, theft or damage for goods purchased on the card. The extended warranty protection also extends the manufacturer's warranty for up to one year. There is no deductible for this coverage, she says, adding cardholders should refer to cardholder agreements for additional details.

 

Sugar and spice... and pepper spray

IF you think shoppers at the mall can be aggressive in Winnipeg, we're generally meek compared to the American holiday consumer. A California woman made international news this past week after she allegedly pepper-sprayed a crowd outside a Walmart on the eve of Black Friday. The Los Angeles Times reports authorities are unclear whether she was a 'competitive shopper' trying to gain the upper hand or had used spray in self-defence, perhaps in fear of being trampled by an overly enthusiastic throng of shoppers waiting for the store to open.

Maybe it's the scent of eau de toilet, the comforting aroma of tasty treats or the stinging smell of pepper spray, but the holiday season permeates the air at a shopping mall near you.

Officially, the hustle and bustle -- and in some cases, mayhem -- kicked off last week with Black Friday in the United States. In Canada, it unofficially marked the start of our holiday season, too, only with much less fanfare.

Still, our malls such as Polo Park were pleasure emporiums, alive with consumers hunting for gifts. Ingrid Putz had just begun to chop away at her holiday shopping list, searching for gifts for her two 20-something sons, her husband and her parents. "Normally, we just buy whatever they want -- within reason -- but they give us a list and we go out and get it," she says.

They often run over budget, but don't go into debt.

Don Miller, 42, says he and his wife stick to a budget, spending about a couple of hundred dollars each on one another and more on their two children. Steve Tanasichuk, 50, patiently waited while his wife tried on a dress for the season.

"That looks good," he told her as she came to the front of the store seeking his opinion.

"I leave it up to my wife," he says about buying for their three adult children. "And I buy for her."

While others shopped, Melanie Caners, 36, sat in the food court, satisfied with a gift money can't buy: a newborn daughter.

She and her partner, Jody, have no plan to buy gifts at all this holiday season.

"I think it's really about the family gathering, the meal and the conversations," she says. "We don't need to buy a gift. You can't gift that."

But many Canadians do intend to give presents in the holiday season, according to a number of recent bank surveys.

TD Canada Trust's 2011 holiday poll found we will spend about $1,100 on food, gifts and entertainment this season and about $80 a person on gifts.

Yet figuring out after the fact just how much we collectively shell out this season is much tougher to measure, says Lanny McInnes, Manitoba and Saskatchewan director for the Retail Council of Canada.

"It's really impossible for retailers to tell their regular sales from holiday sales," he says. They may know with certainty sales increase at this time of year, but they have no accurate tally on what constitutes holiday spending.

One thing is certain: The holiday season is a make-or-break time for retailers.

"This is the biggest part of their year and it determines how successful the year will be," McInnes says.

For many consumers, once the dust settles and the cold of January is at hand, the holidays of the recent past become more of a "break-it" experience for their finances.

According to a recent RBC poll, 35 per cent of Prairie folk dipped into debt for the holiday season last time around.

It was the lowest percentage among provinces surveyed. Still, a good number of Winnipeggers experience a financial hangover after the holidays, says financial therapist Dr. Moira Somers.

It seems we just can't help ourselves, says the clinical psychologist, whose practice is aptly named Money, Mind and Meaning.

"Such is the power in our psyches when striving for our own personal notion of a perfect Christmas," she says. "It can really overrule other aspects of what we know to be important."

For those who want to keep spending in check, Somers suggests thinking about what truly matters, then preparing a budget based on that soul-searching well in advance of the holiday season.

It may be too late now, but a little emotional plumbing about the value of money and the gifts it may purchase can't hurt.

"If your broader goal is to have the money enhance your family's life, then going into debt for Christmas is likely to generate the kind of stress in January that is the absolute antithesis of what you're looking for."

Whether you strategize months ahead or an hour before hitting the mall, the centrepiece of the spending blueprint should be a reasonable budget.

Of course, it's all for nought without the conscientious effort to stick to it. If that's a tall order, Somers suggests leaving the credit card at home. Otherwise, this year's spending story might have a familiar unhappy ending.

There's science to back this up. Really.

One study in the field of neuro-economics found MRI scans reveal the pleasure centre of the consumer brain lights up like a gaudy Christmas tree when a desired item to purchase is spotted. Yet at the till, a different story unfolds. Another part of the brain, the region that deals with feelings of pain and disgust, puts on a fireworks display.

But this model breaks down when we purchase with plastic.

"The pleasure centre of the brain lights up and it stays lit up," Somers says. "At a neuro-psychological level, we do not view our credit card as cash."

It seems our inner caveman, honed by thousands of years of evolution to live for the hunt, be it beast or bargain, clubs the internal auditor over the head when plastic is used.

Coincidentally (or not), that same TD holiday spending survey is heralded in a press release that offers the expertise of one of the bank's vice-presidents of credit cards.

Pamela Paddon, associate vice-president for TD credit cards, says those who shop on credit should budget their spending, checking their account balance regularly if that's a concern.

Credit cards aren't all bad. They have perks so long as absolute purchasing power doesn't corrupt your budget absolutely.

"Some cards have service protections through extended warranty and insurance on them," Paddon says. "If you're purchasing an item at an electronics store and the salesperson tries to sell you an extended warranty, a lot of cards may already have that feature."

Many cards offer loyalty points such as Air Miles every time you make a purchase. Heck, you can even use those points for holiday purchases if you've got 'em -- just don't delay, Paddon says. "They all have a cutoff date to ship merchandise in time for the holidays."

Presents purchased on points likely light no fires in the bellies of those who relish the thrill of the hunt. Yet even they should take heed of Somers' advice: Have a spending plan and consider cash -- not plastic -- your king at the till.

And don't spend too much time in the mall -- no more than about 90 minutes at a time, according to one study, she says.

"What happens at that point, there's a disconnect between the hunt and the cost of the hunt, and people just start loading stuff on board." If you do linger longer, take a break.

"Even the practice of sitting down and having a cup of tea in the mall is a really good break from being in that 'acquisition zone.' "

giganticsmile@gmail.com

Tale of the till

ONE of the reasons it's difficult to figure out just how much we spend during the holiday season is monthly retail figures collected by Statistics Canada are seasonally adjusted, meaning seasonal variations such as holiday spending are removed to provide a more accurate month-over-month statistical picture. For instance, retail sales in Manitoba for September 2010 were about $1.3 billion. In December last year, they were also about $1.3 billion. If you want to measure an increase in holiday spending -- if it's possible at all from the data -- you would look at December spending year over year. In that regard, spending is up. Manitoba retail sales for December were about $1.28 billion in 2009 and $1.2 billion in 2008. But keep in mind retail sales include gasoline purchases, automobiles and parts, and acquisition of goods and services by businesses themselves, so it makes a poor indicator, says Lanny McInnes, with the Retail Council of Canada.

Got points?

IF you've got a pile of loyalty points built up on your card and you want to use them to buy gifts this season, TD Canada Trust's Pamela Paddon says TD Rewards Cards holders need to redeem their points for gift cards and merchandise before Dec. 14. Delivery time is usually five to seven business days. For deadlines for other rewards programs, check with your own card provider.

Plastic protection

PURCHASE security and extended warranty are offered on many cards. Paddon says TD card customers receive 90 days' protection against loss, theft or damage for goods purchased on the card. The extended warranty protection also extends the manufacturer's warranty for up to one year. There is no deductible for this coverage, she says, adding cardholders should refer to cardholder agreements for additional details.

Sugar and spice...

and pepper spray

IF you think shoppers at the mall can be aggressive in Winnipeg, we're generally meek compared to the American holiday consumer. A California woman made international news this past week after she allegedly pepper-sprayed a crowd outside a Walmart on the eve of Black Friday. The Los Angeles Times reports authorities are unclear whether she was a 'competitive shopper' trying to gain the upper hand or had used spray in self-defence, perhaps in fear of being trampled by an overly enthusiastic throng of shoppers waiting for the store to open.

Republished from the Winnipeg Free Press print edition December 5, 2011 B12