Retailers Go After Economic Stimulus Rebate Dollars

Retailers want a big chunk of the economic stimulus rebate checks that began mailing this week, and they are offering lucrative incentives to bring people into stores.

For example, Wal-Mart is cashing economic stimulus checks for free, with no in-store purchase required. The retailer is also refunding the purchase fee on its Wal-Mart MoneyCard, a re-loadable prepaid Visa Debit card, when any portion of the economic stimulus check is loaded onto the card.

Sam's Club locations are also cashing checks for free for its members. It will also offer an economic stimulus bonus via a $40 gift of membership on select product purchases from May 11-31.

Other stores want to make certain that the money goes into their cash registers.

Grocery store chain Supervalu is offering $30 for every $300 in rebate checks people exchange for a store gift card. The offer runs May 2 to July 31 at all 2,475 Supervalu stores, including Albertsons, Cub Foods, Shop ‘n Save, Shaw’s and other locations.

There are limits however on what the cards can be used to buy: no alcohol, lottery tickets, or tobacco products, the company said. The offer is being promoted via circulars, direct mail, P-O-P, and in-store TV and radio.

The move follows a similar offer by Kroger, which operates more than 2,400 supermarkets in 31 states. Kroger is adding 10% of the rebate check’s value when shoppers convert them in $300 increments to Kroger gift cards.

Sears Holdings Co. is also offering a 10% bonus to people who convert their checks into Sears or Kmart gift cards. The cards can be redeemed at any Sears, Kmart or Lands End stores or online at http://www.sears.com or http://www.landsend.com.

In-store circulars, online marketing, e-mail blasts and direct mail will support the promotion, which runs May 4 to July 19.

“In this tough economy, we know that our customers are focused on how to make their money work harder for them,” said W. Bruce Johnson, interim CEO and president of Sears Holdings, in a statement.

The federal government is expected to mail checks totaling $168 billion to Americans as part of an effort to boost consumer spending and revive a sagging economy.