Bank credit remains on the tight side. Consumer spending remains lethargic. Stepping into the void: retailers. A story published in The New York TImes cites several examples of retailers figuring out ways to essentially loan consumers money. Sam's Club, for example, is serving as a portal for SBA loans.
Wal-Mart's Sam’s Club is introducing a program in which it facilitates loans for shoppers of up to $25,000, backed by the Small Business Administration. Target will give its credit card holders 5 percent discounts. Toys “R” Us is instituting a holiday fund program where it adds to shoppers’ savings, and Staples and Office Depot are giving away office products for a penny or at no cost.
Will consumers take the bait? So far, they have been playing things close to the vest. In fact, data published last week showed the personal savings rate back at 4.0% for the first time since last Autumn.
