Focused spending: Retailers are interested in adding a few dollars more to your windfall

NEW YORK -- After months of negative headlines and lackluster results, retailers are looking for a little "stimulus," too.

That means you'll get some help spending your stimulus payment. The competition for your extra money will be intense, like a swirl of fish waiting for you to toss in a handful of food.

That is, if you decide to spend it. I've already commented on the subject of spending your rebate for something American-made -- it's a win-win for you and the economy. Still, that doesn't mean you must; if you put it into savings or use it to improve your financial situation somehow, that's O.K., too. See previous column.

Stimulate what?

Consumers are more likely to use their stimulus payment to pay down debt, save, or fight the inflationary spiral in staples like food and energy, according to a recent survey from retail trade group Retail Forward. Their survey, released April 28, found:

• 36% will pay down debt (32% said credit cards, 4% said the mortgage)
• 30% will put it into savings
• 23% will use for everyday expenses such as grocery and gas, an implied response to inflation
• 19% will use for a special purchase of a good or service, or travel
• 10% will use for a charitable donation or other
• 9% don't expect to get a rebate

The total exceeds 100% because multiple answers were allowed. Higher-income taxpayers were less likely to use it for everyday expenses, slightly less likely to pay off a credit card and slightly more likely to make a special purchase or charitable contribution -- if they get the rebate at all.

Spending it?

Now, back to that swirl of fish. Retailers are lining up, and I expect more to do so soon.

Bonuses. The earliest announcements came from retailers offering "extra credit" for some or all of your rebate-related business.

• Sears (including Kmart) offers a gift card with 10% extra if you use your entire check to purchase a card. I'm not so sure about that idea, but if you plan to buy an appliance or two, it might work.
• Many grocery chains have gotten in on this act, including Kroger (operator of retailers Fred Meyer, Fry's and several grocery chains) and Supervalu (Albertsons, Jewel-Osco and others). Cards are sold with a 10% bonus usually in $300 increments, not to exceed a figure, usually $1,200.

Discounts. Some stores approach it through general discounts. 

•  Radio Shack will cash your check and give you 10% off on any purchase above $50, then give you the difference as a prepaid MasterCard.
• Safeway is taking the discount approach, too, with a 10% storewide discount but good for only two days.

Special deals. Some of the offers are more specific.

• Sony is offering up to $400 off on select HDTVs.
• Home Depot reportedly plans to offer special deals on energy-efficient items such as compact fluorescent bulbs, Energy Star appliances and "Eco-options" home improvement items, but no special deals appear on their Web site yet. None appear at Lowe's, either, but stay tuned.
• Wal-Mart is offering free check cashing -- not much of an incentive -- but suggests that more special deals might be coming.

Beyond retail. We're starting to see deals in the service sector. Travel is one example. Consider Branson, Miss.: The local Chamber of Commerce offers special discounts and free tickets for tourists with copies of their stimulus checks. See more information about the deal.

As with most deals, the fine print - such as product exclusions and timeframes - is critical, so be wary.

Keep your eyes peeled

Personally, I think the fish are just starting to get excited. More deals are sure to come.

Others agree. "Retailers are belatedly realizing these rebates are more significant this time around [compared with 2001]," said Frank Badillo, senior economist with Retail Forward. "They're late to the party. We'll see more announcements. The best candidates may be the hardest hit retailers."

He adds: "Just look at the sales figures released May 14: Home improvement down 2% from a year ago, furniture and home furnishings down 5.1%, department stores down 5.5%. This is where you'll see the deals."