I know, you thought things must be pretty darn good for the economy when you were spending an hour circling mall parking lots for a space so you could plunk down about 900 bucks on everything from a Nintendo Wii to a Tickle Me Elmo T.M.X.
Well, Katie Couric wants you to know that the 2006 Christmas shopping season was just "ho ho hum."
Nevermind the strong jump in Internet-based sales and heavy use of gift cards which have yet to be redeemed.
Editor at Large
Comments Policy
I think Couric has...
January 5, 2007 - 17:49 ET by Guy Arthur ThomasI think Couric has her RATINGS mixed up with the retail numbers...of course this is exactly why she remains last and still falling to depths until now, unknown.
If you claim to be a conservative, please don't disgrace yourself and conservatism by thinking and arguing like a liberal.
COuric a financial expert now?
January 5, 2007 - 17:58 ET by Six String Spiffoh Ms. Couric! You don't have one clue as to how our ecnomy is going. You phoney. Lets see you quit that nice job of your a start a real job. Oh wait that would mean you would have to get off your fat ass and do something.. What was I thinking? Nevermind continue making MILLIONS whilst you sit on your well-to-do fat ass. Superficial twit
Not all Muslims are Terrorists. However, all the Terrorists have been Muslim.
I didn't know Nichols and McV
January 5, 2007 - 20:29 ET by crsheddI didn't know Nichols and McVeigh were Muslim. Wow!
I have $275 in Walmart gift
January 5, 2007 - 17:51 ET by 1sttofightI have $275 in Walmart gift cards I am trying to decide what to spend them on.
How much would a brain for the Perky one cost?
Are they ignorant of the very
January 5, 2007 - 18:01 ET by rimskyAre they ignorant of the very key factors missing in their presentation - those being internet sales and gift cards, or just purposely leaving that data out to suit their slant of a down economy? I thought I'd heard that billions of dollars in in gift cards were sold this year.. in the 30's! This is so ridiculous.. it's as if a company had decided to include only cash sales in their financials, omitting all credit card sales.
Couric and the MsM guilty of...nah
January 5, 2007 - 18:04 ET by Guy Arthur ThomasCouric and the MsM guilty of deliberately omitting key factors and information that would challenge their news story? Nahhhhhhhhhhhhh....I wouldn't believe it if Katie herself showed it to me with a colonscope!
If you claim to be a conservative, please don't disgrace yourself and conservatism by thinking and arguing like a liberal.
holiday sales figures don’t
January 5, 2007 - 18:09 ET by rimskyholiday sales figures don’t account for Internet purchases and gift cards.
Ken, I don't understand the internet sales numbers not being included. The gift cards, I can see, because that would be a liability on retailers balance sheets, but why wouldn't internet sales (once again except for gift cards purchased online) be included. And, this term Holiday Sales - who actually tallies that? Thanks
rimsky, I'm no accountant..so
January 5, 2007 - 18:17 ET by mandrakerimsky, I'm no accountant..so please help me out here. I don't understand your statement about gift cards. If I buy someone a $100 gift card, I have to give the store $100 up front. So how is that a liablilty on the balance sheets? (Sorry for being so dumb)
As I understand it (please co
January 5, 2007 - 19:12 ET by UnsaneAs I understand it (please correct me if I am wrong here), gift card purchases are not counted because, as in my case as I am sitting on one myself, people tend to purchase over and above the gift card's face value, using it as a coupon. By using the card to defray the cost of other purchases, the store's gift card will thus generate more income than the face value would indicate.
"HAV3 TH3 BRIDG3S OF INSANITY B33N CROSS3D AND FOR3V3R R3TRACT3D???." - Meshuggah, "3ntrapm3nt", from Catch Thirty Thr33 (2005)
mandrake,It is a double sided
January 5, 2007 - 19:34 ET by Blondemandrake,
It is a double sided entry. As are all accounting entries.
The store books a sale (increasing cash or accounts receivable...a (+) transaction to an "asset account"). The corresponding (-) transaction is booked to the liability account....because the store has issued a promise to provide goods in the future.
When the card is cashed in, the liability is erased with a (+) transaction, and revenue is credited (another (-) transaction....which sounds nonsensical, but revenue is on the right side of a balance sheet, so to increase revenue, it gets credited, which really just means a transaction with a negative sign). There are of course subsidiary transactions to the asset (inventory and cost of goods sold accounts, blah, blah, blah....too much to go into here).
The store has a liability until the card is cashed in, because the card is a "promise" to provide goods/services. At some point, if it is never cashed in (as many cards have expiration dates), revenue is increased with no costs involved...pure profit.
Blonde, thanks for trying. I
January 5, 2007 - 19:49 ET by mandrakeBlonde, thanks for trying. I kind of understand..maybe I should take a course. It's a challenge for me just to fill out my income tax forms. Maybe I could convince the store to just give me gift card with a promise I'll pay them later..that way it won't be a liability ;-)
mandrake,Ah...but you do unde
January 5, 2007 - 19:51 ET by Blondemandrake,
Ah...but you do understand.
If you charge that gift card....it is a liability to you....you have issued a "promise to pay". You walk out with the "asset" (plastic worth x amount of dollars).
It's really not that difficult once you think about it logically. ;-)
mandrake, when gift cards ar
January 6, 2007 - 08:29 ET by rimskymandrake, when gift cards are sold, the retailer has taken in cash for a piece of plastic, and not given out any goods nor performed any services. Generally accepted accounting principles (GAAP) dictate that the retailer can't record that as a sale until such time that the card holder redeems his gift card for goods and/or services. Until that occurs, the retailer technically owes the value of the gift (by way of goods and services) to the consumer. Hope this make sense.
The question I had for Ken is why would internet sales (other than for gift cards purchased online) not be counted in what they call "Holiday Sales." Because, unlike the gift card sales, there WOULD be something shipped right away (goods going out the door) so I don't think there would be a GAAP reason for not including in Holiday Sales.
Bottom line, I doubt very much if Katie gives a hoot about any of this, just so long as she can portray the economy to be tanking.. if a Demo were in the WH, it'd be a totally different story.
There is also another point I'd like to make. With the huge increase in gift card and internet sales, this Holiday Sales reporting needs to be reformatted so that it is more comprehensive. GAAP issues certainly don't need to be considered when reporting the general mood of Christmas shoppers and how much they are spending, no matter when the actual goods and services are delivered.
sorry.
January 5, 2007 - 20:25 ET by crsheddsorry.