Shop Talk

Check Out Line: Holiday tips to take hit

Check out the probable lower level of tips for service providers during the holidays.Chalk up tips for cleaning people, school teachers, barbers, mail carriers and others as another probable victim of the weak U.S. economy, according to a new poll conducted by Consumer Reports magazine.  The magazine polled Americans about their tipping habits during the 2008 holidays and again in October and found 26 percent of Americans who usually tip or give a gift to a service provider said they would spend less this holiday season. Just 6 percent planed to spend more.”Families are looking for ways to balance their financial concerns with the need to thank people who have helped them during the year,” Tobie Stanger, senior editor at Consumer Reports, said in a statement. “This year, tipping is more of a challenge than ever, but CR’s survey shows that people are still trying to do it, for the most part.”The average value of tips (i.e. some were gifts instead of cash or gift cards) varied by occupation, with a cleaning person at $50, a child’s teacher and a hairdresser at $20, and a manicurist at $10, according to Consumer Reports.Some readers told the magazine they plan to still say thanks with a card or homemade gift.Also in the basket:Food the focus as Wal-Mart starts holiday givingKraft quarterly results could make a case to CadburyADM profit soars past Wall Street estimatesPolo 2nd-qtr profit tops Street viewWalgreen October sales up a bit more than expectedEnergizer quarterly profit falls(Reuters photo)

Check Out Line: Wealthy consumers feeling less confident

Check Out over 71 percent of affluent consumers, or 10 percent of American families, saying the U.S. real estate and banking crisis is affecting their sense of financial security and the value of their assets.

The poll, conducted by American Express Publishing and Harrison Group, says nearly 6 in 10 survey respondents are worried about running out of money, including 48 percent of America’s wealthiest families.  That’s up from 35 percent in April.  The survey was conducted Sept. 19-23 and included 614 people with a median income of $325,000.

“The affluent and wealthy, who account for 50 percent of U.S. consumption, are becoming more thoughtful, getting on top of their spending and worrying more about the future of their children,” said Jim Taylor, vice chairman of the Harrison Group.  “Nearly half of our respondents are owners of or senior officers in American businesses, so we expect the growing caution to spill over into capital and human resources decisions.”

Around 75 percent of respondents felt the country is now in a recession, and 60 percent thought the recession would last more than a year, up from 55 percent in June.

The wealthy are also less keen on buying luxury items.  Half of all respondents agreed that “a few luxuries are important in tough times,” down from 61 percent in April and June 2008. But only 2 percent reported eliminating luxury all together, opting instead to buy fewer items.

Also in the basket:

Constellation Brands profit tops view, keeps outlook (Reuters)