Zhu Zhu pets are like this guy, but they aren't alive. However, many thousands of kids don't care. (Photo: flickr.com)

Retail stores are getting ready for the Christmas shopping season, which means that people who aren’t compulsively early shoppers are getting ready to buy their gifts. If that means getting in touch with personal loan companies to bankroll the whole operation, so be it. What a person decides to do with their money is their own business.

If you’re wondering what the little ones on your Christmas list might be interested in this year, Zhu Zhu Pets appear to be a safe course. According to Toys R Us, that’s going to be the top toy of the 2009 holiday shopping season. For retailers in need of a good holiday season, Zhu Zhu will do for them, too.

Play Me Off, Mr. Squiggles

Don’t let that cat anywhere near Mr. Squiggles and his Zhu Zhu Pets brethren this holiday season. The kids want to keep these toys to themselves. Effectively, they’re pets without the waste products, food needs and tendency to eat homework. For little kids, I don’t see the harm, although older children would be well-served shouldering the responsibility of caring for real hamsters.

Zhu Zhu Pets Getting Hard to Find?

Zhu Zhu Pets like Mr. Squiggles are selling on Amazon for $25.95, but there are reports that Wal-Mart was selling them for as little as $8. Understandably, they’re flying off the shelves at that price. Leave it to Wal-Mart to make toy shopping an operation that doesn’t require personal loan companies.

OK, So What Does Zhu Zhu Do For You?

While it doesn’t teach you about animal husbandry, Zhu Zhu Pets do come with the prerequisite array of bells and whistles. They are programmed to make more than 40 different sound effects and display rudimentary artificial intelligence. You can either watch them zip about the house or place them in one of their accessory play sets (sold separately, of course). Most of the pre-programmed sound effects only come out when Mr. Squiggles or another of the Zhu Zhu Pets is on a play set. They you can hear both kitchen and (wait for it) bathroom noises. Poopless, kiddies – but with the flush.

Retailers Don’t Want to Be Circling the Bowl

This Christmas, there’s a greater focus on consumer value than in recent years. We have the recession to thank for that. Cautious spending tends to rule out huge purchases, so retailers are looking for at smaller hits like Zhu Zhu Pets rather than big toys that have to be cut in price before the public gives them a nibble. Market research firm NPD Group Inc. informed the Columbus Dispatch that last year’s holiday season was marked by a five percent drop in toy sales over the previous year. Needham & Co. sees a further decrease from 2008 to 2009.

I Just Want to Say Good Luck. Mr. Squiggles is Counting on You

Surely the Zhu Zhu Pets aren’t a serious replacement for real animals, but parents will appreciate not having to clean up after the animatronic replacements. We live busy lives and don’t want to have to contact personal loan companies in order to afford the cavalcade of cleansers needed to make our homes look presentable.

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Taxpayers are still leaning on payday loans and family aid to make it through the struggling economy. This week the AP released new data on oil prices that are lingering around $58 a barrel. Along with slow US retail sales and house values dipping, this is hampering the economic turnaround. Prices did begin at $50 a barrel earlier this month, spurring on some hope that the recession is coming to a close for the US, which is the world’s biggest oil consumer.

Unfortunately, retail sales fell and retail giants are showing a marked dip in sales as compared to last year this time. Macy’s Inc., a large department store chain, said their sales were similar and this past year has proven difficult. To add to the matter, home sales are still down. According to RealtyTrac data, foreclosures are up more than 30% since last year. In combination, these three vital aspects of the economy are proving detrimental to any sudden growth or improvement pending.

Gas prices to the consumer

Any heightened crude pricing could also be difficult for consumers to budget. Higher crude prices mean that gasoline prices are going up as well. If gas prices elevate considerably, any developing sign of economic recovery could be all but eliminated. Energy analyst with National Australian Bank Ben Westmore stated, “We shouldn’t expect the US consumer to be as strong as they’ve been over the last few years.”

If oil prices continue to increase

Westmore, along with other pundits, affirmed that oil will move in price, up and down, for at least the next few months. It won’t be until the end of the year that the recession is predicted to be over when prices will regulate. He said, “You have these two opposing forces…on the one hand, fundamentals and massive inventories that need to be drawn down weighing on prices, and on the other, market speculation coming back to equity and commodities, looking for a turning point.”

Consumers will have to buckle down and budget if they are to effectively handle the fluctuation in oil prices. Many are looking to nontraditional funding options as a way out. Claire Mondale of Pittsburg PA stated, “We need more options of facing our bills. We were always good at budgeting, but with the recession and job losses, we are lost.” One option that is helping many qualified customers are payday loans. These lenders are experiencing a boom in applicants due to the differing structure of these short term loans, as opposed to traditional bank lenders. It’s designed to be a short-term loan option and qualified consumers are taking advantage of the easy of payout and simple process.

As the recession ends

If oil prices are any indication, and they are a huge part of the economy, the recession will hang on longer. It is coming to an end, but not quite there yet. Most Americans will have to look to alternative funding options such as payday loans, family lending and pawning valuables to make ends meet. The hardest thing for many people is the uncertainty of when there will be true relief in the market. As one taxpayer anonymously said, “If we knew when things were going to get better, it might help. We might be a little less apprehensive when it comes to spending again and getting back into our normal way of life.” Sadly, no one knows when the recession will truly let go and allow the world to return to normal.

When consumer confidence is as low as it has been, it’s a hard sell getting lots of people to come out and spend their money on outdoor wear. They can sulk about the state of their bank accounts perfect well indoors, thank you. It’s been more important that they cover their bills with help from cheap loans and instant payday loans.

But some people say shopping is good therapy, even if it’s window shopping. But American apparel chains could definitely use more of the former, as bankruptcy cases have been popping up all over. Mervyn’s, Steve & Barry’s, Goody’s and Gottschalk’s have fallen under the axe. Now Eddie Bauer and bankruptcy will be spoken in the same sentence. It’s a fact. Cost cuts, management and merchandise changes weren’t enough to save the outfitter from this legal action.

Not as messy as some, however

Here lies another clothing retailer. Weep for them...

Stephanie Rosenbloom and Michael de la Merced report for the New York Times that the outdoor-clothing chain has filed for Chapter 11 bankruptcy protection. The company plans to sell itself to private equity firm CCMP Capital for $202 million. Bank of America, General Electric and the CIT Group have agreed to provide as much as $100 million in financing during Eddie Bauer’s bankruptcy hearing.

“Eddie Bauer is a good company with a great brand and a bad balance sheet,” said Eddie Bauer CEO Neil Fiske. “This process will allow the business to emerge with far less debt, positioned for growth as the economy recovers and as our new products gain traction. We expect this process to be completed very quickly, protecting our employees and critical vendor partners every step of the way.”

Shares had plummeted to a low of 25 cents last week, after recently showing at $1.44 per share. The company has 371 stores in North America. It was founded by Eddie Bauer in 1920.

That’s one big Spiegel

Overall, sales at full-price and outlet stores have declined 13.7 percent over the previous year. $427 million in debt and a tight credit market didn’t help Eddie Bauer, either. In a court documents, the company blames much of its debt on having taken on its onetime parent company Spiegel when it filed for bankruptcy in 2003. That deal hit Eddie Bauer with $300 million in debt. It also had to take on Spiegel’s benefits and pension plans. Most recently, 50 percent of Eddie Bauer’s earnings were going toward paying down its debt.

“The high leverage that Eddie Bauer assumed as a result of the Spiegel bankruptcy became a greater debt than Eddie Bauer could carry in the current depressed economic and retail market environment,” company CFO Marvin Toland said in court.

Still going

Despite the bankruptcy proceedings, Eddie Bauer has promised that they will continue to operate. That means that its stores, catalog business and Web sites will still be available. Gift cards, returns and club points will also still be honored. But for… how long? How… long? Beam them down some cheap loans and instant payday loans, they’re going to need them.

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We’re all looking for that light at the end of the tunnel when it comes to America’s economy. Have things hit bottom yet? Is there truly nowhere to go but up? Or is martial law waiting in the wings? Will no fax cash advance and mortgage loan modification protect us from the rubber bullets and tear gas?

What does the Beige Book have to say? It’s the Federal Reserve’s anecdotal take on the economy from the viewpoint of its central banks in 12 U.S. districts. Carl Gutierrez reports for Forbes that Wall Street may just have reason to let loose a (cautious) grin.

A “troubled, but thawing” outlook

According to the report, the Fed’s banks saw activity that was “contracted” or simply “weak.” Yet five of the 12 reporting districts noticed a slowing pace of decline. Several districts even noted signs that activity in certain sectors was beginning to stabilize.

But don’t get too excited. The Fed set the bar – their expectations – quite low for their analysis. The prior report, which came out in early March, indicated an end of 2009 recovery from the subprime debacle. In that report, 10 of the 12 districts pointed out weakening conditions through February.

Rewind. Press play.

The rest of the current report sounds like more of the same. The market for credit remains tight as a drum, manufacturing continues to show decline, people still aren’t quite confident enough in the state of things to boost retail sales significantly, home prices continue to make their way downhill and the commercial Real Estate market is stagnant, as the sales outlook makes building and selling more office, industrial and retail space an iffy proposition.

Keep in mind that the Beige Book traditionally isn’t a market mover. That remained true here, despite the positive bits. Perhaps Chairman Ben Bernanke’s recent comments can be seen as a sign that beige was going to be more of a cheery color than it usually is. Here’s Here’s a story about beige Butcher Ben.

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Germany rounds out the world's three biggest economies, falling in line behind the United States and Japan.

Your online payday loan store brings you updates on the world economy.

If you’re one of those “misery loves company” types, then read on. Turns out the United States wasn’t the only company that posted low retail sales last year. Retail sales in Japan dropped the largest amount in four years.

Japanese consumers seem to be following the same patterns as Americans. Spending on clothing and electronics, one of Japan’s biggest industries, has slowed. Japan has the second largest economy in the world after the United States.

Compare and contrast

Check out this article from your online payday loan store on the dismal holiday shopping season in the United States. Much like Americans, Japanese consumers are concerned about their jobs and their incomes.

Japan’s retail sales fell 2.7 percent in December, the biggest drop the country has seen in four years. It also marked the fourth straight month of decline in retail sales. In the United States retail sales also fell more than 2 percent in December, but it was the sixth straight month of decline. Looks like we’re ahead of the curve. Too bad that’s not good news in this case.

All too familiar

One of Japan's largest companies is facing its first loss in 14 years

One of Japan’s biggest and most well known companies, Sony Corp., is likely to post its first loss in 14 years, reports say. Many large companies are cutting production — and jobs along with it. Consumer spending accounts for more than half of Japan’s gross domestic product.

Spending at large department stores and supermarkets in Japan fell 6.3 percent. One department store operator, J. Front Retailing Co., has canceled its plans for two new locations.

Keep up with news on the economy through your online payday loan store.

A different outlook

In “The Big Bing Blog” on Fortune Magazine’s Web site, author Stanley Bing writes about the SkyMall catalog in relation to the recession. He is of the opinion that people buying things from said catalog is a sign that the economy will stabilize.

“I still believe that in the end we’re all going to be all right. If people are buying meerkat gang sculpture for their yards and living rooms, can recovery be far behind?”

You can order your very own Harry Potter wand from the SkyMall catalog. (Warning: Wand does not actually contain magic.)

But are people doing that? Bing argues that the SkyMall catalog, and the marketing business in general, makes us think that we actually need things like cigar humidors and slippers with built-in night lights.  I admire Bing’s optimist, and I understand that his blog is meant to be humorous. Still, I can’t help but wonder if Americans are still making frivolous purchases like these.

Cold, hard facts

Statistics indicate that they are not. The Commerce Department has released its official report on just how dismal holiday sales were this season. Wall Street had predicted that the decline was about 1.2 percent, but final  figures show that sales fell 2.7 percent.

Before you go thinking that maybe Americans did their holiday shopping early this year: It was the sixth straight month of decline. I’m no financial guru, but it seems to me that if people were going to be making frivolous purchases, they would have done it for the holidays, even if they had to take out payday loans to do it.

Aftershocks

In the wake of these reports, some major retailers are announcing big changes. California department store chain Gottschalks is up for sale, and it has filed for Chapter 11 bankruptcy.

Famous luxury retailer Neiman Marcus Group Inc. says it is going to cut 375 jobs. Macy’s department store is closing 11 stores, which will affect 960 employees. So between those two companies, I can safely assume that at least 1,335 people out there will be even less likely to be making discretionary purchases.

Job loss leads to job loss

So, because consumers aren’t spending enough on retail, employees from retail store are out of a job. If (when) those employees go on unemployment, their incomes will be slashed by more than 30 percent, leading to even less spending and more … well, you get the picture.

Thus, it comes as no surprise to me that Federal Reserve says this low-spending trend is continuing and worsening this month. An AP reporter says “job cuts, sinking home values and cracked nest eggs have made American consumers wary of spending.”

Ahem. I think that by “wary of spending” she means “unable to spend.”

A slow fix

The only way I can see to change this trend is for employers to start hiring instead of firing. American consumers aren’t going to suddenly start spending money they don’t have, especially considering the credit crunch going on.

So Obama has the right idea by including programs that create jobs in his American Recovery and Reinvestment Plan. You see, the government will spend money it doesn’t have to hire people to work on roads and bridges and alternative energy sources. Then perhaps those Americans will start ordering antique-style gumball machines from the SkyMall catalog and all will be well again. Perhaps.

The future of the American way

Are we changed forever? Americans, especially those who have lost their homes, have learned some hard lessons in the past year. When this is all straightened out, will Americans really go back to maxing out their credit cards at luxury department stores?

No one can tell the future, but it’s always fun to make predictions. So, what do you think? Will Americans start using payday loans because they absolutely must have that UV-ray-blocking beach canopy right now?

That figure is based on Standard & Poor’s 500 Retailing Index. Interestingly, the index does not include Wal-Mart.

First, the good news

Amazon.com reported its best-ever holiday season this year. Amazon is the world’s largest Internet retailer. Its stock rose nearly 5 percent on Nasdaq. Overall sales among online retailers dropped along with holiday sales nationwide, but Amazon reported selling more than 6.3 million items on its peak day, Dec. 15.

Market analysts attribute Amazon’s success to its variety of products and user-friendly format. Amazon has built a reputation as a one-stop online shop, offering everything from bubble bath to power tools. Plus, for cash-conscious customers, it sells use items at deep discounts.

Online payday loans are another example of consumers using the Internet instead of going to a store.

Now for the bad news

For most other retailers, things were more bleak. Stores such as Macy’s and Ann Taylor offered discounts of up to 70 percent and still saw decreases in sales. Electronics stores such as Circuit City, which usually see higher sales than anyone during the holidays, have sought bankruptcy protection this year.

Unemployment is the highest it’s been in 15 years. As consumers face tightening credit and a recession, spending is being reduced to necessities rather than luxuries.

What took the biggest hit?

Women’s clothing sales from Nov. 1 to Dec. 24 dropped 24 percent compared to last year. Electronics and appliances saw even deeper cuts, falling 27 percent. Luxury items such as jewelry dropped 35 percent, a clear sign that average American consumers are saving their extra cash, if they have any, for necessities.

Overall online sales saw a 2.3 percent decrease, a very small drop compared to the above mentioned retail sales. However, since the inception of online shopping, Internet retail companies have seen year-over-year increases of 15 to 20 percent.

Bringing it home

Online spending at U.S. retailers decreased 1 percent. In 2007, the  nation’s online retail sales rose 19 percent. The U.S. economy shrank .5 percent between July and the first of October, the biggest drop since 2001. Consumer spending during that period was lower than it has been for three decades. Analysts expect more economic declines to end the year.

Now what?

Today, in what many are calling “Black Friday: The Sequel,” many stores are offering discounts of up to 90 percent to try to make up for the dismal holiday sales. Stores including Macy’s, JCPenney’s and Fry’s Electronics opened early today and offered the biggest discounts of the year.

It remains to be seen whether this strategy will help retailers. More Americans are losing their jobs, and more still don’t have credit to rely on any more. It looks like even with the option of online payday loans it’ll be a while before consumers have extra cash to spend on non-essentials.