.....Advertisement.....
.....Advertisement.....
Tuesday, April 15, 2008

Tax Day offers seek returns

Several companies in and around Roanoke are feeling the taxpayers' pain as a way to build customer loyalty.

Photos by STEPHANIE KLEIN-DAVIS The Roanoke Times

Ami Trowell shops at Ukrop's on Monday with her daughter, Audrey Pressley, 2. Trowell wasn't aware of the 5 percent off on purchases over $50 incentive being offered this week, but, she said, '"Every little bit helps."

Barbara Smith of Thaxton spent about $67 at Ukrop's on Monday, which equaled $3.35 in savings with the 5 percent discount. "I'll be back," she said after learning of the discount.

STEPHANIE KLEIN-DAVIS The Roanoke Times

Jade Jalmasco, a manager at Ukrop's, rings up groceries Monday for Susan Beasley and her daughter, Betsy. Beasley said this was her first time shopping at the store and she wasn't aware of the 5 percent off purchases with a minimum $50 purchase being offered as an incentive this week.

Free doughnuts and tax return copies. Discounts on supermarket bills.

Retailers are sending this message to consumers: "We feel your pain."

They are rewarding customers who spend with them today -- the deadline for filing federal tax returns -- and for the rest of the week.

From a free doughnut with the purchase of hot coffee at Dunkin' Donuts to a 5 percent discount on groceries at Ukrop's Super Market, Roanoke-area stores say they're offering some relief to consumers who are footing large tax payments and perhaps straining to file their returns on time.

There's a strategy to the savings. They give retailers an avenue to build loyalty and increase spending at a time when economic challenges loom for consumers and for businesses, retail experts said.

By luring people with free offers and savings, stores hope patrons will whip out their credit or debit cards or cash in exchange for extra cups of coffee and additional trips to the produce aisle at the grocery store.

The weeklong Tax Day-related savings are a first for Ukrop's.

The Richmond grocer claims that the 5 percent discount on any grocery bill that rings up to $50 or more will lessen customers' spending toll.

People already are doling out money for taxes and higher gasoline prices, the chain reasons. The promotion began on Monday and it ends Saturday. Customers at its 29 stores must use the grocer's value card to be eligible.

Red and white signs inside Ukrop's on Franklin Road and a banner on the outside of the store alert patrons to the discount.

The deal, however, is two-fold for Ukrop's, which opened its Roanoke store last June.

"We're still new [in Roanoke]," said Bobby Ukrop, president and chief executive officer of the chain. "We like to help build business, and this is another way to do so."

For new customers to the store, he hopes they "get hooked on us."

Dunkin' Donuts also is trying to woo patrons by offering a free doughnut giveaway today with the purchase of any size hot coffee, including specialty kinds. It's the first time the chain has offered freebies to coincide with Tax Day, said Ken Walker, who owns the Roanoke Valley's only Dunkin' Donuts shop on Franklin Road.

"If you get tax money back, bring it in here," he said. "If you don't, we'll give you a doughnut."

Other time and money savers include Staples' offer today to make free copies of 2007 tax returns, up to 20 pages.

But it won't be easy for retailers to make April 15 an occasion when consumers eagerly expect sales, said David Urban, a professor of marketing at Virginia Commonwealth University's business school.

"April 15 is a reminder to most consumers either they owe the government money or they have paid the government a lot of money throughout the year," he said. "That's not usually what we view in a positive vein."

The Tax Day sales, which have been around, merely are a chance for stores to stand out next to growing competition for consumers' dollars, Urban said.

Still, the deals aren't a bad idea for retailers, as long as customers establish loyalty with the store rather than only the incentive to shop there, said Robert Spekman, a professor at the University of Virginia's Darden School of Business.

Some people who shopped this week at Ukrop's did not appear to need a Tax Day promotion for some measure of good will toward the grocer.

"Starbucks entices me more than the 5 percent" savings, said Tesia Pruski, referring to the coffee giant's location inside Ukrop's. While shopping for groceries on Monday, Pruski was unaware of the Tax Day-related offer until she was told by a reporter.

Another Ukrop's shopper, Ami Trowell, also didn't know about the weeklong deal, but she liked the sound of it, though it may not save a large amount of money on her bill.

"That'll be great," she said, her 2-year-old daughter in tow. "Every little bit helps. We'll definitely spend $100."

Spending $100 would equal savings of $5 this week at the grocer.

At Dunkin' Donuts today, Algie Lawrence plans to pop in at his usual time between 10 and 11 a.m.

He frequents the Roanoke shop daily, so a free doughnut offer won't make a big difference in what he spends there, he said.

While sipping his small regular coffee at Dunkin' Donuts on Monday, he realized that he would save at least 82 cents if he requested today a glazed doughnut, his favorite.

There are more opportunities in the next month for retailers to capitalize on consumers' wallets.

In May, the federal government's tax rebate checks -- ranging from $300 to $1,200 per household plus $300 per child -- will begin rolling out. They are intended to stimulate the economy.

That's likely when large offers and sales will start flying at retailers. It makes sense, Urban said, because consumers will have more money in hand.

"The president wants you to go out and spend it," he said. "You can almost envision a retailer saying 'Come buy a new TV, because it's the patriotic thing to do.' "

The Associated Press contributed to this report.

.....Advertisement.....