Return to Transcripts main page

CNN Live Today

Holiday Shopping Blitz; Celebrating Thanksgiving in New Orleans

Aired November 25, 2005 - 10:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

BETTY NGUYEN, CNN ANCHOR: Perhaps you're one of those shoppers who braves the cold, waiting for stores to open. Or just braves the crowds inside on this day after Thanksgiving. So, if you still have purchases to make, which I do, we have the top five tips to being a savvy holiday shopper on this day.
Ellen McGirt of "Money" magazine is sitting in today for Gerri Willis. And Ellen, a lot of us, including me, didn't want to get up and deal with just that. So it is it easier to shop online?

ELLEN MCGIRT, SENIOR WRITER, "MONEY" MAGAZINE: Absolutely. It's one of the best tips. And it looks like most surveys are showing that people are really enjoying online shopping. There's convenience, there's selection, you can comparison shop, get better deals and most of retailers are offering free or low-cost shipping, so it's a great way to do it.

NGUYEN: But you don't get that same bargains, do you, that, you know, 5:00 a.m. til noon. Those bargains aren't available online, are they?

MCGIRT: Well, they often are. I mean, you can really comparison shop but you don't get the black eyes, which we like.

NGUYEN: Exactly. So what are we doing talking? We need to go online, right?

MCGIRT: I know, I know.

NGUYEN: All right. And some people really worry -- I know I do -- when it comes to gift buying. Especially when you put it on that credit card. The numbers don't really add up. You don't see the money. Is it easier just to pay cash so you keep track of how much you're spending.

MCGIRT: Absolutely. One of the big myths of using your credit card is you can track your spending better. But really what most studies show is that you're going to spend about 30 percent more once you think the money is free, when you're just doing it on credit. Use your debit card instead. Most of the consumer protections are available with most debit cards. Cash is queen. You are absolutely -- need to stick to a budget when you're looking ahead. And you're going to be paying off these credit cards bills for months and months to come otherwise.

NGUYEN: Right. And it hurts more when you're, you know, counting the bills as they're going out of your pocket.

MCGIRT: Right.

NGUYEN: So, really, you'll be a little more conscious about it.

MCGIRT: That's exactly right.

NGUYEN: All right. A lot of stores -- of course, we know when we get up to the cash register, finally, after the long lines, it says, well, you can get an extra 10 percent off if you just sign up with our credit card. Is it worth it?

MCGIRT: It's so tempting and it's really not worth it. There's a couple of reasons why. You'll probably overspend just to justify the discount. And most of the interest rates associated with in store credit cards are much higher than on your regular credit card or, of course, obviously your debit card. And what most people don't think about as you start opening up these two, three, four store cards to get the discount -- it can really affect your credit report.

NGUYEN: That's right.

MCGIRT: So as you're looking to refinance or perhaps buy a car or something else later in the year, it can cost you thousands of dollars you didn't expect.

NGUYEN: Yes, that's no good, especially if you're only getting 10 percent back on that particular sale. It doesn't really add up.

MCGIRT: I know. I know it.

NGUYEN: OK. I absolutely love gift cards, because I'm a control freak. I want to be able to buy what I want. But a lot of people say it's, you know, too impersonal. So, are there other drawbacks, as well?

MCGIRT: There are. It's like a one thumb up, one thumb down on this. You really need to read the fine print on these cards. A lot of the deals expire. So if you don't use it, if you want to save it for later on in the year, the actual values of the cards could diminish or expire so you need to be sure that you understand exactly what the rules and deals are whenever you give or receive one of the cards. And I like them too.

NGUYEN: Yes. You just got to read the back and make sure that it doesn't expire or at least you know when it does. And, you know, as people talk about, you know, the day after Thanksgiving, all these great deals, is this the best it's going to get or are there some last-minute bargains that we maybe should hold out for?

MCGIRT: You know, that -- typically our advice is every year wait until the last minute or just wait a little bit longer in the season. But retailers are a little nervous this year and it really is sort of a shopper's holiday. So we're seeing significant discounts much earlier in the season, even today. And all kinds of great incentives if you've got the patience to shop around and can stick to your budget. So don't wait until the last minute.

NGUYEN: All right. Good advice. Ellen McGirt of "Money" magazine. Hopefully you'll be buying something for all of us here at CNN.

MCGIRT: Oh, I love you guys. You can count on it. Happy holidays.

NGUYEN: All right, you, too.

Well, the father of a pair of injured sisters say there will be no lawsuit for this disastrous end to the Thanksgiving day parade. Did you see it? One of the parade's balloons of the M&M Candies snagged a street light near Times Square. You're going to see it right there, yes, highlighted in that area of this home video. One of the balloons' tethers sheered off the light and -- ooh, there it went.

An 11-year-old suffered a minor abrasion and her 26-year-old sister, in wheelchair, needed six stitches for her head injury. City officials were quick to point out that the parade was allowed to start only after ensuring that the winds have safely subsided.

(BEGIN VIDEO CLIP)

MAYOR MICHAEL BLOOMBERG, NEW YORK: The winds were about 15 miles an hour at the intersection, five miles an hour (INAUDIBLE). The agreement is that the balloons only can fly if the winds are below 23 miles per hour. So it was well within the safety standards.

(END VIDEO CLIP)

NGUYEN: Still unfortunate, though. Those limits were put in place after high winds were blamed for a similar incident back in 1997. A parade watcher then was seriously injured when strong winds pushed a balloon into a lamp post and knocked it over.

Well, former FEMA director Michael Brown is starting a firm to help clients avoid the kind of mistakes that cost him his job. Brown says he'll run a disaster preparedness consulting firm. Following Hurricane Katrina, critics said Brown had a lack of emergency management experience. There were also e-mails that appear to show Brown was out of touch with the extent of the disaster. Brown admits to mistakes under his watch, but he still believes in the importance of disaster preparedness.

Brown told "The Rocky Mountain News," quote: "If I can help people focus on preparedness, how to be better prepared in their homes and better prepared in their businesses, because that goes straight to the bottom line, then I hope I can help the country in some way."

Despite the chaos and loss created by Hurricane Katrina, the spirit of giving, Thanksgiving, is thriving in New Orleans. As CNN's Ed Lavandera reports, the holiday had new meaning for many residents this year.

(BEGIN VIDEOTAPE) ED LAVANDERA (voice-over): Toni Frazer is far from her own family's Thanksgiving feast in Grand Rapids, Michigan. But she and this small team of volunteers say there's too much work left to do in New Orleans -- No time to sit down and eat.

TONI FRAZER, VOLUNTEER: We took a group vote. We're a big family. And we said, no, we want to go out and help other people on this day. We can have our Thanksgiving dinner another time.

LAVANDERA: But many New Orleans residents like Laurie Power need this holiday. A trip to the grocery store for a family dinner is an escape from weeks of sadness.

LAURIE POWER, NEW ORLEANS RESIDENT: Thanksgiving in New Orleans this year is just something to be normal. For all of us to be normal this year. This has been a terrible year.

LAVANDERA: Across the city there were signs of typical Thanksgiving traditions: a turkey day race, church groups feeding the needy, then there are the moments that remind you this is New Orleans, and this isn't a typical Thanksgiving. Families drive by the 17th Street Canal where the levee broke. They walk around quietly, reflecting on what was lost.

And you see Gay Fulton, who lost her home in the lower Ninth Ward of New Orleans, and has been living in Baton Rouge. She and a group of others returned to enjoy a dinner with almost 2,000 first responders. There's no other place she'd want to spend the day.

GAY FULTON, EVACUEE: I don't know if I'll be able to live in the same place or not, but I do want to come back to New Orleans.

LAVANDERA: Thousands of workers and volunteers from around the country are spending this day, away from their own families, helping the Gulf Coast rebuild.

In New Orleans, a little musical flavor is the best way to show gratitude.

Ed Lavandera, CNN, New Orleans.

(END VIDEOTAPE)

NGUYEN: Now, that's the spirit.

Well, folks on the East coast have been shopping till they drop for several hours now. But those on the West Coast are just getting started. Ahead, we'll check in on the frenzy as the crowds build.

Also, you've heard the complaints of some -- the holiday season has become too commercialized. But what would happen if it all just went away? When CNN LIVE TODAY returns, we'll talk about it.

(COMMERCIAL BREAK)

NGUYEN: Dawn is just breaking on the West Coast, where the black Friday buying binge is well under way.

Right now we're going to check in with Mark Glyzewski. He's a reporter with affiliate station KPTV. And he's at a suburban mall in Tigard, which is outside of Portland, Oregon.

What's the scene there so far?

MARK GLYZEWSKI, REPORTER, KPTV: Good morning, Betty.

Yes, we've been open here for the last hour and a half. We're inside a Meier and Frank store, which is affiliated with Macy's. They had close to 2,000 people outside the doors at the start of the day here, And those people quickly came in to snag up the big savings and values.

You can see that they have some 75 percent off sales, some doorbusters going on right now. That's really what is fueling all the interest this morning.

They also are giving away free money, if you will. They have these early bird award cards where the people are to get $15 off their purchases today for showing up early. So that is really helping bring people in.

One interesting side note today: We did hear about some tempers flaring in a nearby county outside of Portland. Clackamas County had 911 calls coming in from people who were waiting in line. They were mad about people cutting in front of them, so they were calling 911. Obviously, the 911 operators very upset that that was happening this morning.

Gives you a little sense of just where the tempers are this morning, Betty.

NGUYEN: That is outrageous.

GLYZEWSKI: Again, this is going to be going on. This store is going to be open until 11:00 tonight. This is really just the beginning. They have 400-plus workers here, ready to tackle the day.

So it is going to be a crazy day, but hopefully a manageable day, when you talk to the store people here at this Meier and Frank store, that they think they'll be able to survive this onslaught of shoppers.

And talking with shoppers, too, they say that, spending wise, they plan to spend maybe a little bit more than they were last year. So there could be a little bit more confidence out there, consumer wise.

Very interesting to find out just what the attitudes are.

So there you have it, a little taste test and sample of what is going on out here, outside of Portland, Oregon.

Mark Glyzewski. back to you, Betty.

NGUYEN: Let the shopping begin. But just don't call 911 if people cut in line. That's crazy.

All right, thank you, Mark.

The scene is much the same in Texas, where shoppers got up early with one mission in mind. That is to buy a lot with as little as possible. Braving the crowds outside Dallas, in Arlington, Texas, Brad Watson, CNN affiliate WFAA.

BRAD WATSON, REPORTER, WFAA: Greetings from Texas at this Wal- Mart Supercenter in Arlington where they started their specials -- the early bird specials -- at 5:00 this morning. People coming through to try to get these great deals by 11:00 this morning.

Of course toys are big. Anything electronic is big this year. T.V.s, DVDs, computers.

Let's see, what do we have here? What are the favorite items you came in early for?.

UNIDENTIFIED FEMALE: I came in for the Playstation and the jeep for my son.

WATSON: Toys are very big here.

UNIDENTIFIED FEMALE: I got a bike.

WATSON: Where's the bike?

There's the bike. OK. Who gets that?

UNIDENTIFIED FEMALE: My son. He's an only child, so all this is for him.

WATSON: He's going to score very big. Was it worth it to come in and face this crush of people and try and get all this stuff while everyone else is trying to get it?

UNIDENTIFIED FEMALE: Yes, it was definitely worth it.

WATSON: The early bird was worth it. OK.

(CROSSTALK)

WATSON: This is your third store, too. You all are aggressive. Good luck for the fourth store.

Wal-Mart, in particular this year, has been aggressive, in trying to get these early bird specials, low priced items, especially electronics, because last year Wal-Mart was criticized for not being aggressive enough and sales were down a little bit. So they tried to do better this year.

Gus Whitcomb is with Wal-Mart.

And is this meeting the expectations for the first few hours of the first day that you anticipated? GUS WHITCOMB, Wal-Mart EMPLOYEE: Brad, we're seeing a lot of shoppers today, a lot of full carts. We're pretty pleased with what we're seeing at the moment.

WATSON: OK. What about the items that have been hot so far today?

WHITCOMB: Well, you know, we have some great prices on laptops and plasma screen televisions, and those were gone in the first ten minutes of the store being, you know, that price being available.

We've seen electronics be hot. There are some great toys that are out there. Actually, even some apparel and some home appliances have been going well, too.

WATSON: OK. Big season, then.

WHITCOMB: Yes. We've got 29 more days, so, going to be a good season for us.

WATSON: Thanks very much, Gus. As you said, 29 more days.

If you didn't make it out here to face this tidal wave of people who have been coming through this particular store, 29 more days, there's still time left.

Brad Watson for CNN in Arlington, Texas.

NGUYEN: Twenty-nine more days. A lot of shopping time.

(WEATHER REPORT)

NGUYEN: You'll probably be taking a lot of pictures this holiday season. At least that's what online photo stores are hoping. That's why they're offering big bargains to get your business.

How to save those precious moments without spending too much? That's just ahead.

(COMMERCIAL BREAK)

NGUYEN: Here in Control B on this Friday, Black Friday, a lot of shoppers got up very early to get those bargains.

(STOCK MARKET REPORT)

NGUYEN: Well, some people might complain that the real meaning of the holidays is lost in the pursuit of shopping, but CNN's Jeff Greenfield suggests that you can embrace the inner need for all that glitters.

(BEGIN VIDEOTAPE)

JEFF GREENFIELD, CNN CORRESPONDENT (on camera): Well, we're off and running on the annual ritual of shopping frenzy and massive debt. And before this first full day of mall crush is over, you'll hear a very familiar refrain -- why can't we stop all this commercialization and get back to the true spirit of the season?

That's an admirable sentiment, I'm sure, but have you ever stopped to think about what would happen if we really did put an end to all the buying and selling and giving and spending? Economic disaster, that's what.

(voice-over): This season, Americans will jam 47,835 malls and shopping centers. That's a real official government number, by the way.

What do you figure would happen to those stores and to their owners and workers if we all just stopped showing up?

UNIDENTIFIED MALE: Watch your step.

GREENFIELD: What would happen to the job hopes of the 850,000 seasonal workers, most of them hired to cope with the flood of frantic shoppers? What about the 28,527 jewelry stores? The 10,274 toy and game and hobby stores? Or, for you intellectuals out there, what about the 11,036 bookstores?

We spend half a billion dollars on Christmas trees alone, so what would happen to the folks who own and work those tree farms? Not to mention the folks who profit from the 1.9 billion Christmas cards we send out. The U.S. Postal Service alone would take about a half a billion dollar hit if we stopped sending out those seasonal greetings.

And talk about the holiday spirit or spirits. We spend $1.3 billion on beer, liquor and wine to celebrate the season.

And none of this begins to measure the full economic impact of seasonal excess. What about the caterers and the waiters who work the parties that endanger so many marriages? What about the truck drivers?

UNIDENTIFIED MALE: Let's go.

GREENFIELD: Warehouse workers and others involved in the giant chain of commerce?

Put it all together and you're talking about some $435 billion worth of economic activity geared to the holidays.

UNIDENTIFIED CAROLERS: Everybody knows a turkey and some mistletoe...

GREENFIELD: So just imagine what would happen to the gross domestic product if we stopped heeding all those holiday commercials. Not to mention what would happen to our beloved media if folks stopped spending all that money on holiday advertising.

(on camera): So if you're heading out into the holiday fray today, don't think of it as a rendezvous with jangled nerves, migraine headaches and a pitched battle for that last Xbox. No, no. Think of yourself as a foot soldier in the battle for a healthy American economy. Don't you feel better?

Jeff Greenfield, CNN, New York.

(END VIDEOTAPE)

NGUYEN: Oh, yes, keeping us all in business.

Well, when CNN LIVE TODAY returns, vandals -- with a message, though, unleashing attacks at liquor stores. What they told the clerks. Stay with us for that.

(COMMERCIAL BREAK)

NGUYEN: It's a big shopping day on this Friday. Take a look at this. This is Perimeter Mall in Atlanta, Georgia. As you can see, the parking lot is pretty full. But if you look really closely, you can see a few spaces there. Some of the big tenants, Bloomingdales, Nordstorm, Macy's -- and I understand Macy's is giving away $1 million in gift cards. So that's one of the places to be on this, one of the biggest shopping days of the year. You see Best Buy right there. You know, a lot of electronic lovers are out and they've been out bright and early this morning.

Now to Oakland, California. The search is on for as many as a dozen well-dressed, yep, well-dressed vandals. The men strolled into two liquor stores on Wednesday night unleashed a violent attack -- you see it there -- not just on the stores, but on the clerks, as well. One vandal told a clerk, quote, "stop poisoning our neighborhoods."

Watching and waiting in Colombia. Residents urged to leave after a nearby volcano shows signs it may erupt soon. We'll take you there live.

And donations came in fast and furious in the days right after Hurricane Katrina and the South Asia tsunami. But as the need continues to grow, why has the giving slowed?

The second hour of CNN LIVE TODAY begins right now.

(NEWSBREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com