Sears (SHLD) One-Ups Wal-Mart (WMT) For Stimulus Checks

The race for your rebate check is on for retailers and it looks as though Sears may have taken the lead from Wal-Mart for now.

Back in January, Wal-Mart WMT) announced their plan to help consumers spend their upcoming rebate checks from the government.

Today Sears Holdings (SHLD) announced its plan and it is better for the consumer.

Sears will:
“When customers bring their stimulus checks to a Sears or Kmart cash register, they can convert the amount of the check into gift cards, plus receive a bonus gift card worth an additional 10 percent. To be eligible, the amount of gift cards purchased must be equal to the full value of the stimulus check. The gift cards can be redeemed at any Sears, Kmart or Lands’ End retail stores or online at sears.com or landsend.com. The promotion is scheduled to last from May 14 to July 19, 2008.”

“Even with a weak economic outlook, a recent survey conducted by Sears suggests that Americans still want to make small changes in their homes. While nearly all respondents agreed that in the current economy it is more important than ever to get the best value for your money, three out of five people said that despite financial concerns, they are still investing in small home improvements that can make a difference.”

“Beginning May 1, customers can learn more about this offer in stores, as well as in Sears Holdings’ circulars, online, targeted emails and direct mail pieces. The gift cards and bonus cards have no expiration and no fees.”

Like Wal-Mart’s plan the card can be used for groceries at Kmart and with the additional of Sears, the spectrum of quality lawn and garden tools and clothing is multiples of Wal-Mart’s offerings.

Let’s not forget the 10% kicker for consumers also. The significance of that cannot be understated. I will get $2100 back in my check, if needed a new washer or dryer, my total Sears card would be for $2310, bonus included. That is a nice chunk of change and would lead me there to get them without question.

Wal-Mart got the jump on retailers in January but Sears today took that and raised the bar a notch. One has to wonder why the silence from Target (TGT), JC Penny (JCP) and other retailers as the date approaches. Even though they were first out of the gate, it is possible that Wal-Mart was just a little too early with their announcement as the checks will not begin to roll off the presses for another month.

I also do not think Wal-Mart will not have some sort of answer….they will.

Disclosure (“none” means no position):Long SHLD,WMT, None