On the shopping list for budget-minded consumers: groceries, gas -- and a new flat-panel TV?
Shelling out hundreds of dollars on a television is hardly wallet-friendly, but LCD and plasma sets have been flying off the shelves all year, with some retailers saying TV sales are better now than they were during the holiday season.
Retail experts say the boob-tube boomlet stems in part from dramatic price-slashing by retailers that are trying to undercut the competition and need to move merchandise to make room for newer, snazzier models. The recent transition by broadcast stations to digital signals also brought out droves of shoppers who used the deadline as motivation to replace their outdated analog TVs.
But there's also a recession twist: Some industry watchers say that people are upgrading their TVs because they're spending more time at home during the economic downturn.
"Consumers are increasingly using the home as a place to look for entertainment," said Riddhi Patel, an analyst at research firm ISuppli Corp. "And TV becomes the main medium. . . . People are saying instead of taking trips during the summer, they may as well stay at home and buy a TV."
Like many others, Fidel Rubalcaba, 41, and his family have cut expenses lately, forgoing boating excursions and motorcycle trips to the desert.
"It's the middle of June; normally we'd have gone boating three or four times," he said. "This year, it's none."
Still, the pool maintenance worker said he was tempted to buy a new TV as he checked out a 55-inch Samsung LCD model with LED backlighting on sale for $2,700 at a Best Buy in Culver City this month.
Although the TV would be a pricey purchase, "in the long run, by not doing as many activities as we used to, it will pay for itself," Rubalcaba said.
According to ISuppli, shipments of new flat-panel TVs in the U.S. and Canada totaled 7.8 million units in the first three months of the year, an increase of 17.3% from the same period last year. The research firm said that, starting in April, TVs 32 inches and smaller have been in short supply.
Many shoppers are choosing less expensive TV models and value brands, Patel said. Televisions priced at less than $1,000 are doing especially well.
Discount giant Wal-Mart Stores Inc. has gained market share as consumers have flocked to lower-priced stores for TVs. In the first three months of the year, ISuppli said, 22.3% of U.S. flat-panel purchases were made at Wal-Mart, up from 13.8% in the first quarter of 2008.
