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H|jExamining ASUO
Revisions
may alter
pay rates
for groups
Panel will reword current stipend
model to alleviate confusion
surrounding funding usage
BY PARKER HOWELL
SENIOR NEWS REPORTER
The pay rates for some members of inciden
tal-fee funded student groups may change
next year after a panel of top ASUO officials
revises the current stipend model, a move that
has already delayed funding hearings for sev
eral programs.
The revision comes in response to a letter
from University President Dave Frohnmayer
to the student government. In the letter
Frohnmayer pointed out stipends make up as
much as 70 percent of some groups’ budgets,
leaving a smaller portion to pay for other serv
ices. The annual letter was written last sum
mer after Frohnmayer approved this year’s
ASUO budget.
Concerns about the stipend model, which
dictates flat amounts paid to student adminis
trators based on the responsibilities of their po
sitions, led the Programs Finance Committee to
postpone budget hearings for several groups
that receive stipends until the new model is
ready after winter break.
Officials will present the new stipend model
to the Student Senate for approval in early Jan
uary at its first meeting after the break, PFC
Chairwoman Persis Pohowalla said.
The current stipend model has been effec
tive, but has not been revised for four years and
needs to be adjusted to ensure equity of
stipends among groups, ASUO Public Relations
Director Nathan Strauss said.
Frohnmayer’s letter, addressed to ASUO Pres
ident Adam Petkun, ASUO Vice President Mena
Ravassipour and summer Senate President Ro
drigo Moreno-Villamar, offered both criticism of
the stipend model and congratulations to the
ASUO Executive on its work to create a fair
budget, Strauss said.
Strauss said communication between
the ASUO and the President’s Office is gener
ally open, but that the student government
makes independent decisions to best repre
sent students.
“Generally, we take President Frohnmayer’s
words very seriously and take them into con
sideration, but it’s important to remember
they’re not the end-all, and the purpose of the
ASUO, page 8
COOKING UP CONTROVERSY
Danielle Hickey | Photo editor
East University neighborhood residents show concern
about the proposal to build the University’s new
basketball arena at the Williams’ Bakery site.
Read the complete story on Page 8.
Since 1900 \ Volume 106, Issue 66 | Tuesday, November 30, 2004
Consumer confidence
Reatail and research experts disagree on sales
projections for coming holiday shopping season
BY ANTHONY LUCERO
NEWS REPORTER
The war in Iraq, soaring gas prices and lack of a toy craze, such as
yesteryear’s Furby or Tickle Me Elmo, doesn’t seem to have
dampened holiday shoppers’ enthusiasm this year, experts say.
Sales this shopping season are expected to be the highest since 1999
with a 4 percent increase over last year’s gift-buying spree, according to
Forbes magazine and the National Retail Federation, the largest retail
trade association in America. The NRF
projects retail sales should hit
just below $220 billion, a $10 •**
billion increase over last year s *
sales, with consumers spending
$265 individually the weekend af
ter Thanksgiving.
But Deloitte Research, a firm that
studies the retail market over the
holiday season, said this year’s sales
won’t be as strong as last year’s due
to tax cuts given in 2003 and an in
crease in home bankruptcies this
year, although these factors have
not greatly impacted the market.
“It sounds like sales will
be strong,” said Universi
ty marketing associate
nrnfpcenr blavp Rnuch rit
ing Forbes’ 4 percent sta
tistic as an indicator of a
stronger economy. “The
trend toward consumer electronics is
strong this year.”
Rlpptrnnirc alnno with rrmcir* an/i hnmo.rol
are expected to be the big sellers, according to the National Research
Federation. In addition, high-end jewelry and apparel retailers are
both experiencing a jump in sales despite higher prices for their in
ventory, according to the NRF.
The biggest sellers this holiday are cashmere sweaters, DVDs, iPods,
plasma TVs, Victoria’s Secret lingerie, video games and poker sets, ac
cording to the International Council of Shopping Centers, a worldwide
group of retailers and shopping center merchants.
An electronic version of the popular poker game Texas Hold ‘Em is
what Susan Dickens, parent of a University student, said she’s been
hunting for this year.
Dickens, who was shopping at the University Bookstore, said stores
that have prevented her from picking up the game either because the
game was sold out or the stores didn’t sell it.
“This year’s been tough, but Christmas time is when me and my
family splurge,” Dickens said. She added that this year she and the fam
ily are splurging a bit less than earlier years.
Splurging less is a trend across America as bargain buyers and stiff
competition from discount stores like Wal-Mart are dropping gift spend
ing this holiday.
While higher-end stores have received a boost, analysts have pointed
to the typical Wal-Mart consumer to get an idea of holiday trends this
year. According to Deloitte Research, high oil prices have contributed to
the decline of spending this year for Wal-Mart shoppers, who see laiger
gas prices as a tax that limits spending during the holiday.
Yet having no cash in hand but spending nonetheless is
typical for the American shop
per. According to Boush, the
typical consumer will put
thousands on credit cards in
order to put packages un
derneath the tree.
Thrifty Living, a shop
ping resource offered
by the University of
itomo
Illinois, said typical
shoppers spend $100
to $500 more
on credit cards than
they plan.
“It’s about consumer confi
aence, not wnat s in a DanK account, tsousn saia.
As for the winner and loser of the holiday season, high expectations
for Apple iPod sales have sent its stock soaring up 6 percent while Wal
Mart’s dropped 3 percent.
anthonyliicero@dailyemercdd.com
Online retailers see surge in business
Web merchants' marketing
campaigns increase Thanksgiving
weekend sales by 41 percent
BY ANNE D'INNOCENZIO
THE ASSOCIATED PRESS
NEW YORK — Computer-savvy consumers
did plenty of online shopping over the
Thanksgiving weekend, giving companies
like Amazon.com and Walmart.com the
same kickoff to the holiday season as depart
ment stores and malls had.
The pickup in business on the Web was
the result of online merchants using market
ing tricks like their brick and mortar coun
terparts — plying consumers with special
discounts to get them to shop early.
Online sales excluding travel shot up 100 per
cent to $133 million on Thanksgiving Day com
pared to the same day last year, said comScore
Networks Inc., an Internet research company.
On Friday, online sales hit $250 million, up 41
percent from a year ago.
“We certainly expected a strong perform
ance during the holiday weekend, but these
are impressive figures,” said Dan Hess, senior
vice president at comScore.
Historically, the online shopping season
has begun the Monday after Thanksgiving,
when consumers begin buying from their
workplace computers. But the early start this
year can be attributed to two phenomena:
Merchants are working harder to get online
sales, and millions of homes have converted
to high-speed Internet connections, making it
easier to shop from home.
About 53 percent of those consumers who
have access to the Internet currently have
high-speed Internet connections, compared
with 40.9 percent a year ago, according to Ken
Cassar, an analyst at Nielsen/NetRatings Inc.
According to Nielsen/NetRatings, the sites
that had the biggest spikes in visits
this past Friday, compared with a week earlier,
were those operated by traditional retailers in
cluding Walmart.com, sears.com and
Toysrus.com. Toysrus.com's traffic soared 212.6
percent on Friday, while Amazon.com was up
49.7 percent, Nielsen/NetRatings said.
“Consumers are becoming more savvy about
how to use the Internet,” Cassar said. “They re
alize they can do things that can make their
stores shopping trip more efficient.”
Melissa Payner, president and chief executive
of Bluefly.com, an online seller of discounted
designer fashions and accessories, reported a
double-digit increase in sales during the
Wednesday through Sunday period from a year
earlier. In 2003, the company drove sales and
traffic with a promotion on Prada handbags
and wallets on Thanksgiving Day, but decided
to be even more aggressive this year, offering a
larger assortment of Prada merchandise.
Bluefly.com also launched its own sweep
stakes that gives customers chances to win a
closet full of ultra-upscale Jimmy Choo shoes
by going to its Web site through Jan. 15.
“For the first time, we really participated in
the Thanksgiving weekend,” Payner said.
“Prior to that, there was a belief that cus
tomers just went to the stores.”
Amy Colella, a spokeswoman at Wal-Mart
Stores Inc., said the discounter was pleased
with sales for the Thanksgiving weekend.
She noted that Thanksgiving Day was the
busiest day online so far this season, with
sales doubling from a year ago.
Wal-Mart, which saw online business surge
SHOPPING, page 12
Shopping online
Holiday shoppers got an early
start on the season this year with
Internet sales in the first three
weeks of November outpacing
the previous two years.
Online retail
sales, first
three weeks
of November
In billions
of dollars
Week 1 ^ 2002
2003
Week 2 note:
Excludes
Week 3
SOURCE: comScore Networks AP