hi, everyone, welcome to "on the money." i'm becky quick. it's the time of the year for family, giving thanks and shopping. but the way we do that is radically changing. is the brick and mortar retail model broken? she's the queen of suspense and the author of 50 books. the changes she's seen, the life she's lived and what mary higgins clark thinks of her success. >> i'm constantly surprised. >> 'tis the season for giving, but where's your money really giving? a guide to giving. and why local merchants have to think small and think big. "on the money" starts right now. >> this is "on the money." your money, your life. your future. now, becky quick. >> more than 135 million

americans plan to shop this weekend according to the national retail federation. of course, how and where we do that keeps changing. americans will do more of their holiday shopping online and at specialty and discount stores. and that leaves many questions about the role of traditional brick and mortar department stores. that's our cover story this week. the holidays are traditionally the season of department stores. from the macy's thanksgiving day parade and festive window displays to crowds of shoppers. but the stalwarts of retail are beginning to see their sales go elsewhere. department stores are expected to see just a 1.2% growth in sales for the fourth quarter of 2015. at the same time, discount online and catalog retailers are expected to have a much larger growth in sales. and americans are increasingly turning away from brick and mortar stores. the average consumer now plans to do 46% of their shopping online. holiday shopping is even going mobile. more than 21% of smartphone owners now plan to buy on their devices. but despite all the options,

there may still be a silver lining for department stores. more than 55% of consumers still plan to shop there. we spoke to hudson's bay company ceo jerrold storch earlier this week. >> what you didn't see there was some kind of apocalyptic change in the consumer, or saying we've reached a tipping point where now it's all going to the internet. >> the holiday shopping season is already well under way, but can department stores get you into the actual store to shop? terry lundgren is macy's chairman and ceo. terry, we've had a lot of people questioning the department stores, but do you think the death of the department store has been greatly exaggerated at this point? >> i sure do. i mean, the last five years, my own company has grown by $5 billion with 38 less stores than we had five years ago. so i think that's an accurate statement that it's been grossly exaggerated. and if you saw the traffic when we opened the doors at 6:00 p.m.

flowing into stores like macy's harold's square, you'd say people definitely want to shop on that night and in a store like macy's. so we feel great about what's tran spired here. >> it's probably fair so say there's been a shift in how americans are shopping. what is macy's doing to try to capitalize on that? >> well, i think, becky, you know that we're the seventh largest internet company retailer in america at this point in time. and we're inching toward being sixth by the end of this year. so the online business is a complete strength for macys.com and bloomingdales.com. so that's a positive for us. but i think the way the consumer's shopping is quite different than it was even five years ago. and that is a consumer starting the journey with their phone, doing their research, coming into the store and try on the clothes or touch that handbag or have makeup applied, all those things that are more tactical. and then they might buy it in the store or they may choose to

buy it at macys.com or bloomingdales.com. that's what's changed but the consumer likes that multidimensional experience today more so than ever. i think the stores that are strong online and strong in store will be the winners of retail in the future. >> you've warned that there are a lot of vinvenstories, that you're going to be starting discounts very early on, but what's your early read on holiday. shooing so star? . >> certainly third quarter was challenging and i think it's been documented that november has been the warmest november in the northeast in 251 years. so that's hard on the cold weather goods that we're all trying to sell. but what i was encouraged by was when we had a big event which was the opening of the holiday shopping season was a great start, great start. not just here but across the country in our stores. the traffic was there.

people were buying. and to me, that was important. and they didn't stop shopping online and start shopping in stores. they went back to doing both. and so online continues strong, and our store business got strong. and so that's the combination that we obviously need to see here in the final stretch up through christmas of this year. >> but how would you gauge the health of the american consumer right now? >> you know, i have to say that the american consumer seemingly is doing okay. that varies by individual household, of course. but you're seeing consumers buying cars. you're seeing consumers do major home improvements. you're seeing consumers go to restaurant, go out to dinner. you're seeing certain categories doing quite well. and then you see their savings accounts across the board generally speaking are higher than they were a year ago. but in general, consumers have the money to spend if they choose to do so. and i think last night, frankly, and through right now, through today, is an indication that they seem to be ready to spend in our categories, and

particularly at our company. >> obviously, the macy's thanksgiving day parade was a huge success. this is something that's been a tradition in my household, and i know in america writ large for the last 89 years. but we did see heightened security concerns as we headed into this parade. was there ever a moment that you thought about canceling the parade? >> you know, i've been asked that question a few times. i was asked that question after 9/11. i was asked that question after the financial crisis in 2008, had letters and e-mails and people, you know, saying shouldn't you cancel the parade? the answer is then, as it is now, absolutely not. this is a time when america needs to come together. and what better tradition to come together than over thanksgiving and the macy's thanksgiving day parade. so i felt passionately that this had to be our best parade. this had to be the most inspiring parade, and i think we accomplished that. >> i would agree with you. and terry, thank you so much for joining us today. it's always a pleasure talking to you. >> my pleasure, becky.

have a great weekend. now here's a look at what's making news as we head into a new week. america's economy is slightly healthier than first thought. the second read of the gross domestic product for the last quarter showed an annual growth rate of 2.1%. that was above the initial estimate of 1.5%. inventories in business investment both increased. the gdp is the broadest measure of the size and scope of the u.s. economy. it was mostly a sideways trading week for the shortened week. the dow trading in a fairly narrow range. so did the s&p 500 and the nasdaq. though the markets were mixed on friday. sales of new home sales rose in october and the housing market is on track for its best year since 2007. newly built houses were up more than 10% from september. that was about in line with expectations. and facebook ceo mark zuckerberg is about to become a dad, and he says that he'll be taking off for two months when the baby

arrives. facebook offers four months of leave, so he may end up taking more leave later on. zuckerberg may be sending a message to his employees that it's okay for new dads to take a chunk of time off. up next, why small businesses have to think big. would you pay a little more to support your local merchant? and later, the giving season. how you can give and get in return. right now as we head to break, take a look at how the stock market ended the week.

when you think of the holiday shopping rush, the walmarts and amazons of the world likely come to mind, but small businesses are gearing up,

too. kate rogers joins us now with more. hi, kate. >> hi, becky, that's right. independent businesses have gotten a boost in sales the past few years thanks to small business saturday, and retailers hope this year is no exception. >> reporter: it's not black friday or cyber monday that new jersey-based retailer kidegories was gearing up for this week. it's small business saturday, sandwiched in between the two major shopping days. shopowner eileen is hoping for big results for her small business. >> sits juit's just a reminder people now with the internet and everything else that they can shop at. it's helpful to keep in mind that the businesses that have been here for so long are still here. >> reporter: the store does about 25% of its annual sales during the holiday season and also enlists local vendors to make their wares. >> i've got 90-year-old knitting sweaters for us. i've got women who are in their 80s handpainting for us. we try to keep that local feel

and that one-of-a-kind uniqueness and shopping local is where you find that. >> reporter: now in its sixth year, its encouraging shoppers to buy from local retailers. this year three this four retailers say they plan to support local retailers during the holiday season. what's more, some 80% of shoppers say they're willing to pay slightly more for an item if it's purchased from a small, independently owned retailer versus an online or big-box store. last year consumers spent $14.3 billion on small business saturday according to american express. so independent retailers like this one have high hopes for this year. but small business saturday isn't just limited to traditional retailers. new york city-based swerve fitness is also getting in on the action. >> the holiday time is definitely a time where people are looking to get a workout in. there's a lot of eating and celebration that goes on. and there's a lot of pretox and detox rides and working out that

our riders do. we definitely see the studio busy this time of year. our goal is really to engage with our community and to raise awareness about how important it is to support local small businesses. whether it's selling kids toys or exercise classes, small businesses are united in their message, reminding consumers to shop small this holiday season. and as we said last year, consumers spent $14.3 billion and each year that am egs has tracked this, the sales data have gone up, so next week we should get a sense of how shoppers really supported local businesses this year. >> how does a merchant sign up? >> well, there's shopsmall.com where they have all the information for how you can sign up. they also have what they call neighborhood champions. and there are about 3500 of them this year, and they're enlisted with each signing up about ten other local retailers. that could be up to 35,000 businesses participating. >> that's great. kate, thank you so much. >> thank you. up next, we're on the money. a guide to giving. if charity is on your mind and you want to donate, how to make

sure that your money is going where you really want it to. and later, before she was the queen of suspense, best-selling author mary higgins clark had a very different job at a hotel switchboard. >> hotel shelton, good afternoon, and then i'd listen in.

americans gave away a record pile of cash to charity last year, nearly $360 billion

according to the giving usa foundation. this year if you're feeling grateful and want to donate, we will guide you through charitable giving. joining us now is senior personal finance correspondent sharon epperson on what you need to know about giving because, of course, it's your money, your future. sharon, i think the biggest question people have is how do i know that this charity is legitimate? how can you feel good about that? >> well, you really want to check out the charity and, of course, if it's a tax-exempt organization, you want to make sure that it has followed all the requirements by the irs, filled out the form 990 that will give you a lot of the information. you can check out charities on the irs website at irs.gov, but there are also places to find out exactly how your mope's being used as well. and places like guidestar, charitynavigator, charitywatch are great watchdog organizations for charitable organizations to find out exactly where the money's going. >> so that it's actually being spent on the charitable causes you care about and not on administrative fees. >> exactly. it gives you a breakdown to tell you how much is going to administration, how much is going to programming and how

much of the money that you're actually donating is going to more fund-raising activities. >> where do people tend to donate the most? >> really just organizations. many people at their houses of worship will donate. that's where about one-third of all charitable donations go. to religious organizations. but after that, there's a lot that go education, human services, health organizations. so there is a wide range. and it's a lot of money. >> we talk about this all the time. but what's the average donation? is this coming from really big-ticket items, or is this from people who are giving a little bit? >> you know, we say religious organizationing, tithing, 10%, but the average is 3% that people give per household. the amount is around $3,000, not quite, but around that amount, and about 95% of households give something. it can add up. >> this is the time of year when people tend to think about this. not only because, look it's an important time with the holidays. you start thinking about people who don't have as much and you want to give back. it's also the end of the year for the tax year, too. >> it is.

it is. so you are thinking about making a generous contribution to the charity of your choice. but also think about the generous tax break that you may be able to get for making the donation. so you need to make sure that you make that donation by december 31st and of course, you can give in many ways. you can give a cash contribution. you can give household items. just make sure that you have all the receipts and all the documentation for what you give so that you can write that off on your taxes. make sure that you follow all of the deadlines and such that you need to that december 31st is key. and the same applies for appreciated assets. if you want to donate appreciated asset, that's a great way to get a break on your income taxes and also not have to pay capital gains tax. >> sharon, thank you so much. up next, a look at the news for the week ahead. and the best-selling queen of suspense, mary higgins clark, on the unusual way she writes each new thriller. >> i don't know the final scene when i start the first.

for more on our show and on our guests, can you go to our website. by the way, you can also follow us on twitter @onthemoney. here are the stories coming taup may impact your money this week. monday is cyber monday. that is one of the biggest online shopping days of the year. on tuesday, we get november auto sales. also on tuesday, the 60th anniversary of rosa parks refusing to give up her seat on a bus. her act of defiance became a catalyst for the civil rights

movement. and the unofficial christmas season begins on wednesday with the lighting ceremony for the rockefeller christmas tree. on thursday, the ism non-manufacturing report for november is out. and on friday, we'll be getting the big number of the week, that's the unemployment report for november. author mary higgins clark is the queen of suspense. she's written more than 50 books and sold more than 100 million copies. her path to the top of the best-sellers list may surprise you. her latest novel "all dressed in white" is in stores now. it is her 51st book. and when we spoke recently, i told her that was a number that was hard for me to grasp. >> me, too. i'm constantly surprised. >> but you -- you started writing a little later in life. it wasn't the first thing that you were doing. you were somebody who had worked for long series of careers. how did you pick up writing? how did you get into publishing? what brought you to it? >> well, actually, you've been writing since i was 6 years old. when i could put two words

together, i was writing a poem. i was writing skits for my brothers to act in. >> your first book was published when you were in your 30s, i think. is that correct? >> short stories in my 30s, yes. and then there was no market for short stories. and then i wrote a book about george washington. which no one read at that time. but became a best-seller after it was reintroduced. a love story. but at that time i made no money on it. and i looked at may bookshelf. and i realized i loved suspense more than any other subject. and i had always been reading it. and i thought, i know why the good authors work, and their stories work, and why others don't work. and i thought, let's see if i can write a suspense. and that was where "where are the children" and that became a best-seller and launched me, thank heaven. >> what is the secret? can you share that with us?

what do the good authors do? what do good stories do? >> well, a good story has to keep you involved. in my case, it's always a woman, a young woman, and she's doing it smart, intelligent, and something happens. she's not on the wrong side of town at 4:00 in the morning. she's living her life and something crosses it. and by her own intelligence, she works her way out of it. and that's been the basic theme of all mine with different situations, of course. because you never want to repeat yourself. >> is that a theme you relate to, though? obviously if you write that again and again. >> well, i guess i do because i was a young widow. and i had five kids to support. and actually, even before that, my father died when i was very young. so i was working my way through school. >> let's talk about that. you've, worked your whole life to support your mother, your family, your churn along the way. you've had pretty interesting jobs along the way before you

started writing. >> oh, my god, telephone operator, hotel shelton, good afternoon, and then i'd listen in. there was the lady of the house, and i always listened in on her because i loved to hear her make her dates. but then i was a pan am flight hostess. and that was extremely glamorous. in those days. i mean, 1949, '50, i mean, flying was still so new. and i had europe, africa and asia. so for 21 years to be all over the world in those days was pretty nifty. >> you did some modeling with grace kelly, too, didn't you? >> my hand, holding up the tabulating card. $5 for doing it. >> publishing has changed a lot. how do you make sure that you keep adapting and keep staying with it? >> well, the biggest way you adapt is no longer do you get those enormous amounts of money because people aren't reading as much. it's very simple.

>> why do you think people are reading less these days? >> well, there's the internet. there's facebook. there's twitter. you know, there are so many diversions. >> obviously, you don't have to keep doing this, but you must love it. >> well, what would i do? i mean, suppose i just said i'm retired. and i would go, now what do i do? because i love to write. >> so you're working on 52 right now? >> oh, yeah. as time goes by. that is about a 43-year-old on trial for murdering her alzheimer's husband. and the young reporter who's searching for her birth mother. >> wow. >> and things happen. >> do you know how things are going to end, or do you kind of make this up as you go along? >> you have to know who did it and why he or she did it because you must know. i don't know the final scene when i start the first. i have to -- i have to figure that one out. but the people tell me.

once i know the people, they tell me where to go now and what's next. i mean, i can be writing and someone will say -- a character will say, i don't belong in this scene. i'm getting out. and that's when writing is fun. >> mary, i want to thank you so much for coming in today. it's been a pleasure meeting you. >> well, thank you. it's lovely to be here with you. that's the show for today. i'm becky quick. thank you so much for joining me. next week, now that you've taken some new family photos over the holidays, we hope, we'll show you the best ways to store those priceless pictures. each week, keep it right here. we're "on the money." have a great one and we'll see you next weekend.

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