MARBLE FALLS — Gone are the days of muscling through store aisles in an attempt to score the must-have gift. This year’s holiday shopping battles will boil down to the bottom line.
According to industry experts, tight economic conditions have changed the face of this year’s holiday shopping spree. A survey recently released by the National Retail Federation indicates that consumers plan to spend an average of $682.74 on holiday-related shopping, a 3.2 percent drop from last year’s $705.01.
The 2009 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, revealed that 65 percent of Americans expect the economy to have an adverse impact on their holiday plans, with the vast majority of these consumers planning to spend less.
According to the survey, more than half of holiday shoppers say that sales and price discounts or everyday low prices will be the linchpin in their decision about where to shop.
“While last holiday season was filled with chaotic confusion, adjusting to uncertainty has now become routine for many Americans,” said NRF President and Chief Executive Officer Tracy Mullin. “This holiday season will be a bit of a dance between retailers and shoppers, with each group feeling the other out to understand how things have changed and how they must adapt.”
At Ace Hardware, 1400 Ninth St., General Manager Jeff Ford said the local retail marketplace will be competitive this holiday season, with businesses vying for a limited amount of dollars.
“I think it’s going to take some big sales to get people to walk through the doors this year,” said Ford, who added that as much as 60 percent of his business is retail.
One strategy that Ford hopes will benefit his business is limiting to a certain price range the wide array of gift and home decor items that he carries.
“We try to keep gift item purchases at or below $30. We are getting a little more creative this year and we’re also going to be a little more cautious,” said Ford, referring to the amount of inventory that will be available.
Retailers elsewhere are doing the same, according to the NRF. The agency reported that inventory is being dramatically curtailed and has resulted in traffic to the nation’s ports reduced to levels not seen since 2003.
“In anticipation of weak demand, many retailers scaled back on inventory levels to prevent unplanned markdowns at the end of the season,” said Mullin. “Once the most popular items are gone, retailers won’t have anywhere to get them, so if there was ever a holiday season to buy early, this is it.”
At Ciao Bella, 208 Main St., shop owner Kim Kirkland hopes that she will drum up some early bird business. For several weeks Kirkland has kept her shop open late on Thursday nights in hopes of attracting the after-5 p.m. shopper.
To sweeten the deal, Kirkland said that her store is also offering special in-store promotions for the holiday consumer such as a tree decorated with stars that offer different discount levels.
Layaway, also offered by Ciao Bella, is a popular purchase feature for many customers this season.
In addition to the pressures of the new economy, Kirkland acknowledged the age-old challenges of doing business in a small town are capturing local sales and competing with larger discount merchants from outside the city limits.
A small retailer’s recourse, Kirkland said, is to offer customers a more select and specialized line of products, compared to items that likely would be found in bigger chain stores.
“For people looking for an unusual gift, our back room has gift items, home decor and really specialized antique and artisan type things,” she said. “Things like glass jewelry, rock flowerpots, Baccarat decanters and (a) Bavarian tea set. We have some very unusual things.”
Jill Decker, manager of Burke’s Outlet at 1202 RR 1431, said she is feeling cautiously optimistic about holiday sales this year based on her store’s performance during back-to-school shopping just a few months ago.
“Back to school was awesome for us, and hopefully the trend will continue through to Christmas this year,” she said.
Decker added her business has an advantage during tight financial times because it specializes in discount items.
“I think a lot of people are discount shopping. They’re out there looking for that bargain,” she said.
But even at the downtown boutiques where the sales climate can be more challenging, Kirkland is upbeat.
“We’re feeling very optimistic (about this season),” Kirkland said, adding that she believes area shoppers will rally in support of local merchants.
“So many businesses have closed around here this year that we’re hoping that locals will choose to shop with us and support local stores. We need people to shop locally,” she added.
