Despite economic slump, city retailers 'hoping for the best' this shopping season

By GENE ZALESKI, T&D Staff Writer
Friday, November 28, 2008

Discount retailers are hoping the tight economy will help propel their sales while department store chains say store discounts will be plentiful and competitive for the shopper looking to save money this Christmas.

"People are going to shop, and they will still have Christmas," Palmetto Office Supply owner Henry Allen said, adding that he is optimistic but is not holding his breath for record breaking Christmas shopping. "I don't think there will be a gain over last year, and I am hoping there will not be much of a loss."

Allen is one of many retailers who hope to at least break even this Christmas season in light of the economic downturn.

Ferse's 5&10 owner Roy Chandler said because of the economic hardships, he is optimistic stores like his - small, discount retailers who are typically on the bottom of the proverbial food chain - may be propelled up the pecking order.

Chandler noted that, typically, department stores and then the larger discount retailers attract shoppers, but he said if this past weekend is any indication, it could be an above average shopping season for the five and dimes. He noted that the weekend before Thanksgiving, sales were up about 10 percent Friday and 25 percent Saturday and this was without any significant promotional effort.

"I do think a lot of it has got to do with people calling in their 401k's and drawing it out and using that for early shopping," Chandler said, adding that Mother Nature has been quite nurturing to retailers so far this year as well.

"Usually, it is very warm this time of year. But it has been really cold. They (shoppers) are buying up jackets and knit caps and sweaters."

Chandler said thermal women's underwear has already sold well, along with traditional holiday favorites such as the little red Radio Flyer wagons.

"We are big on toys," he said, noting that shoppers this year will find plenty of rocking horses and kids' table-and-chair sets.

Allen, however, says unlike other retailers, the Christmas season is not one of his busiest.

"But we did not buy as much as we normally do," he said. "We don't depend on Christmas like other retailers. Ours is pretty much spread out over the year."

Allen said if it were not for big ticket furniture sales in October, it would have been a bleak month. He said he is concerned that last month may be a foreshadowing of things to come.

Nationally for the month of October, Thomson Reuters, International Council of Shopping Centers, reported that traditional discount retailers like Walmart saw a slight increase in October sales at about 2 percent. Discount retailer Target saw sluggish sales, down by 4 percent.

Orangeburg's Walmart did not immediately return calls. Kmart personnel said they needed clearance from the corporate office to talk to the press.

Nationally, retailers reported the weakest sales growth for October since at least 1970 as consumers cut back spending on basics.

Calvin Tucker, manager of the JC Penney at Prince of Orange Mall, says with "super low deals" on luggage sets, men's and women's leather coats and boys' and girls' jackets and other discounts store-wide, he foresees being able to compete with the discount retailers.

"They will be shopping, and Christmas will still come," Tucker said, noting that with extended hours and attractive deals, bargain shoppers will be motivated to shop at JC Penney. "If you look at our prices, we are very competitive."

Tucker said while it is no secret that sales have been difficult industry-wide - in October JC Penney nationally saw retail sales plummet about 13 percent, the Christmas season will have the benefit of two more selling days than last year, which should help sales.

He said locally the first week in October was rather sluggish but then cold weather arrived and winter clothes began to spike, making for a strong last two and a half weeks.

"There is pent up demand that we will be able to filter out," Tucker said, adding that the decline in gasoline prices could also help holiday spending. "Gas prices are down $1.70 from last year. That should help, too."

Last year, gasoline prices were averaging about $3.079 a gallon.

Orangeburg Goody's manager Jane Slaughter said the store is "hoping for the best," noting that Goody's prides itself on being competitive with discount retailers and department store chains.

"Our outlook is very positive," she said. "We are offering a lot of discounts."

Slaughter said outerwear discounts are at least 50 percent, seniors receive discounts and there are coupon sale opportunities throughout the coming shopping season.

"We are looking out for our customers," Slaughter said.

T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski@timesanddemocrat.com or by phone at 803-533-5551. Discuss this and other stories online at TheTandD.com