Holiday sales outlook looks flat

Economic slowdown worries some South Sound retailers

By Rolf Boone | The Olympian • Published November 19, 2008

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The National Retail Federation forecasts that nationwide, consumers will spend 1.9 percent more this year than last year, the lowest increase in consumer holiday spending since 2002, the federation said.

The International Council of Shopping Centers predicts a 1.7 percent increase over last year.

"The 2008 holiday season will be challenging for many of our nation's retailers, but relatively good for discounters and wholesalers as consumers focus on basics and value," the council said in a news release.

Retailers

For retailers, the holidays are critical, a time when they can earn 20 percent to 30 percent of annual sales in two months, Teague said. She said a slower holiday shopping season might not result in store closings, but it could mean more restructurings, such as the Chapter 11 bankruptcy recently filed by electronics retailer Circuit City.

Employees and owners at South Sound retailers said last week that they have adjusted their businesses to reflect the slower economy.

Olympia Downtown Association board president Daniel Furrer, who also works at the gift shop Archibald Sisters, said he expects a strong holiday shopping season for downtown. At the same time, Archibald Sisters has prepared for the slower economy by cutting back on business expenses, he said. As a result, the store has been more profitable than in 2007, Furrer said.

In Lacey, Olympic Cards & Comics co-owner Gabrielle Shephard, whose business recently expanded into a 7,000-square-foot location off Pacific Avenue, said she has noticed customers spending money on smaller items.

"They may not spend the money on a diamond ring, but they may spend it on a board game," she said.

At Capital mall, Darcy Berry, who works at the Alaska Smokehouse kiosk, said that although the kiosk's opening-day sales topped last year's, mall shoppers didn't appear to be buying in great numbers or carrying bags. The kiosk opened Nov. 14.

"It's kind of bizarre," she said.

Berry hopes for a strong holiday shopping season but said she doesn't expect it to be better than last year's. The Smokehouse kiosk is open through Jan. 1, she said.

Rolf Boone covers business for The Olympian. He can be reached at 360-754-5403 or rboone@theolympian.com.

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