For many, Christmas is embodied in the acts of gift-giving, present-getting and all around thing-exchanging, and that circumstance is pleasing for a retail sector that often relies on our propensity to spend a lot at year’s end at least, in most years.
The recent holiday season saw a retreat from spend-happy 2007. According to Spendingpulse, an economic report tracking group, holiday retail sales nationwide dropped between 5.5 and 8 percent from last year’s levels. A bleak economy and widespread bouts of poor weather were largely attributed as reasons for the dropoff.
The story was about the same locally. Many retailers reported that holiday sales from Nov. 1 to Dec. 24 fell short of expectations.
The stars were all lined up for a perfect storm,` said Harvey Fox, owner of n. Fox Jewelers in Saratoga Springs, referring to two snowy weekends leading into Christmas, combined with a poor economy.
Though all retail sectors were hit, the more high-end markets took the brunt of the damage. For example, the sale of luxury items took the biggest hit from last year’s levels, with shoppers spending 34 percent less. Easily the biggest element in that category was jewelry sales, as many shoppers tried to be more cost-conscious.
`We were definitely impacted in a negative or downward way,` said Fox. `Transaction counts were down and the average purchase price was down. A lot of our regular customers came in and stated that this would not be a jewelry Christmas for them.`
Fox said that the holidays normally account for about 20 percent of his yearly business.
This year’s lackluster holiday came on the heels of his store’s most profitable 12 months in its 30 years. The two weeks after Christmas are typically big in the jewelry market, however, as customers return to exchange and upgrade gifts. So far, that has held true for this year, as well.
Dawn Oesch, president of the Saratoga Springs Downtown Business Association and owner of The Candy Company, said that she also would have preferred a white Christmas to the blizzards that hit right beforehand.
`That last weekend is usually one of our big weekends,` she said, adding that `the influx of the last three days was a lot bigger than it usually is. They still come out.`
The holiday season is when many retailers make their margins, with some relying on the two-month period for 30 to 50 percent of their revenues. With such disappointing sales, many retailers found themselves trying to recreate the frenzy of Black Friday on the day after Christmas with `doorbuster` sales and extended hours.
J.C. Penney in Clifton Park Center opened its doors at 5:30 a.m. on Friday, Dec. 26, and slashed prices across the store. Instead of just playing host to those looking for refunds or exchanges, the retailer tried to draw in bargain hunters.
One place that this season’s poor weather didn’t hit was the Internet. Online retailer Amazon.com reported that the 2008 holiday season was its `best ever.`
Retailers across Saratoga County said that while the holidays of 2008 won’t go down as a blowout, Saratoga County is relatively stable and has the best shopping around.
`We saw an overall increase [in shoppers] because there were fewer stores here last year,` said Jeff Townsend, director of marketing at Clifton Park Center. `The aggressive merchants are still out there, slugging it out and making a buck.`
`I think everybody had a good season, but not a great season,` said Oesch of businesses in Saratoga Springs. `As long as you stay optimistic only good things can happen, especially downtown.`
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