Retailers 'cautiously optimistic'

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Melissa Fredin of Kirkland does some early holiday shopping Tuesday at Made Just for You in Sycamore. (Beck Diefenbach – bdiefenbach@daily-chronicle.com)

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DeKALB – Holiday shoppers will be hunting for bargains, starting earlier and putting more thought into homemade and practical gifts this year.

Whether they carried out seasonal merchandise a few days ago or a few weeks ago, many local retailers have already started the markdowns and promotional events to build sales early.

The National Retail Federation projects that holiday sales will decline 1 percent this year to $437.6 billion. While holiday sales have sustained an average yearly growth of 3.4 percent over the last decade, the decline is not as severe as last year’s 3.4-percent drop in holiday retail sales.

It’s the could-be-worse projections like this that has Barb Daugherty “cautiously optimistic” about the season of giving.

“I think we’re going to have a better year. I think the economy has changed a little bit,” said Daugherty, owner of Victoria’s Crossing in Genoa. “I’m hoping it will show up at the cash register.”

But two-thirds of Americans say the economy will affect their holiday plans this year, with the majority saying they’re adjusting by spending less, according to a consumer survey by the NRF. Shoppers plan to spend an average of $683 on holiday-related shopping – 3 percent less than last year’s $705.

According to a holiday-shopping survey by Accenture, a global management consulting firm, more people are setting a budget in a conscious effort to not overspend. And not included in many of those budgets are non-family members.

Five percent of consumers are cutting out gifts for friends, and 8 percent say they’re eliminating co-workers from the list, according to Accenture.

Aside from who is on the list, another difference this season is what is on the list.

Electronics will take a hit, the NRF predicts, while gift cards continue to top wish lists and gifts of food are gaining. About one-third of respondents plan to buy more practical gifts, while
17 percent plan to make more gifts by hand.

However, Rich Para, owner of Sweet Earth Jewelry & Gifts in Sycamore, has seen people pull away from crafting their own gifts and decorations, with the exception of made-from-scratch beaded jewelry.

Para expects shoppers will be “cautious with their buying habits,” he said, and sticking to the necessities.

“I think it’s going to be a slow, steady Christmas,” he said.

Marcia Elliott, owner of Made Just For You in Sycamore, agrees that people trying to budget their spending will spread their shopping out over the season rather in one big spree.

Accenture found that people intend to shop early this season in order to get the deals before it’s too late. Of those surveyed by the NRF, 55 percent say they will be shopping for sales more often and 42 percent say they will using more coupons.

To attract shoppers on a budget, local retailers are pushing customer-appreciation events, offering free gift wrapping and sending mailings bursting with coupons.

Many retailers are experiencing a diminished inventory this year, which also affects how
people shop.

“When people see something, they’ll go ahead and get it because of the economy,” said Janeen Hoadley, who runs a Hallmark shop in Sandwich.

It seems counterintuitive, but Hoadley explained that, with less overall inventory on the shelves, people understand that they need to buy now in case the item sells out.

Daugherty has a higher percentage of items on backorder than in past years because manufacturers are producing less and distributors are not filling warehouses, she said.

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