Holidays
Holiday Shoppers Hit Stores Early
Consumers confidence up, gas prices down
Friday, November 10, 2006
Ryann Acton
CNY Business Journal
Many shoppers hit the stores earlier than usual this year, according to a survey by the NDP Group, a global market-research firm. Forty-five percent of consumers started their holiday shopping before Thanksgiving, the survey reported. In interviews, Syracuse retailers, without providing sales numbers, say they've seen increased holiday-shopping traffic at their stores this month.
Many local retailers have nearly doubled their staff size in preparation for the early holiday-shopping season.
The jolt of consumer confidence that fueled this pre-Thanksgiving shopping can be attributed to declining gas prices. Gas prices are now at $2.16 per gallon, on average, nationally, down considerably from their peak � $3 per gallon � in August, according to the information Web site, www.gasbuddy.com.
With more money in consumers' pockets, some cash registers are buzzing.
Busier earlier
Matthew Williams, manager of All-Star Sports Cards in Carousel Center, says he's seen an influx of customers getting a jump on their holiday purchases. "It seems to be busier earlier. That is because of consumer confidence," Williams says.
Williams predicts sales will increase this year for the locally owned sports-memorabilia store. William Steinberg and Samuel Fanizze co-own All-Star. New York Yankees and National Football League merchandise are some of the most popular items this year, Williams says. He declined to disclose financial information.
The run up to Black Friday � the day after Thanksgiving and the traditional start to the shopping season � has been busy, says Scott Widrick, assistant manager of Williams-Sonoma in Carousel Center. The gourmet-cooking store was busy with customers preparing for holiday meals.
Products are flying off the shelves at the store, owned by San Francisco�based Williams-Sonoma, Inc. (NYSE: WSM). For example, the Carousel Center store nearly sold out of the Muirhead brand pecan-pumpkin butter in less than two days, says Widrick.
To be sure, not all signs are pointing to strong sales this holiday-shopping season. According to a new survey conducted by Consolidated Credit Counseling Services, Inc., 59.8 percent of consumers planned to spend less this holiday season due to nervousness about the state of the economy. Consolidated Credit Counseling is a Fort Lauderdale, Fla.�based nonprofit organization that counsels consumers with credit problems.
Another survey, by Baltimore, Md.�based FTI Consulting, Inc. (NYSE: FCN), projected a 4.8 percent increase in 2006 holiday-season sales. Though strong, the increase is down from last year's 6.9 percent sales rise. FTI said recent weakness in housing prices could offset some of the increased confidence consumers are exhibiting overall this holiday season.
Holiday hiring trends
Most retailers hire a group of temporary employees to help get them through the holiday-shopping rush, which typically runs from late November through early January. Retailers in Carousel Center have staffed up in expectation of seeing thousands of shoppers on Black Friday.
J.Crew, a clothing retailer catering to "twenty somethings" and also located in Carousel Center, doubled its staff from 17 to 34 employees to prepare, says Tiffany Roberts, hiring manager. Doubling the staff still won't be enough to keep up with the flood of shoppers. Roberts plans on hiring three more seasonal workers.
Roberts hired part-time employees to assist with sales, stocking, and designing store layouts. Most of the seasonal workers are local college students, but some are working professionals who want a second income, Roberts says. They are scheduled between eight and 22 hours per week, she adds.
At least seven seasonal employees will be laid off in January, she says. However, Roberts does plan to hire several seasonal workers permanently because the store was not fully staffed entering the holiday season.
Other mall retailers are also adding a large number of seasonal workers to their staff.
Williams-Sonoma increased its staff from 30 to 50, Widrick says. Hiring between 15 and 20 seasonal workers each holiday season is typical, he adds. However, last year Widrick hired 25 seasonal workers because staff levels were lower at the start of the holiday season.
Widrick hired 20 part-time sales associates, gift wrappers, and runners this year. They typically work between 15 and 20 hours per week, he says. A majority of the staff is recruited from the store's customer base, Widrick explains. Employees range from a retired schoolteacher to a culinary instructor, who teaches Williams-Sonoma's cooking classes.
Williams-Sonoma's seasonal employees work from Nov. 1 through Jan. 31. It is unlikely that Widrick will retain the store's seasonal employees this year because business slows after the holidays. But that is not always the case. He was able to retain 20 of the store's 25 seasonal workers last year because staff levels were lower at the start of the 2005 holiday season.
While most Carousel Center retailers are rushing to build their staff levels for the holiday season, Williams of All-Star Sports Cards says he simply calls a family member or friend to help with the extra customer load. All Star added one part-time employee to its staff of seven to help with the holiday rush.
"For a small business like us, especially someone like me who has lived and breathed � the business, everyone is an important part of the puzzle," Williams explains, noting the importance of having employees he can rely on and trust. "Hab i tat," a high-end boutique that sells everything from stemware to children's toys, isn't hiring any seasonal workers, because sales are not high enough, says Randiijo Townsend, store manager.
The boutique, located at 258 W. Jefferson St., caters to professionals working downtown, explains Townsend. From noon to 2 p.m., the boutique typically generates $200 in sales, Townsend says. Those sales jump to $600 during the holiday season, she adds.
Preparing for Black Friday
Black Friday is typically the biggest shopping day of the year, or close to it. Despite the mayhem, many shoppers love the tradition of flocking to retailers the day after Thanksgiving. Others avoid the malls like the plague. But retailers have no choice. So how do they prepare for the mass hysteria?
Widrick of Williams-Sonoma looks forward to working Black Friday. He holds a pre-holiday staff meeting to boost morale. Staffing the store with as many employees as possible is most retailers' game plan to attack Black Friday. J.Crew planned to schedule 80 percent of its staff, All-Star Sports Cards expected to schedule 70 percent of its staff, and Williams-Sonoma was set to bring in every worker it could Black Friday.
