Holidays
Holiday shoppers hit stores early, consumers confidence up, gas prices down
As shoppers mob local stores on Black Friday, Nov. 24, looking for that perfect holiday gift, many retailers have already received a boost from early shoppers.
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.
