By Eileen Dallabrida
This holiday shopping season should be starting with a jingle, with unemployment at the lowest rate since 2008 and wages rising an average of 2.5 percent.
Up the ante with the greatest influx of new-to-the-market retailers to New Castle County in memory, including such headliners as REI, Saks Off Fifth and The Container Store. Wegmans, a newly opened supermarket with a cult-like following, is packing them in just over the Pennsy line.
Still, market watchers are predicting sales will increase only a few ticks above last year’s promising numbers. Industry cheerleaders are more optimistic, with the National Retail Federation forecasting a 3.7 percent increase and the International Council of Shopping Centers predicting a 3.3 percent boost.
Analysts at Brean Capital and B. Riley & Co. say the absence of “must-have” items dampens shopper enthusiasm, while Boston Consulting Group describes consumer sentiment as “tight and frugal.”
So why are consumers reluctant to spend? Analysts believe deferred maintenance on the homefront might provide some insights as to where discretionary dollars are going. After years in the doldrums, furniture sales are up 5.5 percent. Business is brisk at Home Depot, especially in counter tops and roof repair and replacement.
The Container Store, which debuted in October at Christiana Fashion Center, is expecting a jolly holiday, thanks to its Gift Wrap Wonderland, which features one-of-a-kind gift wrapping and an array of stocking stuffers. Most offerings are priced in the $10-$20 range, says Marilyn Dolnick, the store’s general manager.
“The customer reaction to our Delaware store has been fantastic,” she says. “We feel our location at Fashion Center Boulevard provides great visibility and accessibility for time-crunched customers.”
Another strategy for attracting customers is so-called wrap parties on Saturdays and Sundays through Dec. 20. There will be demonstrations of such fine arts as bow making and wrapping a package so the seams on the paper are invisible.
Fashion-forward trends also are designed to get shoppers excited about spending money. The leading themes in wrap this year are deer and antlers, trees, foxes, sweater, snowflakes and wood-grain patterns. Also expect such DYI elements as personalizing packages with chalk.
Indy retailers are hoping to attract locals on Small Business Saturday, the day after Black Friday, with observances planned in Newark, Middletown, Dover, and other communities. (A statewide initiative on the first Saturday of each month was launched in March by the Small Business Alliance of the Delaware State Chamber of Commerce and the Delmarva Broadcasting Company.)
After a $10 million renovation, the Tanger Outlets at Rehoboth Beach are launching an aggressive holiday campaign, starting by opening at 6 p.m. on Thanksgiving and selling nonstop until 10 p.m. on Black Friday. Tanger also had added new brands to its mix, including Alex and Ani, a popular destination for bangles and bracelets.
Despite the naysayers, retailers anticipate hiring more employees. That’s a challenge, too. Because more people are working, merchants no longer have a glut of prospective employees for seasonal positions. To avoid a shortfall, Toys R Us has offered part-timers the option to double their hours. Macy’s is asking part-timers to work full time during the holidays.
Slow sales earlier in the year also have resulted in bloated inventory for some merchants, including Macy’s and Kohl’s. At the ICSC, spokesman Jesse Tron says he doesn’t see sluggish sales translating immediately into a bonanza of bargains for shoppers.
“We aren’t anticipating deep discounts,” he says. “We think of it as promotional pricing.”
