Holiday sales expected to rise in spite of economy

Kassondra Cloos

Thanksgiving is still a few days away and retail stores have already been pushing their holiday season sales for almost a month.

Justin Brown, owner of Mynt in Elon, North Carolina, says her Christmas shopping has never been affected by the economy.

But even with the United States economy ever-present in the news media and on the minds of millions of Americans still pinching their pennies, not everyone is planning to tighten their belts this year when it comes to holiday spending.

Retail sales during the 2011 holiday season are actually expected to rise 2.8 percent this year, according to an estimate by the National Retail Foundation. The increase is much smaller than last year’s of 5.2 percent—twice the 10-year national average—but retailers are far more confident they will be able to overcome consumer caution.

“While businesses remain concerned over the viability of the economic recovery, there is no doubt that the retail industry is in a better position this year to handle consumer uncertainty than it was in 2008 and 2009,” said Matthew Shay, president and CEO of NRF.

Many consumers in Elon, North Carolina say they are not expecting to spend significantly more or less on presents this year than last year. Justin Brown, owner of a small specialty shop called Mynt, said the economy never affects the amount she spends on holiday shopping.

“I like to buy presents for people and I like to shop,” she said. “I’m almost done with Christmas shopping so you’re talking to someone that really likes to buy people presents. So even if I didn’t have the money to spend necessarily than I did the year before I would still buy the same amount. I think it’s more personality (than economics).”

Even with the economic uncertainty that has plagued the retail industry more than once in the past few years, Brown said Mynt has never seen any significant drop in sales because of the nature of the store, which is a specialty store generally serving shoppers who want to avoid the shopping mall experience.

Elon University sophomore Jessica Gianacakes said she does not plan to cut back this year because she spent almost nothing last holiday season. She has started making presents and giving more sentimental gifts instead of buying things, partly to save money, she said, but has a slightly larger budget this year to buy gifts.

“Being a student in college, I’m really broke as it is,” she said. “But I know my family cut back (last year) on spending because we had to save money. I’ve started making things because they’re more personal, they have more value.”

Gianacakes said she thinks the economy is getting better, but still suffering. This summer, she was unable to find work despite an extensive search for temporary employment.

Freshman JP Steers agreed and said he, too, will be making gifts this year.

“I’m buying less expensive things,” he said.

Burlington resident Josh Ezrine, the owner of West End Station, a bar in the town of Elon, said his spending over the past few years also hasn’t been affected by the economy and he expects to spend the exact same amount this year, as well.

Black Friday sales are not enticing to him, though, in spite of their generally attractive prices.

“I’m not going to wait to the last minute but I’m not going to go out with all those people,” he said. “More power to them.”

Colin Donohue, coordinator of student media and instructor of communications, agreed. He has a set budget in mind each year that he tries not to exceed, and this year’s is no different from last year.

“It’s about the same,” he said. “I never spend a tremendous amount on holiday gifts anyway.”

Even with drop-dead sales just around the corner and Black Friday emails already rolling into inboxes by the dozens, most people did not have a solid idea of what this year’s biggest items will be. Last year, apparel was in the lead with an increase of 11.2 percent in sales, but other consumers guess electronics will be huge sellers this year. Donohue, for one, has his sights set on a brand-new grill.

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