RETAIL SALES HEADING INTO HOLIDAYS WITH UNCERTAINTY

By Ezra Mann/OF THE COMMERCIAL STAFF

Retailers nationwide have seen better days as consumers buy fewer nonessential items in the rough economy. Pine Bluff has not escaped that reality, according to store officials locally.

Several retailers, however, said they are hoping for bright holiday sales.

Sissy’s Log Cabin continues to see tremendous traffic though those shopping for jewelry are waiting more for special occasions and not buying as many big ticket items, said Bill Jones, president of the company. He said that the economic outlook has been way overblown and that things will be getting back to normal. He expects a positive start to the new year as well.

“We’re aiming for a 5 percent increase in sales for the holidays,” added Jones. “Arkansas does not seem to have the same problems economically like the East or West coast.”

Jim Lyons, spokesman for JC Penney, said that due to economic challenges, more people are shopping smarter than in previous years. The department store chain still expects to hire additional employees for the season, however the total number of hires could change, depending on performance.

“On a company basis we are looking at a projection of a decline or decrease in the double digits,” Lyons said. “Local results may be better at some stores, but not necessarily all.”

The nation’s retailers saw their sales plummet last month to the weakest October level since at least 1969 as the financial crisis and mounting layoffs left shoppers leery. Many more are also out of work with unemployment reaching a 14-year high of 6.5 percent nationally in October, the Labor Department said last week, as the ranks of the unemployed swelled to 10.1 million.

The Pine Bluff metropolitan statistical area saw an unemployment rate decrease from 6.9 percent in September 2007 to 6.5 percent this year, according to a report from the U.S. Bureau of Labor Statistics. The state unemployment rate has fallen from 5.5 percent a year ago to 4.9 percent this year.

Retailers in Pine Bluff and beyond are still concerned about how the economy might impact their sales projections for the holiday season.

Linda Rauls, owner of Captured Moments, said that she has no idea what to expect, but hopes her recent success at the latest open house is an indication for the rest of the year. She said lower gas prices might help more businesses in Jefferson County and that she has a list of people on call if she needs additional helpers during the holidays.

In downtown, an official reported a staff cut because of the difficult times.

“We’ve had to cut some of our employees with the sales downturn, but we don’t know if it is long or short term,” said Maximillian Sprinkle, part owner of Dimeone. “We might still hire three people for the holiday season, but it’ll be a few weeks before we know.”

Consumers are also concerned and some plan to change their spending habits. Some shoppers are cutting by half what they might normally spend or are looking for more deals online, said several people at the new Dollar General, 1414 E. Harding Ave.

Shelia Aalseth, a dispatcher with the Metropolitan Communications Association, said she would easily spend $1,000 on gifts in the past, but is aiming for $500 since her kids are in college and she is shopping more for nieces and nephews.

“I’m doing a whole lot of dollar store shopping, that’s for sure,” added Aalseth. “Gas prices have helped, but only so much.”

Irma Davis, who works as a nurse at the State Hospital in Little Rock, said she will be giving out more cash this year instead of buying gifts. She is also aiming to cut back $300 from what she would normally spend and does not expect that gas prices will stay where they are after Thanksgiving.

The sluggish economy has some retailers watching their figures. Wal-Mart Stores Inc. reported a 10 percent increase in third-quarter profits Thursday, but trimmed outlook because of the global economy and the renewed strength of the dollar.

For the second quarter ending on Aug. 2, Sears Domestic’s comparable store sales declined 6.7 percent, according to a press release on the retail chain’s Web site. Total domestic comparable store sales declined 6.2 percent. The comparable store sales declines at Sears domestic continue to reflect increasing competition and weakness in the general economy but are less than the declines reported during the first quarter of 2008 of 9.8 percent.

Goody’s in Pine Bluff is expecting sales to remain at a steady pace, though there has been a trend developing where shoppers are waiting longer to go shopping, said Dorthene Davis, store manager. Bargains are going to be what pulls in holiday shoppers and the store has set a goal of nearly $50,000 for Black Friday (the day after Thanksgiving).

“We typically hire 25 extra (employees) and some of them are already working right now,” added Davis, who also noted that for the first time the store would be open on Thanksgiving Day. “Shoppers are going to be using coupons in force.”

Grocery stores in Jefferson County may not be hurt as badly since people will still have to buy food, but more consumers will be buying generic brands to pinch pennies, said Dusty Robertson, assistant manager of Cranford’s Fresh World in White Hall. Consumers will also make fewer trips to buy food even with lower fuel prices.

However, not all outlooks are bleak, with continued positive results coming in at Romancing the Stone at The Pines mall where expectations for the holidays are up, according to Heather Wages, sales associate. The store has set a goal of nearly $5,000 for the week of Thanksgiving and $12,000 for the month of November.

Specialty items, including hermit crabs and aroma fountains, are expected to sell well, Wages said. “We have up and down days.”

Comparable same-store sales at Radio Shack for company-owned stores and kiosks increased 7.7 percent during the third quarter compared with the third quarter of 2007, according to a press release on the electronics dealer’s Web site. Total net sales and operating revenues were up 6.4 percent to $1.1 million.

Sales are also strong at Double Header, an entertainment store, especially with items such as the Nintendo Wii, despite some recent dips in sales, which have forced some markdowns, said Freddie Herrin, owner. It’s going to be mixed results during the holidays and Herrin expects things to either even out or decline.

The Associated Press contributed to this report.