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Holiday sales up from 2006, but only slightly
By Kathleen Dayton
Staff Writer
The numbers are in, and though the Palmetto State outperformed the nation, December 2007 was not the merriest holiday season for S.C. retailers.
“Really, the only retailers I know that did well at Christmas were the electronics people,” said Noel Coker, manager of Reed’s jewelers in Northwoods Mall. “Business was tough in the jewelry industry. Everyone wanted a $99 item or a $59 item. We were down. My competitor across the hall was down.”
Gross sales in Charleston County rose nearly 5% to $997 million in December from $949.7 million in December 2006. Charleston County had the second-highest sales in the state in December, trailing Greenville County, which posted $1.1 billion.
Sales in Berkeley County rose 11% in December to $259 million from $233 million in December 2006. In Dorchester County, December 2007 sales rose to $167 million from $116 million in December 2006, an increase of nearly 44%.
Rapid development in Dorchester County, especially in Summerville, is contributing to retail growth in an area formerly not served by many retailers.
Rough time for chain stores
U.S. chain stores posted their slowest January since 1970, with sales growing 0.5% over the previous year, the International Council of Shopping Centers reported. Department stores and luxury chains had the sharpest declines.
Britt Beamer, chief executive of Charleston-based America’s Research Group, a consumer research and marketing firm, said the Carolinas did not fare much better than the rest of the country during the 2007 holiday season.
“We had a season that basically underperformed. There was nothing the consumers wanted to spend their money on, and food and fuel were going up at the same time,” Beemer said.
Consumer spending frozen
In a December survey of 1,000 consumers, America’s Research Group found that 49.6% of consumers said high fuel oil bills, gas prices or other debt or mortgage had their spending frozen.
The National Retail Foundation, which had predicted a 4% rise in holiday sales for 2007, in January reported only a 3% increase to $469.9 billion. The 3% increase was for November and December sales. December sales rose by 1.7%, the organization reported.
Leigh Burnett, marketing director for Citadel Mall, said retailers are finding ways to get through the softer economy. Some stock less or turn merchandise more often. “Their focus now is more on profit than volume,” Burnett said. “It’s a way to ride through a tough economic time. They’re getting lean and mean.”
While consumers are being extra cautious, Burnett said they haven’t turned away from the mall.
“They’re here, traffic numbers are showing that. They’re just not being as free with their spending,” she said.
Still, there are bright spots among the dark shadows hanging over local retailers. December sales were up at Tanger Factory Outlet Center in North Charleston, said Manager Suzanne Oden.
“It may help our business to be in tough economic times, because people feel they get the better deal,” Oden said. “We know that tourism is going to be affected or has been affected by the inflation of gas, but we’re not feeling that at this time.”
Kathleen Dayton is a staff writer for the Business Journal. E-mail her at kdayton@scbiznews.com.
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