Holiday sales recover a bit in Snohomish County after dire 2008 season

Published 8:57 pm Sunday, December 20, 2009

So far, this holiday season is a mixed bag for retailers and small businesses.

On one hand, buying seems stronger than last year. But that raises the question: Is slightly better than bad really that good?

Still, there are bright and sparkly spots in an otherwise lackluster holiday buying-and-selling season, some business owners say.

For Everett gift-shop owner Judy Matheson, her company’s saving grace is the loyal customers who still come in, keeping sales climbing over last year.

“We feel fortunate that we have a loyal following, and we have seen a positive increase in sales this season,” said Matheson, who owns J.Matheson Gifts and J.Matheson Kitchen &Gourmet on Colby Avenue in Everett.

Not everyone is weathering the prolonged downturn as well. Though retail spending rose 1.3 percent in November, more than expected, many shops are reporting customers aren’t coming as frequently. And they’re not buying as much when they do come.

Still, most report improvements over 2008, a year economists called one of the worst retail seasons of the last two decades.

“This year has been a little better than last year,” said Steve Kropf, owner of a Gathering Grove in Everett. “The overall feeling of the holiday spirit has been better but still subdued when compared to two or three years ago.”

Average daily transaction numbers for December have increased about 5 percent over last year’s numbers at the bookstore and coffee shop, Kropf said. He’s noticed customers are picking out stocking-stuffer gifts that sell for less $10. Larger ticket items aren’t selling so well.

But from behind the store’s coffee bar, the trend looks completely different.

“Typically, people tend to splurge a little more on their drinks by treating themselves to a mocha, an eggnog latte or adding a seasonal flavor like peppermint or pumpkin spice instead of purchasing their regular beverage,” Kropf said.

Consumer confidence is still far from pre-recession levels, and economists speculate that has to do with concerns about job security and lack of credit.

Electronics dealers and many online merchants saw a sales spike in November, partially due to the after-Thanksgiving start of the holiday shopping season. But clothing retailers and luxury businesses were struggling, according to data from retail analysts.

But as Kropf found with his cafe customers, not all luxuries are off-limits this year. Denice Ingalls, owner of Sky River Winery in Sultan, said her honey wine is still in demand.

“This holiday season things have started out slow, but have been gaining some momentum recently,” she said last week.

She thinks deep discounts from retailers captured consumer attention early in the season, but now she’s seeing an uptick in sales.

“As the holidays draw closer people are beginning to take care of the more intimate gifts on their lists,” she said.

To find out more about how these and other small businesses are doing this holiday season, read The Daily Herald’s small business blog at cmg-northwest2.go-vip.net/heraldnet/TheStorefront. This week, The Storefront is featuring Q&As with a few Snohomish County business owners on how December sales and marketing efforts are comparing to past years. Contact Herald writer Amy Rolph at 425-339-3029 or arolph@heraldnet.com.