Spend for the holidays, commerce secretary urges

  • Monday, November 19, 2001 9:00pm
  • Business

Associated Press

CHICAGO — U.S. Commerce Secretary Don Evans says the economy is primed for a rebound if Americans would just open their wallets during the holiday shopping season.

"People ask all the time, ‘What can I do, what sacrifices can I make for my country?’ " Evans said at the first in a series of "America Works" forums Monday in Chicago. "One thing is moving on through fears. Go back to the stores."

But top retailers on Evans’ panel at the University of Chicago said many consumers aren’t heeding the call at the start of the holiday season. Sears chief executive Alan Lacy said revenues are down 3 to 4 percent since the Sept. 11 terrorist attacks.

He said people are buying more household goods and home-improvement items, possibly because they feel like spending time with their families. But other items such as clothing and luggage aren’t selling as well.

"People want to stay home and watch the news on their big-screen high-definition TVs these days," Lacy said.

Crate and Barrel chief Gordon Segal said the high-end household goods retailer is having to adjust as people stop buying luxuries and focus on needs.

"We all believed in ‘97, ‘98 and ‘99 that we were all geniuses," Segal said. "Most specialty stores are selling things people want, not what people need."

Examples of these new shoppers were evident nearby at the Sears department store on State Street where Sandra Ross, 49, of Chicago, was looking for sheets and pillow cases.

"I went in for some of the more traditional things," Ross said.

Still, she works across the street at a T.J. Maxx store and said she sees enough shoppers to make her confident in the economy.

"People find a way to shop. They have a need to shop," she said. "They’re going to max out their credit cards."

Bush administration economic advisers on the panel said the government is doing what it can. Declining interest rates appeared to help before Sept. 11, as did tax cuts, said Larry Lindsey, assistant to the president for economic policy.

But to fight the post-terrorism slide, he said Congress should pass the further tax cuts and spending programs in the president’s economic stimulus package.

SeamCraft chief executive Stephen Stack told Evans any economic stimulus should include a requirement that tax dollars be spent only in America. His Chicago company tried to win a contract supplying bags to the Great Lakes Naval Training Center, but lost out to a Chinese supplier.

"Without factories, there is no America," he said.

Toni Fonseca, who files documentation for immigrants and represents minority-owned shops with Chicago’s 47th Street Chamber of Commerce, said she fears the stimulus package will help only big business.

"Everyone here is talking about millions (of dollars)," she said. "But where does the small business stand?"

Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

A closing sign hangs above the entrance of the Big Lots at Evergreen and Madison on Monday, July 22, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Big Lots announces it will shutter Everett and Lynnwood stores

The Marysville store will remain open for now. The retailer reported declining sales in the first quarter of the year.

George Montemor poses for a photo in front of his office in Lynnwood, Washington on Tuesday, July 30, 2024.  (Annie Barker / The Herald)
Despite high mortgage rates, Snohomish County home market still competitive

Snohomish County homes priced from $550K to $850K are pulling in multiple offers and selling quickly.

Henry M. Jackson High School’s robotic team, Jack in the Bot, shake hands at the 2024 Indiana Robotics Invitational.(Henry M. Jackson High School)
Mill Creek robotics team — Jack in the Bot — wins big

Henry M. Jackson High School students took first place at the Indiana Robotic Invitational for the second year in a row.

The computer science and robotics and artificial intelligence department faculty includes (left to right) faculty department head Allison Obourn; Dean Carey Schroyer; Ishaani Priyadarshini; ROBAI department head Sirine Maalej and Charlene Lugli. PHOTO: Arutyun Sargsyan / Edmonds College.
Edmonds College to offer 2 new four-year degree programs

The college is accepting applications for bachelor programs in computer science as well as robotics and artificial intelligence.

FILE — Boeing 737 MAX8 airplanes on the assembly line at the Boeing plant in Renton, Wash., on March 27, 2019. Boeing said on Wednesday, Feb. 21, 2024, that it was shaking up the leadership in its commercial airplanes unit after a harrowing incident last month during which a piece fell off a 737 Max 9 jet in flight. (Ruth Fremson/The New York Times)
Federal judge rejects Boeing’s guilty plea related to 737 Max crashes

The plea agreement included a fine of up to $487 million and three years of probation.

Neetha Hsu practices a command with Marley, left, and Andie Holsten practices with Oshie, right, during a puppy training class at The Everett Zoom Room in Everett, Washington on Wednesday, July 3, 2024. (Annie Barker / The Herald)
Tricks of the trade: New Everett dog training gym is a people-pleaser

Everett Zoom Room offers training for puppies, dogs and their owners: “We don’t train dogs, we train the people who love them.”

Andy Bronson/ The Herald 

Everett mayor Ray Stephenson looks over the city on Tuesday, Jan. 5, 2015 in Everett, Wa. Stephanson sees  Utah’s “housing first” model – dealing with homelessness first before tackling related issues – is one Everett and Snohomish County should adopt.

Local:issuesStephanson

Shot on: 1/5/16
Economic Alliance taps former Everett mayor as CEO

Ray Stephanson will serve as the interim leader of the Snohomish County group.

Molbak's Garden + Home in Woodinville, Washington will close on Jan. 28. (Photo courtesy of Molbak's)
After tumultuous year, Molbak’s is being demolished in Woodinville

The beloved garden store closed in January. And a fundraising initiative to revitalize the space fell short.

Everett Mayor Cassie Franklin, Advanced Manufacturing Skills Center executive director Larry Cluphf, Boeing Director of manufacturing and safety Cameron Myers, Edmonds College President Amit Singh, U.S. Rep. Rick Larsen, and Snohomish County Executive Dave Somers participate in a ribbon-cutting ceremony on Tuesday, July 2 celebrating the opening of a new fuselage training lab at Paine Field. Credit: Arutyun Sargsyan / Edmonds College
‘Magic happens’: Paine Field aerospace center dedicates new hands-on lab

Last month, Edmonds College officials cut the ribbon on a new training lab — a section of a 12-ton Boeing 767 tanker.

Gov. Jay Inslee presents CEO Fredrik Hellstrom with the Swedish flag during a grand opening ceremony for Sweden-based Echandia on Tuesday, July 30, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Swedish battery maker opens first U.S. facility in Marysville

Echandia’s marine battery systems power everything from tug boats to passenger and car ferries.

Helion Energy CEO and co-founder David Kirtley talks to Governor Jay Inslee about Trenta, Helion’s 6th fusion prototype, during a tour of their facility on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
State grants Everett-based Helion a fusion energy license

The permit allows Helion to use radioactive materials to operate the company’s fusion generator.

People walk past the new J.sweets storefront in Alderwood Mall on Thursday, July 25, 2024, in Lynnwood, Washington. (Olivia Vanni / The Herald)
New Japanese-style sweets shop to open in Lynnwood

J. Sweets, offering traditional Japanese and western style treats opens, could open by early August at the Alderwood mall.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.