Shoppers find deals to stretch tight budgets
Black Friday discounts lure more customers than expected
Shoppers looking for bargains around the county have plenty to choose from this holiday season, with retailers ranging from Germantown's big-box stores to Bethesda's boutiques trying to lure customers with deep discounts.
But many county residents said they will be spending less and sticking to tighter budgets this year, as they cope with the effects of the economic downturn.
"I was let go of my job a couple of weeks ago, so obviously I'm being more conservative," said Ted Devers, 51, of Gaithersburg, who until last month worked as an account executive at an area direct marketing firm.
The big-box stores in Germantown's Milestone Center, such as Wal-Mart and Best Buy, teemed with shoppers on Friday morning. But bustling crowds belied the fact that many said they would be reining in their spending this year.
Young people in particular said they were short on cash this holiday season.
"I don't have any money to shop," said Faria Hassan, 21, of Gaithersburg, a student at George Washington University in Washington, D.C.
Kyle Bantum, a Germantown artist who recently returned to art school due in part to the sluggish economy, said he would be cutting back on holiday spending as well, by making gifts instead of buying them.
"I'd say I'm looking for other ways to enjoy the holidays," Bantum, 31, said with a laugh outside of Borders. "I'm probably going to be employing my art skills a little more."
At a time when Americans are losing their jobs by the thousands, some said buying presents was the least of their concerns.
"I'm on student loans, so I've been looking for sales, even on groceries," said Malinda Murphy, 24, of Damascus. Murphy, a nursing student at Johns Hopkins University, said she is working two jobs to put herself through school and that many of her friends are similarly strapped. "Really, presents and holiday shopping are the last thing on our minds," Murphy said. "We're just trying to pay our bills."
Shoppers around the county echoed concerns about the economy and seemed determined to spend less this season. Potomac resident Risa Reid said that while she is not buying fewer presents this year for her children — 8, 6, and 2 — she is looking for cheaper items and waiting for big sales. "We have a budget per child," she said.
Potomac resident Elaine McDermott, perusing a sale rack at Cabin John Mall, said she has sworn off frivolous purchases. "I'm really thinking low-key this year," she said. "I'm getting less, I'm spending less, and I'm waiting for sales."
A blacker Friday
More shoppers than expected headed to Maryland stores over the Black Friday weekend, according to retailers and surveys.
Feedback from members of the Maryland Retailers Association on Monday has been encouraging, said Thomas S. Saquella, president of the organization.
"It shows shoppers are responding to efforts to attract them, such as promotions and sales," he said.
But Saquella cautioned against reading too much into last weekend, noting that late November was good for retailers last year but then the crowds thinned out in December.
"Black Friday is always big," he said. "We have to wait and see."
The state group is not forecasting any gain in holiday sales this season for the first time since it started to predict such sales more than two decades ago.
Nationally, more than 172 million people visited stores and Internet sites last weekend, up from some 147 million a year ago, according to a survey by the National Retail Federation. Shoppers spent $41 billion, up 7 percent from a year ago, over the weekend, beating expectations.
Electronics and clothing were big sellers, the survey said.
Deep discounts
Bethesda Row retailers expressed mixed emotions about the season.
Janie Griffin, owner of The Little Shoebox, an upscale shoe store, said she has tempered expectations.
"It is definitely going to be slower-paced than previous years, and there may be very few retailer shoppers," she said. "Everybody is going to be putting their merchandise on sale."
At the Little Shoe Box, all merchandise is currently 30 percent off to lure potential shoppers.
Catherine Koch, manager of Urban Chic, said the store is still shooting for the same sales numbers as last year, but business has stumbled out of the gate.
"It's been a little bit slow, but it will pick up," she said. "Considering the economy, we're still doing well, and people are still coming in."
At the Cabin John Mall and Shopping Center in Potomac, clothing retailers are feeling the pinch this holiday season.
"It's affecting everyone — everyone is more cautious instead of being so extravagant," said Robin Greger, co-owner of the B Scene blue jeans store. "Instead of two or three pairs of jeans, they might just buy one."
Greger said she is struggling to compete with deep discounts and early markdowns at larger retail stores — lures that seem to be the hallmark of a sluggish holiday shopping season. Greger said she started discounting several weeks before Thanksgiving, though she began just around the November holiday last year. And what were once 20 percent discounts are nearing 40 percent this year.
"We're doing more discounting and seeing what other promotions we can get going," Greger said.
The economic downturn is also affecting stores like Shoe Train, a children's shoe store in the Cabin John Mall. Though the store doesn't usually spike in customers around the holidays, it is being affected by slowed consumer spending.
"People are buying less shoes," said Ed Jurgrau, owner. "They are more concerned about prices and they're extending their purchases and waiting longer to buy the shoes."
Fewer holiday helpers
Besides using discounts to try to boost sales, Maryland retailers are reducing inventory and trimming marketing budgets to control costs. Seasonal hiring expectations for the nation are at a 17-year low as consumer confidence declines, according to a survey by Milwaukee temp company Manpower.
Moreover, a survey of 1,000 managers released by SnagAJob.com, a Richmond, Va., Internet job site, found that each plans to hire an average of 3.7 seasonal employees — down by one-third from last year. Some 57 percent of managers surveyed said they don't plan on hiring any seasonal employees this year, up from 49 percent last year.
The U.S. retail industry lost 38,100 jobs in October, bringing the total since January to 297,000, Michael P. Niemira, chief economist at the International Council of Shopping Centers, said in another report. That group is forecasting a 1 percent increase in holiday sales this year, slightly below the National Retail Federation's expected 2 percent increase nationally to $470.4 billion.
Ian Torres, a manager at the Sunglass Hut in Montgomery Mall, said he has received seven or eight applications during the past few weeks from students home from college looking to earn extra money.
"We're actually looking for people right now," he said.
James Town, a sales representative at The Mobile Solution cellular phone store a few steps away from Torres, said he applied for a full-time job at the store in October on a Friday. The following Monday, he was in an orientation class for the job. But he said he knows people who are now looking for holiday jobs who are not so fortunate.
"A lot of people are looking and not finding jobs," he said.
Town, 29, said he lives in Landover, but when he was looking for work, he knew he had a much better chance of finding a job in Virginia or Montgomery County than in Prince George's County.
"You know where to look if you really want a job," Town said.
Staff Writers Bradford Pearson, Erin Donaghue, Andrew Ujifusa, Meghan Tierney, Patricia Murret, Kevin Shay and Rebecca McClay contributed to this report.
Number of extra workers hired by retailers during holiday season, 2007: 618,000
Fewest holiday season employees hired by U.S. retailers in past decade: 402,500 in 2001
Most holiday season employees hired by U.S. retailers in past decade: 684,850 in 1999
Percent of annual sales made by retailers during holiday season, 2007: 19.1
Average number of temporary kiosks that malls added for the holiday season, 2007: 6
Holiday songs most frequently played at shopping centers, 2007: "Jingle Bells," "It's Beginning to Look a Lot Like Christmas"
Sources: Maryland Retailers Association, National Retail Federation, International Council of Shopping Centers