Small businesses say cautious shoppers are seeking ‘cozy’ and ‘festive’ this holiday season

Article content

After a busy Black Friday weekend, Christine Tarnoll, owner of Emerald City Gifts in Studio City, Calif., asked her supplier to send more of the fuzzy alpaca scarves and warm slippers that were best-sellers over the weekend.

Article content

Article content

“Even though it’s Los Angeles…I think people are looking for things that are really comfortable,” she said.

With Thanksgiving late, the holiday shopping season is five days shorter than last year, and small retail store owners say people have rushed to buy holiday decorations early, along with gifts for others and themselves. Comfortable items like jackets are very popular so far. But there is no sense in the free spending that occurred during the pandemic.

Article content

Overall, the National Retail Federation expects retail sales in November and December to rise between 2.5% and 3.5% compared to the same period last year. Online shopping is also expected to grow. Adobe Digital Insights, a division of software company Adobe, expects an 8.4% increase online for the full season.

Comfort and “whimsy”

Some owners say shopping has been erratic so far this holiday season. Nathan Waldon, who owns Nathan & Co., which owns two gift shops in Oakland, Calif., said he had his best Black Friday ever, with sales up 32%. But business slowed dramatically after that. He hopes it will rise again soon.

“I still feel optimistic about this season,” he said. “But it’s definitely going to be one of those rollercoaster seasons again.”

Cozy items are being sold: scarves, hats, gloves, funny Christmas and Hanukkah cards and bright colors, he said.

“People want that sense of whimsy, that sense of fun,” he said. “A few seasons ago, everything was kind of muted and earthy, and now everyone craves happy colors.”

One of his best sellers is a bright pink jacket with the word “FUN” written in big letters and selling for $120. But overall, shoppers are looking to spend less than half that amount.

Article content

Article content

“They might be able to buy the item for $25, but then add a little something extra,” he said. “It seems to me like the right price is between $40 and $50.”

Bounce

Small businesses in some parts of the country are hoping holiday shopping will help them recover from the harsh weather of the year. In Florida, Jennifer Johnson, owner of True Fashionistas in Naples, Florida, has faced a slow summer season, in part because the area has been hit by three hurricanes this year. It decided to increase its discount for Black Friday weekend this year to attract shoppers – offering a 25% discount instead of the 18% to 20% it usually offers.

You succeeded. The store had record sales days over the weekend. People picked up festive Christmas clothes and Christmas decor. She added that Christmas decorations, including ornaments, candles and other home decor, are selling faster than last year.

“Last year, we didn’t have anything for Christmas by the second week of December, and we’re almost done with it now, and it’s only the first week of December,” Johnson said.

As for clothing, she said: “Anything sequined, anything dazzling, anything that looks pretty and festive, that’s what they were buying.”

Article content

At her three Philadelphia-area Serendipity stores that sell apparel, accessories and home goods, owner Nicole Peltz also faced weather-related challenges in foot traffic throughout the year, including snow in the first quarter, heavy rainfall in the second quarter and severe flooding. Heat in the third quarter. An unpredictable economy and intense price competition were also major drawbacks during the year.

Over the Black Friday weekend, it offered 20% off orders of $75 or more and 30% off orders of $150 or more. Last year it only offered discounts on select items, not blanket discounts.

“We offered our biggest incentive ever for shoppers to offer discounts and promotions. I definitely think that was necessary this year,” she said.

Beltz customers gravitated toward prices under $20 or around $100. At its stores, Philadelphia Eagles and Taylor Swift merchandise were the best sellers, including $14 socks and $99 sweaters.

“The first is the batch category, where if it’s under $20, they’ll buy it. It doesn’t matter,” she said. “Then the second category will be for people who come in looking for a gift. We pay a sale of $100. We try to keep our best sellers, like those sweaters and those items that people really grab for a great holiday gift at $99, so under $100.

Article content

“extra touch”

Not all small businesses can use discounts to drive their business, because margins are often tight.

Instead, Bean Friends Boutique in Philadelphia uses events to drive traffic during the holidays. They held a “Sweater Explosion” event at 8 a.m. on Black Friday where they served hot apple cider and hot chocolate with marshmallows and promoted different styles of sweaters.

Jackets under $100 were big sellers, along with $25 reversible silk scarves featuring artwork from Impressionist artists like Monet.

“Our customers have appreciated this extra touch of holiday laughter. Coming in and smelling the cinnamon in the air feels like the holidays have arrived,” said co-owner Claudia Averett, who added that sales are up so far from last year.

They’re also hosting a “Bourbon and Bow Tie” event on December 20 to promote the fact that they carry men’s accessories as well, like ties, socks and scarves.

The event helps get exposure, Averett said. “It’s a great marketing strategy,” she said.

Article content