Economy may be slow, but big sales still expected
November 26, 2001
Despite the slowing national economy, both economists and retailers are expecting the usual shopping frenzy this holiday season.
After the Sept. 11 tragedy, Americans watched the stock market plummet, and consumers became wary of participating in their usual spending habits. However, Kurt Carlson, general manager of North Grand Mall, said mall retailers are fully anticipating holiday sales to equal those of a year ago.
“Of course, we saw the sales drop off after what happened on Sept. 11, but we have now seen the customers shopping more and more regularly again,” Carlson said. “We’re not expecting any gains to exceed what we did last year, but we are confident that we will at least match last year’s total.”
Dan Otto, professor of agricultural economics, said the economy was already in a slump before Sept. 11. Layoffs in manufacturing and delays in the hi-tech industry had already slowed down the economy, he said.
“Sept. 11 exacerbated a slowing economy,” Otto said. “I don’t think [the economy] has rebounded. We are seeing some shifts in spending, less on travel and luxuries and more on staple goods.”
However, he said despite the indications of reduced consumer confidence, there have been some positive signs that should help consumer spending during the holiday season.
“Energy prices are lower, and so far we’re off to a milder winter,” he said. “Also, low interest rates are leading to refinancing, which should increase disposable income for customers.”
Carlson said the mall is taking action to draw the customers back to the stores. In addition to the retailers’ usual holiday sales and bargains, the stores will be focusing much of their attention on improved customer service.
“We want to provide the next level of additional customer service,” he said. “This includes everything from meeting and greeting the customers to making sure that every detail of their shopping experience is as low-hassle as possible.”