The holiday shopping season is almost here and economists are predicting this year will be the worst shopping season since the 1991 recession.
Economists forecast only a 2.5 to 3 percent increase this year. Experts say it's bad news for retailers. College of Charleston economics professor Frank Hefner says, "All the signs are out there, the state unemployment rates are at a 15 year high, construction is still down. You put all that in the big mix, the question you have to ask is in order to have a really good retail Christmas season, where is everyone going to get the financing? Where will they get the money for this? Stores are going to have to do deep discounts probably, with the gloomy economic horizon right now. It doesn't look like a very positive retail season for the christmas area."
It's good news for shoppers. Owners of a new boutique on King street Boutique NV say they are offering additional discounts and incentitives to attract customers. The boutique opened it's doors in April. Co-owner Carrie Sobak says their store offers a chic, unique, but most of all affordable atmosphere for shoppers, and although she's concerned about the economy, Sobak says she she remains optimistic about holiday sales. Sobak says, "That's always something that looms in the back of your mind, especially being a new business. Definitely taking a chance right now with the economy the way it is. We wanted to be affordable so people who are shopping and buying Christmas presents for loved ones, can come in here and afford to do that."
Shoppers in Downtown Charleston have a mixed view of the slow economy's impact on holiday shopping. Penny Reese says, "I think a lot of families are going to struggle. I still think people will go out and provide for their children, and Christmas gifts and holiday gifts and things for their families, but I think it's going to be tough." Jane Forman says, "I think the economy is going to be alright. It always smooths out toward the end, like we did last year, came out pretty even. I think we will this year." Debra Gadsden says, "We have been pulling back. We've been clipping more coupons, really bargain shopping. I think people are going to be tightening their belts more and they're ir pinching pennies. Kids are not going to be happy this Christmas, unless they can come up with something that's really affordable for the families."
Part-time retail jobs are also predicted to be at a 17-year low this season. Experts say higher energy and food prices, the mortgage crunch, and rising unemployment numbers are all factors that contribute to low holiday sales.
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