Following the bustling Black Friday weekend, Kristen Tarnol, the owner of Emerald Forest Gifts located in Studio City, California, is requesting additional stock of popular fuzzy alpaca scarves and warm slippers from her supplier.
“Despite being in Los Angeles, I believe that shoppers are leaning towards cozy items,” she expressed.
With Thanksgiving occurring later this year, retailers are facing a holiday shopping season that is five days shorter than the previous one. Small shop owners report that customers are eager to purchase holiday decorations early, along with gifts both for others and themselves, with popular items including sweaters. However, the carefree spending habits seen during the pandemic seem to be less prevalent this time around.
Overall, the National Retail Federation anticipates a rise in retail sales of 2.5% to 3.5% for November and December compared to the same period in the previous year. Furthermore, online shopping is predicted to increase as well, with Adobe Digital Insights forecasting an 8.4% growth in online sales for the entire season.
Some retailers note that shopping patterns have been quite unpredictable during this holiday season. Nathan Waldon, the owner of two gift shops named Nathan & Co. in Oakland, California, reported a record-breaking Black Friday with a 32% increase in sales, yet found that business dramatically slowed following that surge. He remains hopeful for a rebound in sales.
“I maintain a positive outlook for the holiday season,” he stated. “However, it appears to be another roller coaster ride in terms of sales.”
Comforting items such as scarves, hats, and gloves are proving to be popular; whimsical Christmas and Hanukkah cards, as well as brightly colored items, are also selling well. “People are yearning for joy and fun,” he remarked. “A couple of seasons ago, everything had earthy tones, but now there’s a clear appetite for vibrant colors.”
One of his bestselling items is a bright pink sweater emblazoned with the word “Merry,” retailing for $120, although shoppers generally prefer spending less than half that amount. “Customers might pick up a $25 item but may also throw in something extra,” he mentioned. “It seems the ideal price range is around $40 to $50.”
In various locations across the country, small retailers are hoping that holiday shopping will help them recover from financial losses incurred due to severe weather conditions throughout the year. In Florida, Jennifer Johnson, who owns the consignment store True Fashionistas in Naples, experienced a sluggish summer due to the area’s impact from three hurricanes this year. Consequently, she decided to boost her Black Friday discounts to attract customers, offering a 25% discount instead of the usual 18% to 20%.
This adjustment yielded positive results, leading her shop to achieve record sales during the weekend. Shoppers flocked to purchase festive Christmas outfits and décor items, which are flying off the shelves this year.
“Last year, we ran out of Christmas items by the second week of December, but we’re almost out at just the start of December now,” Johnson noted.
When it comes to clothing, “anything sequined or bejeweled, anything that feels festive and elegant is flying off the racks,” she added.
Nicole Beltz, who runs three Serendipity shops in the Philadelphia area selling clothing, accessories, and home goods, encountered a various roadblocks over the year due to weather unpredictability, including snow, heavy rains, and extreme heat. The challenging economy and stiff pricing competition from larger retailers also posed challenges.
During the Black Friday weekend, she offered discounts of 20% on orders of $75 or more, alongside 30% off on $150 orders, contrasting last year’s promotions that only included discounts on selected items.
“This year demanded our biggest incentives yet to attract shoppers,” she explained.
Beltz observed that customers were primarily drawn to items priced either under $20 or around $100. Popular items at her shops included Philadelphia Eagles and Taylor Swift merchandise, varying from $14 socks to $99 sweaters.
“There’s an impulse buying category under $20, where people don’t hesitate to make a purchase. At the other end of the spectrum, we have customers seeking gifts, and we aim to keep our top sellers—like those sweaters—priced just below $100,” she mentioned.
Not every small business can rely solely on discounts for attracting customers, as profit margins can be quite slim.
In Philadelphia, Between Friends Boutique is turning to events for boosting holiday sales. They hosted a “Sweater Explosion” event early on Black Friday, featuring hot apple cider and marshmallows while showcasing various sweater styles.
Sweaters priced under $100, alongside $25 reversible silk scarves adorned with art from painters like Monet, have been popular.
“Our customers enjoyed that added touch of joy during the holiday season. The scent of cinnamon made it feel like the festivities had officially begun,” co-owner Claudia Averette mentioned, noting an increase in sales compared to last year.
Additionally, they will be hosting a “Bourbon and Bow Tie” event on December 20, highlighting their men’s accessories, including bow ties, socks, and scarves.
Averette emphasized that hosting events significantly enhances exposure, stating, “It serves as a brilliant marketing approach.”