BY NICK DIAMANTIDES
Staff Writer
The approximately four weeks between Thanksgiving and Christmas have traditionally been the best time of the year for retailers. With so many people buying gifts and party supplies, it was almost always assumed that store and restaurant profits would rise dramatically.
Such is not the case this year. The mortgage meltdown, the construction slowdown, the failure of banking institutions, and looming layoffs for many workers in the private as well as public sectors have put the fear of an economic depression into the hearts of millions of Americans. As a result, many of them have sharply curtailed their spending, and many have decided to forgo the lavish spending of past Christmas seasons. Although the price of gasoline has significantly dropped in the past few weeks, no one is certain how long that price reduction will last, and it has not yet inspired people to spend more money purchasing items they do not absolutely need.
“A lot of the stores in Bixby Knolls are doing their own types of sales programs to get more people in, and I am happy to do anything I can to promote local businesses,” said Blair Cohn, executive director of the Bixby Knolls Business Improvement Association. “It’s obviously too early to know how sales will go during the next few weeks.”
Cohn noted that the heads of all the business improvement associations in the city recently met with Robert Swayze, manager of Long Beach’s Economic Development Bureau. “He painted a very bleak picture. He told us that in Long Beach as well as nationally, it is going to be a very tough season,” Cohn said. “He told us to tell all of our businesses to do their best and to try to just hold on.”
Swayze explained that although retail sales on the day after Thanksgiving were better than a year ago, the spike did not last long. “There was a pent-up demand because so many consumers had stopped shopping in October and November,” he said. “But as the Thanksgiving weekend progressed, sales were down once again.” He added that economists expect flat sales throughout the United States during this holiday season.
Thor Carlson, owner of THOR Antiques at 4122 Atlantic Avenue, agreed with that prediction. “I am expecting flat sales,” he said. “People are reluctant to spend money.’
Swayze acknowledged that there was little city officials could do to reverse the national trend, but residents could help local businesses survive. “We are starting a ‘shop local’ promotion,” he said. “We are working with all the business associations in the city to encourage residents to make more of their purchases in Long Beach stores.”
Carlson said he hopes that support will occur. “In these economic times, it’s important for residents to understand that local businesses are owned by their neighbors and provide jobs to their neighbors,” he said. “I also hear a lot of people say that they want Bixby Knolls to have unique shops, but many of the shops go out of business because people who live in the area do not support them.”
“Our in-house business is flat, but we are fortunate in that we are not hurt as much as a lot of the high-end restaurants,” said Mike Johnson, owner of Arnold’s Family Restaurant at 3925 Atlantic Avenue. He explained that his eatery’s $10 lunches and $12 dinners are attracting people who used to feel comfortable spending more, and it helps balance out the number of regulars who have temporarily stopped showing up. “A lot of people are going back to just cooking at home,” he explained.
Arnold’s also benefits from another aspect of its food preparation. “We have a very good catering business,” Johnson said. “November and December are very good catering months for us, and that helps lift us above the flat in-house sales.”
Eric Vitwar, owner of Tuttle Cameras at 4019 Atlantic Avenue, said business has been steady for the last couple of months. “But I have no expectations as to what might happen in the next few weeks,” he said. “It is very hard to predict these things.”
Luan Fogg, owner of Luan’s Dress Shop (a children’s clothing store at 3734 Long Beach Boulevard), said her business is terrific. “That’s what happens when you stay in business for 56 years,” she said. “It’s just as good as it was last year, and we expect it to remain steady through the season. People are still buying for children.”
Joe Hawkins, owner of The Tile Zone at 3677 Atlantic Avenue, had a different outlook. “I can’t believe how lousy business is right now,” he said. “It started in September of 2007 and has gotten steadily worse.”
He said the mortgage crisis, which had greatly reduced the ability of residents to get home improvement loans, has impacted him significantly, but worse is the perception that many people have. “I think lots of people still have money to spend, but they are afraid to do that,” he explained. “If we didn’t have television news constantly telling people how bad the economy is and how it might get worse, things would probably be a lot better.”
Johnson said he believes things will get better soon. “Right now, I think that people are just wanting to see where this economy is going,” he said. “I believe that by spring or summer of next year, when people realize that our economy is not going to collapse, they will be willing to spend again.”
