Retailers Trying To Attract Bargain-Hungry Shoppers

It is an anxious holiday season for cities and their retail businesses this year.

Throughout Van Zandt County, officials are hoping to see a strong December for local shopping. If that happens, it could bring a bright end to what has been a sagging year in local sales tax revenues.

Canton Economic Development Corporation Director Mercy Rushing is one of those hoping for some good news by the end of the month.

"Black Friday (Nov. 27) was up a little bit. Nationwide, spending was up $4.1 billion over last year, but the per person spending was down," she said.

"To me that says two things, that people were not spending as much for their own shopping and that more people came out to shop earlier in the holiday season. The hope is that those people will continue to spend some in December," Rushing added.

She also said Van Zandt County and Canton, and East Texas in general, have not been hit as hard as other parts of the country during the economic downturn of the past 12 to 18 months. However, she added, the effect may finally be showing in the Lone Star State.

"Texas is just now beginning to feel it. We kind of got hit last with what other parts of the country were feeling earlier in the year. In that vein, maybe things are beginning to turn around economically, though it may be a little longer for us," Rushing said.

Canton will likely finish 2009 with a total sales tax revenue below that of its 2008 total. The December allocation from the Texas Comptroller’s Office will not arrive until February.

Last year’s payment for December sales in Canton — $346,279 — snapped a string of four consecutive years of increases. Rushing said she is hopeful the city can rebound from that this holiday season, but the combination of shoppers spending less and stores cutting prices could make that difficult.

"I truly think people are hanging onto their money a bit more. Many are rethinking what they want to buy or are not sure what they can afford, and people who are retired are not making as much as they have in the past with their investment," she said.

That is forcing many stores to cut prices to attract budget-conscious holiday shoppers, Rushing explained, and also forcing store owners to be wiser regarding their inventory.

"They are getting smarter with their inventory, not carrying too much of one thing and having to be lean with merchandising. People who will be here to weather this storm have adjusted well with how they are buying for their inventory," she said.

Still, the news is not all bad around the county. Van has already surpassed its sales tax revenue in 2008 with the December payment (based on October sales) remaining.

Wills Point, which has seen revenue gains in eight of 11 months this year, is projected to beat its 2008 total as well.

Under such adverse economic conditions, discount retailers like Family Dollar and Dollar General Stores are very attractive to shoppers on a tight budget.

The newest Family Dollar location opened in the Trader’s Square Shopping Center in Canton in October. Rushing predicts a busy month ahead for that store and Dollar General.

"They also help because they will employ local folks, and it is another amenity to the public. When we are trying to attract people to live in Canton, the more (retail) choices you can offer, the more people will move here," Rushing said.

Family Dollar reported a 3.9 percent sales increase in its first quarter ending Nov. 28 compared to the same quarter last year.

Grand Saline, which also has both Family Dollar and Dollar General in its retail sector, could use a strong showing from both stores.

"We don’t have as much retail here as in Mineola and Canton, but I think a lot of people are trying to find what they need for Christmas locally, or if not, they are trying to stay in the county," Grand Saline Chamber of Commerce Executive Director Lisa Morrison said.

Both discount chains heavily market their respective stock of toys during the Christmas shopping season, Morrison said.

"They are both very appealing stores because they often have what everybody else has at a very reasonable rate…People also know they have great prices for toys," she said.

There are other outlets for Christmas buying in Van Zandt County, such as specialty gift shops. Morrison said the newly opened Nutty’s Peanut Butter and shops like Ben and Neva’s Flower Shop in Grand Saline offer gift baskets.

Canton, of course, has a unique holiday shopping market in First Monday Trades Days. Despite the cold weather this week, Rushing said she believed many people would turn out for the December sale, which started Thursday.

"People will still come to First Monday because they know you can usually get a bargain. First Monday is helping us continue the pace," she said.