After the dust settled in Valley Stream, where a Wal-Mart employee was trampled to death, six were injured and one was arrested for resisting arrest just after 5 a.m. on Black Friday, Long Island and the nation resumed the annual tradition of gauging what it all means to the economy at large.
The Wal-Mart case appeared in national news stories amid the retail sales statistics as if it set a new bar for the holiday shopping season benchmarks, making the Island the poster child for the most overenthusiastic shoppers in all the land. But Black Friday, the day after Thanksgiving that is traditionally known as the kickoff to the yearly spend-a-thon leading up to Christmas when retailers typically make their biggest profits, is a murkier tale than in years past—even online retail sales are weak.
“It’s a socioeconomic phenomenon,” says Martin Cantor, director of Dowling College’s Long Island Economic and Social Policy Institute, describing the fatal stampede as a sign of the economy’s ills. “There’s just no money out there,” which makes people desperate, he says.
But besides the obvious—a stubborn U.S. recession and rising unemployment rate—factors affecting the shopping season include the fact that there is only 27 days between Thanksgiving and Christmas, as opposed to 32 peak shopping days last year. Chanukah is also off to a late start this year, Dec. 21 as opposed to Dec. 5 last year, which means more gift purchases will start later than usual.
And while national studies show that spending on Black Friday and the following Saturday was up $16 billion, an increase of about 2 percent from last year, according to ShopperTrak, those figures don’t include the losses retailers incur as they offer discounts that cut into profits for the sake of luring foot traffic. Add to that the fact that the nation’s second-biggest mall management company, General Growth Properties, is warning that it may file for bankruptcy, and the big picture is bleaker.
Despite the scrooges and grinches, some local store owners are seeing some reasons for holiday cheer in their cash registers. “So far we’re on a good course,” says Charles LoVarco, owner of Music Emporium in North Bellmore. “We saw a lot of shoppers coming out,” he adds, although he too is offering discounts that hurt the bottom line for the sake of keeping stock moving and customers coming back.
Independent toy store owner Mike Timico of Fun Stuff Toys in Seaford reports that despite the downturn, business has been steady. “After Thanksgiving people realize now, ‘You know what, we still got to buy for the kids,’” he says, cutting the conversation short so that he can tend to a few midday customers. He adds that there is no need to offer items on sale since kids’ toy requests are often specific, but he has implimented a new rewards program for return customers this year.
Although electronics and clothing are at the top of Santa’s list so far this year, there are signs that shoppers are heading downtown for gifts. “People are definitely returning to Main Street,” says Lori Zegel, owner of Nook & Cranny Collectible & Gifts in Islip. Hot items in her store include “peace memorabilia” because of the war and sentimental “feel-good merchandise,” like jewelry in the wake of the hard times. Zegel notes that while she doesn’t need to mark down items in her store, she has noticed other small-business owners cutting prices.
It seems that whatever gifts find their way under the Christmas tree this year will be all the more meaningful.