Local Stores Get Profitable Holiday

Despite a dismal holiday season for many retailers nationwide, many stores in the Triangle reported returns above the national average returns for the holiday season.

The nation's retailers released Jan. 9 weaker-than-expected December sales figures.

Usually strong retailers such as Wal-Mart Stores Inc. and Target Corp. showed the effects of an uncertain economic environment and a shorter holiday season.

Same-store sales for the combined November and December period rose only 0.5 percent, in comparison with a 2.2 percent increase for the 2001 holiday season.

Wal-Mart reported same-store sales were up 2.3 percent, below an already-reduced estimate of a 2.6 percent increase.

Target showed that same-store sales were down 0.3 percent, in line with lowered expectations for a 0.4 percent decrease.

The results were well below Target's original projection of a 3 percent to 5 percent gain.

A weak economy, increased unemployment and more consumer debt played heavily into the disappointing holiday season, said Connel Fullenkamp, a professor of economics at Duke University.

The general consensus among retailers is that the season was less than stellar, said Christy Alphin, media representative for Crabtree Valley Mall in Raleigh.

"Speculations are that the season was definitely off," she said.

Mall stores are not required to release sales data for the season until Jan. 15.

Thanksgiving fell late in November, shortening the season to about four weeks, in comparison to the usual six-week season, Alphin said. She added that the ice storm that hit the area Dec. 4 also contributed to the shortened shopping season.

But other retailers expressed a more positive view of their performance during the holiday season.

"If anyone had it good, it was us," said Jeff Johnson, director of marketing for The Streets of Southpoint in Durham.

Johnson estimated that more than 2 million people came through the mall during the holiday season, meeting the mall's overall traffic goals for the season.

"Despite the economy and the ice storm, we did pretty well, due in part to concepts such as carolers and the general ambience of Southpoint," he said.

Reports that the holiday shopping season was dismal do not take into consideration Internet transactions, which boost total returns, said James Smith, a UNC business professor.

"The economy is much stronger than you are led to believe," he said.

Smith cited huge increases in Internet sales across the board and a 4.2 percent growth in gross national product for 2002.

The huge increase in Internet sales do not register in the same-store totals, Smith said.

He emphasized that total sales should be the only number that matters to experts.

"Wall Street analysts get hung up on same-store sales," he said.

Franklin Street shops also reported varying degrees of success during the holidays.

"Our holiday season was very strong and we met all our sales goals for the season," said Missy Julian, owner of the men's clothing store Julian's. "It was one of our best seasons. If not for the ice storm, which shut us down for five days, we might be out in the streets shouting for joy."

The season turned out better than expected despite its slow start for The Painted Bird, said store owner Anna Pepper.

"In total sales, the season was down, but it was better than I thought it was going to be," she said. "However, right before Christmas it got very busy.

"When people are worried about trees falling on them and keeping warm, shopping isn't much of a concern."

The State & National Editor can be reached at stntdesk@unc.edu.