Black Friday got its name because, for many retailers, it marks the point in the calendar year when their bottom lines begin tipping toward the black, often the first time since the previous year’s Christmas season. It’s a critical few weeks for retailers, including local merchants, many of whom will participate in Small Business Saturday this weekend.
The 31st annual Holiday Survey from Deloitte University offers some insight into what consumers plan for the next three weeks of holiday shopping. As with every year since the depth of the great recession in 2008, consumers expect to spend the same or more on gifts, outings and decorations than last year.
When asked why, 36 percent of these folks said they could afford to spend more because their household financial situation had improved. Only a quarter said their financial situation had worsened since last year. Contrast that figure with another: Fifty-eight percent of Americans think the country is on the wrong track, according to weekly Rasmussen polls. That is the lowest percentage since early 2015 and well below the 72 percent who thought the country was on the wrong track in July.
These survey results are an interesting contrast to this month’s presidential election results, which are cast as highlighting voters’ frustration with the economic stagnation of middle America. However, there is good economic news, as reflected by the Deloitte survey. Personal income is growing, albeit slowly, and fuel prices for driving and heat are at their lowest level in years, leaving more money in people’s pockets.
Home prices also are rising, and unemployment rates are steady.
So what are people spending money on this holiday season? Gifts, of course. Survey respondents say they planned to spend an average of $426 on gifts, a 13 percent decline from last year. They expect to give an average of 14, the same as last year but well below the 23 gifts they expected to give in 2007.
Not to spoil any surprises, but the most common expected gifts — to give and receive — are clothing and gift cards.
Half of the holiday survey respondents said they will shop online, and they expect to spend as much online as they do in brick-and-mortar stores. The convenience is great, but buying gifts at locally owned retailers will do much more for your local economy. About half the money spent at local shops, restaurants and other business is recirculated locally, compared with just 14 cents of every dollar spent at a big-box chain. (It would be even less for an internet retailer, many of which have no brick-and-mortar community presence.)
Local retailers also pay local and state taxes and contribute more generously to local charities. They also create local supply chains by purchasing products and services from nearby suppliers.
Downtown Bangor merchants will celebrate Plaid Friday on Nov. 25. In addition to discounts at stores and restaurants, parking is free in the Pickering Square garage.
Saturday is Small Business Saturday, a shop-local day first designated in 2010 by American Express. Businesses in many communities will offer special deals and treats. In Bangor, for example, many downtown shops will offer a variety of discounts and there will again be free parking. Bangor Savings Bank’s 54 branches have collected coupons and merchandize from local retailers across the state. Stop in to a branch and ask for a reusable shopping bag filled with these goodies, while supplies last.
And, amid the shopping, don’t forget donating to charity is an important part of the holiday spirit as well.
