By Arianne M. Matte
’Tis the season for spending money, and a strong economy this year is putting money in people’s pockets and smiles on shop owners’ faces.
Randy Scotland, spokesperson for the Retail Council of Canada, says the good economy has been aided by the Christmas bonuses typically awarded at this time and the government pay-equity cheques being handed out.
“Typically, when people receive back pay, or the promise of tax reductions, it’s obviously good news to consumers,” says Scotland.
“Those kinds of cash infusions are seen in a positive light. Customers are happy to have more money, and businesses are happy because of that disposable income coming their way.”
R. L. Dixon Ltd., a jewelry store on Sparks Street, is one business with recent sales increases. Store president Matthew Dixon says the elections slowed things down a bit, but he expects sales to increase soon.
“It’s certainly been more interesting,” says Dixon. “But for the most part it’s following the economy. I find that election years put a damper on business. I don’t think people spend money as they usually would. I’ve noticed it for years that election years affect luxury items.”
But with the federal election over, Dixon expects to see sales rise again.
“We are delighted with the current economy — people are going out and buying, and now they are buying higher-priced items,” says Dixon. “We’re very happy about that.”
The last round of pay-equity cheques from the federal government was sent out last month, totalling $180 million.
The recipients of the cheques are expected to spend one-third of this sum on luxury items.
Gail Schioler, owner of Norma Peterson Fashions in the Sparks Street Mall, says she has also noticed an increase in sales due to the extra money some of her customers have to spend.
“One thing is that with this pay equity for women, they’re spending more on themselves,” says Schioler.
“Before, they would buy one outfit, now they’re buying three or four. Some of them are even buying higher-end items.”
Howard Appotive, owner of Howard’s Jewellers on Sparks Street, says some of his customers told him they were taking advantage of pay-equity cheques, bonus cheques, and pay increases by treating themselves to more luxury items.
“We’ve been one of the beneficiaries of the recipients of the money,” says Appotive.
“Now, we sell more watches at $3,000 and over than we sell watches that cost $300 and under.
“As long as people have jobs and make money, the trend is definitely going on.”