By Lina Khouri
Canadians are less likely to spend money on shopping this year, but Centretown store owners stocking up for the coming Christmas season, aren’t worried.
According to the latest consumer-confidence survey, conducted by Decima Research, this past May to October saw the sharpest decline in shoppers’ confidence about the strength of the economy since 2001. This uncertainty might lead people to limit what they buy.
Higher gas prices, hydro bills and hurricanes Katrina and Rita are contributors to this sharp decline, according to Bruce Anderson, a spokesperson for Decima Research.
But to Centretown area store owners, higher expenses won’t make the difference in sales.
Even when the price of living is rising, it’s still important to go shopping, says Mark Rozanski, owner of Goldart Jewellery Studio on Bank Street, where he personally designs and creates jewellery.
“What’s important is that people keep on spending,” Rozanski says.
“If they have to take $20 and put it towards gasoline, let them still spend on jewellery, $20 less, but still spend it. Everything is connected.”
Prices can be lowered to suit tough times caused by rising utility prices such as gas and heat.
To him, the point is to keep the consumer-merchant ball rolling.
What concerns Rozanski more than higher gas prices is a lack of confidence in the government, which employs the majority of his clients.
“When the (sponsorship scandal) leaks started, buying slowed down. Every election that we have buying goes down because there is uncertainty in this town and when in doubt, people will keep their hands in their pocket.”
Rather than relying on broad market analysis, Rozanski keeps his eyes peeled for what people feel and want in his neighbourhood and bases the price of his product on that.
Nicole Beaumont, manager of Chez Glass Lass, has not doubt customers will buy the handmade decorations from her store this Christmas season. In September, she ordered more merchandise for the holidays than she did last year.
“I believe (sales) are going to be more because this is our third Christmas since we’re at this store and we keep getting new customers each year. People are already telling us they’ve got ideas for Christmas gifts,” Beaumont says.
Aside from the store in Nova Scotia where the glassware is made, Ottawa is the only other place people can purchase the decorative pieces.
Beaumont says she’s seen people from Toronto and Montreal make the trip to her small Bank Street store.
But it remains to be seen whether people will drive in the midst of these gas prices.
Another local business sees the silver lining in the hydro cost increase.
Kiddytown Ltd., a children’s clothes and accessory chain, ordered their winter season and holiday stock last January and recently saw a jump in sales when the weather drastically cooled down.
“Weather influences people for Christmas shopping, puts them in the mood to buy winter clothes,” says Kiddytown owner Rhea Hochstadter.
Around Christmas time, Kiddytown sells winter clothing, thick blankets and accessories.
Hochstadter predicts a rise in hydro prices will encourage families to turn down the heat to avoid the full impact of the rise in cost.
“People are going to look for heavier items, thicker jackets, pajamas, and blankets,” Hochstadter says.
Given last year’s mild winter, Hochstadter just hopes the company ordered enough clothes to supply their three stores.
“With the weekends being so miserable, cold, damp and rainy, you couldn’t ask for better weather,” she says. For Hochstadter’s line of business, that is.
The price of living may have skyrocketed and consumer confidence may have plummeted in the past few months but Centretown businesses are still optimistic, ready and waiting.