Bill Thompson, owner of Don Thompson Jewellers at 340 Albert St., says the recession has definitely taken a toll on his business.
Retail stores everywhere are beginning to prepare for their busiest shopping season. But this year the fallout from the global economic crisis has area stores bracing for potentially slower sales, according to local business managers.
Bill Thompson, manager of Don Thompson Jewellers, says his store plans to cut back on inventory for the holiday season, in case the news of an economy in shambles ends up deterring shoppers.
But Thompson says he is not yet worried that a downturn will have implications for his store.
Though the financial situation could result in shoppers buying less, he prefers to wait and see if it will have a real impact.
“Even with all the doom and gloom, I think it’s a bit too early to say if it’s going to,” he says.
Unsure whether it is the economy or the ongoing construction on Bank Street that is affecting sales at his store, Derek vanGessel, manager of Sports 4, says he too will bring in less stock this Christmas, but he is not overly concerned.
He notes that, especially in the pre-holiday period, cautionary reports about the economy are nothing new. “The media does this every year,” he says. “When it dips, it’s bad for some and good for others.”
Many retailers count on making as much as 40 per cent of their annual sales in the run-up to the holidays, according to Barry Nabatian, general manager of Market Research Corporation.
He acknowledges that talk of a recession might have some effect on shoppers.
“I think Christmas will be impacted by the fear factor, because you hear so much about it [the economic downturn],” he says. “Negative news exaggerates the situation to create a lot of fear. Consumers see it and spend a bit less, and that creates an economic slowdown.”
Nabatian says that while a recession would affect all businesses, those located in core areas like Bank Street enjoy a demographic advantage that will buffer them, minimizing potential losses.
For instance, he says, many households without children live downtown and tend to have higher disposable incomes, and these consumers will be able to continue their spending habits.
Some merchants, such as Mark Theriault, manager of Maison Baguette Etc., actually see a potential recession as an opportunity that can be good for business.
“A recession is better for me,” he says, noting nearby government workers used to eating in restaurants on their break have switched to his small bakery’s low-price lunch deal.
“The number of people coming for lunch here on Friday used to be low, but in the last couple of weeks it’s been busier.”
He says businesses like his benefit from attracting newly budget-minded customers.
Ottawa’s large public service sector, which provides secure employment, insulates the capital from economic woes elsewhere in Canada.
With no real manufacturing base driving the local economy, no layoff threats are expected to dampen consumer confidence here, says Nabatian.
Still, he says, “most people cannot make the distinction between our region and the rest of Canada. In other regions there is already a recession. So far, there is no reason for anyone in Ottawa to worry.”