Grinch steals Christmas ’08 from retailers

The Grinch is doing a number or two on Saipan’s stores this Christmas season.

With a few hours left before the clock strikes midnight of Dec. 25, sales of the island’s top retailers are at an all-time low as consumers’ belt-tightening habits have affected Christmas sales.

J.C. Tenorio Enterprises, Inc., which owns a chain of retail and grocery stores on Saipan, said sales are down by as much as 20 percent this holiday season.

“Year-wise, sales are down and Christmas sales are no different. We’ve suffered a double-digit decrease [in sales], some as much as 20 percent. This has been a very difficult Christmas for us,” said corporate special project manager Bo Palacios.

While the company’s groceries have been steady, sales at its department stores have been less than rosy.

“We’re bringing in our own produce and we’re doing very well in stocking it. Before December came along we expected that the department store will be much busier than the market side, but unlike last year there has been a decrease in the former,” said wholesale manager J.J. Tenorio.

“We noticed that people’s buying habits have changed. They’re spending less on gift items and more on groceries [produce, canned goods, meats, etc.]. In fact, our No. 1 items are still produce. Usually clothing and other stuff are usually higher on the list, especially during the Christmas season. But it’s been different this year, people are going toward the staples,” said Palacios.

He added that with economic uncertainty enveloping the CNMI, people are saving as much as possible and that he has noticed that in people’s shopping habits.

“The deals are there, we have our promotions in place. It’s just that in any economic recession, people tend to spend less. It’s been very difficult.”

The hardship is shared by Lollipops owner and general manager Penny B. Hofschneider, who said that sales at the Garapan toy store are down this year.

“As expected, we are seeing weaker sales at Lollipops this month compared to last year. To date we are actually in a good position—1 percent ahead of our December goals. However, in retail, especially in a retail toy store, everything depends on customers spending the last few days before Christmas. This week we have seen much lighter traffic and much less spending than in years past. At the end of the month we expect sales will be anywhere from 7 percent to 10 percent below December 2007 sales,” she said.

Hofschneider also echoed Palacios’ observation that the local consumers’ shopping habits have changed.

“Consumers have definitely adapted to changing economic conditions. Customers spend very carefully looking always at price and at value and are more willing to wait for bargains than in the past. They also spend significantly less per transaction and we see this in both residents and tourists.”

Liberty Department Store’s sales also are lagging behind last year’s numbers, which has forced the Garapan retailer to sell some of their items at cost.

“Customers are really looking for bargains so sometimes we just sell them with big discounts, sometimes with minimal profit. We also try to move old items as fast as we can, even at cost,” according to assistant sales manager Elvira Fruza.

She added that the uncertainty of June 2009’s federal takeover of the islands’ immigration, coupled with the current worldwide economic turmoil, has resulted in the tightening of people’s purse strings.

“Last year’s sales were still good. Buyers are very conscious this year. They are smart shoppers and they don’t buy for the future anymore. They just buy things that they will need immediately,” she said.

Fruzal said Liberty has discounted some of its items by 70 percent—the lowest before was 50 percent—just to lure in the customers.

Dolphin Wholesale general manager Ricardo “Ding” Castro said while sales at the San Jose store are also down by as much as 10 percent this Christmas season, he is banking on 11th hour shoppers to boost his bottomline.

He added that unlike previous years when toys and electronics drove Dolphin’s sales, this year, stationary and items under $20 are the ones that have become quite popular to the island’s suddenly budget-conscious public.

Dollar Days owner Annette Ta said her loyal customers have found a way to bring smiles to their friends and family’s faces without hurting their pockets.

Unlike before when toys and other gift items are the store’s bestsellers, this year saloon gift certificates and bottles of Noni juice have taken the lead, she said.

“Customers have ran out of gift ideas and since some of them already tried our massage and Noni juice, they’ve opted to buy them as gifts for family and friends,” she said.

At first, Ta was surprised by the development, but that reality finally hit her when less and less of their toys were sold, even if they were 50 percent off.