Mixed outlook seen on holiday spending

First of two parts

Forty-two-year-old Vicky Sers Nicholas, a resident of Lower Gualo Rai, scanned racks of toys at the Joeten Shopping Center in Susupe, while holding an infant dress that she would give her godchild as a Christmas present.

A usual spender every holiday season, Nicholas said she decided to cut back on expenses this Christmas, holding off plans to shop on Guam, which she did last year.

Sers Nicholas said she would spend about $2,000 to $3,000 for the holidays, much less than some $8,000 she spent last Christmas season.

“I’m not buying electronic games anymore,” she said. This year, she said she would rather buy family games to save on cost and yet spend a good time with her family during the holidays.

“This Christmas, we’re more careful with what we’re buying. We try to get more for what we buy. We want to make sure that they have value,” she explained.

The same refrain was echoed by others, opting for holiday spending that is more modest in scale than last year’s. Forty-year-old Bonnie Sagana, a Filipino contract worker, said he would slice his budget for the holidays by half. Last year, Sagana claimed spending about $600 for gifts and noche buena. He said he would only spend about $300 this time.

“We are uncertain if the economy will decline due to the anticipated hardship by the garment sector,” he said, noting the potential impact of the World Trade Organization’s lifting of quota restrictions on apparel, the CNMI’s multi-million-dollar industry.

For Sagana, however, Christmas spending must go on. “We can’t reason out our difficulties for our godchildren. Christmas is for children.”

The series of fuel price increases this year have impacted on prices of consumer products. Aware of the situation, 40-year-old Kagman resident Lily said she started saving a couple of bucks even before the holidays so as not to spoil her Christmas spending.

“I usually spend for clothes for the kids and not just for toys,” Lily said. “We need to save for Christmas.”

Lily’s savings allowed her to allot over $1,000 for her holidays shopping, about $700 more than the amount she spent last year.

Lower prices

To attract shoppers, different stores on Saipan have offered their products at substantial discounted prices.

Payless Shoe Source have placed a giant sign that bears the catchphrase “up to 70% off” in front of its recently opened San Jose branch.

The sign attracted Janice Schulmeyer, who resides in nearby Chalan Kiya, to check out the store and spend a few bucks for a new pair of shoes. Some items, which used to be sold at over $30, carried tags that peg their new prices at less than $10.

Papaya, a ladies’ boutique located right at the heart of the Garapan tourist district, has special orange price tags on apparel, which are being offered at discounted rates. Shoppers swarmed the store Saturday for clothes that were selling for about $10, less than the regular price of more than $20.

Bigger stores have slated promotional activities, which they advertise in dailies to attract shoppers. Town House department store offers up to 40 percent discount on prices of retail items in its “Customer Appreciation Sale” that runs from Dec. 17 to 24. The promotion includes 40- and 30-percent discount on prices of all shoe and clothing items.

Townhouse general manager Mike Lamoreux said the promotions were intended to stimulate consumer spending, after a modest sales turnout during the Thanksgiving holidays.

Lamoreux said that, while fuel price increases generally affected the prices of retail items due to increased shipping costs, the store had to reduce its profit margin from these items. He bared plans of conducting an “after-Christmas clearance sale.”

“That’s basically the lifeblood of the business—to attract people to your store,” Lamoreux said.

Joeten Shopping Center offers 15- to 50-percent discount on retail items. Besides popularizing the “Early Bird Sale” when the store offers discounted prices for morning shoppers, Joeten conducted last Saturday the “One Day Super Sale,” wherein substantial price discounts were offered all-day long.

“Everybody likes to save money,” said Joeten general manager Mike Troupe, adding that Joeten would run promotions until Christmas.

High sales turnout

Troupe said Joeten’s sales appear to improve compared with those of last year’s holidays.

“Last year, it’s good. This year, it’s better,” Troupe said. “The economy seems to be gradually improving. They’re [shoppers] more confident than the last couple of years.”

Although rising fuel costs resulted in higher prices for select retail merchandise, Troupe said Joeten managed to attract customers by pegging prices at minimal profit margin levels.

“We attract customers by bringing the right product all the time, [including] the right clothing, [and by having] good display and a clean store,” he added.

He also said the number of tourist shoppers increased this year, adding to the local populace that patronize Joeten.

Troupe said Joeten’s Early Bird Sale last Dec. 11 easily became the company’s “best sales day of the year.”

Townhouse’s sales have also been improving compared with the same period last year, according to Lamoreux.

“It’s better than last year,” Lamoreux said. “They’re [shoppers] are spending more.”

He said shoppers these days could buy more merchandise due to substantial discounts on price tags, reducing profit margin on retail items.