MANNY CRISOSTOMO / mcrisostomo@sacbee.com

An Arden Fair shopper has his hands full Wednesday. The Sacramento mall expects sales increases of 2 percent to 4 percent over 2010. Roseville's Westfield Galleria is also reporting robust business.

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Registers jingling at area retailers

Published: Saturday, Dec. 24, 2011 - 12:00 am | Page 1A
Last Modified: Monday, Dec. 26, 2011 - 10:53 pm

The cash registers are a little bit busier, the store aisles are more crowded, and even the Salvation Army's red collection kettles are slightly heavier this year.

Heading into the final shopping day of the 2011 Christmas season, big retailers, mall managers and analysts say they're seeing moderate growth compared with last year, despite the economic gloom that hovers over the Sacramento region like a cold December fog.

Two of the region's largest shopping centers – the Westfield Galleria in Roseville and Arden Fair in Sacramento – say they're ahead of last year's pace, which was skewed by the October 2010 Galleria arson fire that closed dozens of stores and caused an estimated $55 million in damages.

"I don't think anyone will say the economy is on an upswing yet, but I think people are positive about this year's increases," said Stephanie Ringey, Westfield Galleria's marketing director.

For retailers, the holiday season is typically the busiest time of the year, with up to 40 percent of their revenues coming during the final two months. This year, big retailers offered heavy discounts that stretched well beyond the traditional Black Friday sales. They opened early and closed late to squeeze every possible dollar out of consumers.

Walmart and Toys R Us opened on Thanksgiving night, while Macy's and JC Penney have been open until midnight every night this season. Toys R Us is keeping its doors open 24 hours a day during the five days leading up to Christmas.

"Everybody is trying to figure out how to connect to the consumer, and those that have been succeeding are benefiting because the economy is improving," said Michael Niemira, chief economist and director of research at the International Council of Shopping Centers in New York.

Angela Serrano of North Highlands said she's taking advantage of this year's bargains. On Tuesday, she purchased an easel at Toys R Us' Arden Arcade store for $99, which was more than $60 below its normal price.

"It's a lot cheaper than when I came here a few months ago," Serrano said.

Aggressive marketing helped the retail industry exceed expectations this holiday season. Based on strong November sales, the National Retail Federation recently upped its sales forecast, calling for increases of 3.8 percent over last year to $469.1 billion. The federation earlier had predicted an increase of about 2.8 percent.

Stores also were better stocked this year. In 2010, some retailers didn't carry enough inventory because they were so worried goods wouldn't sell.

"I didn't hear about that happening this year," said Ringey, the Galleria's marketing director.

Tod Strain, senior property manager at Arden Fair, said the center expects sales increases of 2 percent to 4 percent over 2010. That growth comes on top of a sales increase of more than 15 percent last Christmas season – a fallout from the October 2010 fire at Westfield Galleria, Arden Fair's biggest competitor.

The blaze caused damage to a major wing of the Roseville mall and forced the closure of more than 50 of the center's 250 shops for months. Many would-be Galleria shoppers wound up trekking to Arden Fair while construction was going on.

Repairs were completed on Oct. 6 this year. Ringey said sales and foot traffic at the center have since picked up dramatically.

She said tenants this year are upbeat about the season. They're carrying more inventory, extending hours and offering promotions such as free gifts or gift cards with purchases.

With the mall fully operating this year, the Galleria is also providing a job boost to the local economy. According to the state Employment Development Department, seasonal hirings by the Galleria and other retail establishments added about 4,400 jobs to Sacramento payrolls last month.

That was well above the typical November average of 3,100 new retail jobs, EDD officials said. The increase helped push Sacramento's unemployment rate to a 2 1/2-year low of 10.9 percent last month.

The Salvation Army, which collects donations from shoppers at more than 30 locations in Roseville and parts of Sacramento County during the holidays, said some of the sales activity has trickled down to its coffers.

John Morrow, Roseville Salvation Army Corps Officer, said charitable collections by its bell ringers are 2 to 3 percent ahead of last year's pace.

Not everyone is sharing in the bounty. Some smaller local retailers said they haven't seen a clear sales turnaround.

Pat Sweeney, co-owner of Fleet Feet Sports in midtown, said December sales are running about 2 percent ahead of last year. But he said business over the course of the year has been choppy. Earlier this year, the company posted two record months, but they were interrupted by a month in which sales were down, Sweeney said.

He attributed the volatility to cautious consumers who don't want to increase credit card debt in the weak economic environment.

"It's been a more schizophrenic year … than any other in our 17 years in business," he said.

Bobi Gould, owner of the Collected Works gift shops in Land Park and downtown, said consumers are still buying gifts for their friends, but they're spending less.

"Someone who spent $50 on a friend a couple of years ago is now spending $30," she said.

© Copyright The Sacramento Bee. All rights reserved.


Call The Bee's Rick Daysog, (916) 321-1207.

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