Editor's note: The Bee is following local businesses as they deal with a holiday sales season many predict will be the worst in decades.
Bo Grebitus is an optimist, which is difficult these days.
"I see the glass as half-full, but I'm realistic. I know what I have to do and I've made the adjustments," said Grebitus, longtime owner of Grebitus and Sons jewelry stores."Now it's time to watch. It's history. It's a great thing to go through. You appreciate this business cycle."
With the Dow below 8,000 and retail sales numbers at their lowest in decades, Grebitus may be the only one who feels appreciative. But hand-wringing isn't his style. Experience - the business has been in the family more than 80 years - has taught him that.
Grebitus is one of many retailers in the Sacramento area anticipating a glum holiday shopping season. The luxury goods sector has been among the hardest hit in retail.
"People are very uncertain," he said. "People are going to have their Christmas, but a smaller one."
Grebitus, who has two Sacramento stores, said he and others in his industry anticipated the country's economic woes several years ago and he's adjusted accordingly.
By modernizing credit and other business functions, he has reduced his staff to 26 employees from 60.
Years earlier, he moved away from plates and stemware, long a declining market. "People don't do fancy parties anymore. They bluejean it," he said.
After more than 20 years, Grebitus left the struggling Downtown Plaza in August, moving into a showroom at 10th and L streets. He's pleased with his new location but said sales have been soft, citing anxiety over the economy among the important state employee clientele.
During a visit this week, Grebitus' spacious Fair Oaks Boulevard location in the Lyon Village shopping plaza was decorated for the holidays and projected luxury.
Shelves by the entrance displayed vases and crystal. Diamonds and other gemstones, rings and watches with upscale names like Rolex and Baume and Mercier sat under glass in the center of the room.
Grebitus considers himself a traditional jeweler, so he continues to carry colored gems and bridal jewelry along with diamonds and gold. But he's seen a shift ins hopping trends. Clients continue to mark big occasions with an engagement ring or wedding band, silver cups or spoons for babies or a watch for retirement.
"Those sales are happening despite the economy," he said. But designer settings or vanity purchases popular a couple of years ago, have slowed.
"Somebody considering a five-carat emerald or exotic pieces like an opal or designer pieces - that might be passed on this year," he said.
Grebitus would not discuss specific sales numbers, but said sales are about 7 percent below what he forecast for this year and that he's expecting a slow start to 2009.
"The luxury market will definitely continue to soften," he said. "The luxury-oriented consumer is going to pull back to a degree."
Those who are buying are much like other consumers, waiting later to make purchases, Grebitus said.
He remains an optimist, but as Grebitus looks at the economy, he can't help but wonder what the holidays and 2009 will bring.
"I'm interested to see what comes out on the other side of Christmas," he said.
Call The Bee's Darrell Smith, (916) 321-1040.
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