How is holiday shopping this year?
IRON MOUNTAIN -- With a grim economy and high unemployment rates in Michigan, many retailers were apprehensive about what their holiday sales would look like this year.
The news, however, isn't as bad as some had feared.
Despite economic setbacks throughout the state, the Midtown Mall in Iron Mountain was bustling with activity this week, just days before Christmas. Retailers did anticipate a decrease in traffic, but so far they've been pleasantly surprised.
"Foot traffic has been okay and I think people are shopping locally," said Steve Roell, owner of The Drug Store. "It's just that they're spending their money a lot more wisely."
There has been a decline in big ticket purchases, as people look to stretch their dollar a little further. Retailers said that shoppers are still hitting the mall to buy their gifts, however, this year they're sticking to practical purchases, such as scarves and gloves.
According to a report released earlier this month by the Michigan Retailers Association, sales increased eleven percent at the beginning of the holiday shopping season. It's not just established businesses that are seeing positive sales this year, either. New businesses, such as Freeman's Photography in the mall, are also doing well.
"I was worried about whether or not we'd be able to make our payments and stuff like that," admitted Keith Freeman, owner of the studio. "You'd never know we're in a recession right now. Business has been booming."
The studio opened in the mall this summer at a time when gas prices were at record highs and the market was starting to slide--but so far, so good.
"I feel very fortunate that our business is doing as well as it is," Freeman said.
Retailers do feel, however, that post-holiday shopping will be affected.
"I don't think there's going to be the extra money after Christmas to come in and buy sale items," Roell said. "I think that's where we're going to see a big decrease in sales."
TV Station Profiles & Public Inspection Files forWLUC