A Rebounding Economy Has Put the ‘Ho-Ho!’ Back in Christmas Sales Nationwide. But Business for Most Local Merchants Is . . . : Ho-Hum
As soon as customers wander into the Happi Lady Cosmetics store at Shoppers World in the Crenshaw District, Quincy Quinn whips out bottles of his aloe- and apricot-scented lotions and insists that they sample some of his $8 fragrances.
Quinn doesn’t mean to be pushy, but he says he is desperate. If his fruity fragrances don’t move off the shelves this holiday season, he will be forced to break his lease and close up shop.
“It’s the first week of December and I’m nervous and scared,” said Quinn, who estimates that he has lost about $1,000 a month since he opened his business in May. “If this Christmas holiday doesn’t do it for me, I’ve got to give it up. The lotions are the one thing that is helping me pay the rent.”
Like other shopkeepers, Quinn has heard the news reports assuring retailers of a prosperous holiday season. But as he and neighboring merchants look around their empty stores, they ask just one question: Where are all these eager shoppers?
“The papers say that the economy is showing signs of growth, but we can’t see it,” said Jong Whan Cha, owner of the Na Sung Department Store in Koreatown. “(Economists) have their tables and indicators, but we can’t see it.”
The only shops that appear to be having a “green Christmas” are those with heavily discounted merchandise, or those such as Farucci Studio at the Baldwin Hills Crenshaw Plaza, which sells designer fashions by Karl Kani, Cross Colours, Guess? and Marithe Francois Girbaud.
“We have nothing that isn’t trendy or brand-name and business is good,” said salesman Errol Morgan, who frequently wears Karl Kani jeans and jackets at work. “People will buy our clothes no matter what because everybody wants the brand name.”
While nationwide sales rose an average of 5% in November compared to the same period last year, retailers in Southern California--particularly those in Los Angeles--are not enjoying the same growth, according to the Bloomberg composite sales index.
In fact, during the first nine months of this year, retail sales in Los Angeles dropped 4% compared to the same period last year, according to figures from the U.S. Department of Commerce.
“What it really shows is that California went into the recession later than the rest of the nation and is coming out later,” said David Stewart, a marketing professor at the University of Southern California. “We are very much in a recession in Los Angeles and you would not expect the same type of robust sales that you are seeing in the rest of the country.”
The majority of central Los Angeles retailers interviewed for this story say this holiday season has not been just slow--it has been one of the worst. The only merchants reporting modest sales increases are carrying items that either are very inexpensive or very trendy.
“We sell T-shirts, four for $10,” said Young Kim, a clothing vendor at Shoppers World. “It’s a good design and good price, so business is good.”
Stores such as Hot Topic at the Montebello Town Center and People’s Place in Koreatown--which specialize in hip fashions for young adults--also are reporting healthy holiday sales along with discount chains such as Target and K mart.
“There are always those people who want to be on the cutting edge of fashion, and then there are those who have been pushed off the economic bandwagon and are being very cautious,” said Jack Kyser, chief economist for the Economic Development Corp. of Los Angeles County. “The merchants who are catering to that middle crowd are the ones who are hurting.”
Strutting down Crenshaw Boulevard in his lime-green hip-hop jacket and baggy black pants, William Hike said local teens will buy designer fashions despite their tight budgets because being hip is a way of life in Los Angeles.
“You have to understand that even if it means spending your last dollar, people here are still going to buy the latest styles,” he said, adding that Cross Colours, clothes by designer Karl Kani, baggy pants and Nike Air Huaraches are big.
Jody Orso, a Westchester High School freshman clad in black jeans and black suede boots, said many students at her school will buy only the trendiest fashions because, “If you can’t fit the party, you should go to a different school. Otherwise, people talk about you. Right now, the thing is how much money you can spend on clothes. Everybody comes to school dressed up.”
From the Eastside to Koreatown to South-Central, most youths agree that clothes, jewelry and shoes are this year’s most sought-after gifts. But while most teen-agers have little trouble listing the hottest fashions of the day, the depressed local economy has made it impossible for many parents to afford all of the brand-name fashions their children crave.
Baldwin Hills Crenshaw Plaza shopper Sandra Roebuck said she probably will buy her 16-year-old son a $60 pair of Girbaud jeans he requested--but that may be it.
“Things are tight,” said Shoppers World customer Martha Medaris, a grandmother who echoed Roebuck’s sentiments. “I think everyone’s going to be shopping very conservatively this year.”
Ben Boushehri, who owns a gift shop at 6th Street and Rampart Boulevard, said by this time last year, he had sold about 50 plastic Christmas trees. This year, he has sold only 10.
“Everyone is saying, ‘It’s going to be better. It’s going to be better,’ ” he said. “But it hasn’t picked up.”
Despite the store’s large selection of electronic products, toys and household goods, Boushehri said one of the only items attracting Christmas shoppers are $6 ceramic banks. While the paint on many of these elephant and bear figurines is chipped and faded, the banks appeal to customers because they appear to be a bargain.
“Everyone wants something that looks expensive but is not,” Boushehri said. “They’re looking for something just to keep the kids happy.”
There are occasional bright spots in the sales picture.
Helped by the media attention surrounding Malcolm X, sales of Afro-centric clothing, jewelry and books are popular among shoppers.
“Among the four women I buy for, the hats and crowns are really popular gift items,” said Bruce Tanner, who celebrates the African harvest holiday Kwanzaa. “Everything African is hot, though.”
The most popular gifts for children this year appear to be Batman and Teenage Mutant Ninja Turtle figures, Nintendo games, Sega CD and Kerokerokeropi stationery items, according to several local toy merchants.
“Times are tough, but I’m buying my son a (Nintendo) Game Boy,” said Lisa Faloppa, while shopping at the Target discount store on Whittier Boulevard. “This year, I think the key is to find good sales and prices.”
A survey, released last week by the Arthur Anderson Retail Services Group, found that 46% of Los Angeles County consumers plan to spend less this holiday season than last.
Their skittishness can be linked directly to the reduction of local jobs, analysts say.
In March, 1990, 4.3 million people were employed in Los Angeles County. That figure dropped to 3.9 million in September of this year, according to Commerce Department figures.
“There is a lot of job loss in the inner city, so I would suspect that merchants there will do particularly poorly,” Stewart said. “Local merchants already are on the brink, so I think many will find it difficult to survive.”
Analysts say the spring riots also have contributed to the city’s lackluster retail performance this year.
“After the riots, business has been slow,” said Sohie Park, owner of a toy and stationery store in Koreatown. “A lot of my customers lost their businesses in South-Central so they don’t have the money to spend this year.”
From the gift shops along Whittier Boulevard to the discount shops in Downtown Los Angeles, central Los Angeles merchants are commiserating about this season’s dismal sales.
Allen Wattenberg, co-owner of Ross Cutlery on Broadway, said the biggest sales day at his store is usually the day after Thanksgiving. This year, however, few wandered into the shop to get a head start on their Christmas shopping.
“This year, it was the slowest I can ever remember,” he said. “It was even worse than a normal day.”
Julio Argumado, who owns the Giant Penny Discount Store across the street, said his business has dropped about 50% from last year. “It doesn’t look like Christmas is coming,” he said.
What’s Hot
Despite overall sluggish holiday sales, central Los Angeles shoppers continue to be drawn to the trendy and inexpensive. Here are some of the most popular gifts on people’s wish lists: 1. Anyone who knows anything about L.A. fashion knows that baseball caps are no longer just for athletes or sports events. The key is to find caps with cool things on the front. Less than $20. 2. Students say college sweats--particularly those with USC, Georgetown or Morehouse College emblazoned on the front--are hot. Usually below $40. 3. They’re bright, bold and the “hottest-selling stuff around,” said Femi Samuels, manager of Farucci Studio at the Baldwin Hills Crenshaw Plaza. Karl Kani jeans, jackets and shirts have even surpassed Cross-Colours hip-hop wear, Samuels said. “Out of 10 sales, eight are Karl Kani,” he said. Karl Kani clothing costs between $80 for a pair of jeans to $1,200 for a leather jacket. 4. Pens, bags and stationery decorated with this quirky frog are popular among elementary students and older teen-agers as well. Kerokerokeropi means “ribbet ribbet” in Japanese. 5. Supernintendo, not to be confused with regular Nintendo, continues to be one of the most sought-after gifts of the season, said Gary Finney, manager of Kay Bee Toys at the Baldwin Hills Crenshaw Plaza. Finney has been selling 20 to 30 sets a week at $134 a piece. The hottest games for those already on the system are “Street Fighter 2,” “John Madden ‘93” and “Super Star Wars,” which retail for $59 and up. 6. Teen-agers from the Eastside to South-Central Los Angeles said the cross-training Huaraches from Nike were high on their lists. The buckskin shoe isn’t exactly a bargain at $84 for children’s sizes and $125 for men’s. 7. Local shoe stores are prominently displaying their “Doc Marts” because teen-agers are asking for them by name. Dr. Martens retail for about $90 for women and $100 for men. 8. As the recession lingers, many people are being quite blunt about what they’d like for Christmas--money. Teens say they want cash so they can pick out their fashions without parental intervention. Adults say during times like these, who could not use a little extra? Despite its impersonal quality, cash may very well be the gift to give this season.
