Those reports offered encouragement to economists and major area retailers, which anticipated modest improvements to continue through what is typically the strongest sales season of the year.
Holiday sales in Glendale and Burbank will likely grow by 1% to 2% from last year’s low figures, matching expectations for Southern California, said Jack Kyser, chief economist for the Los Angeles County Economic Development Corporation.
Regional holiday sales fell 2.8% a year ago after growing 3% in 2007, prompting anxiety about the upcoming year-end sales stretch, Kyser said.
“I think a lot of people are very concerned about what type of a Christmas season we are going to have because Christmas of 2008 was really a diaster,” he said.
While recent data show signs of retail growth, consumer confidence remains low, which will limit holiday spending, Kyser said.
“Companies are still laying people off, unemployment rates are still climbing, and then probably scariest of all is that consumers are saving a lot,” he said.
That could mean continued trouble, particularly for isolated independent stores that don’t benefit from the holiday shopping rushes common in malls, he said.
“After Christmas, you’ll probably see a lot of the smaller stores shut down because it’s been a rough year for them,” he said.
Kyser offered his forecast Thursday at the Glendale Galleria, where managers, like those in Burbank and the region, are increasing promotions to historic levels to compete for whatever dollars consumers prove willing to part with.
Stores are already preparing for major Black Friday promotions in an attempt to draw early shoppers hoping to get the best deals possible, said Janet LaFevre, senior marketing director for the mall.
