Santa Fe Retail: Happy or bah, humbug?

As holidays near, business here is uneven but better than in many areas

Bob Quick | The New Mexican

11/17/2008 - 11/18/08

Retailers these days are faced with scary headlines — one moans about the "worst holiday season in six years" while another blares "slowest growth since 1992" and yet another screams "remarkable slowdown."

Santa Fe retailers contacted in recent days have told a different story — sales might have slowed down, but with a few exceptions, they haven't fallen through the floor. At least not yet.

As one owner of a greenhouse put it, "actually, we're doing pretty good."

On the other hand, another storekeeper said her sales are flat, and those of other retailers she's talked to are "definitely down."

Still, there might be something to the adage that Santa Fe escapes recessions because the economy is based on mostly secure government jobs. According to the Department of Workforce Solutions, nearly 25 percent of the total work force of 66,000 people in Santa Fe County are employed by the government.

It's different elsewhere.

According to the U.S. Commerce Department in a report released Friday, retail sales — excluding auto sales — dropped by the largest amount on record in October, hurt by the financial crisis and growing unemployment.

Customers cut back on spending, with sales falling a record 2.8 percent in October, surpassing the old record in November 2001, after that year's terrorist attacks.

The report showed sales at general merchandise stores fell by .4 percent, while the decline at specialty clothing stores was 1.4 percent. Furniture, appliance and sporting goods stores also had drops.

Sales are better than that at Doodlet's, a downtown shop owned by Theo Raven, who has been in the business
for more than 50 years. Doodlet's carries a variety of items ranging from children's books and novelties to cards and candy.

Doodlet's closed for almost two years in 2006 and 2007, causing Raven to fear she had lost all her longtime customers. But many have come back.

"Every day, I'm grateful for that," Raven said, adding that her store is "coasting along where we were before we shut down. At least we're not down, thank God."

But it may not be that rosy at other businesses, Raven cautioned. "I know various shopkeepers who are definitely down."

Right next door to Doodlet's, however, at the Pampered Maiden clothing store, "I would say things are going pretty good for us," said owner Eva Jackson. "We're getting a good response to our merchandise. I credit both locals and tourists for our longevity."

The store benefited from its relocation back to its original site on Water Street, next to Doodlet's. "Getting back home has had an impact," Jackson said.

At JC Penney, one of the four anchor stores at Santa Fe Place, "the economy took its toll back in September, but things are starting to look up," manager Shawn Jaramillo said. "On a comparative business, October was a small up. And November looks to be real promising."

On the corporate level, however, JC Penney said Friday that third-quarter profits fell 52 percent from a year earlier. And sales at stores open at least a year dropped by 10 percent, with sluggish sales in home furnishings and jewelry, according to Thomson Reuters.

Jaramillo said the Santa Fe JC Penney store will open at 4 a.m. the day after Thanksgiving to pump up sales for the coming holiday period.

And to help with what he hopes will be crowds of shoppers, Jaramillo will add between 10 and 15 seasonal workers.

Jeff Jinnett of Santa Fe Dining, which includes Rio Chama Steakhouse, Casa Sena and the Blue Corn restaurants, said his pricier restaurants have experienced a drop in the number of parties booked for the upcoming holiday season.

"That is having a noticeable effect on us," he said.

At the "casual dining" restaurants, on the other hand, there hasn't been "an alarming trend. We're pretty much holding steady with last year's numbers."

Jinnett added: "I am concerned about what will happen this coming winter in Santa Fe. We're just going to hunker down and wait. We're going to put a hold on some projects we were going to pursue. Hopefully the economy will recover."

At Newman's Nursery on Cerrillos Road, owner Todd Newman said the business is doing pretty well even though large orders from home builders have dropped.

On the other hand, "we're seeing a lot of foot traffic," he said. "People are working on their yards."

Overall, "we're hoping this year will be about the same as last year," Newman said. "We've gone to our suppliers and asked that they keep freight costs down."

If a business has had a rough time this year in Santa Fe, it's Robert R. Bailey, an upscale men's clothing store that has been in the same Washington Avenue space for 26 years.

The major problem has been construction on Lincoln Avenue, where a new museum is nearing completion, and also on Marcy Street, home of the new Santa Fe Community Convention Center.

"We've had no parking," said Steven Bailey, who recounted that one day a customer stuck his head in the door long enough to say he'd driven around looking for a parking place for a half-hour without finding one. "He wanted to buy a custom-made suit."

That lost business, unfortunately, wasn't an exception. "All my locals who have been buying clothes from me for years — I haven't seen them," Bailey said.

Customers are also wearing clothes longer rather than replacing them with new ones, Bailey said. "Specialty (designer) clothing is not in vogue now."

At another clothing store, Unity Fashion, in a small shopping center next to DeVargas Center, owner Beth Walkos said, "I actually had a good October. It beat last October."

But there have been some changes in shopping habits, Walkos noted, with "big spenders" not spending the way they used to. "Instead of buying jeans and a blouse, they just buy the jeans."

Walkos, who runs the shop with her husband, feels that her customers "really want to see the store succeed. They're really supporting me. We're grateful for our loyal customers."

In DeVargas Center, mall manager Katy Fitzgerald said sales among businesses there "are across the board. Some tenants are doing just fine, some are about even — nothing big, but they're not losing. And some are definitely down."

If there's a busy store, it's Albertsons, adjacent to DeVargas Center. "They've been here six years, and this was their best quarter," Fitzgerald said. "That makes sense — people aren't eating out as much."

To kick off the holiday season, DeVargas Center held a Turkey Trot Holiday Stroll last Friday.

"We want to start a holiday tradition," Fitzgerald said.

Retail sales figures at DeVargas will also be helped with the arrival of a Sunflower Farmers Market, which is expected to open at the end of February or beginning of March, she said.

The Outdoorsman of Santa Fe sells guns and hunting-related items at DeVargas Center, and "things are going real well," said Robert Menke, who is the store's office manager. "We're up a little bit, maybe 5 or 6 percent. Sales are relatively constant."

The store's best time are in the fall hunting season and around Christmas, he said.

At The Firebird, which sells wood-burning stoves, fireplaces and irrigation supplies, "We're having a pretty decent year," owner Gene Butler said. "Given the current economic climate, I'm pleased we're not off seriously. All the economic news I see, everyone seems to be hurting."

As a a result of good sales, "we haven't had to lay anyone off," Butler said. "I do have a couple of part-time positions (open), but given the current economic climate, it's kind of hard to take that plunge."

Susan's Fine Wine and Spirits has been in business at the Crossroads Center (formerly the Pen Road Shopping Center), at the corner of Cerrillos Road and St. Francis Drive, for almost three years.

"I would say the economy is a little soft, but we're doing well," owner Susan Egan said. "People aren't going out as much, and that helps the retailer. I'm looking forward to a big holiday season."

Information from the Associated Press was used in this report.

Contact Bob Quick at 986-3011 or bobquick@sfnewmexican.com.