By Diane Krieger Spivak, Post-Tribune staff writer
Oh, the economy's just frightful.
But the deals are so delightful.
But the deals are so delightful.
Now, if only retailers could just figure out how to get Christmas shoppers to open their wallets and let it go, let it, go, let it go.
Desperate to convince wary consumers to let go of some of those coveted dollars, businesses are scrambling for new ideas to make a sale this holiday season.
Rising food prices, job layoffs, foreclosures, the tanking of the auto industry and a $700 billion government bank bailout are collectively loading the pistol that some experts believe could blow a hole in the Christmas shopping season this year.
"As much as people used to complain about Christmas promotions so early in the year, you'll see them even earlier this season, but I'm not hearing complaints about that any more," said Grant Monahan, president of the Indiana Retail Council. "You'll see them being even more competitive than they have in the past, with heavier promotions and deeper discounts in this shopping season."
That's already happening here in Northwest Indiana.
Most stores are no longer waiting until Black Friday, the day after Thanksgiving, to start their holiday sales and many -- including Penney's, Kohl's, Carsons, Sears and Macy's -- already have launched deep discounts of 50 to 70 percent.
To reel in holiday shoppers, Bass Pro Shops is hosting its second Great Turkey Campout in parking lots Thanksgiving Day, with food, entertainment and a $5,000 giveaway.
Some shopping malls are giving away gift cards for early shoppers and some retailers -- in a throwback to the pre-credit card revolution -- are bringing back layaway this year.
Even so, at Crown Point's chamber-sponsored annual Christmas Open House Sunday, fewer shoppers than usual turned out.
Garry Knesek, who owns Old Green Shutters antiques on the downtown square, said people just weren't buying, although his shop was full of customers.
"People are holding on to their money," Knesek said.
After 12 years Carol Loshe, of Valparaiso, said she's closing her booth at the Antique Mall.
"I'm not making any money," she said.
"It's going to get a lot worse around here with the mill laying off," said her husband, Tedd.
Not everybody's expected to spend less this year, though.
Although spending by households with a family income under $50,000 is expected to decrease by 3 percent, those making more than $100,000 are expected to increase their holiday spending by 14 percent, said Bruce MacLean, director of Graduate Programs in Management at Valparaiso University. "That means if you've got money it's a great time to buy, just like the real estate market."
Indiana, however, is a "bi-polar" state, MacLean said. "It's very interesting. Some do very well and others are on the other end of the spectrum. It's part of the middle class being wiped out."
Monahan doesn't think Indiana's retail economy is any better or worse than the rest of the country, but, he admits, "This is going to be a challenging Christmas for retailers. I've seen projections that this is going to be the worse Christmas season in 20 years."
What they foresee is a 1-1/2 to 2 percent increase over last year, well below the usual 4-1/2 to 5 percent.
"It's obvious there is a slowdown in the economy and a lack of consumer confidence," he said. "I think people are concerned and holding onto cash more than ever before."
People like Charlie and Eren Odle, of Hobart, who said they planned on spending less this year.
"We're definitely cutting back," Eren Odle said, as the coupled headed in to Westfield Shopping Town Southlake Sunday."We're just buying for kids and immediate family."
Charlie Odle said work is going great for him, but the couple is expecting a baby soon. "Kids are expensive and with groceries and everything else going up, you have to budget," Odle said.
The lack of consumer confidence is everywhere, MacLean said.
"The only retailers that are doing well are grocery stores and Wal-Mart, and it's believed that's due to their grocery section. People aren't eating out as much, which is bad news for restaurants."
Bad news, except for fast food restaurants, many of which are low on nutrition but high on value. They do better than sit down restaurants, too, because they're convenient during holiday shopping.
"I work retail and I don't care what anybody says, it's slow," said Louise Smith, of Munster, who decided against an antique dresser Sunday because she couldn't get it at her price.
"Nobody knows for sure what's going to happen with the economy. There are a lot of sales a lot earlier this year, and I think there will be a lot more if things don't pick up," Smith said.
"Bottom line," Monahan said, "it's a tough season for all of us, but retailers are up to the challenge."
MacLean's Christmas wish: "I hope Americans would give America a Christmas gift and buy something."