Retailers are facing make-or-break time as the Christmas weekend approaches, with some managers describing the shopping season as “soft,” others reporting nice crowds and jollier customers than last year.
Stores have much on the line, but so do to communities that collect sales taxes. Budget officers cross their fingers and hope city coffers receive more than a lump of coal. Sales in December produce rebates in February from the State Comptroller’s Office. Waco Finance Director Nick Sarpy said Waco may receive a refund of about $6 million, depending on final sales.
He said he would urge shoppers to spend generously with local retailers leading up to Christmas Day, “as long as they buy taxable items.”
The National Retail Federation said in a recent press release that 142 million consumers plan to shop on the last Saturday before Christmas. It arrived at that figure collaborating with Prosper Insights & Analytics. The figure represents a significant increase from the 126 million expected to shop on what the National Retail Federation terms “Super Saturday” in 2017, the last time it fell on Dec. 23, according to the press release.
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Holiday decorations greet shoppers at Richland Mall in this 2021 photo. Retailers at the mall are reporting healthy traffic as Christmas shopping winds down.
Locally, retailers report mixed bags as shopping enters the home stretch.
“Not enough people, it’s definitely a soft year,” said Jennifer Ward, who manages the Boot Barn Western store on New Road.
“We’re doing better than last year,” Ward said late last week. “We’re doing what we’re supposed to be doing. But we’re not seeing a lot of rushes. We’re noticing a lot more people during the week than on weekends. It’s dead in here right now. Maybe we’ll see a bump next week. People getting paid and a cold spell could make a difference.”
Thankfully, lookers and buyers alike have the Christmas spirit, she said.
“They are lot friendlier this year, a lot nicer. You can say, ‘Merry Christmas,’ and get a response,” Ward said.
Jennifer Wilson, whose collection of shops called Spice Village attracts tourists and locals to downtown, offered a tentative thumbs-up to the unfolding shopping season that will continue through next weekend.
“I feel we’ve been pretty steady,” Wilson said Friday. “Weekends are way crazier for us, and this weekend should be good because of Baylor graduation and Christmas shoppers. I would say people are being a little more conservative, buying more with a purpose. I’ve spoken with other boutique owners, some friends, and it’s kind of mixed. Some say it’s a great season. Some say they wish it could be a little better.”
Several big-box retailers with a Waco presence declined comment on local trends, referring inquiries to corporate spokespeople.
HobbyTown is a chain, but staffer Eric Lux at the Waco store described sales as solid this holiday season, mentioning continued strong demand for remote-controlled vehicles ranging in price from just over $100 to more than $1,000. He said HobbyTown since last Christmas moved into larger space in the same shopping center in the 4300 block of West Waco Drive. The store sports a carpeted race track, where competitors last weekend were vying for gift cards.
“There are always ups and downs in retail,” Lux said. “On the day you’re not expecting to be busy, you end up blowing and going.”
Taxes paid on gasoline are not returned to municipalities in the form of sales tax rebates. In that regard, falling fuel prices could benefit retailers of taxable items popular as Christmas gifts, as consumer buying power expands.
AAA Texas reported Thursday the statewide average for a gallon of regular unleaded gasoline had slipped 11 cents, to $2.57, the lowest in nearly three years, 33 months to be exact. A press release says gas prices likely will continue to drop in the coming days as crude oil prices trend lower. Waco’s norm for regular unleaded dropped 9 cents, to $2.53 per gallon.
“However, drivers should keep in mind that more than eight million Texans will drive to their holiday destination this year, which will put pressure on demand for fuel and could force price fluctuations as this year comes to a close,” the press release says.
Retail spending has remained strong in Greater Waco throughout 2023, even as indicators such as home construction, home sales, vehicle sales and lodging revenue have suffered due to inflation and high interest rates, economic Karr Ingham has reported in his Greater Waco Economic Index.
Sales tax rebates in December, reflecting October sales, would seem to indicate a slowing of year-over-year spending increases.
Waco received a sales tax rebate of $4.37 million in December, 2.9% more than the $4.25 million last December. Calendar year to date, Waco has received $55.9 million in rebates, about 2.8% more than the $54.4 million received during 2022, the Texas Comptroller’s Office reported.
Statewide rebates in December totaled $1.1 billion, a 2.2% increase.
Whatever the broader story, Allison Ramirez said she believes Richland Mall is enjoying more holiday traffic this year than last. She manages Lids, a hat store specializing in licensed professional sports merchandise. She said popular choices mention the Dallas Cowboys or Texas Rangers.
“I feel people have put more planning into their visits. They’re not waiting until the last minute,” Ramirez said. “But it may be too soon to tell.”
Lauren Wallace, a manager at denim emporium Buckle, also at Richland Mall, said she has witnessed foot traffic galore throughout the center.
“The busiest store? I’m going to say ours, always,” she said with a laugh.
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