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Friday, November 06, 2009 12:00 PM

Photo by Elliot J. Sutherland/The Ottawa Herald


Lloyd Myers, employee at Orscheln Farm and Home in Ottawa, stocks the shelves of the toy aisle Tuesday afternoon at Orscheln Farm and Home, 2008 S. Princeton St., Ottawa. The store orders toys months in advance to keep up with holiday demand, Manager Norm Roberts said.

Retailers ready for holiday shopping, gloomy forecast

By LINDA BROWN, Herald Staff

Local businesses say they are ready for what may shape up to be a lackluster holiday sales season.

Owners and managers say they have eliminated excess inventory and are running closer-to-the-bone business models to adapt.

This comes as the National Retailers Federation predicts sales will fall 1 percent to just more than $400 billion this holiday season.

That’s not quite as bitter as last year’s 3.4 percent drop, but it’s a far cry from the 3.39-percent growth retailers had enjoyed over the last decade.

Even with preparations in place, local businesses, however, say they face other challenges during the holidays, too. Those challenges go beyond the expectation that customers will simply spend less.

“The real problem with the holidays is the lead time,” Norm Roberts, store manager at Orscheln Farm and Home, 2008 S. Princeton St., said. “We buy our Christmas inventory in February and March.

“It’s ‘by-gosh and by-golly’ when it comes to ordering that far in advance, but manufacturers just don’t warehouse much anymore. They make it; they want it sold.”

Phil Messenger, owner of Messenger’s Fine Furnishings, 309 W. 23rd St., said he lays in holiday inventory early as well.

“This is the busiest consecutive three or four months of the year,” he said. “Production goes up, but so does the demand, so we warehouse more this time of year to be sure we have what our customers want.”

Brown’s Shoe Fit partner-manager Chandler Nelson said it’s always a challenge to keep in inventory what shoppers might want from his downtown Ottawa store.

“They see things advertised, and that’s what they want us to have,” Nelson said.

This year he believes the Skecher Shape-up walking shoe will be a top seller.

“They help you tone up and lose weight while you walk,” he said. “I expect them to be big this year.”

But, being big this year may be retailers’ and consumers’ worst nightmares.

“The problem in a town the size of Ottawa is that people want to wait for Black Friday to start their shopping,” Nelson said. “When they should really start is the week before to be sure they get what they want.”

While Roberts did his holiday ordering more than seven months ago, he expects to be able to get a few small promotional-type items closer to the holidays, but not many.

“Most of our traditional gift items are already here,” he said. “The Red Flyer wagons, riding toys, special purchase clothing and special tool items are here, and what we have is what will be available.”

In other words, if you see it and like it, the smart thing to do is buy it.

Leaner inventory means retailers have to be on their toes and be precise in predicting what their customers will want to purchase.

Richard Towe, co-owner of Three Guys Liquor, 303 N. Main St., is banking on past experience to keep his inventory exactly where his customers want it to be.

“The holidays are a big wine time and a good time for micro-brewery beer,” he said.

“And, as soon as Thanksgiving is over, eggnog will be a big seller. We also stock Christmas decanter sets and gift-wrapped liquor packages, but we only buy what’s on sale, and then we can pass that savings on to our customers.”

Messenger said he’s based this season’s holiday offerings on Christmases past, as well.

“We order more of the smaller items we don’t normally carry,” he said. “Childrens’ rocking chairs and novelty accessories go over well. This year we have lamps with logo football helmets on the base.

“Two-thirds of our store is upholstered items, but the sale of those items increases this time of year, as well, so we stock more.”

Of these four Ottawa retailers, only Orscheln Farm and Home will hire more employees this shopping season.

“You have to keep up the level of customer service,” Roberts said. “We’ve hired some extra help, and our regular employees will get more hours.”

The additional staff also will help with store security.

“We’re observant all year but more so this time of year,” Roberts said. “We watch a little closer and try to have more store staff interacting with our customers.”

Messenger said it won’t be necessary for him to extend store hours.

“We’re open from 9 a.m. until 6 p.m. six days a week and make appointments for evenings or Sundays when people ask,” he said.

Nelson feels his current staffing will hold up to the rigors of the season.

“I have myself and two part-time employees, and that should be perfect,” he said, adding that his staff always practices top-of-mind-awareness when it comes to shoplifters and pilferage.

Towe also won’t add staff, but regular employees will work more hours.

“Between Thanksgiving and New Year we’re really busy,” he said. “It’s a good time of the year for us, and we enjoy the additional time we get to see our customers.”

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