Jackson retailers hunker down

Wednesday, February 04, 2009

By Henry Sweets

Jackson Hole, Wyo.-Mladen Stojkovich, the manager of Alaskan Fur Company’s Jackson location, said “zero days,” where not a dollar enters the cash register, are common in the off-season but this year have crept into the winter.

And in the fur business, even a several-hundred-dollar day isn’t enough to pay the bills, he said. To energize business, Stojkovich is coming up with a new sale each week and for the first time ever he has turned to advertising in the Jackson Hole News&Guide, hopeful that locals will step in and pick up where tourists or second-home owners have left off. His sales figures for winter are about half what they have been in years past, he said, because luxury retailers are the first to suffer in a bad economy.

His location, just off Town Square, might either move to the square to get more traffic or perhaps leave Jackson, he said.
Furs are hard to sell during an economic crisis, but is the winter retail season slower than usual for everyone?

“Anyone who says they’re doing well right now is lying” one merchant said. Another simply replied, “That’s a stupid question.” They reported poor sales figures comparable or worse with lagging hotel bookings – down 20 percent to 30 percent from last year’s.

“This is the least amount of foot traffic I’ve seen in 21 years, ” said Kim Lane, who manages the Ranch Shop and the Roundup store, which are usually popular with many visitors to Jackson Hole.

In addition to a low tourist season, merchants said locals are also pinching pennies, and second-home owners who have seen huge losses in the stock market have cut their spending most dramatically.

Those interviewed for this story who deal in expensive merchandise reported the bleakest. The owner of a high-end retail shop in town said regular shoppers who for years “never said no” when they wanted something are now leaving those luxury items on the shelf.

Lane, who deals in a wide price range, has seen an increase in purchases under $20.

Chamber of Commerce director Tim O’Donoghue said that some businesses are seeing less customers, some are seeing lower dollar purchases, and some are seeing both. But most businesses are being proactive to bring in whatever money they can.

Businesses’ solutions to stagnant shopping vary: some are putting items on sale, while others have cut employee hours or found other ways to streamline costs. Some retailers have simply ordered less merchandise and many have been forced to cut prices because competitors, both in the valley and on the Internet, have slashed prices.

Phil Leeds at Skinny Skis, said his store had ordered cautiously this year and was able to trim orders after the economic crisis hit (a rare feat for many retailers), so his store isn’t in hot water. But other outdoor clothing retailers have lowered prices, forcing Skinny Skis to drop prices as well. Hoback Sports manager Hernando Pardo said that the fierce competition in Teton Village – where hotel bookings have been down nearly 40 percent and banner sales in 2008 could have tempted merchandisers into over-ordering – is the main reason his store is running big sales now.

O’Donoghue said the tough times are encouraging creative energy and cooperation that could be useful when the grass gets greener.

 “What I am seeing here is more businesses coming into our office excited to tell us about what kind of deals are being prepared,” he said. “People are thinking outside of the box …  and keeping their marketing budgets steady but getting more creative and aggressive about how they use them.”

The Chamber has begun creating business co-ops to buy advertising time on a popular radio station in Dallas, from where direct flights leave daily to Jackson Hole.
Alberta Kucharski, who owns Hero’s Comics and Games, offered another solution to help preserve prosperity in Jackson.

“It’s really important for people to shop locally, to work as a community and help keep money circulating in Jackson,” she said. PJH
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Jackson retailers hunker down | Planet JH News Article: Business

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