LAS VEGAS, Nev. (FOX5) – Las Vegas small businesses are tackling national economic hurdles to lure shoppers to spend, though experts say shoppers will be selective and hunting for deals.
Shoppers are expected to spend $277 billion this holiday season, which is up 2% from last year although federal analysts say consumer prices are also up 2.6% from October 2023.
Morgan Stanley reports that shoppers, though they are prepared to spend more will be more “selective” with their purchase.
Around 90% of shoppers are looking for a deal, this holiday season, according to the U.S. Chamber of Commerce. Almost a quarter of shoppers (23%) intend to spend less, this season.
Luxury retailer Max Pawn Luxury saw customers “holding back” on the biggest items, this fall; if customers wanted a designer bag or item, they may opt for a less-expensive option or payment plan.
“The election was a weird election year; people were holding back on spending. Normally we see late October, the Christmas rush starts earlier…people are smarter about their shopping,” said Michael Mack of Max Pawn Luxury.
Mack tells FOX5, pawn shops are good economic indicators: people turn to pawn shops for discounts and deals, and the fall slowdown of sales was telling.
“Black Friday is coming up. People are starting to come out of the woodwork and they’re starting to spend,” Mack said.
On the other end of the budget spectrum, Zia Records tells FOX5, it has diversified its goods in stores to keep interest in customers, during tough economic times: you can find records, movies, toys, collectibles, novelty items, pop-culture items and swag. Zia Records has recently expanded both of its locations.
“Anybody can come in, and whether your budget is $2 or your budget is $200… you can literally find a $2 record or you can find a $40 record,” said manager Lizeth Reyes. “You can find your teenage son something. You can find your 80-year-old grandmother or something,” she said.
Reyes tells FOX5, the novelty of many items in the stores has intrinsic value as a thoughtful gift, even if they cost very little.
“Even just giving them a nostalgia record whether it’s like a Disney soundtrack that was $5– that $5 gift is going to go way further than, let’s say, a blender. It kind of gives you like that little personal touch,” Reyes said.
The U.S. Chamber reports that 50% of shoppers intend to prioritize Small Business Saturday, ahead of Black Friday and Cyber Monday.
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