Sonny Morstein has owned Morstein’s Jewelers, a 110-year-old family business in Baltimore’s Federal Hill, for 40 years, so he’s seen plenty of economic ups and downs.
“But there’s never been quite a down period like this, with so many economic factors coming together,” Morstein said from his store Monday.
Just days away from Black Friday, the traditional kickoff to the holiday shopping spree, local small-business owners are adjusting to the times and doing what they can to attract cautious consumers before what’s expected to be a slow spending season.
At Morstein’s, Morstein and his staff have made some seasonal decisions by lowering jewelry prices and stocking up on silver and white gold pieces, cost-effective gifts compared to pricey gold pieces.
“We certainly saw this coming, so it wasn’t a difficult decision,” Morstein said. “If you’re a small merchant, you’re able to make changes like that on the fly. That’s not always the case with the big chains or department stores.”
At aMuse Toys, with Baltimore locations in Fells Point and Quarry Lake, owners Claudia and Tom Towles opted to reach out to customers before the holidays.
The owners sent a catalogue with coupons to targeted households with a direct mail campaign. The stores, which sells toys from around the world, serve a group of loyal customers, but Claudia Towles said it’s always good to broaden your customer base.
“People are looking for value this season,” Towles said. “We’ve found that people aren’t buying 10 $20 toys, they’re by three or four $30 or $40 toys. They’re putting more thought into things.”
That customer pragmatism might benefit small businesses this season, Towles said. “[Sales] could be flat, but that might not be such a bad thing. We’re expecting that everyone’s going to consider their options and be more thoughtful, and you tend to find those opportunities at small businesses.”
For the first time in the 23-year history of the Maryland Retailers Association’s Holiday Sales Forecast, the state retail group projected no holiday sales increase from last year.
MRA President Tom Saquella said retailers are facing shoppers who are “practical, budget-conscious and looking for sales.”
“The bottom line is Maryland shoppers this season have far less disposable income than in previous years, and retailers recognize this reality,” Saquella said.
