Suburban retailers: 'It's not the craziness it used to be'

If retailers thought this holiday shopping season was tough, just wait.

The after-Christmas clearance sales and gift-card spenders aren't expected to save this season, and next year's holiday could be even worse, experts said Friday. But Christmas 2009 seemed a long way off to whipsawed consumers who ventured out in the suburbs on Friday to return unwanted gifts or to scavenge for bargains.

And, in some locations, the predictions seemed hard to imagine.

"We're probably as busy as I can ever remember," said Rodney Roadcap, general manager of Cabela's in Hoffman Estates. "We were kind of unique. We had a strong December compared to most retailers. Today's turnout was a little slow this morning, but we've been almost running at capacity the rest of the day."

At Target on Randall Road in Batavia the picture wasn't quite as bright. Store manager Tim Larkin said customers were bringing in fewer returns, a change he attributed to the popularity of gift cards, wish lists and increasingly stringent return policies at retailers nationwide.

"Don't get me wrong, it's steady and we schedule a bit heavier," Larkin said. "But it's not the craziness it used to be."

Steve Warrenfeltz, owner of Kiss the Sky in Geneva, said he expected some post-holiday returns at his record store on West State Street.

"(Returns) are typically heavier on the first two or three days after, but we tend not to get as many as larger retailers on a percentage basis," he said. Also, "people, when they buy music, they're looking for something pretty specific."

Arlene Cop of Huntley and daughter Ginger Cop of St. Paul, Minn., spent about three hours picking up DVDs, books and clothing at Spring Hill Mall in West Dundee. They weren't necessarily bargain hunting because their Christmas celebration was scheduled for this weekend to include relatives from as far away as Nebraska.

"It's just when the family can get together," Ginger Cop said, adding they had expected the crowds to be larger. They planned to hit the outlet mall in Huntley later.

"What else are you going to do today?" she said.

Carol Daywalt, owner of the downtown Wheaton gift shop Paper House, which had Christmas items on sale for 50 percent off, said business was a bit slow Friday, but "that might be due to the ice."

The occasional shopper could be seen cautiously navigating Wheaton's slick sidewalks.

One business bucking the gloom of the financial downturn and treacherous weather was It's Our Earth Inc. in Wheaton, which specializes in vintage fashion and eco-friendly products.

"Sales are probably up about 30 percent this holiday season compared to last year," said husband-and-wife co-owners Richard and Xristina Rahn.

Naperville resident Anne Kroeger shopped at Restoration Hardware in her hometown.

"My aunt got me these great slippers called Foot Duvets for Christmas, so I bought a pair for all of my friends," Kroeger said, before heading off to Costco. "Because of the weather, we're staying close to home."

The first holiday season for Naperville's M2 Boutique went well according to owner Natalie Sansores, who was offering a 75 percent discount on Christmas merchandise.

"It was great, even considering the weather," Sansores said. "I heard from a lot of people who said they wanted to shop local and support the local businesses instead of going to the big boxes."

At the Chicago Premium Outlets in Aurora, a line of about 40 people snaked outside the Coach store, waiting to get in.

At the Dress Barn in Gurnee Mills, store manager Nieves Johnson said while no additional promotions were added to drive traffic, in-store coupons drew in business.

"Those immediate coupons really seem to be working well here," Johnson said. "When people can use them immediately today, they seem to be shopping more."

Chicago-area retailers are expected to see fourth-quarter sales of roughly $27 billion, compared to $28.1 billion for the same period last year.

Christmas 2009 could be worse, said John Melaniphy, president of Melaniphy & Associates, a retail analyst firm in Chicago.

"People are expecting a recovery next year, but I just don't see it," Melaniphy said. "There has just been too much pain and too many job losses."

This shopping season is just an indicator of what's to come, said Diane Swonk, chief economist with Mesirow Financial in Chicago. "Not only did consumers pull back, but they also spent significantly less on discretionary purchases, which hurt retailers' margins," Swonk said. "The high-end luxury retailers were hit especially hard as holiday parties were scaled back. This was more of a year of pot lucks and beer than champagne and caviar."

While analysts expected a tough holiday, they didn't expect horrible weather, too, said Neil Stern, senior partner at McMillan/Doolittle LLP, a retail consultancy in Chicago.

"Everything that could go wrong this season, did," said Stern.

• Daily Herald staff writer Scott Morgan, Lee Filas and Nadia Malik contributed.