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BUSINESS Thursday 27 sepTember 2018
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Small retailers upbeat about 4Q but tariffs make some uneasy

By JOYCE M. ROSENBERG the most important time of
Associated Press the year," she says.
NEW YORK (AP) — Sales are Williams is considering
so strong at women's cloth- stocking more mid-priced
ing company Leota that and lower-priced items
owner Sarah Carson is ask- that customers may feel
ing manufacturers for more more comfortable buying.
inventory for the holidays, a The fourth quarter outlook
change from last year. is also uncertain at Three
Leota, which sells dresses, Brothers Bakery, which has
tops, pants and skirts to three stores in Houston. A
stores and on its own web- year after Hurricane Har-
site, has been getting reor- vey flooded the city, sales
ders from retailers in mid- are down 25 percent from
season, unlike recent years before the storm. Owner
when customer demand Janice Jucker is working on
was weaker. But taking on her website and increasing
more inventory isn't some- her marketing to find new
thing Carson's doing lightly; customers and revenue
she doesn't want a big sur- outside of Houston in time
plus that she'll need to mark for the holidays.
down Dec. 26. Many of Jucker's Houston
"The fourth quarter is a real- customers are focused on
ly challenging time in retail. rebuilding and repairing
You have to take the big- their homes; they aren't
gest inventory risk and you entertaining and ordering
have a very short period of cakes and pies.
time to move it," says Car- "The people in our neigh-
son, whose business is up 55 borhood do not have
percent this year. dining rooms anymore.
Many small and indepen- They are buying sofas and
dent retailers are more socks," Jucker says.
upbeat about the fourth Ninety-five miles from Hous-
quarter and holiday season ton, Cynthia Sutton-Stolle
than in recent years be- has heavily promoted her
cause customers are more In this Sept. 18, 2018, photo Bobby & Janice Jucker pose for a photo inside their Three Brothers gift shops on Instagram
confident and spending Bakery in Houston. and Facebook and sought
freely. Shoppers are espe- Associated Press publicity for herself and
cially interested in some other retailers in Round Top,
of the merchandise stores more merchandise for her ers so they're more knowl- easy about the fourth quar- Texas, a destination for an-
struggled to sell during the website and three clothing edgeable and attentive to ter. Ninety-five percent of tique buyers.
recession and its aftermath, stores in Los Angeles and shoppers, giving customers the merchandise at the Sales have been below
including clothes and the San Francisco Bay area. a reason to come to the Luggage Shop of Lubbock, par since Harvey. The aver-
home furnishings. Retail She expects the fourth store rather than shop on- in northern Texas, is import- age transaction this year at
sales tallied by the Com- quarter and holiday season line. ed, much of it from China, Sutton-Stolle's stores, Silver
merce Department for the to surpass last year, when Portland Gear, which sells and luggage is on the list of Barn and Nutmeg's Kids,
first eight months of 2018 demand was so strong she shirts, hats and other ca- products the Trump admin- has totaled $15, down from
were up 5.7 percent from a ran out of some styles. Sales sual apparel with Portland, istration has imposed tariffs $30 in 2017. But she's see-
year earlier. Clothing store have been particularly Oregon, logos, projects a on. Owner Tiffany Zarfas ing more optimism among
sales rose 5.7 percent, while strong the last few months. 15 percent sales increase Williams says suppliers are shoppers and retailers at
furniture store sales gained Tanov says that despite the during the fourth quarter already passing their high- Round Top's annual an-
5 percent. Online and mail- growth in online shopping, but is prepared to produce er costs to her; by agree- tiques show, which began
order sales soared 10.1 per- customers want to visit more inventory if holiday ment, she must in turn raise this week and continues
cent. small stores where they can sales exceed expectations, her prices. That makes her into October.
And while booming online feel an emotional connec- co-owner Marcus Harvey worry about customer re- "We are seeing a lighter
sales have siphoned busi- tion. says. The company makes actions. "It puts so much feel," she says. "Fourth quar-
ness away from many tra- "People have been really its own garments and can uncertainty into our busi- ter could be better than
ditional retailers, small and responding to products quickly replenish its stock, ness when we're going into the last two years."q
independent stores with that they know are made Harvey says.
unique merchandise or ser- with integrity, and are sup- The company has one
vices are enjoying a sales porting artisans both locally store in Portland and a
surge that allows them to and globally," she says. website and plans pop-up
stock up, although they do Retailing consultant Bob shops during the holidays.
so judiciously. Still, there are Phibbs expects small brick- Because of its local ap-
pockets of uncertainty in- and-mortar retailers to peal, 70 percent of its sales
cluding retailers in places have a good holiday sea- come from its physical lo-
recovering from natural di- son. cations, with the remainder
sasters and those worried "Retailers are getting back online. Harvey and his part-
about the impact of the to being brilliant on the ba- ners don't plan to change
Trump administration's im- sics of customer service," that mix.
port tariffs. Phibbs says. For example, But the prospect of tariffs
Erica Tanov is ordering owners are training staff- makes some retailers un-