What’s ahead for the Christmas season? The National Retail Federation was quoted in a recent Women’s Wear Daily article as predicting that 2025 holiday retail sales will grow between 3.7 and 4.2 percent over last year’s levels. This sounds like good news, but the picture may not actually be that bright. Price increases, especially those enacted to offset tariffs, result in increased sales levels – however higher bottom line costs could take away those gains.

The big question is about consumer confidence for this season, and how that will impact large and small retailers. Some pundits predict that the focus will be on big ticket items rather than discretionary or impulse items. Everyone agrees that the general population is nervous about the economy, especially after the recent government shutdown.

I think this unease will translate into a longing for the comfort and cheer of an old-fashioned holiday season, which is good news for independent retailers. We are in a unique position to create an in-person shopping experience at the quarter-century mark that harkens back to the fun of the holidays in earlier times.

The popularity of Christmas markets is a testimony to the desire for this kind of nostalgic experience. The Christkindlesmarkt, which originated in Germany in the late middle ages, is an outdoor shopping experience now held in dozens of cities around the world, including Denver, Dresden, Shanghai, and Chicago.

The appeal of the Christmas markets is in the ambiance that they create, and that can serve as an inspiration for us as independent retailers.  While you may not be selling mulled wine out of a wood stall, you can provide cookies and hot beverages on a few days during the holiday season. The scent of Christmas is another sensual aspect that is easy to recreate in your store, along with the cheery sight of festive decorations.

Special activities such as a visit from Santa or carolers add a festive touch. We support two different performing arts groups in Madison by hiring their caroling groups to go from shop to shop during Holiday Glow on Monroe. Our Santa strolls the street posing for photos and giving out candy canes.

The most important magic you can create is by extending a warm welcome shoppers and letting them know you’re happy to see them. Display an array of interesting gift options at different price points to make holiday shopping easy. If you’re able to offer wrapping, that often makes a customers’ day. An efficient checkout experience and a heart-felt thank you will hopefully send every shopper on their way feeling pleased that they chose to shop local this season.

Happy Retailing,
Carol “Orange” Schroeder