Holiday outlook: 'Shop, eat -- and be wary'

Nov. 23—Inflation that is lingering like an unwanted party guest and a looming recession that may or may not show are putting a dash of gloom on an otherwise cheery holiday shopping outlook.

During the holiday season around the East Valley, businesses and business leaders are expecting consumers to follow a national trend that might be called "shop, eat — and be wary."

A recent Associated Press story said expectations are for "a relatively solid holiday season for America's small businesses. Yet, owners of these businesses appear to have a collective anxiety."

Nationally, holiday retail sales are expected to increase between 3% and 4% in 2023, according to trade group the National Retail Federation. In 2022, sales jumped 5.3%, according to the NRF.

But inflation — including higher employee wages — have both shoppers and sellers a bit anxious.

The four weeks that for many businesses can be the bulk of 2023 sales kick off, as usual, the day after Thanksgiving.

With all the online options, is Black Friday still "a thing"?

"Absolutely," said a manager at LEGO in Chandler Square, who asked his name not be used.

Typically, he said, LEGO fans will be lined up when the store opens at 6 a.m. — three hours early — on Black Friday.

"They've either stayed the night or got there at 3 or 4 a.m.," he said.

He expects a repeat of the 2022 Black Friday: "fun moments but stressful moments.

"Business only slows down if we run out of products — of big-ticket items."

Popular LEGO sets include the Eiffel tower ($629) and a Star Wars AT-AT ($849).

The Chandler manager said the special prices and products LEGO will release Black Friday are tightly-guarded secrets.

Mark Stanton, president/CEO of the Scottsdale Area Chamber of Commerce, said local retailers are ramping up for Black Friday and "seeing a good trajectory."

He predicted "a great season for shopping for retail in Scottsdale and the Scottsdale area."

His counterpart in Mesa was a bit more guarded.

"From the few members who've talked about the holidays, most are expecting results like last year or lighter in sales, but hoping for the best," said Sally Harrison, president/CEO of the Mesa Chamber of Commerce, said.

Like others around the Valley, Harrison sums up her holiday wishes in two words:

Shop local.

"We know that many of our smaller businesses are dealing with struggles from inflation to workforce," she said.

"We would hope that when our community is out doing their shopping that they'll consider supporting our small business community."