After a year of inflation plus snowstorm impacts, Anchorage stores seek a boost this holiday season
Nov. 25—Anchorage store owners said they're hoping this weekend's Small Business Saturday has kicked off a strong holiday shopping frenzy, helping sales recover from a challenging year of big snowstorms, high inflation and other factors.
Hannah Schruf, owner of the Weather Boutique downtown, highlighted the concerns for small businesses on an Instagram post this week.
"This week could be make or break for some of us," she said, calling on customers to support local businesses this season.
Schruf said Friday she's hopeful for a rebound this season.
She said the shop-local trend gained steam during the early days of the pandemic, when Weather Boutique opened. But that has now slowed.
Inflation is easing but still high, and some people are prioritizing groceries and bills over things like clothing, she said. Also, small businesses like hers endured closures and reduced hours during big recent snowstorms, adding to the challenges, she said.
"It's been a tough year," she said. "There was a really big push to support small businesses after the pandemic and the fire under that burned out, the stimulus money burned out, and inflation took everyone out. Then winter in Alaska isn't always super fun to drive around in."
But November and December are usually strong months, she said.
"I'm hopeful," she said. "This is a weekend a lot of people are looking forward to, and it hopefully will set off the gift-shopping trajectory."
Other Anchorage business owners said they were looking for a similar jump-start on Small Business Saturday, started by American Express about a dozen years ago. Many, like Weather Boutique, are offering special deals to bring in customers.
Inflation and a high cost of living in Anchorage continued to eat into purchasing power this fall, said Jenna Wright, president of the Anchorage Economic Development Corp. The city is the fourth most expensive place to buy groceries out of 269 urban areas nationwide, she said.
The National Retail Federation estimates that growth in retail sales nationally during the holidays won't be as strong as recent years when stimulus spending supported the economy, but it should be in line with the pre-pandemic growth rate.
That slower annual growth should hold true for Anchorage since it has faced some of the same major economic headwinds as the Lower 48 this year, including high interest rates that increase borrowing costs, Wright said.
The Alaska Small Business Development Center said in a statement this week that shopping locally can make a big difference in the state's economy, leading to higher wages and more jobs.