Stores, suppliers ‘optimistic’ despite a weak Christmas season

The 2008 Christmas season produced “a mixed bag” of results for Christian retailers, suppliers and publishers, but they sounded more upbeat than the gloomy reports from the worst U.S. holiday shopping period in nearly 40 years from the general market channel.

Amid a turbulent economy, many mainstream retailers reported steep sales declines during Christmastime. Holiday sales for such chains as Gap (14%), Sears (12.8%) and Macy’s (4%) were all down, according to the Associated Press. Even Wal-Mart reported smaller sales gain than expected, posting a modest sales increase of 1.2%—down from 2.7% in 2007.

Many in the Christian industry were still compiling results in early January, but several contacted by Christian Retailing were optimistic about holiday results.

Sales at some of Mardel Christian & Education’s 27 stores were flat, according to President Jason Green, who noted that overall business increased thanks to strong openings at two new stores that launched during the Christmas season.

Apparel, framed art, gift items and Bibles were popular with the chain’s customers, he added, with the latter boosted by new releases, including Crossway Books & Bibles’ ESV (English Standard Version) Study Bible.

“We are optimistic about 2009,” Green said. “While we are concerned about the economic situation that is before us, we know that God is control.”

Meanwhile, Dicksons released nearly 1,350 new items last month—the second largest rollout of products in the 65-year history of the Indiana-based gift company, according to Vice President of Marketing Steve Mohler.

“We realized new product with current design and colors are important to inspirational gifts and our industry,” he said. “Everything I hear is that things will pick up (economically) this year. If we’re not prepared for the rebound, we’ll be late. We won’t do that. We’ll be ready.”

Mohler added that Dicksons had heard “a mixed bag” of reports from independent bookstores. “It’s not all bad,” he said. “We’ve heard of different stores in Tennessee, Alabama and Georgia that had 8% to 12% increases. I’m pleasantly surprised that some stores had a good Christmas. There’s light out there.”

Mark Hutchinson—co-owner of Blessings Christian Marketplace, a chain of four stores based in Chilliwack, British Columbia—said December sales were 16.9% up from 2007.

Blessings’ top sellers over Christmas were William P. Young’s The Shack, Karen Kingsbury’s Every Now and Then and Michael W. Smith’s A New Hallelujah.

“We did not heavily discount anything,” Hutchinson said. “We had various special promotions running, but not widespread at all. … All in all we tried to communicate that we were offering fairly priced products throughout the store. I think our numbers illustrate that we did well and did not give the store away. Our margins were also higher this year than last year.”

Elsewhere, Deeper Calling Media—an online retailing operation that handles the Web site for approximately 130 mostly Christian-owned stores—reported a 5% increase in December from 2007.

Owner Bill Goodyear said he attributed the sales jump to his clients offering unique products, including gourmet food items, Christmas ornaments, high-end home décor and various specialty products.

“The fact (that) we were up was exceedingly encouraging,” he said.
Meanwhile, STL Distribution North America exceeded its budget for December and saw an increase in business from 2007, according to Vice President of Marketing David Dykhouse.

“We were the prime source for Canadian retailers to turn to in the wake of R.G. Mitchell’s demise,” said Dykhouse, referring to the largest Christian distributor in Canada unexpectedly closing last September. “We aggressively pursued the business and were rewarded with a dividend of extra Christmas sales.”

However, several retailers, suppliers and publishers reported soft Christmas sales.
In Heaven’s Name Christian Bookstore in Dalton, Ga., saw seasonal declines of 9% in sales and 44% in gift certificates. Owner Geneva Whitener attributed the latter to the media putting a damper on the category as shoppers shied away from gift cards and certificates for fear that the stores would go broke.
“It seemed like we had more traffic this year, but people were buying less,” Whitener said. “They weren’t buying large items as they did in 2007.”

Elaine Todd, owner of Living Branches in Winchester, Va., estimated her sales were off by 20%. “It doesn’t pay my bills to know I’m not alone,” she said of other retailers’ woes. “But I guess I know it’s not something I’m doing desperately wrong.”

DaySpring Cards saw a decline in Christmas product, primarily because of a decreased customer count due to store closings, said Director of Communications Brenda Turner.

Rick Shear, vice president of Christian retail key account sales for Thomas Nelson, said holiday season sales were flat.

Christmas sales for Zondervan were just slightly down over 2007, according to Verne Kenney, executive vice president of sales. He said a pair of Zondervan titles were strong seasonal sellers—Rick Warren’s The Purpose-Driven Life and Jon and Kate Gosselin’s Multiple Blessings, released last October.