LITTLE ROCK, Ark. (KTHV) - Arkansas Business Publisher Jeff Hankins came by the studio tonight to talk about the upcoming holiday season for the retail business.
Some national analysts say that sales could go up three percent over last year, which is a $465 billion projection that would set a record.
Local analysts in Arkansas were encouraged by August numbers on sales tax revenue getting boosted five and a half percent over 2010. The reason that's such a big deal is because for the first time in recent history, the state of Arkansas held a tax holiday for back-to-school shopping. The fact that the state still gained tax revenue despite not collecting it for two days is a sign that shoppers are spending more.
A concern for the upcoming season is that unemployment numbers in Arkansas are still hovering above 8-percent, and that's a strain not only on those affected families, but on the merchants who serve them. Consumer confidence overall is still weak, and many projections show that while sales are projected to be higher, the growth rate of those sales is slowing.
To attract shoppers, Hankins says, "you can expect to see more lower prices, probably beginning even before 'Black Friday'. Some retailers are adding more variety to their merchandise mix. And yes, in one of the better signs that this could be a more joyous season for some, more employees are being hired, even if only on a part-time basis."