Recession woes at the holiday market
All month until Christmas, Union Square transforms into a bustling holiday marketplace. Dozens of smiling vendors crowd against each other in little striped booths and peddle everything from gems to cookies to the festive crowds.
The staggering amount of foot traffic through the colorful holiday maze makes one think that open air markets are the perfect way to do business during a recession. Talk to some of the vendors, however, and their smiles grow sad. With the dark cloud of deflation hanging overhead, the vendors have one consensus about customers: they’re coming but they ain’t buying.
“It’s definitely slower,” said Alexandra, one of the vendors. “People are being more careful about what they buy.”
In years past, Alexandra’s booth where she sells dolls and designer dresses used to bring in at least a thousand every day. This year, she has yet to reach that number on even the busiest shopping days. In a nearby booth, Lorenzo has seen profits from his artwork literally halved.
The drop in retail prices was a record-breaking 1.7 percent in November. Out in the holiday market, it appears that December is faring no better. Many of the vendors had to cut their prices steeply in order to stay competitive.
But the drop in performance isn’t uniform for everyone. Some booths are doing clearly than others, depending on what products they sell. Jewelry isn’t doing so well but bath and comfort items are still in demand.
“We sell a product that makes people feel good,” says Al. “So that usually does well, even in a hard time.”
Some vendors also have the advantage of customer loyalty on their side. Unlike store loyalty, this kind of repeat business is much more personal. This might explain why so many booth owners are smiling, even though they know their business is going down.