Having survived the Great Recession and several weak fiscal quarters, Sedona business owners are seemingly optimistic about the end of 2011 and the financial outlook of 2012.
“Clearly, there are no more ‘typical years.’ We would have to go back four years to get to what was ‘typical.’ The economic downturn has created an entirely new and unpredictable situation for business each year,” said Linda Goldenstein, chairwoman of the Sedona Chamber of Commerce Board of Directors.
“December is the time we really hope that Sedona and area shoppers will shop local. Shopping local can make the difference in a business staying open and in tax revenue for our city to maintain the quality of life in Sedona,” Goldenstein said. “It is a win-win-win situation when locals shop local. It is critical to businesses in Sedona. A huge thank you to the Sedona Chamber of Commerce and the [Sedona] Red Rock News for their Shop Local campaigns.”
Black Friday, the day after Thanksgiving, marks the unofficial beginning of the holiday shopping season. Online retailers created Cyber Monday in 2005 while small business owners founded Small Business Saturday last year.
According to news reports, the 2011 Black Friday may have been one of the busiest on record, although sales dropped off over the weekend.
The overall rise in sales nationwide over 2011 can also be felt locally.
Ted Lubowsky, a cellular phone retailer in the Village of Oak Creek, said his business is up 50 percent over last year and he projects December will also be high.
“We’re expecting better than 50 percent,” Lubowsky said.
He said the improvement is due to a change in his business strategy opposed to last year. His business aims to be a low-price provider, focusing on volume rather than higher margins. His company also has boosted its customer service ratings.
“So we focus on customer service and being the lowest-priced provider of any Verizon retailer in the area,” he said. “And a lot of marketing.”
Lubowsky said the trend should continue into 2012.
“We think we’ll have 30 to 40 percent growth and hopefully better than that,” he said.
Randy Jones, owner of a furniture store in the Village of Oak Creek, said his numbers have been about the same, but with the traffic over the last 30 days, he expects sales in December to be up by perhaps 15 percent.
Jones said he thinks numbers at the start of 2012 will be higher than a year ago.
“It seems like things are starting to sizzle,” Jones said.
“Personally, our business was up this year over last,” said Goldenstein, who also owns an Uptown art gallery.
She attributes sales to local customers and an increase in Canadian clients.
“Their dollar has leveled out more with the U.S. dollar and their spending in Sedona has improved our economy,” she said.
“I am also optimistic as Sedona’s reputation as a fine art destination for collectors has grown and continues to grow. We see more and more people that come here on art collecting missions. These people also love the full spectrum of arts we offer not only in the visual but also in the performing arts,” she said.
Having the Sedona Performing Arts Center benefits Sedona Red Rock High School, locals and visitors as well as increasing Sedona’s reputation as a destination, she said.
The general uptick in business, however, is not uniform, and some business owners report numbers are down for 2011.
“We’re lower than last year,” said Monty Frost, who runs an Uptown restaurant.
“We’re about 6 percent down over last year. Some days we’re up to 20 percent down over last year, but across the board, it’s about 6 percent.”
Frost said he does not expect the year to improve.
“We’re pretty consistently down,” he said. “Our fiscal year ends in April and November, December, January is the slow time of the year. With the way things are, we don’t expect December to be different, except around the holidays.”
The unemployment rate is falling locally. Yavapai County’s unemployment rate began at 10 percent in January but fell to 9.8 percent by April, closing the gap with the state unemployment rate of 9.5 percent, according to the University of Arizona’s Economic and Business Research Center. More recent numbers have not yet been released.
Goldenstein said city funding of the chamber’s marketing and tourism efforts will also help local businesses into next year.
“We have some big events in our favor for improving early 2012; among them are the Sedona Marathon and the Sedona International Film Festival,” she said. “The marathon is expected to have 2,000 runners and each runner brings an average of 2.5 people into and out and about town. The Sedona chamber is producing the Sedona Marathon and is doing an excellent job of promoting the event on the local, national and international levels. It is a proven winner for our community and looks to be more robust than ever this year.”