Even with a tough economy forcing people to change their spending habits, retailers in downtown Tacoma are optimistic about the holiday season.

Stores are ordering plenty of inventory for the expected demand. Owners are planning their holiday sales. No one is more optimistic than Angela Schellenberg.

Schellenberg is preparing to open the new location of her store Dragonfly, which is moving from the Dome District to a smaller spot on Pacific Avenue. The Asian-themed furniture and jewelry shop is opening its doors in the coming weeks, right in the run-up to the holiday buying season when people are analyzing their budgets to see what they can afford.

“Even during times of recession, women will always find a way to spend money on themselves and gifts,” Schellenberg said.

The National Retail Federation is expecting people to spend about $830 on holiday shopping, characterized as a “paltry” rise of 1.9 percent from last year.

“No one is canceling Christmas because money is tight, but customers will be sticking to their budgets and looking for good deals when deciding where to spend this holiday season,” said Tracy Mullin, National Retail Federation president and CEO, last month.

Downtown Tacoma retailers say their unique products and their personal interaction with customers will bring more shoppers through their doors. They said they hope to draw some customers away from national chains and big-box stores.

“We have the capabilities to make sure that when people open their gifts during the holiday time, we and like-minded businesses in downtown Tacoma are going to make sure they will be of quality, of value and that they are going to be appreciated,” said Steph Farber, owner of Leroy Jewelers on Broadway.

FIGHTING THE MALL

Downtown Tacoma has not been a shopping destination for several decades, since the Tacoma Mall opened in the 1960s. City and business leaders have since tried to revive a concentration of retailers.

The downtown retail environment might well be better than it was even just two years ago – as an indication, a collection of shops has sprung up near the University of Washington Tacoma campus. The other end of Pacific offers a few retail stores. But more must be done to make it a vibrant shopping district, said Dominic Accetturo, associate vice president of the commercial real estate agency GVA Kidder Mathews in Tacoma. When he looks to sell in Tacoma, Accetturo talks about the qualities of running a shop downtown, including a good amount of foot traffic. But the problem is, barely any of that foot traffic happens after 5 p.m. or during the weekends, times that need to be busy for retailers to prosper.

“Some retailers have looked downtown, but they are frustrated that others aren’t open after 5 p.m.,” Accetturro said.

But there have been improvements, including some businesses and bars opening late and other businesses renovating. Tacoma has potential, and retailers and landlords need to work to realize it, he said. Until then, it’s hard to compete with other areas, and shops rely on the strengths they have.

OFFERING SOME THRIFTIER OPTIONS

Ken Grassi, owner of Grassi’s Flowers & Gifts on Pacific Avenue and the vice president of the Downtown Merchants Group, said he has seen a large push to support local stores. Even in a season when everyone is looking for deals, the effort will continue. He still expects a strong season.

Shoppers “are saying enough’s enough, and they can only take so much of the news,” Grassi said. “They are still planning and shopping and celebrating, we are still anticipating a great season, and we ordered accordingly.”

The National Retail Federation’s holiday consumer survey shows 40 percent of shoppers say their biggest concern is whether a store offers discounts, compared to 5 percent who say customer service is most important. Also, 60 percent of shoppers said they plan on shopping at discount stores first.

So a happy, helpful face behind the counter is not enough. Putting low prices together with service is how locally owned shops downtown hope to compete to get shoppers who are already planning to spend less.

Dragonfly’s Shellenberg recently returned from a trip to Shanghai, and brought the question straight to her vendors half a world away.

“I went to the vendors, and they knew about the economy,” she said. “I asked, ‘I have 20 bucks, what will you sell me?’”

The answer is what her new store will be stocked with for the holidays: Asian jewelry for cheap, including $15 pearls.

Her store, located at 1744 Pacific Ave., will open Nov. 15 with a grand opening planned for two weeks later. She moved out of the Dome District looking for more foot traffic, and with the holiday season beginning and decorations starting to go up, she waits to see if the traffic does come.

“I am really hopeful for this holiday season,” she said. “I feel like it’s a good thing, but definitely times are tight.”

Brian Everstine: 253-597-8374

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