By Sarah Murray

Sue Hodges may be one of few Lexington residents who is happy about high gas prices.

She doesn’t enjoy paying at the pump, but the high cost of gas means that more people may shop at her clothing and gift store, Things Unique, for items on their Christmas lists.

Skip Hess, owner of gift store R. L. Hess & Bro., feels the same way. “I think maybe [gas prices] can help us,” he said. “Because instead of people just jumping in their cars and driving to Roanoke or Charlottesville, they’ll shop locally.”

That conservation plus a traditional revenue bump around the holidays are setting up local retailers for a robust Christmas season even as other industries, especially those dependent on oil for distribution and production, are wilting.

Lexington shops on Washington St. awaiting higher

Christmas revenues. Photo by Sarah Bloom

The outlook wasn’t so rosy a month ago, when Hurricane Katrina still haunted the business world and analysts predicted the worst. But the U.S. Census Bureau’s October sales reports lifted expectations. With the exception of predictable losses in the auto sector, retail sales nationwide have been steadily increasing since August and show a 5.7 percent increase from October 2004.

The Wall Street Journal reported that October’s warm weather was one reason for the increase. As the nation’s oil and gas stores built up, consumers felt more at ease about the coming winter’s heating costs, making them more willing to spend.

Joe Teklits, a retail analyst with Wachovia Securities, said the economy has been solid all year and that bodes well for retailers during their important fourth quarter.

“The economy’s healthy, household income is up, employment gains are good,” he said. “Historically, that’s what we’ve found to be the biggest drivers of retail spending.”

For Lexington shop owners, the important thing is that consumers spend here rather than the county or elsewhere.

“I carry better-quality stuff than Wal-Mart,” Hodges said. “I don’t have what they have, and they don’t have what I have.”
Some shop owners depend on the downtown traffic to bring in browsers and buyers. Tom Lomax, co-owner of shoe store Molly Gilbride, stands a better chance of getting sales if shoppers stick to the streets of Lexington.

“The fact of the matter is shoes aren’t as holiday-driven as most retail because they are a somewhat difficult gift to give,” Lomax said. “Students make up at least half our sales.”

Things Unique’s Hodges expects sales to increase by up to 25 percent this season, while Hess anticipates a rise of 15 percent to 20 percent. Many other retail operations, including Virginia Born & Bred and Nelson Fine Arts Gallery, report that this time of year brings in the most revenue.

Hot seasonal items in local stores include dolls, Christmas ornaments, tourist items, and winter apparel-not surprising for December. But whatever shoppers bring home, it has to be a little part of Lexington.

“People come in looking for something representative of the area,” Roy Rudasill, co-owner of Nelson Fine Arts Gallery, said.
 

Chris Lauderman, Laura Neller, Lizzie Newland, and Michael Patterson contributed to this story.

Produced by Washington and Lee journalism students.

Lead supervisor:      Prof. Claudette Artwick

Reporting supervisor: Prof. Doug Cumming

Editing supervisor:  Prof. Pamela Luecke

Technical supervisor:  Michael Todd