Stores hope for Christmas cheer

Zurich's Bahnhofstrasse is pinning its hopes on Swiss shoppers Keystone Archive

The economic downturn and world crises have discouraged American travellers, leaving retailers hoping for a domestic spending boom this Christmas.

Christmas is a crucial period for the retail market, with annual sales boosted by present buying and extra consumption of food and drink. But there have been fears this year that customer confidence might be hit by the slowing economy and by the US response to the attacks on New York and Washington.

With fewer American tourists in Europe after September 11, businesses on Zurich’s famous tree-lined shopping avenue, the Bahnhofstrasse, are counting on the domestic market to keep sales up.

Extended hours

The department store, Jelmoli, says it generates 25 per cent of its annual sales in December. This year, it has remained open later on Saturdays and has also been helped by the tradition of being allowed to open on two Sundays prior to Christmas.

And the store says that although there are fewer American tourists in town, Swiss shoppers have been spending more.

“The Swiss aren’t travelling as much as before either, unfortunately travel agencies aren’t doing very good business,” says Jelmoli spokesman, Robert Fieg. “People are staying put in Switzerland this year. Maybe they’ll take a trip to the mountains but they’re doing their shopping in the cities first.”

Fieg says early estimates show a 10 per cent increase in sales over last year.

But Jelmoli’s gain may be at the expense of other retailers. At the other end of the Bahnhofstrasse, it’s a different story.

Not in the mood

The watch and jewellery store, Türler, has a shop in the Savoy at Paradeplatz but the lack of foreign tourists staying at the hotel has hit business hard.

“Customers just aren’t in the mood to spend,” says Franz Türler, “You have to be in a good mood to buy watches and jewellery and it’s just not there after the attacks on the US.”

The luxury goods sector has been one of the hardest hit in the last few months and Türler expects sales to be down by up to 10 per cent on last Christmas, which was admittedly a very solid year.

But Türler too hopes the domestic customer will partially offset the bad news.

“We have two markets,” he says, “The tourists and the Swiss and it seems that tourists are more reluctant to spend now than the Swiss.”

Heavily dependent on the Christmas market is Zurich’s premier toyshop, Franz Carl Weber. The shop, which also has a branch in Lugano, relies on Christmas for no less than 60 per cent of its annual sales revenue.

Children’s gifts

And it seems that whatever else people may scrimp on, money will always be found for children’s Christmas presents. The store says trade has been brisk and is expecting sales figures to be similar to last year.

But, nevertheless, the September 11 attacks have had an effect.

“We’ve taken the last military items off our shelves,” says managing director, Franz Nydegger, “that’s to say plastic models of airplanes and warships and cowboy pistols as well.”

Nydegger says although computer games like Pokémon are still holding up well, sales of more traditional toys and games are on the rebound.

It seems parents and their children may be taking refuge in more innocent times with Nydegger reporting improved sales of doll’s houses, board games and dressing up outfits.

Although the luxury goods sector appears not to be having such a merry Christmas, sales in other sectors do appear to be holding up better thanks to increased spending from Swiss shoppers.

But the proof of the pudding will of course be in the eating — when stores release their Christmas sales figures early next year.

by Michael Hollingdale