The end of year holiday season is typically important to retailers.
According to the National Retail Federation, Americans are going to spend between $979 billion and $989 billion during November and December this year, with average spending for gifts and other holiday-related items expected to amount to $902 per consumer.
That’s nationally.
But the Guam market is not expecting the same sort of spending it has been blessed with in the past. Larger stores with a range of products may fare better, but for niche retailers the going is tough.
And for retailers who do business in Guam and the islands — particularly smaller businesses, the picture is not consistently bright as the holiday season settles in.
Gemkell Corp. offers consumers Balenciaga, Chloe, Givenchy, Lacoste, LeSportsac, and Marc Jacobs in Guam. In Saipan in the Arc Building on Beach Road, Gemkell offers Balenciaga, Givenchy, Chloe and Kenzo.
Angie K. Saad, general manager, in the upgraded Chloe boutique at Dusit Place. Photo courtesy of Gemkell Corp.
Angie K. Saad, general manager for Gemkell; told the Journal the market is facing various challenges — the low visitor arrivals, the foreign currency rate that continues to contribute to the island being an expensive destination, and the careful spending of certain tourists. “They think twice before coming,” she said.
China Airlines resumed direct flights on the Taipei-Guam route from Nov. 28 and continues through Feb. 1, 2025.
“It’s not going to be the Hail Mary for us,” Saad said.
It will be April next year before United Airlines resumes flights on the route.
Airlines that fly on the Guam-Korea route include Korean Air, Jeju Air, T'way and Jin Air.
The Organisation for Economic Co-operation and Development reported in July that while the Korean economy has generally improved it’s still a mixed picture., with GDP growth in Korea in recovery, supported by strong exports Employment remains stable at a high level, while unemployment is low. Interest rates have likely peaked, and housing prices have stabilized all of which should support consumption going forward, the OECD said, but most importantly recognized that household debt remains high.
Korean visitors have a reputation for being careful spenders when it comes to accommodation, and their shopping is no different, Saad said.
“They’re very budget conscious.” This is reflected in sales, she said. “Lacoste and Sportsac are doing better than my luxury brands.”
The Japan market is not strong either, Saad said.
“We have people coming from China,” she said, but those tourists are also wary of high prices, and more likely to be from the countryside than top tier cities.
Mish Castillejos, sales associate; at Twinkles in Guam Premier Outlets.
As to the local market, Saad said there is definite support. Plus, last year with the government assistance for families, she said some of that income was spent in Gemkell stores. “This was good for us.” However, with no such funding this year, she said, “But now we’re feeling the repercussions of that.”
One problem Saad said is the ability to find people to work in the Gemkell stores. “As an employer I’m finding it difficult to hire and retain good people.” While employees typically say they can work a variety of hours, that often turns out not to be the case, she said. “In the retail industry we need people that are flexible.”
As for this year’s Black Friday, Gemkell did try a new tactic. “This year we started a whole week earlier,” Saad said. “We did see some positive results, but we’re still down from last year.”
Currently, she said, “We have ongoing promotions until Christmas. Mark Jacobs and Lacoste will be receiving new shipments next week (the week of Dec. 9.)”
Gemkell carries a variety of materials across its brands, with a ‘something for everybody’ selection, with purses for example in leather, nylon, cotton and raffia. “Koreans like leather,” Saad said. Nylon is “hugely popular with the Japanese,” she said.
In other Gemkell news, Saad said that following the opening of the new Chloe boutique on Sept. 8, “We’re in the middle stages of doing our Balenciaga expansion.”
Despite the current challenges, Saad said the investment is worthwhile. “We feel there’s a market for it.”
Su Mun, owner of Twinkles toy store at the Guam Premier Outlets, said his shop began offering holiday toys early, but at discounts.
“We actually started our 30% sale about a week or so before Black Friday,” he told the Journal. For Black Friday, Twinkles offered a steeper discount, he said. “Black Friday was pretty good. Now we are back to a 30% discount.”
Mun said the retail environment has not been easy in Guam. “This year is harder than last year. There are people getting cuts in their working hours and paid less.” That’s been reflected in holiday purchases, he said, with people buying “mostly small things and cheaper. Their dollar amount is less,” he said.
The toy industry has a seasonal supply chain. While toy sales are up over pandemic figures, and the industry is still a billion-dollar one, U.S. toy industry sales declined 1% from January through April 2024, compared to the same four-month period in 2023, according to Circana, a unit of the Toy Foundation. Building sets, led by Lego, remain universally popular, as do outdoor and sports toys, Circana said.
The toy supply chain has had challenges, Mun said. “The dollar is very strong, and the number of toys are down. Generally overall, it’s a very tough year.” Twinkles does get tourist shoppers, “once in a while,” he said, with those also being careful shoppers.
Including Mun, Twinkles has 13 staff, who are mostly part time, he said. “This year it’s hard to find employees,” he said, which he finds difficult to understand given the island’s economic challenges. “I don’t know why, but it’s very hard.”
Threads Guam, owned by Corina Rivera, has been in business for eight years, and has three retail locations, with Guam stores in Hagatna and Dededo, and a third store in the Town House Shopping Center in Saipan that opened in June. The chain has six employees in Guam and two in Saipan.
Threads retails women’s apparel, including dresses, tops, and two-piece outfits, as well as shoes, purses and jewelry. Rivera said, “We cater to all ages and all sizes.”
Carina Rivera, owner; and Kiersten Wolford, manager; in Threads Guam, Hagatna. Photos by Maureen N. Maratita
Rivera said this year has been difficult. “February all the way to October was a tough time,” she said. Of her customers, she said, “Their spending is not as much as it used to be.” Business has improved recently, Rivera said. “I’m starting to see a little more foot traffic as it’s the holidays.”
Kiersten Wolford, manager, said Black Friday this year was good for business. “It [was] awesome — both on our website and in store.” Popular purchases include dresses and footwear, she said.
The Threads team “are like family,” Rivera said. “I love my team.” She is looking to add to the staff in Guam through the holiday season, she said. “I’m getting ready to put an ad out.” Those hires might be “more than likely permanent,” she said.
The Saipan market has not been easy, Rivera said. “That truly has been a challenge as well. They’re more frugal over there.” Customers buy what they need at any given time, Wolford said. “It’s rare that we get a large purchase,” Rivera said. And if that does happen, customers take longer to return to shop.
The latest fashions for the holiday season are just arriving, Wolford said. “They’re coming in slowly.”
Threads customers typically tend not to hesitate on purchases, she said. “If they need it, they grab it.”
Threads Guam also offers a reward program – TG Perks.
What likely also helps maintain sales is the stock’s price points. “We try to make our prices as reasonable as possible,” Wolford said. mbj
