Think ‘local’ when shopping for the holidays

A report issued a few days ago offers a classic good news-bad news scenario unfolding for the upcoming holiday season. FTI Consulting Inc., a global business advisory company, is projecting U.S. holiday spending will increase 4.5 percent during the annual retail feeding frenzy that kicks off in earnest later this week.

Increased consumer spending is good for the economy. According to the FTI report, consumer confidence is about 25 percent higher entering the 2012 holiday shopping season than it was a year ago. This reflects positive feelings among wage-earners about the state of things a few short years after the dismal holiday season for retailers during the economic downturn of 2007-08.

That’s good news for everyone.

The not-so-good news, at least for the local economy, is that the increased spending will be fueled by online sales. FTI forecasts 13.5 percent growth in online sales for 2013, which continue to show about three times the growth rate of store-based sales since the recession.

There is no denying the allure of online shopping. It requires no travel and can be done at any time of day or night. That convenience, coupled with expanding use of smartphones and tablet computers, gives consumers more ability than ever to shop without walking into a local store.

There was a time, not long ago, that holiday shopping meant driving to Anchorage. No more. Along with all the “big box” retailers, we have a wide range of specialty shops and boutiques that can easily accommodate any shopping list. Some of those local shops are featured in the Holiday Gift Guide included in today’s Mat-Su Valley Frontiersman.

Now consider the economic impact we could have it tens of thousands of local people committed to spend $100 locally this holiday season that we otherwise had planned to spend online. There is potential for millions of dollars to remain in the local economy, where it can change hands seven times or more and provide a turbo-boost to our economic engine.

The boost that comes from local shopping benefits everyone. From a better job market to an expanded tax base, a robust business environment enriches the community and encourages more of the same.

So we hope Mat-Su residents will remember the value of spending in the community this holiday season. In so many ways, it is an investment.