UPDATE: Hawaii’s holiday shopping season faces a significant downturn as the federal government shutdown drags into its second month, impacting consumer spending across the islands. With 35,000 federal workers in Hawaii not receiving paychecks, retailers are bracing for a challenging holiday season just as festive decorations begin to adorn shopping malls like the Ala Moana Center in Honolulu.
As Black Friday approaches, typically the peak shopping day of the year, uncertainty looms over local businesses. Kea Haverly, the incoming chair of the Retail Merchants of Hawaii, warned, “Things are dire when that amount of revenue is not cycling through the economy.” The ongoing shutdown has already affected over 160,000 residents, disrupting essential services like SNAP benefits and leading many to postpone holiday purchases.
Ann Jones, a medical support assistant at Tripler Army Medical Center, exemplifies the human cost of the shutdown. “Shopping can wait,” she stated, prioritizing bills and crucial needs for her family. With the prospect of telling her son that “Santa’s not going to be here this year,” her situation reflects the urgent financial strain on many families.
Despite a gloomy outlook, the National Retail Federation recently projected a record spending of $1.01 trillion to $1.02 trillion across the nation this holiday season, indicating some consumer resilience. NRF President Matthew Shay expressed optimism, saying, “American consumers may be cautious in sentiment, yet remain fundamentally strong.”
However, Hawaii’s economy is particularly vulnerable. Economist Paul Brewbaker noted that consumer purchasing power is diminishing, with residents forced to spend more on groceries due to rising costs. This trend is evident in credit and debit card data, which show an increase in grocery spending, leaving less available for holiday gifts.
The situation is exacerbated by a recent 10% reduction in air traffic at Honolulu’s Daniel K. Inouye International Airport, a move made necessary due to a shortage of air traffic controllers. This reduction could further impact tourism, a vital component of Hawaii’s economy.
Retailers are adapting to the crisis by implementing discounts and special offers in an effort to attract consumers. Charlene Calistro of T&C Surf Designs highlighted the company’s holiday plans, stating, “We feel optimistic. However, we live in reality so the government shutdown is a concern.”
As Black Friday approaches, malls are also ramping up charitable initiatives, including partnerships with the Salvation Army. Jake Wilson, vice president of property management at Brookfield Properties, emphasized the significance of community during this season, stating, “The holiday season is a special time of year, and shopping centers like Ala Moana Center play an important role in bringing people together.”
Hawaii’s retailers are doing everything possible to ensure a successful holiday season, but the shadow of the federal shutdown looms large. With many families prioritizing survival over shopping, the coming weeks will be critical in determining whether Santa will indeed make his rounds this year. As the holiday spirit clashes with economic reality, the focus remains on ending the shutdown and restoring financial stability for countless families across the islands.
