Photo | Contributed
Macy's, which has locations at Westfarms mall and throughout Connecticut, is facing financial difficulties.
November 27, 2019
24 businesses featured in Hartford’s Small Biz Saturday; why Black Friday is crucial for struggling retailers
HBJ Photo | Joe Cooper
Pratt Street in downtown Hartford is home to several restaurants and retail vendors.
By Joe Cooper
A variety of small businesses and restaurants in downtown Hartford this weekend will offer special holiday discounts and giveaways during national Small Business Saturday.
Officials on Tuesday said the third annual event meant to spur small business activity will feature several familiar participants including Hartford Prints! gift shop, Black-Eyed Sally's restaurant, Barnes & Noble bookstore, Connecticut Science Center and Hartford Stage.
New additions to the annual event include Infinity Music Hall, which was acquired this year by GoodWorks Entertainment Group, Edible Arrangements and new bar/restaurant Spice Venue.
Other participating small businesses and a shopping map can be found here.
To encourage foot traffic the Hartford Parking Authority will be offering free parking on Saturday at 1212 Main Street near Dunkin’ Donuts Park.
A pop-up market at 64 Pratt St., will also feature several vendors including the Hartford Athletic soccer club and retailers BAGAVOND and Brothers Johnson 1929 Hat Co.
This year’s event, coordinated by Business for Downtown Hartford (BFDH), begins a day after the city’s free community skating rink, known as Winterfest, kicks off at Bushnell Park.
“We encourage everyone to shop small because for every dollar spent locally, sixty-eight cents stays locally,” said Wendell Davis, the U.S. Small Business Administration’s regional administrator for New England. “Small business owners continue to be the backbone of our economy.”
Small Business Saturday was founded in 2010 by American Express to encourage shoppers to buy local products between so-called Black Friday and Cyber Monday.
Why Black Friday is crucial for struggling retailers
This year, Black Friday is more than just the starting gun for the all-important holiday shopping season (or the day you elbow your neighbor out of the way to score a TV). For retail's struggling players, shopping's mega-day is crucial.
Remember: In Sept. 2017, Toys "R" Us filed for bankruptcy in hopes of turning around its struggling business. But terrible holiday sales left it on life support. The company said it would close all its US stores three months later.
There are six fewer shopping days between Thanksgiving and Christmas on the calendar than last year. But there's no other reason stores should stutter. Consumer confidence remains high, and low unemployment should buttress spending.
The National Retail Federation estimates retail sales in November and December will grow between 3.8 percent and 4.2 percent compared with a year ago.
"We're in a very strong consumer environment," Cowen analyst Oliver Chen told me. "If you're having difficulties, what does it mean for the future?"
Companies like Macy's and Kohl's, which have recently struggled, aren't likely to go the way of Toys "R" Us, Chen notes. Both have healthy cash flow and aren't financing their businesses with too much debt. But the next few weeks could be "make or break" for their current turnaround strategies, he said.
If Macy's, which recently lowered its expectations for the holidays, underperforms, it could accelerate store closures, according to Chen.
Those who can afford extra investment, meanwhile, may pull further ahead of the pack. Take Walmart, which has started to offer free next-day delivery on orders over $35 for more than 200,000 items. It's also pledged to staff up stores with extra workers. Some will be outfitted with mobile checkout scanners to ring up customers on the spot, helping them bypass lines. Target said it's increasing its holiday payroll by $50 million.
Target and Walmart's commitment to curbside pickup, plus their easy-to-use mobile apps, will also provide an advantage, Chen said.
Of course, looming over all these players is Amazon. The company still beats Walmart and Target on average delivery speed by a day (two days vs. three days), according to new research from Bank of America Merrill Lynch. Amazon also offers lower prices on a sample basket of holiday shopping items that includes LEGO toys, a 23andMe DNA test and a Playstation 4 Pro. Amazon has the greatest number of items available, too.
A CNN report contributed to this story
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