Customer Sarah Hillsgrove of Gilmanton, right, speaks with owner Carolyn Herrick (holding her baby, Charlotte) at Homebody in downtown Concord on Nov. 22. Behind the counter are Abby Pinckney and Cody Herrick.
Suzanne Wason waited in line recently to pay for $100 worth of gifts cradled in her arms at Gibson’s Bookstore in Concord.
“I set my goal of what I want to spend,” similar to last Christmas, the Weare resident said.
“Whether it produces less will be a surprise,” Wason said, alluding to inflation.
Concerns over rising credit card debt, inflation and a boosted stock market all play into the minds — and budgets — of people buying Christmas gifts.
Anyone using a credit card and not paying off their monthly balance is probably facing higher interest payments this year. The average interest rate for retail cards hit an all-time high recently at 30.45%, according to Bankrate.com.
John McLaughlin gets the windows sparkling clean for the holiday rush at Capitol Craftsman Romance Jewelers in downtown Concord on Nov. 22, 2024.
DAVID LANE/UNION LEADER
“People do tend to find themselves getting further into debt around the holidays with credit cards, trying to keep up with the Joneses,” said Paul McLaughlin, home team director at NeighborWorks Southern New Hampshire, which offers classes for first-time home buyers.
“They end up spending the next six to 12 months regretting it and paying off all the debt — or trying to,” he said.
People looking to purchase a home should watch their spending and let their friends know, in order to rein in expectations.
“Tell them next year we’re going to buy a house and you’ll invite them over for a pot luck,” McLaughlin said.
Credit card delinquencies have risen in the most recent figures for New Hampshire, but they remain below the national average, according to Greg David, economist at the state Economic and Labor Market Information Bureau.
“You might end up with more people in delinquency (after Christmas) struggling to pay down holiday debt,” David said.
The Granite State delinquency rate for the last three months of 2023, the most recent data available, stood at 8.6% compared to 12.2% nationally.
“We are definitely seeing some people struggling financially,” David said. “Overall, the trend in total income for the state, it’s still solid growth.”
The S&P 500 index and the NASDAQ composite both were up more than 25% for the year deep into November, including a boost once the presidential election was decided quickly and decisively.
“The stock market being up is typically going to increase consumer confidence, and when consumer confidence is up, that will lead to more spending,” said Stephen Ciccone, an associate professor of finance at the University of New Hampshire.
“If they feel richer, they’re going to spend more,” he said.
A cheerful Michael Herrmann, who owns Gibson's Bookstore in downtown Concord, helps behind the counter during a pre-holiday rush on Nov. 22.
DAVID LANE/UNION LEADER
Coming to NH
At Homebody, a store selling home decor and unique gifts in Concord, owner Carolyn Herrick said she was happy with the early holiday sales.
“It seems people are buying more,” she said.
People seem to “really like shopping local businesses,” Herrick said.
New Hampshire is a magnet for out-of-state shoppers.
“The one thing New Hampshire has going for it is the sales tax-free advantage,” said Curtis Picard, president and CEO of the New Hampshire Retail Association, which represents hundreds of retailers big and small. “It’s an automatic savings for people.”
Many New Hampshire retailers reported strong back-to-school sales this year, and that could foreshadow how the Christmas shopping season may go, according to Picard.
Customer Sarah Hillsgrove of Gilmanton, right, speaks with owner Carolyn Herrick (holding her baby, Charlotte) at Homebody in downtown Concord on Nov. 22. Behind the counter are Abby Pinckney and Cody Herrick.
DAVID LANE/UNION LEADER
Often, Picard said, “When they have a good strong back-to-school season, it means they’ll have a good holiday shopping season.”
For October, New Hampshire’s 2.5% unemployment rate was the nation’s fourth lowest, trailing only South Dakota, Vermont and North Dakota.
“Depending on the level and specialty of the position, there’s still limited job seekers out there available and companies still have to pay maybe a little more than they wanted to,” said Barry Roy, regional president at Robert Half, a staffing agency with offices in Manchester, Nashua and Portsmouth.
“I think for the jobseekers, there’s plenty of jobs out there,” he said.
Roy said some employers had slowed their hiring process to wait until the presidential election was sorted out.
“I think people will spend — and I don’t think they’ll overspend — they’ll spend with care for the people they’re getting presents for,” Roy said of the current holiday shopping season.
Co-owner Brad Towne of Cobblestone Flowers & Gifts in Concord said sales this year are on par with a year ago. The holidays bring out more people using currency than the rest of the year, he said.
“People save a little bit of cash for the fun stuff,” said Towne, whose store offered an extensive display of holiday ornaments.
Barbara Morgan of Henniker perused the holiday offerings before heading to a nearby jewelry store.
“I try to set a budget, so everybody gets the same amount, then I go over-budget,” Morgan said.
Back at Homebody, Herrick doesn’t expect her shop to be quiet on Dec. 24.
“It’s always shocking how people will come in on Christmas Eve morning and still have shopping to do,” she said.
