Amid rising prices, Colorado businesses are unsure what the holiday shopping season will look like

Last Christmas Eve, when sisters Hannah Cox and Jessie Gingrich signed an agreement to renovate the store in a large area of ​​Denver’s poker district, they were happy but unconvinced not to surprise the unpaid referee.

About a year later, when they gathered to celebrate the grand opening of the casual wear, apparel and gift shop in the Mountain, they were excited about the new business but could be sure that the holiday season would add higher prices due to the higher prices. They’ve been tinkering all year with a revolutionary space in their first store in Colorado Springs.

“We got a little scared when the store wasn’t open yet and all the money started going down,” Gingrich said. “It definitely made us think a little bit, because he made the right decision?”

Analysts expect an unpredictable environment that will drive away struggling companies and push consumers to spend this year. A Deloitte study of Denver-area shoppers indicated that the average price spent this holiday season will drop about 14% from $1,782 for a home to $1,526.

The national average is expected to reach $1,595, down 10% from $1,778 last year.

A survey of 424 people in metro Denver found that 81% of respondents expect to pay more this year for gifts, and 67% believe the economy will decline next year, compared to 34% in 2024.

While the survey did not provide reasons behind people’s strategies for not opening their wallets yet, Deloitte noted that this season is behind the economic uncertainty. “

“A lot of people are expecting prices to rise,” said Robert, Deloitte’s retail director. “Moreover, when they look at other things, they were expecting the economy to weaken.”

About 49% of Denver-area respondents said they would shop at low-cost stores for popular items. Wedding gifts, such as dining out, events or spa visits, are on the shopping lists of 53% of survey respondents.

The survey found that 40% will look online first and 35% expect to spend most of their money in supermarkets. About 19% said they would buy from specialty retailers.

“If I were a local marketer or a local retailer, I would really be looking to do my best this holiday,” Reed said. “I can make sure I remind people that we’re here.”

And our call to belief is that local businesses should make shopping as easy as possible. Another way is to have a strong online presence so people feel like the store has one, he said.

Despite the uncertainty, the National Retail Federation is optimistic about the holiday shopping season, saying the economy continues to show “amazing resilience.” The trade association expects retail sales in November and December to increase by up to 4.2% compared to 2024, with total spending exceeding that for the first time.

“As the tariffs caused consumer prices to rise, sellers tried to maintain prices given the uncertainty over trade policies,” the union director said in a statement.

However, Matthews said retailers are hiring fewer seasonal workers, in keeping with the slowing labor market. The union believes that the repercussions of the government shutdown and the loss of money in the private sector could affect consumer demand.

Holidays: “It’s our big dish.”

“Christmas is our biggest time of year. October, November, December and December have been great for us,” said Luke Johnson, founder of Luke & Co WIT Broadway.

This holiday season, Johnson expects a similar increase in business — a 10% to 20% increase in sales. However, the increase will come after entering the first quarter and the second half, when tax rates have been announced, planned and reserved.

“A significant portion of the volatility appears to be reflected in the price of the product now. We expect to see some price action in the future,” Johnson said.

One thing he doesn’t expect is to see costs fall, even if tax rates are reduced or adjusted. Most pet food is produced in the United States, but some ingredients, such as rabbit, beef, and lamb, come from other countries. Many toys are imported from China. Most canned cat food and cat food comes from Thailand. Homemade grocery bags are mostly manufactured in Asia.

Even the printed paper bags that Luke & Co.’s customers take their items home are made in China. Johnson said he couldn’t find any American-made alternatives for near the same price. Finding U.S. companies with the same type of equipment and technology as overseas vendors has been a common problem for business owners trying to find higher-priced alternatives.

Johnson, who has been in business since 2016, has been raising prices as his suppliers have raised theirs.

“We were trying to eat as much food as we could in the first few months,” Johnson said. “Our net profit is about 8% a year, so we can’t afford to increase the price.” “If the price goes up, we only collect the same amount as the increase.”

Small businesses in Colorado and across the country are entering the holiday season with extraordinary spending, Hunter Nelson said. He is director of the Colorado office of the Small Business Association, a national organization.

“We’ve heard from Colorado and our other states that seasonal employment has been impacted. Prices and other sources of inflation have increased confidence,” Nelson said.

For this reason, small businesses, especially retailers, hire seasonal workers, he added. Additionally, the uncertainty of how people will relax this holiday season leaves business owners unsure of how much to spread.

“So some are taking their time and spending their money, and some are just buying a few things for the time being,” Nelson said.

A national survey of a majority of small businesses found that 60% of respondents paid a higher cost for imported goods due to taxes. More than half of the 228 companies said their costs rose 10% to 25%, and nearly a quarter reported a 26% to 50% increase in spoilage.

“Like everyone else, tax rates have definitely affected us,” said Gingrich of the Mountaineer’s overall uniform.

Cox described the business as a curated mix of vintage clothing for men and women and gifts.

“We’re really trying to get away from fast food, to find pieces that last longer,” Cox said. “They are produced ethically and are better for the planet and better for the people who produce them.”

Gingrich said he and Cox also try to work with small and local products as much as possible. Small businesses must source materials from US export countries

“The cost is passed on to us, and then passed on to the consumer,” Gingrich said.

The sisters are requesting a men’s sponsorship fee from Canada this year because the fee is 25%. They decided to charge a shirt that was selling well because it cost more than $20.

“Some products that were already at the upper end of what we felt comfortable pushed it to a different level that we say is wrong with it,” Gingrich said.