Holiday Shopping in South Florida - Boom or Bust

The holiday shopping season doesn't look bright for retailers in sunny South Florida. In fact, retail sales could be the lowest they've been in almost a decade.

High gasoline prices are taking a big bite out many South Floridian's budgets. The Miami- Fort Lauderdale area has one of the worst mass transit systems in the country, which is why nobody uses it, and most residents commute to work by car instead. With gas prices forecast to hit $3.50 cents a gallon, or higher, during the peak of the shopping season, many local residents may be making far fewer trips to the mall this year.

Shoppers in the Hollywood area and throughout South Florida usually flock to the Sawgrass Mills Outlet to do their holiday shopping at over 400 brand name outlet stores located there. With top designer outlet stores including Ralph Lauren, Calvin Klein, Movado, Coach, Izod, Kenneth Cole, Nautica, Valentino, Anne Klein and Liz Claiborne, the mall has become a magnet that attracts Hollywood residents and tourists, as well as shoppers from throughout the state. Especially popular with holiday shoppers are the Neiman Marcus Last Call and the Saks Fifth Avenue OFF 5th outlets where prices are up to 75% less than in the two department stores.

The question remains whether or not Hollywood shoppers will spend the extra money on gas to drive to the Sawgrass Mills Mall located in Sunrise , a good 15 miles away. Will the savings they find at Sawgrass offset the gas burned getting to and from the mall and finding a parking space once you get there? As Black Friday approaches, many South Floridians are facing this difficult choice.

Another prime holiday shopping destination for Hollywood residents is the Aventura Mall. Located just South of Hollywood on US1, the mall is just a short drive from most of Hollywood, Hallandale Beach, Pembroke Pines and North Miami. The mall also attracts residents and tourists from Miami Beach about 15 miles south of the Aventura Mall. With almost 200 shops and boutiques, including Bloomiingdale's, Macy's, JC Penny and Sears and a dozen restaurants, the mall offers a wide variety of gifts in every price range. One of the Aventura Mall's key attractions is the gigantic Children's christmas village and elaborate holiday displays.Naturally, Santa Claus and his elves will make their holiday home in the mall. The mall's broad based appeal and attractions for children and convenient location, make it one of the top shopping areas in the Hollywood area

In addition to the high gasoline prices, the flat real estate market and mortgage situation will also have a major impact on the where Hollywood and other South Florida shop this holiday season and how much they spend. Many Hollywood area residents make their living in real estate and for the past 6 years have been enjoying the benefits of an incredible real estate boom, especially in the luxury high rise condominium market. But with the market down and mortgages becoming more difficult to come by, many residents are feeling the pinch and will cut back on their holiday spending.

Hollywood homeowners with adjustable rate mortgages will also be feeling the pinch. As their mortgage rates adjust upward creating higher monthly payments, many have had to cut back their budgets just to meet their essential monthly expenses. This will also contribute to lower spending during this holiday season.

If there's one silver lining to the holiday shopping season in the Hollywood area, it's the arrival of foreign snowbirds and tourists who usually arrive just before Thanksgiving and stay through Easter. With the strength of the Euro and weakness of the dollar, European visitors will likely spend more and bring a glimmer of hope to local merchants during what appears to be an otherwise bleak holiday season. The weakness of the dollar also means a better exchange rate and more purchasing power for the 250,000 Canadian snowbirds who flock to the Hollywood area. Although the Canadians aren't big spenders, hopefully the weak US Dollar will be an incentive for them to spend more.

High gas prices and a tight local economy may actually help smaller local merchants. Rather than waste gas driving to the big malls, shoppers may opt to save gas and go bargain hunting at smaller local shops and discount department stores located closer to home.

Oakwood Plaza, an outdoor mall located just off I-95 between Sheridan Street and Stirling Road in Hollywood is one local shopping center that may benefit. With a K Mart, Home Depot, Marshalls, Ross, Old Navy, plus a handful of other shops and plentiful free parking, it's an ideal place for gas conscious and cost conscious local shoppers.

The Diplomat Mall, an even smaller outdoor mall located just south of Hollywood in Hallandale Beach, will also benefit. It's only real shopping attractions are Ross and Burlington Coat Factory -two favorites of the budget conscious fashionista. Located in the heart of Hallandale Beach's densely populated "condominium corridor", some residents even walk or bike to the shops and eateries in the Diplomat. With a Walmart just down the street, local merchants in Hallandale Beach are certain to get overflow Walmart Shoppers from the just down the street.

Electronics are expected to be the hottest gifts this year, with X Box and Apple's I Phone topping the list. Hollywood shoppers can find both locally at the Walmart store in Hallandale Beach. Value priced home computer packages and multi-featured cell phones are also high on shoppers' lists. For their early Black Friday sale just after Halloween, Walmart offered deep discounts on merchandise, including computers and electronics, usually reserved for later in the holiday shopping season.

Throughout Hollywood and most South Florida communities, a growing number of "99 Cent" or "Dollar Shops" have sprung up. Unfortunately for shoppers, most of them are now 99 Cent & Up or Dollar and Up Stores offering fewer dollar items and more merchandise in the $10 and up price range. One exception is Dollar Tree with several locations in and around Hollywood, including Sheridan Street and Hallandale Beach Boulevard. At Dollar Tree, everything still costs a dollar. Local residents can save a lot of money by shopping for stocking stuffers, holiday decorations, candles and candy by shopping at Dollar Tree rather than at higher priced stores.

Popular discount fashion stores like Ross, Marshalls, TJ Max, and Burlington Coat Factory throughout the area can expect to do a brisk business on Black Friday. Even though they advertise that "new merchandise arrives every day", bargain hunters at these stores know that as the season goes on, the merchandise selection wear thin and finding the right size becomes increasingly difficult. This is especially true if you're shopping for top designer fashions.

At Beall's Outlet Stores, a discount family fashion and home merchandise chain located throughout the area, you won't find designer names or the latest fashions. What you will find is good cheap everyday clothing at very low prices and inexpensive home decor. Although its clientele consists primarily of retirees and blue collar workers, gas prices and tight budgets are sure to drive more local holiday shoppers to Beall's. The most accessible one is located on Hallandale Beach Boulevard, just east of US 1.

It's Christmas and Hollywood residents will shop. The question is how much they spend and where. Black Friday should be a good indication. More than likely Black Friday will be slower in Hollywood and throughout South Florida than in past years. Many buyers are taking a "wait and see" approach and postponing purchases in hope of even bigger discounts, if Black Friday sales indicate a gloomy shopping season for retailers.