Will Energy Prices Be the Grinch Who Stole Christmas?

By: Kerin Lazzaro
Posted In: News

Everything’s ready for the holidays at Christmas by the Sea on Thames Street in Newport. The store is filled with Christmas trees decorated with vibrant ornaments and brightly colored lights that offer a warm holiday atmosphere. Christmas shoppers can only be around the corner.

But there’s a new Grinch to worrying store owners this season. That Grinch is escalating energy costs and merchants fear they’ll give Santa a bad name this season.

This fall, consumer confidence suffered its biggest decline in 15 years according to The

Providence Journal. And while gas prices have dropped from the $3-a-gallon high, they’re still high. Heating bills are going to going through the roof as well, which may force some people to cut back on their holiday shopping. Newport is famous for its unique stores and cute boutiques, but this season may be a lot slower in comparison to previous years.

Consumer spending is a vital part of U.S. economy because it accounts for two-thirds of all economic activity in the United States, the Journal reports.

Janet Culkins, owner of Cabbage Rose on Thames Street in Newport, is familiar with rising energy costs. Culkins, whose clothing boutique is in the heart of the city, tries to keep her fuel costs to a minimum by walking to work or driving a moped when she can. To her benefit, she lives in Newport and has a short commute. She also does not believe in owning a SUV.

From a personal standpoint, Culkins thinks the increasing fuel costs are “out of

hand, out of control.” She is fortunate when it comes to her business because her season is summer and she is not relying on tourists for business this fall or winter. However, Culkins does believe that people will have to cut back somewhere, even in their holiday purchases.

Amanda Leyes, an employee at Christmas by the Sea, shares Culkins’ concerns. Christmas by the Sea has an interesting history. The store has been around for 26 years and used to be in another location in Brick Market. About three years ago, the two stores became one and settled into one location on 411 Thames Street. Leyes, a Newport native, has been at the store for four years.

Being a Christmas store, much of its business is centered on the holiday season.

According to Leyes, the store is very busy before Christmas, but is busiest the day after the holiday due to the store’s giant annual sale.”We have people who have come religiously for 26 years,” said Leyes.

That loyalty makes Leyes optimistic. Even with rising energy prices and pinched pocketbooks, the store won’t suffer because of its dependable customers who return year after year.

When asked about the outrageous energy prices, Richard Pacino, sales manager at the

Newport Marriott, said, “It’s killing me!” Pacino is the reluctant owner of an SUV, which he purchased right before gas prices started to increase. Pacino also has a little bit of a commute, being from Warwick.

As far as the hotel goes, Pacino is starting to see the rising price of gas affecting costs for the hotel but doesn’t expect those costs to affect the hotel’s Christmas season business. Pacino believes tourists who are driving long distances or flying want to be in a local setting and small city like Newport. He compares the situation to 9/11. The Newport hotel thrived during that time because travelers wanted a small, safe and residential place to say.

As for Christmas shoppers cutting back on their spending, Pacino says, “I believe it.”