Last updated 20:52, Thursday, 20 November 2008

Ann Summers manager Shirley Foster

Merry Christmas? Put this question to shopkeepers right now and the fear is that you'll be treated to a giftwrapped smack in the gob. Merry Christmas? Don’t you know there’s a recession on? Credit crunch: does that ring any jingle bells with you?

2008 will be remembered as the year Britain tightened its belt to cope with the soaring cost of living and the looming threat of job losses.

But as Christmas lights are switched on and the late night shopping season approaches, what’s the reality for Cumbria’s retailers awaiting their busiest time of year?

Are they confident of convincing shoppers to part with their precious cash, and of still being in business next year?

Our survey of shops in Carlisle and west Cumbria gives a seasonal snapshot of retail confidence as the county heads for a credit-crunched Christmas.

'We won't be beaten on price' say the signs hanging from the ceiling of computer games shop Gamestation on English Street, Carlisle. Hardly a sign of the times; more the kind of drum-beating to be heard on the High Street all year round, regardless of the economy.

"We’ve had no slowdown in sales,” says manager Alex Martin. “Games are one of those pastimes not affected by the credit crunch. People are not spending money to go out so they’re spending it on entertainment at home.

“We have a part-exchange policy that’s been going for a while, before the economy slowed down. People can trade in their old games towards a new one, which is proving popular at the moment.”

At Greenwoods menswear shop they’re putting up the Christmas displays and crossing their fingers. “We’re holding our own against last year,” says manager Lynn Abbott. “And things always pick up at Christmas. We do exceptionally well with hire.”

Lynn and deputy manager Colin Walker agree that shopping habits are less predictable now. One day business is depressingly slow and the next you’re rushed off your feet, with no discernible pattern.

Last Saturday was one of the slow days. Colin had a look around town. “Everywhere was quiet. There don’t seem to be as many people in the shops. Maybe people are leaving it until Christmas.”

Lynn feels that media reporting of the credit crunch and recession may be persuading people not to spend. “Greenwoods is opening 100 new branches in the next two years but the media talks everything down. The mood in town is a bit down but we’re doing what we can.”

They’re also doing what they can at Millets camping and outdoor shop, with three for two on many items. “We are a bit down on last year but not by an awful lot,” says supervisor Laura Cooke. “I think all the shops are struggling a bit. A lot of us are buying more stuff from our own store rather than shopping elsewhere.”

One thing which may well be immune to the credit crunch is sex, according to Shirley Foster, manager of Ann Summers adult shop on Scotch Street.

“We’re on a par with last year. I don’t think this line of work will suffer from what’s happening with the economy.

“People are staying in more, and when they stay in they need something to entertain themselves. A Chinese, a bottle of wine, and something from Ann Summers.”

The shop offers shelves of mind-boggling entertainment which Shirley expects will sell well in the run up to Christmas.

And after that?

“People will still provide for Christmas and worry about next year next year.”

While Cumbrians are staying in with their Ann Summers goodies they may also be listening to something from HMV. “The credit crunch hasn’t affected us as yet,” says assistant manager Lindsey Hodgson.

“The stuff we are selling is different to a car or a holiday. If you can’t afford those you’ll console yourself with a DVD or a CD. If people can’t afford big Christmas presents they’ll buy a DVD or CD.”

And what about after Christmas? “We’re not really anticipating next year yet. We’re just focusing on Christmas. But there’s nothing to indicate that we should suffer.”

According to Paul Hamilton, manager of mobile phone retailer 3 on Scotch Street, it’s still good to talk. “We’re still fairly busy. I say to the staff that we are probably the Aldi of the phone business. Our contracts start at £15 a month. Some other shops are having to lower their prices, the same as Tesco has done to compete with Aldi and Lidl.”

Around the corner Hoopers on Castle Street is more Sainsbury’s than Aldi. An up-market department store may not be expected to thrive in a recession and general manager Victoria Farley says business has slowed in the past few weeks, but she remains defiantly optimistic.

“Consumer confidence isn’t good at the moment. I think that’s largely down to the BBC putting a negative spin on everything. There are a lot of people who aren’t necessarily directly affected by the credit crunch but they are persuaded to be cautious. It’s fashionable not to spend money.

“If this situation does anything it will separate the men from the boys. The retailers that work hard and get it right will be absolutely fine. You just have to emphasise your point of difference. We offer a free gift-wrapping service and we’ll wrap and deliver presents to workplaces with no delivery charge.

“We do need to concentrate on the weeks ahead. They are critical for all retailers. People are still out there and they are still shopping. A little bit of retail therapy never hurt anyone.”

Victoria adds a parting shot which will be echoed by every retailer in the county. “Wherever people shop this Christmas, I’d like to think they will do it locally. The shopping here is much better than it used to be and I hope people will stay in Cumbria rather than go to Glasgow or Manchester, and save themselves some money on petrol.”

In west Cumbria there's a cocktail of hope and caution. Mike Briant is a partner in MB Pet Supplies on Finkle Street, Workington. He says the credit crunch has not yet had a major impact but fears things may change in the new year.

"I don’t think it’s bitten yet,” he says. “I think people want to enjoy their Christmas, even if they’ve just been made redundant. When the bills come in January things might change, especially if more people lose their jobs.

“But if you have a pet you’ve still got to feed it, although people may cut back on expensive dog food and treats.”

Is he confident? “You’ve got to be confident but at the same time you’ve got to be realistic. Hopefully the peaks and troughs will level out. It’s frustrating when you’re at the mercy of outside factors. You’ve got no control over it.”

How is Genesis Home Appliances, which sells electrical goods in Whitehaven, Workington and Maryport, coping with the credit crunch?

“Credit crunch? What’s that?” asks manager Craig Muller.

It turns out that Craig is well aware of the crunch but he and his colleagues are not paying it much attention, preferring to accentuate the positive. And there are positives.

“When customers come through the door they’re coming to buy,” says Craig. “And they’re paying a bit more on quality to make their money last longer.”

Another change has been an increase in the amount of repair work undertaken by Genesis. Rather than automatically buying something new when an appliance breaks down, more customers are seeing if it can be fixed.

“Even though we’re doing quite well,” adds Craig, “everything for the business is more expensive: fuel, gas, electricity. It isn’t easy.”

Three little words which echo far beyond Genesis Home Appliances. Beyond Cumbria, beyond the UK and as far as the global economy extends.

It isn’t easy. But in Cumbria retailers are doing everything they can to see that a merry Christmas becomes a happy, and prosperous, new year.

RLytollis@cngroup.co.uk