Holiday thrift shouldn’t hurt South Coast Plaza, Fashion Island

Paul Clinton

The area’s anchor shopping destinations at South Coast Plaza and

Fashion Island should help bolster holiday sales, a retail specialist

at Deloitte & Touche’s Costa Mesa branch says, echoing the results of

a UC Irvine study released last month that found little to excite the

typical shop owner.

“They’re going to draw people just because of the shopping areas

they are,” said Tony Cherbak, who is also a partner in the auditing

firm. “People are getting into the mood a little bit early.”

Cherbak’s remarks -- he predicted a 3% increase in sales for

November and December compared to last year -- echoed the guardedly

optimistic view of the UCI survey.

In that study, economics professor Dennis Aigner said healthy

sales this holiday shopping season are far from certain, in the light

of a potential war with Iraq and flagging economy.

On Tuesday, Deloitte & Touche released its annual holiday retail

survey. The firm polled 13,000 residents all over the country in

early November.

As shoppers arrange ornaments on their trees and head out to buy

presents for family and friends, they’re expected to keep their

wallets on a short leash, Cherbak said.

Many are still reeling from huge losses in the stock market and

are up to their eyeballs in debt, he said. With interest rates at a

40-year low, consumers have refinanced their home mortgages, bought

cars and built up credit card debt.

As a result, shoppers will be hunting for bargains and value in

their gift buying, Cherbak said. That should result in strong sales

at discount retailers such as Target, Wal-Mart and Kmart.

However, Fashion Island and South Coast Plaza are considered

“destination” centers, where shoppers can enjoy a bit of the holiday

mood as they browse the shops.

“It’s a holiday tradition for a lot of folks,” Irvine Co.

spokeswoman Jennifer Heiger said. “It sounds like the [Deloitte]

report is in keeping with what we’re seeing. Sales are up moderately

compared with last year.”

The Irvine Co. owns Fashion Island.

In the survey, more than one-third of the respondents said they

would spend less this year that last. Only 11% said they would spend

more.