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Local Texas businesses will see a slow-down post-Christmas, New Year's: What this means for the economy

Posted at 6:21 PM, Jan 02, 2024

CALDWELL, Texas — January is usually expected to be one of the worst months for business, and local businesses like The Humble Life store in Caldwell are trying to prepare for the post-holiday slow down.

Manager Sarah Kingsbury says she's used to the winter lull, seeing about 10-15 customers per day.

But December was the busiest times for the shop.

“The holidays is a time definitely where a lot of people come out," Kingsbury said.

"We have seen growth everywhere. but we do see in January; we do see a slow down."

It was busy for other local businesses across Texas, too.

According to Comptroller Glenn Hegar's monthly report, state sales tax revenue reached $4.06 billion in December, making it 3.2 percent higher than last year.

But these sales typically drop in January and February, as consumers start to recover from holiday spending after receiving bank and credit card statements.

"After Dec. 31, it's almost like a sales drop off for many businesses," said Senior Director of Media Relations for the Better Business Bureau, Jason Meza.

Sales dropped about $112 million nationally last January, according to the U.S. Census Data — but it also affects the local economy.

“Obviously, it does affect the bottom line for many businesses, many agencies, organizations who depend on sales as their number one driving factor and that puts a a dent in any economy local or regional otherwise,” Meza said.

He says businesses should try to plan for these slow downs, trying out new strategies.

"Use this time period to try new things out, try promotions, test out some teaser products or services you were thinking about to try to get those sales back in."

Kingsbury also encourages business owners to connect with their local chamber of commerce, tailoring social media to fit your local audience, participating in local events and trying to cater to your consumers.

She is preparing for the business pick up in the spring, relying on savings from the fall.

"Personally for us because we make all of our products here. We make all natural baths and body care products. January does give us a little bit of time to restock our products," Kingsbury said.