The Swedish invasion of Colorado retailing will shake things up for the holiday season — but perhaps in a positive way for competing local merchants.
Ikea and H&M, two of the biggest-name newcomers in Colorado retailing, have corporate roots in Sweden and huge fan bases among local consumers.
Yet analysts say that instead of diluting the sales of competitors, the two chains serve as destination attractions. Their cultlike followings could help induce new spending throughout the region.
“I think this competition has made (other retailers) better and made Denver as a whole a more sophisticated retail environment,” said retail consultant Jon Schallert, president of the Longmont-based Schallert Group.
Schallert projects an increase in holiday sales of 3 percent to 5 percent from last year. He said the higher overall sales could buffer the impact on existing merchants of customer attrition to the new chains.
Denver retail broker Stuart Zall of the Zall Co., who negotiated fashion retailer H&M’s lease at the Denver Pavilions, said adjacent apparel store Forever 21 has been a beneficiary of the huge crowds attracted by H&M since its opening Nov. 10.
While H&M and Forever 21 carry different merchandise, they both are considered part of the “fast fashion” segment that offers contemporary styles at budget prices.
“I heard, but cannot verify, that Forever 21’s sales were double last week,” Zall said.
Forever 21 officials did not respond to calls for comment.
“On the other hand, (Pavilion) tenants like the Gap and Banana Republic have not enjoyed the same sales increases because their price points are so much higher,” Zall said.
Since there are no other H&Ms or Ikeas within hundreds of miles of Denver, he said, “Denver has become more of a regional draw, bringing new customers to the marketplace, which benefits everyone.”
H&M plans to open another outlet next year in the Cherry Creek Shopping Center.
“We do see that when we open, people will come from (distant) areas in a region, oftentimes driving for hours, if it is the only H&M in their area,” said H&M spokeswoman Nicole Christie.
Denver shopper Becca Guzman said she will split her holiday shopping budget.
“I’ve been shifting a little more to H&M, but I still like shopping at Forever 21 too,” she said.
Furniture and home-furnishings retailer Ikea typically has less of a holiday seasonal surge than fashion retailers. Still, analysts said its attraction with consumers is expected to bring more shoppers to surrounding merchants in Centennial.
The chain has started touting its Black Friday deals, which include such items as stuffed animals and kitchenware in addition to furniture and shelving. The retailer also is offering free children’s meals through the weekend.
Nationally, holiday sales are expected to increase just slightly over last year. The National Retail Federation is forecasting a 2.8 percent increase in sales to $465.6 billion. Yet on a per- capita basis, individual shoppers will spend 4.6 percent less than last year on gifts while spending more on themselves.
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
Holiday-season store hours
Today
Bass Pro Shops, 8 a.m. to 6 p.m.
Kmart, 6 a.m. to 9 p.m.
Selected Target stores will be open from 8 a.m. to 2 p.m.
About 80 percent of Old Navy stores in the U.S. will be open, along with Gap and Banana Republic stores.
Toys R Us opens at 9 p.m.
Walmart opens at 10 p.m.
Midnight
FlatIron Crossing shopping center, Target, Macy’s,
Kohl’s, Best Buy, Old Navy
Friday: 4 a.m.
Aurora Town Center, J.C. Penney, Sears
5 a.m.
Colorado Mills, Dick’s Sporting Goods, Gordmans, Kmart, Lowes, Sam’s Club, Sports Authority
5:30 p.m.
Radio Shack
6 a.m.
Southwest Plaza, Bass Pro Shops, Big Lots, Gander Mountain, Pep Boys Auto, Office Depot, Office Max
7 a.m.
Cherry Creek mall, Park Meadows
8 a.m.
REI
