Retail is always a roller coaster, said John Stowe, the longtime owner of the downtown Mount Vernon store Work Outfitters. But this year’s ride has been especially rocky.

“These swings are the widest I’ve seen,” Stowe said. “We definitely want to be hopeful and not pessimistic, but there is no doubt that we’re feeling the economic downturn.”

The walls of Stowe’s store are neatly lined with Carhartt work pants and Red Wing steel-toed boots. He has outfitted many of Skagit County’s laborers. But with the recent drop in construction, his sales have slumped too.

He took an especially hard hit when Meridian Yacht, an Arlington boat manufacturer, laid off hundreds of people, Stowe said. Some of those had commuted from Skagit County and were longtime customers at Work Outfitters. Stowe has owned Work Outfitters for 25 years, and the store has been in his family for eight decades.

Stowe, a self-described news junkie, said he has to pull himself away from daily reports of plummeting consumer spending and the deepening recession while he waits out the retail turbulence with a positive outlook.

“You learn to go with the ups and downs and the ebbs and flows,” he said. “You have to have a good attitude that things are going to pick up.”

Retail businesses from Anacortes to Sedro-Woolley have said everything to sum up how they’re dealing with the economic climate, from “it sucks,” to “I’m doing great.”

Like Stowe, many retailers are trying to stay hopeful — some even say their sales are up this year — but retail sales reported to the state Revenue Department tell a different story — one more grim.

Skagit County saw a 9 percent decrease in retail sales compared with 4 percent statewide, according to preliminary third-quarter reports from the department. Those numbers reflect sales for July, August and September.

Auto dealers hardest hit

The worst-hit businesses in the county were motor vehicle dealers and auto parts stores, taking a 25 percent drop compared to the same period last year. The state as a whole saw a 19 percent decline in motor vehicle sales, said Matt Bryan, a research analyst with the revenue agency.

Furniture sales dropped 18 percent in the county, and construction retail sales dropped 7 percent, Bryan said.

Official second quarter sales numbers — from April, May and June — showed an 11 percent decrease over the same period in 2007.

Mount Vernon took the biggest drop of 13.6 percent. Anacortes following closely at 13.1 percent. Burlington was down more than 10 percent, and La Conner and Sedro-Woolley 3 percent.

“(Shoppers) are being very careful with their dollar,” said Jean Fantini, owner of the Anacortes flower and gift shop Donatello. “They’re asking a lot of questions and being a lot more careful. They’re thinking about it a lot before they spend.”

National chains are also struggling. A going-out-of-business sign greeted this year’s holiday season at the Burlington Linens-N-Things. After seeing a steep decline in home furnishing sales, the national retailer is giving up and closing all its stores.

Iconic box stores such as Costco, Target, J.C. Penney and Kohl’s saw their worst sales in 35 years for the month of November, with a record 7.7 percent decline, according to the International Council of Shopping Centers. Walmart was the only box store to fare well.

Even business owners who are doing well say shoppers are skittish because of the economy, and that makes retailers nervous.

Cynthia Hoskins, a longtime La Conner business and building owner, said she suspected her sales at Earthenworks had gone down this year, but when she tallied the numbers, they were actually up.

“I’ve seen a lot of fluctuations in sales,” Hoskins said. “I crunched the numbers. The numbers are holding strong, but the fear factor is so great.”

Cautious consumers
Rodger Sitko, a 41-year-old Bow resident is one of those skittish spenders. Sitko and his girlfriend shopped for Christmas presents at Ross Dress for Less on Burlington Boulevard recently.

Sitko has always tried to stick within his means and shop frugally, but he said he’s watching his budget even closer this year.

“I won’t be shopping with credit,” he said. “Let’s put it that way ... I’m trying to really watch my budget — just in case. It’s scary.”

Even brides are tending to watch their dollars closely.

Jessica Dalke said for the first time since she and her mother bought Wedding Belles in downtown Mount Vernon about four years ago, they’ve had two people cancel their weddings for financial reasons. Their wedding dresses still hang in the store ready to be altered.

“It’s unusual that they’ve been canceled for financial (not personal) reasons,” Dalke said.

She also said brides have been sticking with budgets, rather than spending an extra $100 or $200 on the perfect dress.

In Burlington, husband and wife Terri and Kevin Tinker left Best Buy, where they were Christmas shopping, without making a purchase.

Though the two both hold steady jobs, they said they’re “trying to be smarter” with their money.

“That’s why we’re walking out of here empty handed,” Kevin Tinker said.

He said he would be looking online for cheaper electronics, shopping around before he buys. The two also said they’re only buying Christmas presents for the children in their family.

“We’re doing more activities,” Terri Tinker said. “Trying to make memories rather than just stuff.”

Not so well

Consumers making small changes in the way they live and spend are changing the retail front across the country and in Skagit County.

“I can tell you that it’s clear that the economy is having an impact on our retailers and customers,” said Carol Hildahl, marketing manager for Cascade Mall in Burlington.

To pry open consumers’ wallets, retailers in the mall are offering “really aggressive promotions” and steep discounts which, Hildahl said, will likely increase after Christmas.

Other retailers have scaled back on their orders to prepare for slumping sales.

“I don’t look for it to get any better in the short term,” said Dyrk Meyers, owner of Oliver Hammer Clothes Shop in downtown Sedro-Woolley. “I’m buying less. I’m going to cut way back — I have to.”

Meyers said he’s going to focus on the basics, like underwear, socks and sweatshirts.

“The economy is so screwed up I don’t know where I’m coming from or going to,” he said. “To tell you the truth, I’m going to play it by ear. I hate to be pessimistic, but I do not have high expectations.”

Doing well

There are, of course, some retailers and shoppers who say they are unaffected by the economic turmoil.

For La Conner resident J.B. Taylor, the only stress she’s feeling as a shopper this year is finding the right Christmas presents.

Shopping in downtown La Conner at Fairy Godmother’s Unlimited boutique, she purchased a starfish brooch, and said she hasn’t changed her shopping habits in light of what’s happening in the larger financial world.

“I’m just happy I can find something,” Taylor said.

She’s not alone. Many shoppers said the economy hasn’t changed how they’re spending money.

Nancy Weatherspoon, a grandmother of two, said she and her husband pulled their money out of the stock market three years ago and were not touched by the recent downturn.

Weatherspoon said she is actually buying more presents this year and donating more to charity.

“Because we can, we are giving more,” she said. “There seems to be more need ... We just happened to be fortunate and blessed.”

Melisa Kosmal, owner of Kids Stuff, a specialty toy store in downtown Mount Vernon, said she hasn’t seen a drop in sales.

“I attribute it to the fact that people still want to buy for their children,” Kosmal said.

She also said she has seen a recent upswing in local customers.

Kosmal said the bigger economic crisis has urged people to buy locally.

“It takes big things — sometimes crises — to make people think about the choices they’re making,” she said.

• Tahlia Ganser can be reached at 360-416-2148 or at .