Confidence concerns linger in wake of impasse

New York--While the shutdown is officially over and the government has, at least temporarily, agreed on financing going forward, the effect of the fiscal fight on consumer confidence didn’t dissipate with Congress’ near-midnight vote.

Jewelers, like many other retailers, are concerned that this latest government loggerhead, coming only a little more than two months before the all-important holiday season, will impact consumers’ mindset about spending money.

Two retailers with stores in the Washington area, ground zero for the 16-day federal furlough, said their clients weren’t directly impacted by the shutdown, which began Oct. 1 and ended Thursday.

But retailer Jim Rosenheim, owner of Tiny Jewel Box in Washington, said customers missing a few paychecks is not the issue. The issue is the psychological impact on consumers; incidences like this latest government meltdown can make them frustrated and nervous.

That is not good for business, especially 68 days before Christmas.

Rosenheim, however, stops short of labeling himself a nervous business owner. “I wouldn’t say nervous. I would say a little uneasy. I can’t believe our elected officials would actually jeopardize the economy in this country and elsewhere, playing these political games,” he says. “To play winner-gets-all with the economy, (with) everybody’s situation possibly affected by this, this is not what we elected these people to do.

“It’s scary that for political reasons people would take us up to the edge.”

Although his store is geographically far removed from Washington, Bill Longnecker, who owns Longnecker Jewelers in McCook, Neb., expressed concerns similar to those voiced by Rosenheim.

He says the clientele in his extremely politically conservative area have grave concerns about the national debt and what they perceive as out-of-control government spending. It makes them hesitant to spend because they are unsure about the country’s long-term future.

“People are really reserved about going into debt on their credit cards,” Longnecker says. “You can hear it. There’s nervousness. You can tell they are really holding back because of how they feel about the future.”

Jim DeNatale, of DeNatale Jewelers in New York, also has a “strong fear” the government’s problems will cause consumers to spend less this holiday season. “They’ve already caused doubt in people’s minds (as to whether) they know what they are doing or that the country’s going to run smoothly in the future,” he says.

Retailers’ concerns over decreased consumer confidence in the wake of the