About 100 residents spent more than $40,000 at local businesses during the first week of the “byHaines Shop Local and Save” program.
The injection of local spending comes as the Haines Borough is down 23 percent in sales taxes, roughly $337,000, from January through June of 2020 compared to the same time in 2019, according to borough records. The borough received $251,826 less in sales tax in July 2020, a 50 percent decrease, compared to July 2019.
Local business owners and shoppers are enthusiastic about the program that awards $100 in gift certificates, paid for by CARES Act funds, to the first 200 people who spend $300 on discretionary purchases in town. Many shoppers hurried to spend their $300 quickly as rumors spread over the weekend that the quota had been reached.
“There was quite a rush on day one and day two of people in the store buying stuff trying to get their receipts added up to $300. That was kind of fun,” Miles Furniture co-owner Scott Bradford said. “The money stays in Haines and it helps all the small businesses that were part of the program. That’s the most important thing.”
He and his wife Candi’s furniture and appliance store has suffered from low inventory after the pandemic caused delays in shipping and orders. Some small companies they’ve used have gone out of business or shut down. Appliances such as freezers and refrigerators have been delayed by five months or more.
“I know we’re still a long way out for appliances,” Scott Bradford said. “It looks like we might have freezers by the end of December. It looks like refrigerators are going to be early February, same with washing machines.”
Bradford said many customers purchased kitchen items, toys and other items for Christmas gifts.
Debi Knight Kennedy and her husband Gene shopped at Miles on Saturday to outfit her vacation rentals.
“We bought stuff that we would have bought next year,” Knight Kennedy said. “Some of it was stuff we would have bought on Amazon, but instead we went to Miles Furniture.”
Knight Kennedy was one of many shoppers who heard rumors that nearly all the gift certificates had been spoken for.
“I heard on Saturday there was 170 already taken and so we filled out our paperwork quick and slid it under the (chamber of commerce) door,” she said.
Those participating in the program can fill out an application at hainesedc.org. Shoppers upload a photo of their receipts and select which store they’d like to receive gift certificates from, or they can submit their receipts and application at the chamber of commerce office in the Gateway Building.
The Bookstore owner Amy Kane said sales nearly doubled in the first three days she was open during the first week of the program as people hurried to be among the first 200 shoppers.
“People have been panicking,” Kane said. “I’ve had to print out the form for them so they can go right over immediately and turn it in. One of my friends was afraid she shoved it under the door too hard and was worried it slid under a desk (and was hidden).”
Dan Egolf said sales have increased at Alaska Backcountry Outfitters. He said the program’s been successful and commended the borough, chamber and HEDC for working together creatively.
“It’s been really successful so far. We’ve seen an increase in sales in October, which is normally a slow time,” Egolf said.
HEDC executive director David Simmons said his website and the chamber’s will post the tally of how many gift certificates have been issued so the public can know when the limit has been reached. Simmons said he’s happy shoppers are choosing to buy local.
“In less than a week forty thousand dollars (have been) spent at small businesses,” Simmons said. “I call that a success.”
Chamber director Tracey Harmon said organizers are impressed with its success and are looking at ways to repeat the program.
“There’s already talk about doing this again,” Harmon said. “It would be so cool if we could.”
The Haines Borough’s CARES Act ad hoc committee approved the $20,000 that will fund the gift cards. If 200 people end up participating, the program will generate $80,000 in spending in the local economy.
CARES Act committee member Brenda Josephson expressed interest in an additional round of funding at a meeting earlier this month. The ad hoc committee will discuss such a proposal at a future meeting.
Haines Chamber of Commerce director Tracey Harmon said the program will be a good way to reinvigorate the buy local campaign the two economic organizations launched in August of 2018.
“I thought it was a really good fit for byHaines which has been kind of silent,” Harmon said. “It’s been a good way to launch the campaign.”