Posted on Mon, Aug. 02, 2004


Merchants, customers gear up for sales-tax holiday


Associated Press

Four years later, South Carolina shoppers and retailers have gotten used to the state's sales tax-free weekend.

With the annual "holiday" weekend set to go from Friday to Sunday, megastores and locally owned shops say they have learned how to prepare for the extra shoppers and increased crowds. Several expect a sales boost from people looking for items free from the state's 5 percent sales tax.

"What works is the psychology of not paying taxes, even if it's just a little bit," said Jim Hatchell, South Carolina Merchants Association president. "People see a tag that says 20 percent off, and they think maybe that price was jacked up anyway. But no sales tax? Thats real. They believe that."

Shoppers bought about $47 million in tax-exempt goods during the weekend in 2003. That meant a loss to the state of about $2.3 million in sales tax.

However, not everyone seems as hepped up about tax-free shopping as when the first weekend was held in 2000.

Sales from last year's event were down 35 percent from that initial weekend, when $3.6 million was saved on about $72 million.

Sherri Davenport, marketing director for two Tanger Factory Outlet Centers along the Grand Strand, said all the stores there will run promotions to snag tax-free shoppers. "We're having a sidewalk sale this year at both centers, which we didn't have last year," Davenport said.

David White, a manager at Target in Horry County, said he was increasing floor staff and cashiers to handle the expected rush next weekend. "We've had a good start already with back-to-school," he said.

The greatest savings will be from those buying higher-priced items like computers.

Sales associate Shane Nguyen, who works at a Columbia area Best Buy, said the store will only let from 10 to 15 customers at a time into its computer department on Friday. Nguyen expected "a line halfway through the store," he said.

Nguyen said shoppers will most likely know what they're looking for and get right to the savings when it's their turn.

Hatchell says retailers who don't offer usual back-to-school items or sell tax-exempt goods also expect in increase this weekend.

"A lot of the back-to-school traffic does trickle into other stores without exempt items," said Jen Mackie, a spokeswoman with the Columbiana Centre mall.

Mackie says the mall will have activities geared to teens this coming weekencd, including discounts of 25 percent or more at stores.

Perry Lancaster, manager of Brittons' clothing store and head of the Devine Street Association, says smaller retailers in local shopping districts have planned for more people.

"Nobody's adding staff, but people are just getting stock ready for the big weekend," Lancaster said. "It's a boost for the end-of-season summer sales and a good start for the fall."

Not everyone plans on venturing out, though.

Ami Borowski of Camden had three children in school, but says she's never gotten the tax break. She says she's stocked up on clothing and school supplies and doesn't want to battle those looking for sales and savings.

One year, Borowski noticed there were a lot more people - and longer checkout lines - at in the grocery store than usual. She didn't know it was the tax-free weekend.

"It's not worth trying to beat the crowds," she said. "I remember seeing a poor little salesgirl who couldn't even stock the shelves. She was working herself to death."





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