KJCT8.com - Grand Junction, Montrose - Weather, News, Sports | Cyber Monday May Hurt Local Economy
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By Laurie Cipriano
l.cipriano@krdo.com
COLORADO SPRINGS – Savvy shoppers will be looking to save some cash online this Cyber Monday. In turn, online retailers will be doing a lot to lure consumers into going on spending sprees, with deep discounts, free shipping and other special offers.
"You really do get good deals," said Fred Crowley, with the Southern Colorado Economic Forum. "Some of these internet retailers really cut prices…Incredibly sharp price cuts."
That's a fact that worries some local store owners. "It's a little nerve wracking," said Nina Gigliotti, who owns We 3, a store in Old Colorado City. "I know other merchants here might feel the same way also," said Gigliotti. "It's hurting us. It does hurt us. Cyber Monday is a little scary to me because people don't go out like they should." When people stay home and buy online, that chips away at her profits.
According to Crowley, internet retailers are chewing away at traditional brick and mortar retail sales. "So probably first and foremost, it's undermining sales tax revenues for the cities and the community and the county at large," said Crowley.
Crowley estimates that the internet is capturing about 5% of all retail sales this year. "That's local revenues that are 5 or 6% lower just because of the internet," said Crowley. "At the very minimum, they just lost their profit margin for the year." That could mean more strain for the city's cash strapped coffers.
The strain on local budgets could increase, since Crowley estimates that online retail activity is growing about 20% each year.
