By Ed Moosbrugger

December 1, 2010 -- After some difficult years, Downtown retailers enter this holiday season amid a glimmer of hope and reports from some stores that they have benefited from the reopening of Santa Monica Place in August.

Nationally, there are some positive signs for the holiday season -- major retailers have increased their hiring plans for the holidays, industry groups are forecasting higher sales, and results in August and September were encouraging.

The International Council of Shopping Centers (ICSC) is forecasting that nationwide sales at chain stores open at least a year will increase by between 3 and 3.5 percent in the holiday season (November and December) compared to a year ago. That would be the biggest increase since the 4.4 percent gain in 2006.

“The key story is that the retail recovery continues, and that bodes well for the upcoming holiday season,” said Michael P. Niemira, chief economist and director of research for ICSC.

The National Retail Federation is forecasting a moderate 2.3 percent increase in holiday sales, compared with a 0.4 percent gain in 2009 and a 3.9 percent decline in 2008. But there still are signs of weakness in the economy, including a difficult job market and forecasts of slower economic growth than had been expected earlier this year.

“Though the retail industry is on stronger footing than last year," said NRF President and CEO Matthew Shay, "companies are closely watching key economic indicators like employment and consumer confidence before getting too optimistic that the recession is behind them.”

Some Downtown Santa Monica retailers reflect that cautious attitude.

“People are just not spending the way they were before,” said Kay Miller, owner of Mudra, a clothing shop in the 1400 block.

At Shiva Imports on the Promenade, owner Naren Patel said business is about the same as last year, and he doesn't expect holiday sales to exceed 2009.

Still, some stores see signs of improvement.

Mark Hennessey, owner of Hennessey & Ingalls art and architecture bookstore on Wilshire Boulevard, said business shows some signs of improving.

“I noticed in the last two or three weeks it seems to be a little stronger,” Hennessey said in mid October “I think things are getting better, slightly,” he said, noting that the improvement came even though summer was over.

Hennessey has seen more business from tourists staying in nearby hotels, but he doesn't know whether any of the increase in business has come from shoppers drawn to Downtown by the reopened Santa Monica Place.

Some other retailers say they have captured new business from shoppers coming to the newly remodeled shopping center.

“I noticed new people coming down to go to Santa Monica Place” and some have come into his store, said Todd Swift, owner of Taos Indian Trading Company on Santa Monica Boulevard. Swift said the customers visiting the new selection of stores available have had a positive impact ion his business.

Santa Monica Place also has impacted Dellarobbia Design Studio & Flower Market on Fourth Street across from the mall. “We're glad it's open,” said Jolene Reynolds, co-owner of Dellarobbia. “It does bring in quite a lot of business.”

The shop has gained business from some vendors at Santa Monica Place and also has more walk-in customers. “We're very busy,” Reynolds said. “We're weathering the recession very well.”

Miller and Patel, however, said they have seen little or no sales impact from Santa Monica Place. Miller said she has seen a number of shoppers with Nordstrom bags on the Promenade, but very few with bags from other stores in Santa Monica Place.

All in all, Bayside officials Santa Monica Place and the Promenade, as well as all of Downtown, will complement each other, creating a one-stop shopping experience that will offer a top destination for the holidays.