IN THE BAG SALES UP AS HOLIDAY SHOPPERS RETURN.

Byline: Patricia Farrell Aidem Staff Writer

VALENCIA - With all the fanfare of the season, Santa Claus rode into Valencia this weekend - though he was a few weeks late to inaugurate what appears to be an early start to holiday shopping.

Sales are up by double-digit percentages over last year in the Valencia Town Center and holiday merchandise, particularly tree-trimming goods, has been sailing off the shelves since before Halloween, general manager Charles Gill said.

``I think the season has already started,'' Gill said last week. ``Traffic has been up substantially over last year. Crowds were exceptional over the weekend. The department stores are saying people are buying early.

``I'm looking for a very strong holiday season.''

Santa arrived Friday night in a festive display on Town Center Drive before taking up temporary residence inside the mall. His village sits in a center capitalizing on its location in a community with growing expendable income.

With an average household income of $76,900, compared with the countywide average of $46,000, Santa Clarita's commercial market is thriving, according to the 2005 Santa Clarita Valley Real Estate & Economic Outlook, produced by Mark Schniepp, director of the California Economic Forecast.

Regionwide, concerns about a weak shopping season are diminishing, said Jack Kyser, chief economist with the nonprofit Los Angeles County Economic Development Corp.

``There was a lot of concern about gas prices keeping people home or people fretting about the overall economy,'' Kyser said. ``But the news on employment is very, very positive. The Southern California economy is healthier than people think and that's translating into spending.''

The calendar, too, favors merchants. Thanksgiving, the traditional start of the holiday retail season, is earlier this year than in 2003, adding two more shopping days before Christmas.

``It seems like it's going to be a good shopping season,'' Kyser said.

Online shopping could cut in to retailers' profits, but Kyser sees that off set by the gift-card trend, which has advanced from single-store gift certificates to mall certificates, and now the new bank gift cards good all over.

Hot gifts this year range from iPods and accessories including whimsical matching colored stockings, he said. For the little ones, Sesame Street's Elmo just won't go away - this year the furry red Muppet dances to the tune of ``YMCA.'' And the apparel market is booming again after a decade-long lull, with dressier, more sophisticated clothing leading sales.

In the past year, the Town Center has been upgraded with some higher-end stores and some remodeling at existing ones to meet that market.

The new stores and those with face-lifts are doing exceptionally well, Gill said.

``We're seeing a surge in sales from tenants who have been with us since we opened,'' he said. ``New York and Co., Victoria's Secret, Bath and Body (Works) - their new stores have stronger presentations than previous stores. The merchandise emphasis is spectacular, the lighting ... they're experiencing sales increase because of that.''

Two teen fashion stores - Aeropostale and Sidecca - are new this holiday season and two new eateries have opened in the food court. Zales jewelry is under construction in the J.C. Penney court and Kay Jewelers opened in recent months.

Patricia Farrell Aidem, [phone]

pat.aidem(at)dailynews.com

CAPTION(S):

4 photos

Photo:

(1 -- color) Valencia Town Center is packed days before the official kickoff to the traditional holiday shopping season.

(2 -- color) Santa holds Logan, 2, left, and her brother John, 3, as their dad, Dave Polk, gets them laughing for their photograph at Valencia Town Center.

(3) Performers from the Jumbo Shrimp Circus clown around for a crowd of kids in a holiday show at the mall.

(4) Emma Hiett, 21 months old, pores over her coloring book as she sits patiently in her stroller at the shopping center, waiting to see Santa.

Joel P. Lugavere/Special to the Daily News