A boost in consumer spending during the holiday season helped sales for struggling retail businesses on Mill Avenue, but not as much as in prior years.
Every year, bowl games, block parties and holiday shopping increase revenues for many businesses near the Tempe campus, but shoppers weren’t as willing to open their wallets over this winter break.
Matthew Croucher, an economist for the L. William Seidman Research Institute at the W. P. Carey School of Business, said though exact data isn’t yet available, there won’t be significant improvement from the holiday season.
“[Spending] might be down compared to years past, given that the unemployment rate has been rising throughout the year,” Croucher said.
He urged small business owners to be cautious as the new year begins.
“They need to be quite careful,” he said. “The question is, who suffers during a recession? Mid-range businesses and restaurants might struggle [this year].”
Carrie Mason, store manager of Pitaya Clothing Store at 524 S. Mill Ave., said business has picked up in the weeks following Christmas.
“It’s been up and down here, though it has gotten better,” she said. “It’s strange, sometimes we’re busier during the week than the weekend.”
Croucher said all businesses should plan for these trends.
“We can’t say they’re in the free and clear, because this happens every year,” he said. “[The holidays] should be factored into their business model anyways.”
Katrina Montgomery, a shift supervisor at Lotions & Potions on 420 S. Mill Ave., said shoppers weren’t as willing to buy their product.
“You can tell from the holidays that sales went up, but not like in years past,” she said. “I thought we did terrible in the summer when the students were gone, but Christmas was pretty bad too.”
Mill Avenue is also competing with the relatively newer Tempe Marketplace and the growing trend of online shopping.
“We’d never heard of ‘Cyber Monday’ sales before a few years ago,” Croucher said. “The reasons to go down to Mill Avenue shrink all of the time because of the frequency of stores closing. Shoppers would be more willing to go to Tempe Marketplace or Scottsdale Fashion Square.”
Some businesses, like Lotions & Potions, are taking action to bring their products to cyberspace. Lotions & Potions generates a portion of its sales through its Web site.
Though the economic future is uncertain, many storeowners and employees remain optimistic.
“We are passionate about what we do, and it shows. People appreciate the product more,” said Carissa Krausman, a sales representative for the Shoe Mill at 398 S. Mill Ave. “If it has value and quality, people will buy it.”
Reach the reporter at joseph.schmidt@asu.edu
