10/20/2009 6:00:00 AM Area retailers holding on despite tough economic times
Whether the so-called “recession” is over seems to be anybody’s guess, but several retailers/businesses interviewed in local communities – including in Verona’s downtown – say they are holding their own.
The economic tide might not be turning just yet, but local business owners in Stoughton, Oregon and Verona are holding steady, with many reporting only slight decreases or increases in business this year over last.
Matt Dorn, owner of Dorn True Value in Oregon said business went down "a little bit" - roughly 5 percent over the past year, "but compared with the rest of the economy, we're doing pretty good, I think."
Dorn predicts sales will pick up in the coming year, but doesn't feel the recession is done.
Others can see the light at the end of the tunnel; several stating they are "cautiously optimistic." Peg Schuett, co-owner of Cheesers in Stoughton, is one with that sentiment.
"We're hopful we're coming out of it," she said. "We haven't seen too much of a downturn here, probably because people will still buy food even if its a specialty item."
The Purple Goose, a specialty boutique in Verona, doesn't appear to have been effected by the economy at all.
"I never saw any negative impact; my business has grown 40 percent in the past year," said Halley Jones, owner.
Jones did report customers might be pulling back on their spending slightly, but her overall business is booming.
Mike Weidler, owner of the Firefly Coffeehouse in Oregon, reported similar growth.
"Business has been good the past year ... we haven't seen a drop off in business," he said, even throughout Oregon's downtown construction.
In fact, Firefly is forging ahead with plans to expand into the adjacent Weaver Auto Parts store. "That will give us the ability to do more and I think we'll see a financial benefit from that next year," he said.
Business at The Sow's Ear in Verona, a knitting shop which offers coffee and other drinks, is also doing well.
"It's actually been one of our best years," said owner Deb Wheeler. "Even through the summer we had good sales. The recession didn't hit us hard anyway because craft stores are kind of immune (to downturns in the economy)."
That's likely because, as Wheeler explained, "People start making handcrafted things instead of going out and spending money."
And when they are going out, customers appear to be spending much more cautiously. So much so that Melton Motors, with offices in Stoughton and Utica, actually changed its inventory to follow spending trends.
"Last year we had more used cars in the $10,000-$12,000 price range," said Melton, "but those sales seemed to be more difficult."
In repsonse, Melton changed its inventory, swapping higher priced vehicles for those under $10,000.
"With our customers, it seems like (what they are buying) is under $7,000," said Melton.
That appears to be the right move, because Melton reported a slight increase in sales this year over last.
"It's a little better but not much," he admitted. "I definitely think changing our inventory helped."
At J.L. Richards in Oregon, owner Rich Wisden also reported a slight improvement.
"It's pretty much been the same, maybe up a little, but not much," he said. "I'd say we've been up 1-2 percent which is not very much, but it could be worse."
Weidler shared those sentiments.
"It's tough to say (how the recession will play out), I think different parts of the country have different experiences with it," he said. "I'm cautiously optimistic. I don't have huge expectations that things are going to be really taking off in the next year," he added. "I'm hoping for slow, steady growth."
Some retailers are counting on the holiday season to help make up for losses, or to turn status quo into spare change.
"I think we're doing slightly better this year than last, but we are looking forward to Christmas and hoping people decide to send cheese gift boxes," said Schuett.
Melton said he thinks things will remain the same for the next six months, and is seeing a trend in seasonal sales.
"It seems spring and summer tend to be the bigger times for people to buy, with things slowing down in the winter," he said. But with gas prices remaining steady, the people who bought corolas in place of trucks last year are now going ahead with their SUV of choice.
"The level of interest (for trucks and SUVs) has always been there but last year there was a "I better not" mentality, whereas this year there is the interest and people are actually buying," he said.
At J.L. Richards, seasonal spending also appears to be the case. "We're going to hang on and hold steady and hope the winter isn't too bad," said Wisden. "We're going to tighten up the belt and wait until the winter is over.
"I'd love to say (the economy) is going to turn around next week," added Wisden. "But I can see things are getting a little better."
(Unified Newspaper Group staffers Autumn Drussell, Jim Ferolie and Bill Livick contributed to this story.)
