Tucson Small Businesses Face Unprecedented Decline as Holiday Season Approaches

Small businesses in Tucson, Arizona, are grappling with an unexpected downturn during what is normally their busiest season. Despite the success of Small Business Saturday, many local store owners report a significant drop in customer spending, which they attribute to rising costs of essentials like food and electricity.

Impact of Changing Consumer Behavior

According to local entrepreneurs, American consumers are prioritizing necessities over discretionary spending, which has had a noticeable effect on profits. James Goodreau, owner of the vintage Mexican folk art store Arte de la Vida, shared his concerns about the state of small businesses in the region. “I feel like the small businesses in Tucson and the locally-owned restaurants, we are part of what makes Tucson, Tucson,” he stated.

Goodreau opened his store near Broadway and Tucson Boulevards 14 years ago and has experienced consistent growth, even through challenges such as the COVID-19 pandemic and prolonged construction in the area. However, he noted that recent months have brought unexpected difficulties. “Every year’s been better than the last. Of course, COVID came along, and also we made it through the Broadway construction—which took years—and everything’s been good until lately when business slowed down,” he explained.

The decline became evident as foot traffic decreased, followed by a drop in sales figures. Goodreau reported that year-to-date sales are down 26%. In response to these challenges, Arte de la Vida has had to make difficult decisions, including letting go of two part-time employees and extending shop hours to seven days a week for the first time in its history.

Community Support Initiatives

Goodreau emphasized that the current political climate has left many customers uncertain, impacting their purchasing decisions. “With the current political situation, a lot of people don’t know what’s going on, so they’re not buying, and if they do buy, they’re not buying as much,” he remarked. He noted that other local business owners are facing similar challenges.

Data from the U.S. Commerce Department indicates that while retail sales did see a rise in September, the growth rate has slowed compared to previous months. As the holiday shopping season approaches, Goodreau is urging the community to support local businesses. “It’s not just about me… It’s about small businesses in Tucson,” he said.

In an effort to encourage local shopping, Goodreau has implemented a promotional initiative where he donates $5 to the food bank for every $39 spent at his store. He is collaborating with other local business owners to support the community and plans to continue such promotions throughout the holiday season.

As Tucson’s small business landscape faces these unprecedented challenges, the call for community support has never been more urgent. Local entrepreneurs like Goodreau are committed to weathering the storm, but they need the community’s help to thrive during this crucial time.