Downtown Businesses Squeezed by Economy

At a glance, downtown South Orange seems to be riding out the current economic storm without a hitch. Wednesday afternoon, customers streamed in and out of the cafes and restaurants along South Orange Avenue. High school students window-shop, and a woman walks out of Cheeks Boutique with a bag in each hand.

But, as the saying goes, you can’t judge a book by its cover. South Orange’s downtown merchants say they are definitely feeling the effects of what some experts are calling the worst recession since the Great Depression. The hardest-hit businesses are the ones selling non-essentials: home decorations and accessories, spa treatments, nail salons. No one seems to be completely in the clear, as even grocery stores are taking a hit.

Christian Cortez, co-owner of the recently-opened Fusha Home Accents, has been in the furniture business for 18 years and says he’s “never seen it this slow. This is the worst it’s ever been. There is not a lot of traffic, maybe 10 people a day. And they’re all just looking.”

Salon owners are feeling the same slowdown as Cortez. Demitrius Jones has owned Demetrius Day Spa & Beauty Salon for more than 20 years, and has never seen business “so erratic.” He isn’t ready to blame the economy completely and says it's impossible to say why business has changed so much; everyone calls with different excuses to cancel appointments. While his weekly regulars have remained consistent, “new business, bi-weekly or monthly customers” are unreliable.  He has never had this many no-shows. “I’ve been through a recession before,” he said. “This one is different." 

Even businesses often called “recession-proof” are feeling it. Grocery stores are put in this category because food is a necessity, but Eden Gourmet manager Peter Colandro gave a knowing laugh, saying, “Nothing is recession-proof.” He goes on to explain, “People are still shopping, but only buying what they need. They’re not necessarily buying the more expensive items. This [recession] affects everyone.”

Scott Rothbort, a finance professor at the Stillman School of Business at Seton Hall University, agrees with Colandro. “I don’t believe anything is recession-proof. I believe certain businesses are less susceptible to a recession than others, but nothing is recession proof," he said. “The more discretionary expenditures are far more susceptible. In certain areas, like South Orange, local businesses tend to be more upscale in the downtown areas, so you will see more of an impact downtown.”

It's not all bad news for downtown businesses. Robyn Fields, owner of Robyn Ross boutique, says business has been “really volatile. We’ve all had ups and downs. I had a decent fall, then saw a dip around November and December, but January and February started picking up again.”

At Fusha Home Accents, Cortez is hoping for the same upturn. He understands that right now “mortgage, rent and food is what [people] have to buy; this is not a priority,” but he hopes that as spring starts and the weather gets nicer, more customers will come through the doors.