Is the Recession Over in Rye?

Like many other parts of the country, Purchase Street has been hurt by the recession. But there may be signs of an economic recovery in downtown Rye, as the area has seen more foot traffic in recent weeks.

Sheri Jordan of the Rye Historical Society has noticed more cars and people downtown, but doesn't know if the increase in traffic translates into more sales for local merchants.

"I have noticed that it's hard to find a parking spot in town again," Jordan said. "I don't know if that is translating into more sales for the local merchants. A couple of the store owners have mentioned that profit margins are very slim and customers skittish."

According to a recent news release issued by the Commerce Department, U.S. retail and food services sales adjusted seasonally were $366.4 billion, an increase of 0.4 percent from March 2010 and 8.8 from April 2009.

The Labor Department reported 290,000 jobs were added this past April, for a total to 573,000 jobs. While these numbers indicate the U.S. has added jobs every month since December, the unemployment rate rose from 9.7 percent for the first 3 months of 2010 to 9.9 percent in April.

The mixed signals from the job market play into the mixed signs of recovery.

Larry Gottlieb, Director of Economic Development for Westchester County, says there is a restrained sense of optimism among local commerce in Westchester from the jump in business since the spring.

"From a consumer standpoint, we're starting to see purses and wallets open up again, and from a business standpoint we're starting to see people make those types of investments they've been holding off on," Gottlieb said.

Gottlieb says he is still hearing complaints from businesses about the difficulty in getting access to capital.

"The final piece of the puzzle is access to credit," Gottlieb said.

Business owners in Rye, such as Catherine Parker of Parker's, echoed Gottlieb's reserved optimism by saying things are starting to get better and customers seem to be shopping without guilt again.

"I think things are improving over last year, but I don't think things are back to the level they were in 2007," Parker said. "Most of the people I've spoke with had a better first quarter than in 2009."

Parker remains positive, noting that both the opening of new businesses and the warm weather get shoppers to walk around. Still, she thinks that both commerce and consumers look for ways to manage finances and cut costs when possible.

Jordan adds that Rye's many non-profit organizations such as the Rye Historical Society, the Rye Free Reading Room, the Rye Art Center, the Rye Nature Center and the YMCA are all working together. The organizations have banded together to sponsor lectures, programs and talks as a way to continue to offer programs to the community, without breaking their budgets. In addition, sharing information and resources keeps costs low and stretches every dollar, Jordan said.

The cautious optimism seems to reflect what is happening on Wall Street, with the market seeming more volatile in recent weeks. With many Rye residents working on Wall Street, how the markets perform may effect when the recession is truly over in Rye.

"The recession has hit Rye particularly hard because we have a higher proportion of our population tied to the financial services market," Rye Mayor Doug French said. "I think the number I have heard is as high as 35 percent. Conversations around town the last year and a half have centered on whether or not people who have made Rye their homes can continue to live here not just for the long-term anymore, but in the short-term."

Still French says that things may begin to get better.

 "I think with the increase in restaurants and eateries, more people are frequenting downtown and studies show that consumer confidence is up -- for now," he said.

"However, I have met with the merchants many times and they like businesses in other communities continue to struggle to cover costs each month," he added. "I want to continue to explore ways to make it a merchant-friendly downtown so that people don't come just to transact, but to enjoy the Rye experience."