The First of Many

The First of Many

In the midst of the nation wide market meltdown, major corporations are not the only ones feeling the pinch. In the District of Columbia, many small retailers are having trouble and there is no easy answer to their woes. While Wall Street gets bailed out the little guy continues to suffer. Business has dropped significantly in local retail meccas such as Georgetown, Chevy Chase and Tysons Corner. It seems that consumers are no longer willing to splurge on non-essential goods. Estimates show that receipts at local restaurants are down at least 14 percent from last year forcing owners to scramble to make the rent. Consumer spending has not kept up with rising food prices, destroying profits. Meanwhile, banks are refusing to make loans to small businesses, thus making the problem worse. So, what will happen? Look for many small locally owned retail businesses to shut their doors in the next 18 months. In their place landlords will seek well branded, high credit rated, national tenants to fill the gap. Sadly, we may see the last of the District of Columbia's local flavor replaced by the franchisee.