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Tuesday, November 25, 2008

Business Closings

Earlier today I wrote an article regarding all of the businesses that had announced various closings all across the United States, but neglected to stress the impact this would have on the economy as a whole. I have spent some time thinking about the impact of all those store closings. Granted, some of the stores that are shutting down are small and will likely only release 20-30 people into the ranks of the unemployed, but some of the retail establishments that I mentioned employ hundreds and could be devastating to small cities and towns across the nation.
I recently moved from Manchester, NH to Austin, TX. When I was living in Manchester I worked at a party supply store on South Willow St. as an assistant manager. While working on that street I took some time and got to know a lot of the employees of all the stores that surrounded mine and came to realize that many of those stores would likely go out of business if the nation headed further into recession. Unfortunately, shortly after I received that email I mentioned in the article earlier today, I was contacted by a former coworker who told me that nearly every plaza on the street had 2-3 businesses that would be out of business by the new year. 
In addition to that awful news, my mother in-law just told my wife and I that the Mall of New Hampshire also had a number of stores closing including The Gap, JC Penney, KB Toys and a number of others. As I mentioned earlier, the closings aren't due to a poor business model or bad management decisions. The stores are closing due to the fact that consumers are getting pinched from al sides and don't know whether they will have a job in the near future. You cannot blame anyone for holding onto their money in times like this. I will be interested to see if the banks begin lending again in the near future so that the economy can hiccup its way along. I suspect we are just getting into the beginning of our woes here. It will be "interesting: to see just where things go in 2009.