Stores Closing on Market Street?

Stores Closing on Market Street?
Charles Smith

It was a Friday afternoon, move-in day at the college. I was on the passenger side riding into Potsdam and looking out the right side. I had the chance to look at the downtown business district of Potsdam. I saw a very economically depressed business district. There weren’t very many people busying around on a Friday afternoon. With half a dozen vacant lots along Market Street it is not hard to see that Potsdam’s economy is feeling the recession with full force. So why do many of the business in Potsdam, particularly Market Street, move or fail and what can be done about this?

Stores closing along Market Street are a real problem that affects all of the people living in Potsdam. “Today, the village population remains approximately 10,000, with an economy largely based on education, agriculture and hydroelectric power.” (“Potsdam Chamber”). Failure in business along the main street in any town is bad for local business especially when you consider the size of Potsdam. “Visitors can enjoy dining at over thirty local restaurants. Potsdam also offers a wide variety of retail stores including clothing, antique, gift shops and art galleries and studios.” (“Potsdam Chamber”). Why do these business stay open while other business close. Well states that the college drives about half of the income in Potsdam. The same reliable economic source says that shifts in population in Potsdam and rent discrepancies are not reasons for the closing of stores along Market Street and that the recession is the main reason for the store closings. The recession, other economic problems, like taxes and insurance; personal reasons and business ventures are all reasons for the many empty store fronts along Potsdam’s Business district.

One major economic feat that has to be overcome by new small business is rent. Renting store fronts are major economic decisions for starting small business and especially small business in small towns. Buying, holding, and leasing property is also a common small business practice. The small business owner, now a leaser, will be guided by those principles, which favor the leaser. Leasing commercial property is sometimes the start and sometimes the culmination of such ventures. While most of the fundamentals of leasing are well established and traditional, innovation is still possible in marketing such properties (“Leasing”). The same reliable anonymous economic source states there are four landlords that rent store fronts: they are Shelly, Hazen Enterprises, Sergis, and the Housing Council. Some landlords, this source said, are much more expensive than others. Differences in rent pricing could be reasons why stores do not move into empty storefronts. Rent pricing could also be reasons why business fail and move along Market Street.

The stores along Market Street in the past two years that failed or moved locations are on the excel spread sheet attachment. Roughly there are 12 store locations along Market Street that are closed. The corner at Market Street, which used to be Strawberry Music, is closed. Strawberry Fields Coffee House was renting from Hazen Enterprises when it was associated with Fields Coffee House and located on the corner of Market Street. The reason that the store moved was that it is no longer associated with fields coffee house and they thought they could perform the same operations as they did with the larger location but with a smaller location with less rent. They rented the store from Hazen enterprises but they did say that the rent for the corner location was reasonable for that location. (Strawberry Fields Employee.) Second Market Street location is a huge space, with a lot of potential for business growth, great detail and architecture characteristics in the building itself that make it unique, but it is empty with a sign for Trezza Reality. Surveys were given to eight businesses, except Strawberry Fields music, in Potsdam’s business district. The questions are at the end of the paper and ask basic questions about business in Potsdam and why Market Street is in an economic struggle. None of the questions seem to have and similarity and there are all different answers for different reasons. All of these stores closed for different reason but the storefronts remain empty because of economic reasons that affect all of the business.

All of the business along Market Street is subjected to the American economy and rent but other economic conditions present in Potsdam’s business district. In a 2006 statistics from the Small Business Administration (SBA) show that "two-thirds of new employer establishments survive at least two years, and 44 percent survive at least four years” (Blackford). With a harsh survival rate small business need to follow the strictest of plans especially business in small towns with small changing populations. The seven reasons for why business fail are: You start your business for the wrong reasons, Poor Management, Insufficient Capital, Location, Location, Location, Lack of Planning, Overexpansion, and No Website (Schaefer). All the stores along Market Street of Potsdam are all different and close for a number of reasons of different reasons but all of the stores face the same challenges and the underlying factor that the American economy is unfavorable. A reliable, anonymous, economic source from Potsdam states that “The top three qualities a business needs to succeed in Potsdam are 1) Good customer service; 2) fair prices and 3) access to students.” (Anonymous economic source) The source also states “Three biggest challenges that business face in Potsdam today are 1) Taxes (property, state, local); 2) cost of health insurance and 3) state and local regulations and insurance”. (Anonymous economic source) Rent along with insurance and taxes could also be another underlying economic factor to why so many business along Market Street. Failing businesses in Potsdam create problems for allocating resources, providing necessities, providing entertainment, and that keeps the town thriving.

So what could be done about this empty store space in Potsdam? Well in New York City there is an alternative use for empty storefronts. “No Longer Empty (NLE) is a comprised of arts advocates, curators and artists who orchestrate public art exhibitions in vacated storefronts and properties in New York City. The non-profit organization was conceived as an artistic response to our present economic condition and to revitalize empty spaces and areas around the venues by bringing thoughtful, high-caliber art installations with accompanying programs to the public. …No Longer Empty conducts outreach into the community to contribute meaningfully and bolster the local businesses through the increased flow of visitors that these exhibitions attract and by arranging programs such as panel discussions, music and performance evenings, children's workshops, artist conversations and more. These exhibitions could not have happened without the vacant spaces being generously donated rent-free by the landlords.” (“About No”). This could prove to increase a steady stream of visitors who could become potential customers. This would only happen if landlords allowed free store front space to the artists. There could also be exhibits and art selling where some of the profit could be given to the landlords as payment.

Stores on Market Street are closed for many reasons but the storefronts stay empty for social and economic reasons. One social reason would be the lower population. Lower population means less money if going into the business and they struggle. The No Longer Empty solution maybe a little far fetched but at least it would put something in empty store fronts in Potsdam’s business district. The rent discrepancies along Market Street could be reasons why certain store locations are empty, 2nd market street, and certain business move into empty store locations, Sleepy Hollow and Go Mascots. There is no clear cut answer to this question the survey given to the business, data and information show this. All of the answers to the questions in the surveys were all answered differently so it is almost impossible to divide these answers into a clear answer that would help define this problem. The one underlying factor that is effect business everywhere especially places with small populations and non-diversified business markets is the American economies performance. When a nations economy does poorly it is hard for business especially small business to do well especially in small populations. Some other economic issues besides the recession are insurance rates, taxes rates, and rent. So the small population and other economic conditions contribute the empty store fronts in Potsdam.





Number on
Market Street Name of Business Story
15 Cowens Country Store Closed because the store owner Daniel Cowan
Has been too ill to run the store (Freilich, October 23, 2008).

63 Living Stones Bookstore Closed because owner Kim Trivilino's husband retired
and she wanted to join him.(Freilich, October 23, 2008).

8 Sleepy Hollow Studios moved into former Game Craze January 13th 2009
(Freilich, October 23, 2008).

16–18 Goody Goody Toy Store owners are unreachable from Saranac or home phone numbers says North Country Now (Freilich, October 23, 2008).

16–18 Hookah Lounge moved into former Goody Goody’s Toy Store (Freilich, October 23, 2008).

145 Sandstone Grill closed not because of bankruptcy or unpaid bills
but because of personal reasons (Freilich, October 23, 2008).

12 Kings video and Videorama Kings closed and the two stores joined into
Videorama’s space (Freilich, October 23, 2008)


Visual Survey November 11/2
West Side
3 The Hop empty, Trezza Realty, owner Hazen Enterprises
21 Josie pizzeria was closed and then opened up weeks after school
started
31 Empty Grey bar bar between Backstreets and The Post Office
45 Empty Lot After University Bookstore is Empty with a sign for
Poissant, Nichols, Grue and Vanier
68 Verizon Closed giant building holding the former Version
store and the Red Cross
75 Laundromat After the Kids Closet the store is closed

East side
2nd Former Strawberry Music See Strawberry Music story
24 Marras Homecare is moving to P and C Plaza because they
need more space because business is good
29 James T. Lahey Agency Inc After Marras Homecare there is an empty office space
34 Inner Reflections closed
36 Indian Carnival closed with and Ink the Skin is on the Third floor.

Questions from an Economic Survey for Comp 101 where certain business along Potsdam Business District:
1. What are the three biggest challenges that business face in Potsdam?
2. What are the top three qualities a business needs to succeed in Potsdam?
3. Are the rents along Market Street Fair?
4. Is Potsdam a good or a difficult place to do business? Why?
5. Do you feel that business rely on the college students too much for business, if they rely on the colleges?
6. How do you feel you could attract student and community customers?
7. Do you think that the shifting population, during when times when college is not in session are reasons for stores closing along Market Street?
Answers:

Wear on Earth
1. Taxes ( over head), Big Box stores
2. Customer Service, Local Knowledge, adaptability
3. Yes
4. Good place consistent customers and foundation of community
5. 30 % ish student business (not including parents for weekends.
6. *
7. No.

Bagelry
1. *
2. Quality prophet, helpful and courteous help, pleasant atmosphere
3. No
4. Very good a good diverse customer base
5. Colleges are a major impact
6. By being more receptive to there needs
7. No not at all.

Josie Pizzeria
1. Competition, High Taxes, steady flow of people (lack of).
2. Practical, Attract both local and college crowds, try to stay away from opening a business that is already in town.
3. Might be a bit to high
4. Can be difficult need to have a balance between local people and college students to do well.
5. We do not depend on colleges we also depend on local people.
6. Well for us being a restaurant, probably offer more specials especially for students
7. Not really a business in Potsdam need to be practical, something the town needs not something a few would enjoy.

North Country Neighbors, Flea Market
1. Good quality landlords, putting money back into the building, weather.
2. Friendly quality service, consistent service, ability to network
3. Yes
4. Good.
5. I do feel that the college affects my business. SUNY more than Clarkson as far as students, faculty, and staff.
6. ?
7. No one business that closed after a year never even had a sign. Others that closed had a much to small customer base even with the college students. When college is not in session we have out of town visitors and people with summer homes to take up a lot of the slack

Northern Music
1. Lack of business to keep customers here, taxes, and the diverse population.
2. Customer service, quality of goods, selection
3. In our case yes
4. In our case yes it’s a great place to do business. Lack of competition, loyal customer base, and small town values that believe in customer service.
5. Colleges students do affect are business not only from the students but also from college itself.
6. Students would come here more often if they shopped locally 1st and Internet shopped, 2nd.
7. I think it may be part of the reason.



MERCHANT 2
1. Parking meters slow foot traffic, and fewer business.
2. Keep storefronts nice, easier parking, unique shops.
3. Yes
4. Good customers are loyal
5. No but we do love the college business
6. …
7. Yes

Merchant 1
1. Student vacations, holidays and summer, location close vs. far from campus/ downtown.
2. Attention grabbing advertising, friendly staff, sanity environment.
3. Yes I feel the better the apartments the higher the rent, but never seems too unreasonable, summer rent is very cheap too.
4. Good
5. Yes greatly diminishes when students leave. We try to target the entire Potsdam community.
6. We interact with professors and local community events to try and lure in new customers unaware of our business.
7. Yes but it you have attracted the right kind of market during the year you should be able to keep enough business … to stay open.


Movie Rental
1. Finding Responsible employees, getting consumers to stay local and buy local.
2. Good customer base, good advertising, good employees.
3. Not applicable
4. Yes. With the colleges it brings in more revenue
5. Yes a lot of college students come here. At least 50 % during school. In my business we rely too much on college students
6. Advertisement
7. Yes.


Works Cited

"About No Longer Empty." /No Longer Empty: Revitalizing Space: Unlocking
Creativity/. Web. Date you found it.

Blackford, Mansel G. /History of Small Business in America. Chapel Hill: The University of North Carolina, 2003. Print.

Freilich, Craig. “After two years, Potsdam's Sandstone Grill to close July 31.” North Country Now. July 14, 2009. Web. 6 November. 2009.

Freilich, Craig. "Cowan's Country Store in Potsdam is Closed." North Country Now. October 23, 2008. Web. 6 November. 2009.

Freilich, Craig. “Goody Goody's toy store appears closed.” North Country Now. January 13, 2009. Web. 6 November. 2009.

Freilich, Craig. “Hookah smoking lounge is coming to downtown Potsdam.” North Country Now. June 22, 2009. Web. 6 November. 2009.

Freilich, Craig. “If no buyer soon, Potsdam Christian bookstore to close.” North Country Now. April 28, 2009. Web. 6 November. 2009.

Freilich, Craig. “Potsdam's Sleepy Hollow Studios tattoo and body piercing shop moving to larger quarters.” North Country Now. August 18, 2008. Web. 6 November. 2009.

Freilich, Craig. “Potsdam's two video stores to merge; only downtown location will remain.” North Country Now. December 02, 2008. Web. 6 November. 2009.

"Potsdam Chamber of Commerce." /Potsdam, NY 13676. CommunitySights.com: 2009. Web. 16 November. 2009.

" Leasing Property." Encyclopedia of small business. 2007. /Gale
Virtual Reference Library.Web. November 10th 2009.

Schaefer, Patricia. "The Seven Pitfalls of Business Failure and How
to Avoid Them." Business Know How.com. Attard
Communications, Inc: 2009. Web. November 6th, 2009.

Strawberry Fields Employee. Strawberry fields personal interview.