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Retail roundtable.
(BRANDON POLLOCK/Courier Staff Photographer)
~ADVERTISING~
Economic slowdown hasn’t hit Cedar Valley hard, retailers say
By JOHN MOLSEED, Courier Staff Writer
CEDAR FALLS --- Local retail and restaurant managers say so far they haven't felt the brunt of the economic slowdown plaguing other parts of the country. If customers continue to shop and eat locally, the Cedar Valley may weather the economic storm better than most areas, they said.
A panel of more than a dozen business owners and managers gathered at Ferrari's Ristorante in Cedar Falls to share perspectives on the local retail and entertainment industry.
"The reality is we haven't seen a downturn," said Gary Ogzewalla, manager of the Crossroads Center mall.
Most business owners echoed Ogzewalla's observation.
"We don't really have the reasons to complain that people across the country have," said Steve Volz of Palace Clothiers.
"To say things are bad is inaccurate," said Darrin Beck, owner of Barmuda which operates several area bars and restaurants. Beck said Barmuda was about 20 percent ahead of last year's record sales before October this year. Since then, business has slowed to cut that figure to 12 percent, he said.
Ivan Wieland, owner of Toads Pub and Grill in Cedar Falls and the Screaming Eagle in Waterloo, said earnings were outpacing expectations when he opened the Screaming Eagle this year. However, when gas and food prices rose and flooding struck, revenues plummeted, he said.
"I was definitely a little nervous," Wieland said, adding that business has since rebounded.
The June flooding and tornadoes have been a two-edged sword, the business owners said.
"I think there's some residual is still there," said Ryan Sealock, manager of iTech in Cedar Falls. "Suddenly computers and clothes aren't as important when your home is flooded."
Beck said plans to open a Voodoo Lounge in Waterloo are about 90 days behind schedule because of the flood.
Ogzewalla and Jeremy Larsen, who began his third week as manager of the College Square Mall, noted that government aid to help people rebuild has also brought an influx of spending.
At Simpson Furniture, orders are up which means space there is shrinking, said Dale Emmert, president of Simpson Furniture.
"Our inventory is higher than it usually is," Emmert said.
Some stores reported cutting back on their inventories.
"We're keeping inventories pretty lean," said Mike Sullivan, Waterloo Younkers manager. "We'd rather chase inventory than choke on it."
Red Lobster Manager Marco Holter said Red Lobster Restaurants across the country are being asked to watch and reduce inventory.
"We have to keep things really tight, including how many towels we give out," he said, adding that the chain has seen declining customer counts in other parts of the country but business at the Waterloo Red Lobster is fairly steady.
High gas prices, another problem that plagued consumers this summer, may also have been a blessing in disguise, Beck said. The rise to nearly $4 per gallon may have helped prepare consumers for the economic downturn.
"I think people started looking closer to home to get their entertainment," he said.
Lower gas prices in recent months may have offset some of the effects of the economic downturn, he said.
Although gas prices fluctuated dramatically this year, Beck said other sectors haven't been nearly as manic which could also cushion the effect of the national downturn. Home values in the Midwest didn't inflate to 300 percent of value only to later decline, he said.
"The reality is we didn't get to enjoy the super-duper highs which also means we won't have the super-duper lows," he said.
People in the area don't seem as prone to getting too deep in debt and are pragmatic about purchases, business leaders said.
"As Midwesterners we tend to approach things very conservatively from the front end," said Jackie Lee, director of marketing at the Isle Casino and Hotel in Waterloo.
"It's a testimony to the area," said Mark Skyles, owner of Smitty's Tire and Appliance. "People can get financing here while people can't in other areas."
Emmert added that the area has a diverse economy that isn't reliant on one sector. Customers also appreciate personal service, which retailers said is their best tool to keep customers coming back and shopping in Cedar Valley, said Volz. Panel members said that approach will help keep customers from leaving the area to shop.
Greg Angove, co-owner of the Heritage Gallery in Cedar Falls described a customer who came into the store and asked if the merchandise was available online.
"Our point is we've got to convince them to stay here and shop locally," said Ogzewalla,
Merchants worried that message could get lost in the national news about the economic slide.
"I don't get sucked into the bad news," said Kevin Schreiber, manager of Roth jewelers. He added that his business is up by about 7 percent from last year.
Volz said he was concerned the news about the national economy might eventually effect the local economy.
"Pretty soon people are going to believe in that," he said.
Contact John Molseed at (319) 291-1418 or john.molseed@wcfcourier.com
A panel of more than a dozen business owners and managers gathered at Ferrari's Ristorante in Cedar Falls to share perspectives on the local retail and entertainment industry.
"The reality is we haven't seen a downturn," said Gary Ogzewalla, manager of the Crossroads Center mall.
Most business owners echoed Ogzewalla's observation.
"We don't really have the reasons to complain that people across the country have," said Steve Volz of Palace Clothiers.
"To say things are bad is inaccurate," said Darrin Beck, owner of Barmuda which operates several area bars and restaurants. Beck said Barmuda was about 20 percent ahead of last year's record sales before October this year. Since then, business has slowed to cut that figure to 12 percent, he said.
Ivan Wieland, owner of Toads Pub and Grill in Cedar Falls and the Screaming Eagle in Waterloo, said earnings were outpacing expectations when he opened the Screaming Eagle this year. However, when gas and food prices rose and flooding struck, revenues plummeted, he said.
"I was definitely a little nervous," Wieland said, adding that business has since rebounded.
The June flooding and tornadoes have been a two-edged sword, the business owners said.
"I think there's some residual is still there," said Ryan Sealock, manager of iTech in Cedar Falls. "Suddenly computers and clothes aren't as important when your home is flooded."
Beck said plans to open a Voodoo Lounge in Waterloo are about 90 days behind schedule because of the flood.
Ogzewalla and Jeremy Larsen, who began his third week as manager of the College Square Mall, noted that government aid to help people rebuild has also brought an influx of spending.
At Simpson Furniture, orders are up which means space there is shrinking, said Dale Emmert, president of Simpson Furniture.
"Our inventory is higher than it usually is," Emmert said.
Some stores reported cutting back on their inventories.
"We're keeping inventories pretty lean," said Mike Sullivan, Waterloo Younkers manager. "We'd rather chase inventory than choke on it."
Red Lobster Manager Marco Holter said Red Lobster Restaurants across the country are being asked to watch and reduce inventory.
"We have to keep things really tight, including how many towels we give out," he said, adding that the chain has seen declining customer counts in other parts of the country but business at the Waterloo Red Lobster is fairly steady.
High gas prices, another problem that plagued consumers this summer, may also have been a blessing in disguise, Beck said. The rise to nearly $4 per gallon may have helped prepare consumers for the economic downturn.
"I think people started looking closer to home to get their entertainment," he said.
Lower gas prices in recent months may have offset some of the effects of the economic downturn, he said.
Although gas prices fluctuated dramatically this year, Beck said other sectors haven't been nearly as manic which could also cushion the effect of the national downturn. Home values in the Midwest didn't inflate to 300 percent of value only to later decline, he said.
"The reality is we didn't get to enjoy the super-duper highs which also means we won't have the super-duper lows," he said.
People in the area don't seem as prone to getting too deep in debt and are pragmatic about purchases, business leaders said.
"As Midwesterners we tend to approach things very conservatively from the front end," said Jackie Lee, director of marketing at the Isle Casino and Hotel in Waterloo.
"It's a testimony to the area," said Mark Skyles, owner of Smitty's Tire and Appliance. "People can get financing here while people can't in other areas."
Emmert added that the area has a diverse economy that isn't reliant on one sector. Customers also appreciate personal service, which retailers said is their best tool to keep customers coming back and shopping in Cedar Valley, said Volz. Panel members said that approach will help keep customers from leaving the area to shop.
Greg Angove, co-owner of the Heritage Gallery in Cedar Falls described a customer who came into the store and asked if the merchandise was available online.
"Our point is we've got to convince them to stay here and shop locally," said Ogzewalla,
Merchants worried that message could get lost in the national news about the economic slide.
"I don't get sucked into the bad news," said Kevin Schreiber, manager of Roth jewelers. He added that his business is up by about 7 percent from last year.
Volz said he was concerned the news about the national economy might eventually effect the local economy.
"Pretty soon people are going to believe in that," he said.
Contact John Molseed at (319) 291-1418 or john.molseed@wcfcourier.com
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andydandy wrote on Nov 19, 2008 3:24 PM:
" this is great news. Everything is normal. Sales are up. The car dealers said the same thing. wow.
I wonder why they had a meeting then? Hmmmmmm... "
I wonder why they had a meeting then? Hmmmmmm... "
jcbr wrote on Nov 19, 2008 4:10 PM:
" be safe save your dimes nickels and dollars the area hasnt been hit yet . wait until last of jan or feb remember th early 80 s the rest of the country got hit before us . since when do car dealers tell the truth its their bussiness to sell cars . "
avee wrote on Nov 20, 2008 6:56 AM:
" I recall in the early 80s when Detroit was really in the pits they had the most profitable McDonalds in the country. "
Newswatcher wrote on Nov 20, 2008 7:15 AM:
" I think the key word in the title is 'hard'.
It will follow. Hopefully not soon and not hard, but it will eventually follow.
Be smart.
Save wisely.
Spend wisely.
Smile and appreciate what we have here in the Cedar Valley. We are very very fortunate. "
It will follow. Hopefully not soon and not hard, but it will eventually follow.
Be smart.
Save wisely.
Spend wisely.
Smile and appreciate what we have here in the Cedar Valley. We are very very fortunate. "
hetfield wrote on Nov 20, 2008 8:20 AM:
" shhh. dont tell anyone! the leftists will have a fit that the economy here has not plummeted yet. They will send someone to cast a spell or something.
liberals love it when we have to rely on the government for handouts. it keeps those in big government in power. "
liberals love it when we have to rely on the government for handouts. it keeps those in big government in power. "
HCH wrote on Nov 20, 2008 8:30 AM:
" NOT TRUE!!!! How many local business are "going out of business"? I know of 3 right in the Cedar Valley and yes 2 of them said it was because of the economy! "
myvoicematterstome wrote on Nov 20, 2008 8:46 AM:
" Some of you need to read the article again......It says it hasn't his the cedar valley (hard). Trust me, it has hit here. "
(return of) joe wrote on Nov 20, 2008 10:06 AM:
" hetfield...if I had it my way, I'd ban your blatant un-American butt from posting n here. Why do you continue to hate this great country of ours that I flag my flag in rememberance of our fallen soldiers everyday for? "
Newswatcher wrote on Nov 20, 2008 12:46 PM:
"
On to the REAL issue of this article:
The local economy is strong, but it has weak edges. A lot will depend on how the public reacts as to whether more businesses shut down or not. As for 2 or 3 that closed, they may have just not been the right type of business at the right time to survive anyway.
Save first, Spend wisely and smile! Happy spirited people will make even a bad economy OK to live through. Mean people will make even the best of times seem horrible.
Be a grateful and happy person, please! You'll feel better and so will those who are around you. "
On to the REAL issue of this article:
The local economy is strong, but it has weak edges. A lot will depend on how the public reacts as to whether more businesses shut down or not. As for 2 or 3 that closed, they may have just not been the right type of business at the right time to survive anyway.
Save first, Spend wisely and smile! Happy spirited people will make even a bad economy OK to live through. Mean people will make even the best of times seem horrible.
Be a grateful and happy person, please! You'll feel better and so will those who are around you. "
hetfield wrote on Nov 20, 2008 1:14 PM:
" hetfield wrote on Nov 20, 2008 8:20 AM:
" shhh. dont tell anyone! the leftists will have a fit that the economy here has not plummeted yet. They will send someone to cast a spell or something.
liberals love it when we have to rely on the government for handouts. it keeps those in big government in power. "
(return of) joe wrote on Nov 20, 2008 10:06 AM:
" hetfield...if I had it my way, I'd ban your blatant un-American butt from posting n here. Why do you continue to hate this great country of ours that I flag my flag in rememberance of our fallen soldiers everyday for? "
i will let the readers decide which one of these two posts is more filled with hate and unpatriotic flair. seems to me ol joe has a little anger problem.
down boy, down. how do you flag a flag anyway? I proudly fly a US flag every day, not a jakartan flag, or a USSR flag, or a 'running for canada' flag, joe.
my point is simple. leftists love it when the economy bombs. they blame everyone but themselves. in this case, they caused it with fannie and freddie and poor barney 'i didnt know i had a gay escort running a tax free business in my basement' frank is running around blaming bush for all.
liberals, minions, do-nothings, and draft dodgers. the left. "
" shhh. dont tell anyone! the leftists will have a fit that the economy here has not plummeted yet. They will send someone to cast a spell or something.
liberals love it when we have to rely on the government for handouts. it keeps those in big government in power. "
(return of) joe wrote on Nov 20, 2008 10:06 AM:
" hetfield...if I had it my way, I'd ban your blatant un-American butt from posting n here. Why do you continue to hate this great country of ours that I flag my flag in rememberance of our fallen soldiers everyday for? "
i will let the readers decide which one of these two posts is more filled with hate and unpatriotic flair. seems to me ol joe has a little anger problem.
down boy, down. how do you flag a flag anyway? I proudly fly a US flag every day, not a jakartan flag, or a USSR flag, or a 'running for canada' flag, joe.
my point is simple. leftists love it when the economy bombs. they blame everyone but themselves. in this case, they caused it with fannie and freddie and poor barney 'i didnt know i had a gay escort running a tax free business in my basement' frank is running around blaming bush for all.
liberals, minions, do-nothings, and draft dodgers. the left. "
waverly wrote on Nov 20, 2008 1:24 PM:
" Its hit the cedar valley, 54 former employees from the C.R. Courier can tell you that. "
HCH wrote on Nov 20, 2008 1:29 PM:
" Who is to say how "hard" is hard? Ask the people who have lost their jobs because of this. What about all the layoffs happening also. I'd say this isn't a soft hit! "
Stana wrote on Nov 20, 2008 3:04 PM:
" In the 80's the local ecomony was hit really hard becasue not only was the country in recession but the Farm crisis was going on. We in the Cedar Valley were affected drastically because of the double whammy. I think this time we will be the exact opposite and the local ecomony will be okay. Because the farms are doing well and the local Factories are okay ( yeah mostly Deere)
Alot of businesses will state the reason they have failed is the ecomony and the ban on smoking ( for bars) but the bars were slower before the ban came about because people were strapped for cash becasue of the High fuel and food prices. (and for how long did they state they was basically no inflation? Where was this????) "
Alot of businesses will state the reason they have failed is the ecomony and the ban on smoking ( for bars) but the bars were slower before the ban came about because people were strapped for cash becasue of the High fuel and food prices. (and for how long did they state they was basically no inflation? Where was this????) "
Stana wrote on Nov 20, 2008 3:07 PM:
" Another thing is as a CPA People go into opening a business with not enough prep and capital. They seriously misunderstand how much cash flow they have to generate to stay afloat and how long it will take before they will in reality make a profit. They don't have a second income or enough money to live on while the business is taking off to give it a chance to build and get a good foundation. "
Newswatcher wrote on Nov 20, 2008 3:16 PM:
" waverly, newspapers across the country are losing readership as technology supplies faster and more economical delivery of the news. The downturn in the economy didn't hit the Courier, the fact that it had a dinosaur of a printing press hit it.
A hard hit here would be Deere laying off hundreds, 2 new Target's NOT coming to CF Industrial/Business Park, a new northern CF Industrial Park NOT being developed. I'm not saying it won't hit here, but it's nothing here like it is elsewhere ----- yet.
That's why we have to be smart and grateful each day.
Remember, businesses shut down in good economic times, too. A fraction of new small businesses survive their first couple of years. Especially restaurants, they're the first ones to drop like flies.
joe and hetfield, let's keep it in the economy on this site, OK? It's better reading to keep on the topic if we can. "
A hard hit here would be Deere laying off hundreds, 2 new Target's NOT coming to CF Industrial/Business Park, a new northern CF Industrial Park NOT being developed. I'm not saying it won't hit here, but it's nothing here like it is elsewhere ----- yet.
That's why we have to be smart and grateful each day.
Remember, businesses shut down in good economic times, too. A fraction of new small businesses survive their first couple of years. Especially restaurants, they're the first ones to drop like flies.
joe and hetfield, let's keep it in the economy on this site, OK? It's better reading to keep on the topic if we can. "
wardski wrote on Nov 20, 2008 8:52 PM:
" Emmert from Simpson furniture was quoated as saying his inventory is higher-- dont that mean less stuff going out the door in sales? I know for sure my money (spending) is down a lot- my family has not been to a resturant for a long time, and have not bought any furniture or appliances this past year-- not because of the media being negative, because of my past history having living thru the 1980's. Let the retailers,resturant people think all is well---just wait. "
hetfield wrote on Nov 20, 2008 11:04 PM:
" waverly wrote on Nov 20, 2008 1:24 PM:
" Its hit the cedar valley, 54 former employees from the C.R. Courier can tell you that. "
i somewhat agree with waverly here. except the CR courier did not have to cut these jobs, they chose too. didnt want to shell out the cash for new equipment here. "
" Its hit the cedar valley, 54 former employees from the C.R. Courier can tell you that. "
i somewhat agree with waverly here. except the CR courier did not have to cut these jobs, they chose too. didnt want to shell out the cash for new equipment here. "
crazy wrote on Nov 21, 2008 10:59 AM:
" Hold on to your $$$
We have not seen the "HIT" yet since we are the midwest and most of our economy is Ag based. The farmers have been doing great the last few years and that helps all of us. However commodities have been droping fast and rumor has it John deere has been shutting down assembly lines and laying people off.
I hate to say it but "IT" is comming. "
We have not seen the "HIT" yet since we are the midwest and most of our economy is Ag based. The farmers have been doing great the last few years and that helps all of us. However commodities have been droping fast and rumor has it John deere has been shutting down assembly lines and laying people off.
I hate to say it but "IT" is comming. "
KRIS wrote on Nov 21, 2008 2:15 PM:
" Crazy, Deere's is still hiring. They are laying off (and relocating) people on the slower profit lines. There have been none in the Waterloo area. I think they learned their lessons in the 80's. We are tighting our belts as well. Not because we have to, it is because we dont know what the next contract in October will bring. Sometimes, I dont think things are as bad as they want it to sound. Sure there are alot of businesses closing, but I am sure that some of them are doing it to make sure the shareholders still get their big yearly bonus. Save plenty, spend less. "
andydandy wrote on Nov 21, 2008 2:54 PM:
" With things going so well locally , I will probably just spend my money in other towns around Iowa. It will help even things out for all of Iowa... "
wardski wrote on Nov 21, 2008 7:55 PM:
" I wonder if Menards is going to build another store as was reported in the Courier earlier this year-- I am sure they will not after talking to employees at the store. One employee told be it is on hold. This employee was at a seminar at Menards head quarters in Eau Claire Wisc. and they said not next year and maybe never!! WOW go figure--.How is the local economy?? If you dont think that the local economy sucks, and Menards wont build another store--call the general office of Menards -(715) 876-2230
and ask them yourself. "
and ask them yourself. "
Independent wrote on Nov 21, 2008 8:43 PM:
" Newswhinner, I thought Pickerman's closed because of the minimun wage increase? "
oldandgrey wrote on Nov 21, 2008 11:19 PM:
" In the Cedar valley none of the major employer's, John Deere, Viking Pump, Target, and the such have had any layoff's as of yet. The smaller business's are just starting to feel the slowdown, in the midwest we are usually the last one's to feel the effects of a bad economy. Most restaurant owners I know, tells me that business is down some in the last month but overall this has been a good year. "
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frogge wrote on Nov 19, 2008 1:21 PM: