As Wisconsin industrial workers struggle to survive widespread job cuts, some of Madison's small businesses have begun to feel the effects of the protracted economic slump. State Street merchants, some of whom have been in business for more than a decade, said business has decreased as a result of the weakened economy.
\Certainly lots of the people I've talked to in the State Street area have expressed concern, and see a decrease in their sales,"" said Sandy Torkildson, president of the Greater State Street Business Association and owner of A Room of One's Own Feminist Bookstore and Coffeehouse, 307 West Johnson St. ""Consumer confidence is definitely down.""
Since early 2003, the steady economic decline has claimed thousands of industrial jobs in Wisconsin, according to report in Sunday's Wisconsin State Journal.
Merchants interviewed said the ripple effect of statewide layoffs has led to decreased sales.
""I think even if people are not laid off themselves, the impact of seeing a lot of layoffs nearby and around the country has them feeling a little less economically secure,"" Torkildson said.
Other merchants have also noticed decreased sales since the recession gained momentum early this year.
""I've talked to a lot of retailers, and they have said that their business has been way down,"" said Sam Chehade, owner of Michelangelo's coffee shop, 114 State St.
Merchants who serve a more seasonal clientele concur that recent economic instability has negatively affected business.
""Business has been slower than normal. I'm hoping it will get better,"" said Steve Heaps, manager of The Chocolate Shoppe, 468 State St.
In the aftermath of a 5.4 percent rise in unemployment in December of 2002, many Wisconsin residents have been forced to cut down on unnecessary expenses, according to the State Journal report.
Although local merchants said student employment opportunities have not yet been threatened, some have had to adjust their hiring strategies to accommodate burgeoning unemployment and the resulting decrease in business.
""We're holding on the hiring right now until there is more work,"" Chehade said.
In the face of recession, Madisonians may opt for more cautious consumerism in the coming months, Torkildson said. She anticipates a tough summer for downtown businesses, her own included.
""Book businesses are not recession-proof,"" Torkildson said. ""I think when people are careful with their money, they're careful all the way around.""
