LI businesses monitor market warily
A trader strides across the floor of the New York Stock Exchange at the closing bell. (Aug. 9, 2011) Credit: AP
The gyrations on Wall Street are raising concerns for many Main Street merchants.
"I've been in business for over 50 years, and this has been the toughest year," said Charlie Bunger, 70, owner of Bunger Surf and Sports on Main Street in Babylon, its business district like many on Long Island. "It's been on a downslide for a few years, but the market being on a downslide doesn't help."
The extent that the stock market's performance has affected consumer psyches varied from merchant to merchant along Main Street, with some saying they feel pressures now, while others said they expect to feel them in the coming weeks.
Shoppers also pointed to the longer-term stagnant economic situation as the reason behind some of their cautious spending.
Not far from Bunger Surf, the tumultuous stock market was the topic of conversation in between sandwich and deli orders at specialty market Gemelli's Fine Foods. But his customers began pulling back several weeks before the recent downturn began, largely due to high gas prices, said owner Vincent Cosentino. Also, the weak dollar has boosted the cost of imported products, which make up about 50 percent of his inventory.
He has resorted to bargaining more with vendors for better prices and putting more items on sale, he said.
"They are just buying what they need and what's on sale," Cosentino said, of his customers. "The high-ticket items aren't moving."
Shoppers at nearby high-end clothing retailer Omnibus Fashions also are focused on less expensive items, said owner Paula Evangelista.
"I notice a lot of people are looking for sales, and a lot are trying to bargain because we're a small store, even though we're faring as badly as they are."
Business this summer has been up 25 percent from last summer at Jacqueline's Patisserie, also on Main Street. But while the bakery's sales are up this year, rising costs of ingredients and a sluggish economy overall could threaten that progress, owner Jacqueline Ingoglia said.
Bad news on Wall Street likely will affect consumer spending, but she suspects there will be a lag before she and other businesses feel it, she said.
Shoppers, like merchants, weren't pleased with the stock market's performance, but said their spending habits were shaped by their individual situations and the overall economy.
"You don't know where it's going to go," said Gloria Zariello, 67, of North Babylon, a paraprofessional, referring to the stock market. "But it's the economy in general and how the stock market will affect the economy and that's where it will affect me."
