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As some Middletown businesses close their doors, others look for new solutions in the rough economy and all business owners request residents shop local.
“[Residents] can find everything they need in Middletown,” said Stephanie Sutton-Gose.
Sutton-Gose, co-owner of Home Décor in Dove Run Center, said the country has been over-spending for the last 10 years. They’ve gotten their supplies away from their towns and shopped at big box stores, but the economic downturn has caused people to spend more time at home with their families and spend less money.
“I think everybody’s back to basics and being conservative,” she said.
However, as residents hold onto their money, some local businesses have felt the effects. For Sam Facciolo of Lori’s Cards and Gifts, the recent economic troubles have been a nightmare.
“I don’t make any money,” he said. “I haven’t earned a paycheck in the four years I’ve been there. I’ve laid off all my staff.”
Facciolo opened his gift shop in the Dove Run Shopping Center in 2005 after having previously run a Hallmark store. He decided to move to Middletown as it was a growing into a commercial area. However, while he had received loyal customers and high ratings for his business, things began to go bad in December 2007 and progressed to the point where he had to close his business.
Card and gift businesses thrive on the holidays, Facciolo said, and those scared by the economic news got the message to hold onto as much of their money as possible.
“People cut [gifts] out of their budget,” he said. “That was one of the first things to go.”
Facciolo said he’s four months behind on his rent and his lease lasts for another nine. His savings are gone, his 401(k) is liquidated and he’s on the verge of losing his home. He doubts whether he’ll have enough money to file for bankruptcy. At 58-years-old, with a wife, daughter and grandson, he said he’s not sure where he’ll go.
“It’s so upsetting to know that everything I have I’d just lost,” he said.
Facciolo sees others struggling as well.
“This is real,” he said. “This is really, really for real. And there are going to be so many people affected by this before this is over.”
Sutton-Gose, who also moved the business she shares with her mother to Middletown from Pike Creek because of the growth, said she does not have plans to close her business, but she’s also hurting. She has also not been able to pay herself for some time, and has had to lay off employees.
However, she said she stays because she still sees a need for home décor in the area.
“It’s absolutely my desire to stay and provide it,” she said, “but it’s just getting harder and harder.”
As some Middletown businesses close their doors, others look for new solutions in the rough economy and all business owners request residents shop local.
“[Residents] can find everything they need in Middletown,” said Stephanie Sutton-Gose.
Sutton-Gose, co-owner of Home Décor in Dove Run Center, said the country has been over-spending for the last 10 years. They’ve gotten their supplies away from their towns and shopped at big box stores, but the economic downturn has caused people to spend more time at home with their families and spend less money.
“I think everybody’s back to basics and being conservative,” she said.
However, as residents hold onto their money, some local businesses have felt the effects. For Sam Facciolo of Lori’s Cards and Gifts, the recent economic troubles have been a nightmare.
“I don’t make any money,” he said. “I haven’t earned a paycheck in the four years I’ve been there. I’ve laid off all my staff.”
Facciolo opened his gift shop in the Dove Run Shopping Center in 2005 after having previously run a Hallmark store. He decided to move to Middletown as it was a growing into a commercial area. However, while he had received loyal customers and high ratings for his business, things began to go bad in December 2007 and progressed to the point where he had to close his business.
Card and gift businesses thrive on the holidays, Facciolo said, and those scared by the economic news got the message to hold onto as much of their money as possible.
“People cut [gifts] out of their budget,” he said. “That was one of the first things to go.”
Facciolo said he’s four months behind on his rent and his lease lasts for another nine. His savings are gone, his 401(k) is liquidated and he’s on the verge of losing his home. He doubts whether he’ll have enough money to file for bankruptcy. At 58-years-old, with a wife, daughter and grandson, he said he’s not sure where he’ll go.
“It’s so upsetting to know that everything I have I’d just lost,” he said.
Facciolo sees others struggling as well.
“This is real,” he said. “This is really, really for real. And there are going to be so many people affected by this before this is over.”
Sutton-Gose, who also moved the business she shares with her mother to Middletown from Pike Creek because of the growth, said she does not have plans to close her business, but she’s also hurting. She has also not been able to pay herself for some time, and has had to lay off employees.
However, she said she stays because she still sees a need for home décor in the area.
“It’s absolutely my desire to stay and provide it,” she said, “but it’s just getting harder and harder.”
Business slowdown
Other Middletown businesses also say while they aren’t looking to close, the economy has caused their business to slow down.
Bill Blackwell of Wildflowers by Alicia, located in the Middletown Crossing Shopping Center, said he and his wife Alicia’s business has seen a 15 percent drop compared to last year.
He said flowers and gifts often fall to the bottom of people’s priorities, but they stay in business due to wedding and funeral work.
“It’s your backbone,” Bill said. “It kind of covers you in a hard time.”
Alicia said while their business has been in operation for 14 years and is established, they can’t afford to lose any more customers. She has tried to respond by being more competitive, by selling more non-perishable items and also continuing to make quality products.
“We’re optimistic with a new president and new change to come about,” she said.
Legends resident Brenda Crowley, who owns a home-based business creating promotional items for businesses, said her business has had to scale down. While her customers are still buying, they’re buying smaller items like pins and pens instead of larger promotional items.
“We’re still doing something,” she said.
Crowley said she has made up the difference by helping businesses be more selective in the sort of promotional items they buy. She said these items are essential as consumers remember a business if its name is printed on an item they use every day.
“I’m optimistic,” she said of her business. “The type of advertising that promotional items provide is very important.”
Keith Yocum said his home-based business, Exercomm, Inc., which installs telecommunications, has slowed down. He said he has also given his clients longer pay periods in consideration of economic troubles.
“I see everybody cutting back,” Yocum said.
Nevertheless, he said his business has been doing well since October, and while the economy is rough, it was worse during the gas price hike last year.
New strategies
While some businesses are changing their strategies in the downturn, others are finding the downturn already working to their advantage.
Cynthia Brewer of Prudential, Fox & Roach, REALTORS, said she has seen more homebuyers and investors since the downturn – sometimes she shows six houses a day. Much of her time as a realtor is spent educating people about foreclosures and sheriff sales.
“We have to be more active, we have to do more open houses,” Brewer said.
Realtor Lisa Johannesen, also of Prudential, said Middletown remains a popular area to buy a home, and sale prices and interest rates are lower.
“It’s a great time to buy,” Brewer said.
The Wal-Mart Supercenter, which opened at the end of October 2008, has also been doing very well, said Store Manager Edna Hughes.
Hughes said customers to the Middletown store buy a higher than average total amount of items compared to most other Wal-Mart stores. The Middletown Wal-Mart has done best in selling smaller, more basic items that customers still need.
“Even in a bad economy, customers turn to Wal-Mart, because they know they can save money,” she said.
Andrea Brown-Clarke of What’s Your Inspiration?, a Townsend business that creates custom events, said her business has been successful. Many businesses come to her for help creating promotional events.
“It’s really helped,” she said of her business, “because it’s making [business owners] be more strategic.”
Residents asked to shop local
Brown-Clarke said Middletown, with its mix of historic culture and innovative ideas, has much to offer businesses.
“We’re in the midst of change,” she said.
Kristen Krenzer, public relations officer for the Town of Middletown, said the town still gets many calls from prospective business owners, and has gotten them in a greater amount in recent months.
“They’re all very positive,” she said. “They’ve told me that they’re not going to stop looking at opening new businesses.”
John Barone of the Delaware Manufacturing Extension Project said Middletown remains a growth area. People are still coming to town to retire and Christiana Care’s proposed hospital on Del. 299 near Del. 1 will also, eventually, bring new jobs.
Jim Jones, also of DEMEP, said this puts Middletown in a better position than Newark or Wilmington, which are slowly weeding businesses.
Barone said to succeed in Middletown, a business needs to make themselves known not only to customers, but also to other businesses in the community.
“You need to send the message that you care about the town as much as they do,” Barone said.
Tracy Skrobot, manager of Middletown Main Street, Inc., recently consolidated her own business, Country Corner. She has moved into Elana’s Broad Street Florist & Gifts. She said this decision was made more for personal than economic reasons.
She said the downtown businesses have had to make changes in the economy, but they remain stable.
Skrobot said Middletown Main Street, Inc., has been trying to help downtown businesses succeed with small grants to remake a storefront’s façade or sign and awning. The façade grant will cover the full cost of the façade up to $1,000 with a matching amount of money from the property owner. The sign/awning grant will cover up to $500 with a matching amount of money from the business owner.
This grant money is raised from the membership dues of Middletown Main Street, Inc., members. The membership dues also sponsor the organization’s downtown events.
This year will feature at least four downtown events: an Easter event, the Evening of the Arts events in the summer, downtown Trick or Treating in October and the Christmas Parade/Victorian Stroll.
Skrobot said these events allow residents to enjoy the new downtown architecture, the businesses and the overall feeling of camaraderie in the town.
“I want people to get out and come into the downtown,” she said.
She encouraged all in Middletown to shop local.
“They’re what’s going to keep the economy of Middletown going,” she said.
Sutton-Gose agreed.
“It’s a lovely town, it really is,” she said. “Middletown’s a lovely, self-sufficient town.”
