Something I have noticed recently in Phoenix.....

[gimmethesimplelife]

Something I'm noticing in Phoenix has me a bit worried. I have seen the closing of several long term businesses lately - this amidst an economy that is supposedly slowly getting better.

A Hispanic used tire business up and running since 1978 has closed recently, along with a Burger King downtown, and a convenience store in the lobby of my credit union's building downtown, along with a pregnancy testing place that used to be not far away from me. These were within the past couple of months - if we go out a little further in time, I can add a lot more to the list.

What does this mean, really? I'm not liking the answers I am coming up with.

Something else, too, I was downtown today running errands and had the $4 lunch meal at Subway. I noticed that few and far between were the lunch customers downtown at 12:30 - back in the boom it used to be crazy busy at lunch places like Subway. Matter of fact, even during the dark days of the Recession back in 2009, it used to be busier at lunch places downtown - I'm not liking what that implies to me, either.

Any thoughts? Rob

[reader99]

The economy is a large and cumbersome beast. There's a significant lag time in any improvements. Businesses that held on this long are getting closer and closer to the end of their ropes and the beginnings of an improved economy may be too little too late for specific businesses.

Likewise, by the time the business cycle gets to booming enough that anyone wants to hire my 58 year old self, I'll be 65.

[SteveinMN]

I noticed that few and far between were the lunch customers downtown at 12:30 - back in the boom it used to be crazy busy at lunch places like Subway. Matter of fact, even during the dark days of the Recession back in 2009, it used to be busier at lunch places downtown - I'm not liking what that implies to me, either.
I believe reader99 is correct about the lag and locality. But I think some of it, too, is the pullback being discussed in the Personal Finance thread right now. And some of it is that jobs have been disappearing silently for years. Many of those laid off either are working in another neighborhood or are out of work and trying not to eat lunches out. Many of the workers remaining are shouldering the responsibilities of departed co-workers and no longer feel they have time to dash out to pick up lunch. Or are cutting back themselves in anticipation of the next wave of layoffs. Key economic indicators may be showing an improving economy, but I'm not seeing that many signs of it here outside of the housing market.

[Spartana]

Sometimes store closings are actually a reflection of growth in the economy. As the economy improves, commercial leases increase - often by a lot - and many long term business cannot afford that increase. So the old move out to make room for the new, more costly and possibly more upscale business. This has happened a huge amount in my area on a very large scale. Fancy new shops replacing older businesses that have been there forever. Often times new zoning laws will cause older businesses to move elsewhere. I also think that an improvement in the economy can cause people to stop eating at places like subway or burger king - both budget places they may have gone to during the downturn - and start beating at more upscale places they can afford as the economy improves. Many of my previously laid off friends gave up on subway and started eating at higher end places once they were employed again.

[Blackdog Lin]

I think all the talk of "a recovery" is a charade. I think the economics of the country are much much worse than what the MSM's headlines would try to have us believe. I think what you are observing, Rob, is closer to the truth of how things really are. An unacknowledged depression.

But that's just me.

[larknm]

It's me too, Blackdog Lin. What I see here is empty space on grocery shelves, and two flavors of something that they used to carry 3 of.

[puglogic]

And I see a different dynamic. A lot of people are now working for themselves, and we're not really the type to go to Subway for lunch.

[ApatheticNoMore]

There has always been whole sets of people that seem to hang out in the coffee shops all day with no need to actually hold a job. I've never understood it and I think I never will. Suffice to say that there may be a lot more independently wealthy people than we think or something.

Going out to eat is not very practical to me as a person who has a job, as the traffic is too horrible to drive anywhere at lunch and the restaurants within walking distance are pretty horrible - so mostly I bring my lunch or live to regret it. However if I worked for myself I would get so very lonely all day alone, that I might well go out.

[flowerseverywhere]

Exact opposite where I am. Houses are being built, restaurants are packed and house values are rising. Same thing where I just spent a few weeks while DH had a contracting job. Lots of expensive newer cars on the roads too.

[iris lily]

After 25 years old living here, brand new houses that cost $380,000+ (including one at well over $500,000) are going up across the street from me. We've been waiting for this for that long, yay!

It's the Obama recovery, he he. Whatever, the Prez is in the White House so he gets the credit. Those of you who think it's a Depression, then he gets that credit as well.

[Spartana]

Exact opposite where I am. Houses are being built, restaurants are packed and house values are rising. Same thing where I just spent a few weeks while DH had a contracting job. Lots of expensive newer cars on the roads too.
This is the case in my area also.

[Yarrow]

I think all the talk of "a recovery" is a charade. I think the economics of the country are much much worse than what the MSM's headlines would try to have us believe. I think what you are observing, Rob, is closer to the truth of how things really are. An unacknowledged depression.

But that's just me.

I would agree with this. Where I live it looks like a depression....

[flowerseverywhere]

I would agree with this. Where I live it looks like a depression....

further proof of the divide in this country. Some people are doing great, getting more wealthy, others not lucky and getting further behind. Like people who bought houses at the top and have seen their investment slip,away from them.

[JaneV2.0]

We're on the upswing again here. I like watching my house explode in value on Zillow as it crumbles around me in real life. It's amusing, but bears little resemblance to reality.

[Lainey]

We're on the upswing again here. I like watching my house explode in value on Zillow as it crumbles around me in real life. It's amusing, but bears little resemblance to reality.

yep - what's the deal with zillow, trulia.com, homes.com, realtor.com, etc. Some of these sites vary so widely on the same property you wonder where they're getting their data.