On a recent Saturday afternoon, the unseasonably warm weather brought some life to Montana Avenue in Santa Monica. People walked their dogs and lounged on restaurant patios, having late-afternoon snacks and taking in the sun.They window-shopped as they walked down the trendy retail strip between Sixth and 17th streets. Some popped into the myriad boutiques – the clothing, accessory and jewelry stores – that line the street.
But few were carrying shopping bags.
The lack of buying has led to signs of retail distress.
About 30 shops have “sale” signs in their windows, some offering to chop 50 percent or more off regular retail prices. Worse, an additional 31 boutiques have closed or are closing. Those stores represent about 12 percent of the available space on the well-known stretch of Montana.
“It’s obviously a significant number,” said Dan Fagan, a board member of the Montana Avenue Merchants Association, a merchant-based business improvement district for the area. “There’s definitely been a downturn in the size of purchases.”
Montana can be seen as a microcosm of what’s going on nationally: While virtually all retailers are getting roughed up by the recession, boutique stores appear to be getting whacked the hardest.
The kind of conspicuous consumption that used to be done at boutiques has become less popular in the downturn. Department stores, which carry items similar to those found at the trendy shops, are discounting deeply. And many boutiques, which typically don’t have the financial resources of bigger stores, are struggling.
On Montana, the trend is clearly visible.
Il Primo Passo, a luxury shoe retailer, shuttered in January, and Saylor, a women’s clothing store, closed Feb. 28. Il Primo Passo isn’t reopening elsewhere, and Saylor’s Web site doesn’t indicate any immediate plans to reopen anywhere.
Zero days
People working in many of the stores said that business has been slow for months, and many shops were devoid of customers on what would have been a busy weekend a year ago.
“Some stores are having zero days. No sales at all,” said Jane Walker, manager of Three Bags Full, a specialty sweater store.