Main Street Businesses Report July Sales Dip Amid Heatwave and Economic Strain

Temperatures soared across Lake Havasu City during July’s record-breaking heatwave, severely impacting businesses in the Downtown District. Some storefronts saw fewer footfalls as temperatures spiked to about 120 degrees mid-month.

Owners cite the heat as a chief factor for the drop in shoppers. Paula Paulsen of Paula’s Antiques remarked, “This is the worst July I’ve experienced in six years. The economy and the heat are to blame. People are staying indoors, and we need our snowbirds back and the city to step up promotion of Main Street.”

Despite the challenges, events like the “Farmers Market” at the Kitchen Art Workspace bring a surge in residual business, but Paulsen believes more summer events could bolster revenue. She also emphasized the need for public restrooms to accommodate visitors.

The spike in temperatures isn’t the only concern. Economic factors like inflation also play a role. The U.S. Bureau of Labor Statistics notes a deceleration but still an upward trend in inflation over the past year, which continues to squeeze Main Street businesses.

Sandi Robinson of Bling boutique echoed Paul’s concerns. “This is probably the worst July in the past couple of years. Business is one-third of what it is in winter. We save winter earnings to survive the summer.”

According to James Gray, Director of the Lake Havasu Partnership for Economic Development, it’s not unusual for the summer months to be difficult due to residents traveling to escape the heat.

However, some businesses are innovating to counteract the slump. Denise Griess of Our Shabby Shack mentioned their efforts to engage customers through social media and summer-specific programs. “We’re open seven days a week, and we sell almost everything,” she said.

Inflation also pressures businesses to seek alternative revenue streams. Matt Ferree of Flashback Toys & Collectibles relies heavily on online sales, especially when in-store traffic drops. “Historically, there’s a dip, but this year it’s bigger,” he stated. “Online sales have declined as well, likely due to inflation.”

Even the supposedly “recession-proof” businesses are not entirely untouched. David DePeal of Hair Productions Studios acknowledged a slight slowdown, attributing it to the usual summer sluggishness rather than anything unusual this year.

Local entrepreneurs like Regan Ross-Robertson of Kitchen Art Workspace take advantage of shared spaces to mitigate costs. The venue’s farmers markets have thrived over the past five years, but she believes more can be done. “I’d love to see more support from the city, and the introduction of public restrooms Downtown would be a big help,” she said.

As Lake Havasu City braces for the rest of summer, the community eyes fall with hope, anticipating the return of events and visitors to revive Downtown businesses.