Economic Collaborative of Northern Arizona (ECoNA) — The Evolving Retail Sector in Northern Arizona

Good afternoon,

At first glance, it’s felt like a cruel summer for northern Arizona’s retail sector, with a string of announcements about store and restaurant closings. Often they were places that had been staples of the community for years: Big Lots, Kachina Kitchen, Peter Piper Pizza, Grimaldi’s.

While those businesses will certainly be missed, their closings don’t tell the whole story of the retail landscape in our region.

When a retail business closes, it often creates opportunities for new businesses to emerge, a life cycle that’s a part of how this sector evolves.

Throughout northern Arizona, we’ve had far more retail business launches than closures this year.

Here’s a few of the recent editions to northern Arizona’s retail sector:

Flagstaff saw the grand opening of In-N-Out Burger earlier this year, and other new eateries include Flagstaff Fry Bread House and Angie’s Lobster, which will open later this month. Meanwhile, Chintz Clothing will be operating a boutique and online clothing store on S. Mike’s Pike, and Just Sports and District 48 Clothing are new additions to the Flagstaff Mall.

Sedona has welcomed Destination Tattoo, Sedona True Nutrition and ZClaw Arcade, while Camp Verde has seen the launch of Diamond D Physical Therapy and Sheila’s Kitchen.

The owners of the Flagstaff Fry Bread House plan to open another restaurant in Winslow. Other new food options in that city include Nini’s Kitchen, a strictly take-out restaurant, and Romo’s Kitchen at the Winslow Airport.

ECoNA and representatives from Flagstaff, Winslow, and Camp Verde plan to continue the momentum of these new retail launches by attending the ICSC trade show in Palm Springs next month. Formally known as the International Council of Shopping Centers, the ICSC has expanded and now focuses on what they call the “marketplace industry” – all of the places where people shop, dine, work, play, and gather.

There is still much uncertainty in the retail sector both nationally and locally. A recent report from Coresight Research, a retail analytics firm, said that year-to-date, businesses exiting the retail market are slightly outpacing new business debuts – numbers that was impacted greatly by large corporations closing multiple stores, like Big Lots.

However, today’s reports from the US Commerce Department show an unexpected surge in retail sales in July, which rose 1% over the prior month. At the local level, the new annual minimum wage changes in Flagstaff will be announced in the near future, which will also play a role in the future of retail in that city.

While a reflection of change, the ebb and flow of our retail sector should be viewed as a sign of vitality rather than instability. Northern Arizona’s entrepreneurial spirit, supportive community, and capacity for innovation will always make a welcoming home for the marketplace industry. As new businesses continue to rise in Northern Arizona, they carry the potential for growth that will pave the way for a thriving future in the region.

Sincerely,

Gail Jackson

President & CEO

Economic Collaborative of Northern Arizona