The ups of a down economy

By Ethan Forman
Staff writer

August 07, 2008 01:14 am

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Gas prices have hit $4 a gallon, the housing market is down, and the stock market is in a tizzy, but business isn't bad for everyone. Some are finding a slow economy actually helps business.

Bike shops

The owners of Salem Cycle and Marblehead Cycle say they are seeing an uptick in business from people looking to jump into the saddle rather than be saddled with large fuel bills.

"We have been selling commuter bikes like crazy, we can't keep them in stock," said Dan Shuman, owner of Salem Cycle on Washington Street.

"What I see is more people riding bikes," said Marblehead Cycle owner Chris Finn, who said the trend may be leveling out as more people get used to the high gas prices. Finn is slightly busier, while Shuman, who has been in business about 20 years, said, "Business has been insane. It has been my best year yet."

May and June were a "slam for the whole bike industry," Finn said.

Finn said service has been fueling his business, and both said there's a focus on commuter bikes, upright, hybrid bikes made to ride to work, not on the Tour de France. Both shops are seeing racks, panniers, locks and helmets fly off the shelves.

Liquor stores

It is a misconception to think people are drowning their sorrows amid high gas prices, said Steven Katzen, general manager of Kappy's Fine Wine and Spirits on Route 114 in Peabody, across from the Northshore Mall.

"My feeling is, that's not the case," said Katzen, who lives in Marblehead. "Liquor stores do better because people are eating out less, because people stay home more. And when people stay home, they entertain. ... It's not because they have to drown their sorrows." Package stores hold their own when times are tough, and Katzen said business has been steady. He is noticing his customers are making fewer trips, but buying more booze when they do. "They are becoming more bargain-conscious," Katzen said.

Inns

John Maroney, the proprietor, plumber and maid of The Marblehead Summer House, said his inn in the 1757 Capt. Samuel Glover House is getting more business from people who do not want to stray too far from home.

"This is just our second year, but it's pretty apparent we are getting a lot more business from New York City, Boston and Connecticut."

He has hosted three local wedding parties at the four-bedroom inn and has another on the way. Local hits to his Web site have increased.

Maroney opened his Front Street business last year with one room and drew 25 people. This year, so far, he has had 30 guests for rooms that cost anywhere from $99 a night for a weeklong stay, to $312 a night for a two-night minimum in the top-floor master suite.

The inn's backyard backs up to Crocker Park, and Maroney noticed more people jamming the park this year for the fireworks on the Fourth of July.

"We had more people here for the Fourth than anyone can remember. That's what we attribute it to, people staying local," Maroney said.

"I think this area is undiscovered by locals," said Julie McConchie, executive director of the North of Boston Convention and Visitors Bureau. "We have such great product, and the good news is you can do so much in the area and you can go local."

McConchie said the flip side to locals staying local are international travelers checking out the North Shore.

Many are heading to the United States to shop because of the weak dollar, and they are helping to fill rooms and museums midweek when locals are busy at work. People from the United Kingdom like coming to Boston because it's close for them, and even if they stay in Boston, Salem and points north are not that far away.

Coffee shops

Family-owned Ziggy's Donuts in Salem has been a staple for doughnuts and pastries on the corner of Essex and Webb streets for 44 years, said Patricia Rutkowski, 46, who works behind the small counter, in front of a wooden display case filled with doughnuts. Her late father, Ziggy, started the business; her husband, Henry, works the counter; and her brother, John Akatyszewski, hand-cuts the tasty treats everyday. Her mother, Alice Terry, 75, also works behind the counter.

"It's like my father said," Patricia Rutkowski said, "'People always have money for a coffee and a doughnut.'"

The shop faces competition from the big chains, but the business has been able to pick up some new customers of late.

"We are doing good," she said. "We do notice a lot of new faces, and I got a couple of phone calls last week asking how to get here."

Rutkowski said people stop by for many reasons.

"They want to come to a mom-and-pop place," she said, "and they want to support local business."

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