I recently returned from a 12-day California visit. While there, I noticed a few troubling signs of economic weakness in places one might expect to be prosperous. Be aware that I'm committing journalism here: nothing statistical.
Palm Desert's El Paseo, an upscale shopping street that includes a small, open-air mall lost at least two art galleries since I was last there a year ago. At least one of them was a branch of a Carmel-by-the-Sea gallery that remains open. Another gallery moved to the sunnier, hotter, and probably less-expensive side of the street.
I also noticed that more shops were closed compared to last year. A corner site once occupied by Coldwater Creek has remained closed for several years.
However, the somewhat funky South Palm Canyon Drive up in Palm Springs seemed to be doing just fine.
The situation was worse along Santa Barbara's State Street. A vibrant shopping zone a dozen years ago, it began its decline with the Great Recession and conditions steadily worsened since. Last year there were many unoccupied store sites, and this year there were noticeably more vacancies, even in the Paseo Nuevo shopping mall.
The one bright upscale spot I visited was Carmel-by-the-Sea's main drag, Ocean Avenue.
Given California's political leadership, I doubt that matters will improve.
A lot of retail location closings are internet sales related. On the other hand retail locations in NYC continue to have their rents spiral out of control, meaning non-luxury item boutiques and chain stores and expensive restaurants predominate more and more.
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