Photograph by Jacquelyn Ramseyer
Richie Ma, 2, shops with his mom, Justine, at Wild Oats Market, soon to be Piccadilly Circus, at Westmoor Village in Sunnyvale. The market has seen a slight increase in traffic since the closure of Albertson's across the street. Ma said that she used to shop at the Albertson's in Mountain View until that one closed, too.
Troubled Spots
Sunnyvale shopping complexes hit hard times, face closings
By Jana Seshadri
The economic slump has caused many small companies to close their doors, and many shopping centers, such as De Anza Square and Westmoor Village, at the intersection of Mary and Fremont avenues in Sunnyvale, are losing their share of businesses.
"Everything has changed," says Cathleen Ponce, who has worked at the beauty salon business in De Anza Square for more than eight years and has owned it for the last two.
When the dot-com industry collapsed in 2000, it took the economy down with it to a certain extent and things have not been the same since. Businesses across the country have laid off thousands of employees and Sunnyvale's high-tech companies are still downsizing as well.
Several employees working at the failed dot-coms in the De Anza Square area used to shop at the businesses at the two complexes regularly, according to Ponce.
"But now they've gone and so have the businesses," she said.
"A lot of consolidation has taken place," said Karen Davis, manager of economic development for the city of Sunnyvale. "Businesses have been tightening up since last year since the situation is directly related to the economy."
"It's getting very hard," said Ray Pole, a consultant, who has been helping out at Pine Press for the past three years. With a monthly rent of $5,500, Pole said it's getting very difficult to make ends meet and keep the business afloat. With technology evolving the way it is, small businesses have to be alert enough to stay one step ahead of the game all the time, he said.
"Small shopkeepers are feeling the pressure," Pole said.
But it's not just the small stores feeling the pinch. The Albertson's in the complex closed down on Jan. 31 and several of its employees were moved to the newly renovated store at the intersection of Remington Drive and El Camino Real. The space at the complex which has housed a grocery store since January 1968, now remains empty. With a year's lease remaining, Ponce said there's a rumor around the area that Albertson's could decide to use the space as a warehouse.
According to Davis, the property that the store sits on now is currently zoned as "retail," which means that the owner of the complex can sublet the store to any retail or commercial business. It could be a grocery store again or any other retail store or services company that would cater to that neighborhood, she said. The city does not interfere with the property owner's final decision, as long as the guidelines are met, she said.
"A year ago, businesses would just snatch up an opportunity like this," Davis said. "But now, it really depends on the economy--on the market."
During the dot-com boom, there was a strong rumor that much of De Anza Square was to be turned into an office complex, Pole said.
"That idea is ridiculous now, since there is so much office space available across the street," he said.
"The city only gets involved when it is a redevelopment area," Davis said.
Photograph by Jacqueline Ramseyer
Produce clerk Christopher Williams says he has seen a 'little more traffic' at the Wild Oats Market, soon to be Piccadilly Circus, since the closure of Albertson's, kitty-corner from the market.
The organic and natural food store, Wild Oats, with a location in Westmoor Village, has closed. The owners of Henry's Market, from Southern California, have bought the four Northern California Wild Oats stores and will rename them Piccadilly Circus, while Wild Oats bought the Henry's Market stores, according to store director Kevin Mortenson.
"I think this will be really good for them," he said.
Mortenson added that since Henry's market is more produce driven, it is likely that Piccadilly Circus would be completely remodeled to offer a larger produce section. According to Mortenson, the former owners of Wild Oats were unable to accomplish what they wanted with the food store chain.
Tough economic times have not only challenged several businesses but the employees as well. Mortenson, who commuted to work from Stockton every day because he said he could not afford to live in the Bay Area, has quit his job with the market and is moving back to Southern California.
Other stores like Baker Art, Antelope Travel and Le Croissant have closed down, making room for a dance studio and a pet needs store ready to try their hand at business.
"Basically, you have to want to be in business badly enough to make it through the tough times," said Gloria Ravetto, owner of Gloria's Fine Fashions in De Anza Square. Ravetto said she and her sister jointly owned Lu Garre, a fashion store a few doors down from her present store, which they closed last year after 21 years in business. After her sister retired, Ravetto said she opened her own store further away from where Lu Garre was located and signed a five-year lease.
"We are survivors and are happy to be here," Ravetto said.
The stores adjacent to Albertson's are mostly on a month-to-month lease while those further away have signed a longer lease, Ponce said. With her five-year lease expiring in 2003, Ponce said she was shocked when the owner of De Anza Square, De Anza Properties, doubled her rent for the beauty shop last year.
"It really hurt me," she said, adding that she still has financial commitments from buying the shop two years ago.
John Vidowich, of De Anza Properties, could not be reached for comment.
However, Ponce said she is ready to face the challenges and is thinking of sticking it out.
"We've been through two recessions already," Ravetto said. "I think the businesses that go through tough times come out stronger."
Sunnyvale, California Since 1994
