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A cautionary warning for 2023

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A cautionary warning for 2023

The holidays weren't so jolly for many of our small retailers.
 
That’s according to the Retailers Association of Massachusetts which reports a November and December seasonal dollar increase of 1.2% over holiday sales in 2021. 
 
A typical holiday season increase averages 4%.
 
And this year’s sales increases are tempered further by double-digit inflation along with increased labor, utility, and other operating costs.
 
While prices went up, the average number of retail transactions dropped for many: Half of the respondents to RAM’s annual survey reported the number of transactions declined from the prior year. Another 25% reported flat numbers.
 
The results were better for the entire year of 2022, with an average annual dollar sales increase of 5.4% vs 2021.
 
“Although the overall year was a success for Main Street merchants, the slower holiday season may be a cautionary warning for 2023,” said RAM President Jon Hurst. “Inflation and rising interest rates are affecting consumers and small businesses alike, and keeping balance sheets in positive territory both at home and on Main Street is becoming a challenge.”
 
On the other hand, there was positive news on the inflation front yesterday.
 
Consumer prices rose 6.5% in the 12 months through December. That’s the slowest inflation rate in more than a year, sending a clear signal that the Federal Reserve’s tightening campaign is working, reports Bloomberg.
 
How bad was and is inflation? Explore this inflation tracker.
 
And if inflation is retreating, why doesn’t feel that way? Here's Larry Edelman.
 
And given economic conditions, is this the right time to be raising property taxes?
 
That’s the question that will go before Newton voters in two months when they’ll be asked to approve $15 million in real estate tax increases in the form of three override ballot questions.
 
The overrides would add $290 to the median single-family homeowner starting in July and an additional estimated $183 on top of that, starting in 2030 and continuing for 30 years.
 
But since commercial properties are taxed at a much higher rate, the increases will be proportionally larger for businesses. (Use the override calculator here to see your increase.) 
 
?And while Mayor Fuller has proposed several tax relief programs for residents, there aren't any for our businesses.
 
To learn more about the overrides, the independent, nonprofit and nonpartisan Newton Beacon is planning robust coverage between now and the March 14 vote led by two veteran journalists. 
 
The first Newton Beacon article was published yesterday with more to follow. (Register for email updates there too.) 
 
Let Needham know how you feel about parking
 
Needham is conducting a study to examine parking in Needham Center and Needham Heights. Take both surveys here before it closes on Jan. 19.
 
There will also be an open house on Jan. 26, 6 p.m. at Town Hall to view parking data, share concerns and ideas, and help formulate parking strategies, which may include changes to regulations, pricing, signing, access restrictions, and more.
 
Wellesley board looks to cut business liaison
 
Wellesley’s Select Board is considering ending a 20-plus-year tradition of designating one of its members as its liaison to the business community.
 
Board chair Lise Olney presented the idea to colleagues Tuesday. She suggested the liaison title (presently held by Beth Sullivan Woods) was no longer necessary because businesses have a contact inside Town Hall in the form of assistant executive director Amy Frigulietti, who was hired in 2020 and has led many of the town’s successful economic development efforts.
 
“It’s clear that the role has been useful historically and filled a real gap in our relationship with businesses in the past,” Olney said, adding that having both a town employee and board designee is “confusing” to businesses.
 
But watch the video from the meeting (go to the 2:43 mark) and one might suspect this is more about personalities than positions.  
 
And perhaps the solution isn’t about eliminating roles but better defining them.
 
No vote was taken Tuesday. But three board members (Tom Ulfelder, Colette Aufranc, and Olney) spoke in support of eliminating the liaison. Two (Ann-Mara Lanza and Sullivan Woods) supported the current system.
 
“I don’t have any interest in sending a message to the business community that we don’t value them," said Lanza.
 
Yet based on conversations I had this week with the Wellesley Square Merchants Association and several businesses, "not valued" is exactly how this idea, intentional or not, is being perceived.
 
 
MLK Day in our communities
 
  • Newton's Annual Celebration of Martin Luther King, Jr. takes place Monday, (Jan. 16) from 9:30 a.m. at Newton North High School. Register.
 
 
  • Watertown's Annual MLK Day Unity Breakfast will be held virtually Monday, 10 a.m. Details.
 
 
Newton medical automation company acquired
 
Nonantum-based Hospital IQ, a provider of workflow automation in the medical field has been acquired by a Charlotte-based IA software company LeanTaaS.
 
The acquisition establishes a company valued at more than $1 billion. Hospital IQ has been headquartered at Chapel Bridge Park. 
 
Let's talk travel and tourism
 
What does 2023 look like for the travel and tourism industry? And what resources are available to businesses and cultural destinations in our west suburban communities to attract visitors here?
 
Join me next Thursday (Jan 19) for a conversation with Martha Sheridan, president and CEO of Meet Boston, formerly the Greater Boston Convention and Visitor Bureau. RSVP.
 
More need to knows
 
 
  • Burkes Ale Works, located at the former site of the Local in West Newton has opened. It’s run by one-time homebrewer Brian Burke who previously ran a taproom on the south shore. Tell Brian the Chamber sent you! (Boston Restaurant Talk)
 
  • Galit's Treats Cafe & Bakery in Newton Centre is closing on Jan. 28. "After 6 years of baking and enjoying every minute of it, I've decided to close our shop and spend some more time with my family,” wrote owner Galit Grutman.
 
 
  • Cousins Andy Starr and Matt Starr will assume the roles of CEO and president, respectively at Boston Showcase as the Newton-based food service equipment and supply company establish its fourth generation of family leadership. (FER)
 
  • Arsenal Street in Watertown will undergo significant construction starting later this year and continuing on through the middle of 2024. Stay up to date on the Mount Auburn Street Project by signing up for updates
 
Do you know any outstanding high school seniors?
 
Finally this week: One of my favorite conversations of the year takes place each April when the chamber’s scholarship committee meets to review applications for our annual scholarship program.
 
These kids' stories are always inspiring and a reminder of the very real-world challenges so many young people in our communities face -- stories that are very different from what one might expect to hear in our well-off suburban communities.
  
Our 2022 scholarship recipients were:
 
  • Theresa Cabral (Watertown), attending Merrimack College, majoring in human services and early childhood ed.
  • David Fils-Aime (Wellesley) attending Boston University, majoring in English.
  • Chaerin (Erin) Lee (Needham), attending UConn, majoring in physiology/neurobiology on track to enter the pharmacy program
  • Grace Campbell-Millet (Newton) at UMass -Amherst in the food science program
 
This spring the chamber will be awarding scholarships to four more inspiring high schoolers who either live in and/or who attend school in one of our communities and who plan to attend an accredited college or university in the next academic year. 
 
Full details here. Applications are due March 31.
 
Please help us by sharing this information with outstanding high school seniors in your orbit. 
 
 
That’s your Need to Knows for today -- Blame Someone Else Day -- unless you want to know where cardboard comes from.
 
Enjoy the weekend. Spend locally, okay?
 
 
Greg Reibman (he, him)
President
617.244.1688
 
P.S. This newsletter and our advocacy is only possible because of the financial support from our members. If you find our communications helpful or interesting, please join them today.
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