The Impact of Big Retailer Closures on Small Businesses

Last Updated on December 31, 2023 by Robert C. Hoopes

Title: Closure of Movie Theater in New Jersey Impacts Nearby Businesses

Word Count: 347

The recent closure of the AMC 24 Hamilton movie theater in New Jersey has sent shockwaves through the local business community, particularly affecting neighboring establishments. One such business, UNO Pizzeria & Grill, located near the theater, recorded a noticeable decrease in sales following the closure.

For many businesses, having popular establishments like movie theaters nearby can bring exposure and foot traffic, which often translates into increased sales. However, the closure of destination businesses can have a detrimental effect on the overall demand and economic activity within the community.

One significant consequence of major closures is job losses and a decrease in tax revenue for local governments. The closure of the AMC theater not only impacted the theater employees themselves but also had a ripple effect on surrounding businesses, leading to potential layoffs and reduced tax income for the local government.

The pandemic has further exacerbated the challenges faced by retailers, prompting them to shut down locations in city centers and shift towards the suburbs. With the rise of remote work, foot traffic in city centers has significantly decreased, making prime locations with high foot traffic less attractive to retailers.

Businesses, especially smaller ones, can benefit greatly from being located near popular big businesses. However, it is crucial to prioritize appearances and maintenance of the entire retail center. Customers are more likely to visit a well-maintained and aesthetically pleasing retail center.

While closures of various businesses have occurred, grocery stores have remained a reliable source of foot traffic. Regardless of economic downturns, people still need to eat. Retail centers anchored by grocery stores tend to be highly profitable for businesses selling products that do not overlap with groceries.

Additionally, the closure of a grocery store within a retail center can have a significant negative impact on neighboring retailers. With the reduction in foot traffic, businesses in the vicinity may face decreased sales and potential economic instability.

In conclusion, the closure of the AMC 24 Hamilton movie theater in New Jersey has had far-reaching consequences for nearby businesses. With the loss of exposure and foot traffic from the theater, retailers are grappling with decreased sales and potential job losses. Furthermore, the ongoing shift of businesses from city centers to suburbs and the significance of grocery stores as foot traffic generators highlight the importance of strategic location and a diverse retail center for sustainable business growth.