Now that the Phinney Market at 5918 Phinney Ave. N. will close at the end of the month, the store is marking down everyting in its inventory. Clearance items are marked up to 50 percent off, and they’re giving an additional 15 percent off everything except deli, bakery and bar.
The Phinney Market told us and its customers on Tuesday that it would not be renewing its lease in light of high overhead and low volume.
The owners tell us that KING 5 will be at the store today, producing a story on how the economy has factored into their decision to close.
Update: I asked the owners to clarify questions about their high overhead. Here’s what they said:
Our lease was up in December, with an option to renew for the next 5. There was a yearly increase in the rent over the next 5 years, in the option. We felt that the rent as it stands is too high, for the volume we do, and based on the economic conditions. SO, We did ask our landlord to work with us with a rent reduction. (We are paying the same as when the economy was at its best) – He wouldn’t budge…
But, rent is only part of it. Our business model is very labor intensive, because we chose to be unique with our sandwhiches, baked goods, etc. Our projections were optimistic. Our volume needed to be higher. Merchant services (credit card fees) are exhorbitant, though there is finally legislation to limit the banks “profits” and it may trickle down to small businesses late this summer…
Large vendors have volume discounts for large stores. It’s impossible to compete on price with those large stores.
The economy dictates spending habits. We opened at the worst economic time possible, and I think we just ran out of time.