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Austin shoppers buying less

11:39 AM CDT on Sunday, October 12, 2008

By MARI ALVAREZ
KVUE News

The Texas Comptroller’s office reports Austin’s sales tax revenue has fallen by five-percent in October.  They say construction, retail and restaurants are the first to show signs of a slow down.

Video
KVUE's Mari Alvarez reports
10/10/2008
Local/State Videos
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Some business owners said Friday that they've yet to feel the crunch, but that may soon change with a new trend in "asset management".

At Cothron's Safe and Lock, 8225 Burnet Road, business is in full swing.

“I guess it's better than sticking the money in the mattress as the old saying goes,” said store manager Chris Smith.

As people panic over stock market drops, some are taking their money out of banks -- and spending it on what they think is a "safer" place.

Smith says they've sold double their average number of safes in the past two weeks.

“On the one side it's great for business but on the other side you don't want to think people are panicking that much,” he said.

Not everyone is choosing to stash their cash.  One restaurant in downtown Austin says business is steady. 

At Sana & Co., a clothing store on 2nd Street, special promotions keep people in the shop.

The Lockshins are from Canada and have chosen to spend money on a visit to Austin.

“There should be some good sales I would think all over the place…as they say life goes on, you can't stop living because there's so much fear out there,” said Arnie Lockshin..

Store manager Jessica Bird says they get a lot of tourists...and that their location also keeps sales strong.

“I think local people like to support the local businesses so especially in this time, they want to try and help everyone survive,” said Bird.

Next door at Paciugo Gelato, owner Premal Amin says business has yet to slow...and a cheap sweet may be the way people chose to soften hard economic times.

“You know even with the economic downturn, you know you've got to treat yourself to something and figure this is the least cost item,” said Amin.