Closings of local stores tied to market strains created by rising gas costs

A trip through downtown Madison these days paints a disturbing picture for small town retailers. Although some changes occurred over long periods, recent economic blows forced others to close.
Clearance sale signs on the front window of The Flower Box on Murphy Street are a reminder of one longtime local business leaving the area.
“Bud (Cardwell) and Jack (Yarbrough) were looking to retire for two or three years,” said Donnie Joyce, executive director of the Western Rockingham Chamber of Commerce. “They were hoping to sell the business to another florist, but that just didn’t work out.”
Just around the corner on Murphy Street, one of the town’s oldest businesses – Penn Hardware –closed after owner Charles Colley decided he no longer had the time to run the store.
At Murphy and Market, Gingerbread Junction sits empty after only one year of operation. Outside Madison off U.S. 220, the parking lot in front of Craig Pauley Ford sits empty with the company’s sudden closing last week.
“I’m not an economist … , but it seems obvious that we’re going through what’s called a market adjustment right now,” Joyce said. “And I’m pretty sure it’s all related to the price of gas.”
Since all goods and services are directly tied in some manner to fuel costs, Joyce sees a direct relationship to the struggles many retailers are experiencing. When gas rose steadily from less than $2 a gallon to more than $4, people had to start making decisions about budgeting their available finances.
“Not too long ago, we had plenty of people with disposable incomes that created a better market for small retailers,” Joyce said. “Now, people are having to spend so much more of their income, disposable or otherwise, on gasoline. There’s not much left over for things that can’t be classified as necessities.”
Joyce related the issue to calling a plumber to repair something at home.
“The plumber’s hourly rate may not have changed, but almost everything he uses is tied in some way to petroleum products, and that means it has all gone up in price,” he said. “It even cost him almost double to drive to your house than it did a year ago.”
Even major retailers feel the pinch from the current market trend.
“Reports indicate that even the big-box stores have seen their sales fall off in recent months,” Joyce said. “When you see that, as well as banks and mortgage companies, suffering, you know there are some serious problems to overcome with the economy.”
Madison Town Manager Bob Scott remembers when many of the downtown businesses that have closed in the past year opened.
“We were blessed for a lot of years to have one of the most creative and attractive downtowns in the area,” Scott said. “The economic climate made it possible of small business owners to be successful when people were able to spend more on non-essentials.”
Many of the shops that flourished in Madison in recent years were gift and craft shops.
“When it comes down to buying something for the house or putting gas in the car or paying for heating fuel, the retail purchase is always going to lose,” said Joyce.
Joyce and Scott see a brighter future for the downtown area. Joyce remembers other times the economic picture appeared grim.
“We weathered the downturns in the ‘90s and early 2000s, when we suffered so many layoffs and closings,” Joyce said. “We even saw a lot of new businesses open during that time. Now it’s the rising fuel costs that hit us, but we’ll make it through that as well.”
Scott said the empty storefronts in the downtown area could represent opportunities for someone to start his or her own business.
“The town has funds in the budget for a number of facade grants up to $500 to help business owners make renovations or improvements to their building,” Scott said. “It’s not much, but in today’s economy, every little bit helps.”

News Editor Steve Lawson can be reached at or at 548-6047.