On Jan. 24, the Ralph Lauren Rugby shop in University Village closed its doors. The next day, a small dog-accessory boutique in U. Village, Buster and Sullivan, shut its doors as well.

And Kabob Express, located on the 4500 block of University Way — more commonly known as the Ave — also recently shut its doors.

After a dismal holiday season and an economy that continues to contract, some businesses are finding themselves in trouble.

According to the National Retail Federation, sales are expected to continue to drop an additional 0.5 percent this year. The spending that was expected during the holiday season was already lower than it had been in the past, but the actual amount retailers brought in during the 2008 holiday season was the lowest it had been in the last 40 years.

“This is a challenge for everyone right now,” said Teresa Lord-Hugel, executive director of the University District Chamber of Commerce. “It has affected all of [the Ave’s] retail core.”

The pinch of the economy is apparent. “Sale” signs adorn almost every storefront — some offering up to 70 percent off — in both U. Village and on the Ave. Even the restaurants can feel the pinch of the economy, Lord-Hugel said.

The number of customers is not the problem, said Jessica Spezli, manager of 5 Doors Up, an independent shoe store on the Ave. She has been at the store for two-and-a-half years and said they have noticed the economic strain.

“People come in, they just don’t want to spend money right now,” she added.

Lord-Hugel said she doesn’t worry as much about the more established businesses on the Ave, but she fears for some of the newer establishments.

Kabob Express had not been on the Ave for five years before it closed its doors. Though it was the only closure to date the Chamber of Commerce is aware of, the future is not certain.

“I fear every day about what the fallout of this economy will be,” said Lord-Hugel. “But you don’t know when something is going to happen until it happens.”

Buster and Sullivan moved to an online store so it could continue selling products without the high-rent strain of operating out of University Village.

“The rent is really high,” said manager Stephanie Housam. “And people aren’t spending money on anything that is not a necessity.”

Because the Ave has generally been an affordable place to shop, it tends to be more appealing to customers in tough economic times.

“I definitely think that we focus on price points,” Spezli said.

She added that because of the student population, they have always tried to keep prices low, but with the economy, these prices might appeal to a larger consumer base.

“We try to look at [the sales] in different ways to keep things fresh,” Spezli said. “Just try to keep people coming in.”

Reach reporter Celia Hunko at

news@dailyuw.com.