L.A. Retailers Facing Fallout From Possible SAG Strike
With a possible strike looming after the June 30 expiration of the Screen Actors Guild (SAG) contract, fashion retailers serving Los Angeles’ film-industry neighborhoods have been dreading the strike shockwaves, which could impact their boutiques.
Many of these retailers have complained it has been tough to recover from the Writers Guild of America (WGA) strike, which cost Los Angeles County’s economy more than $2.5 billion before it was resolved in early 2008.
“No one wants to do this again,” said Don Zuidema, owner of LASC, a high-profile West Hollywood, Calif., fashion boutique. Strike-related cutbacks affected everything from people’s personal spending to studios purchasing clothes for their productions. Studio service can range from10 percent to 25 percent of business for some boutiques.
Zuidema said retailers were somewhat cushioned from the worst blows of the WGA strike because the increasing impact ofrising oil prices and sinking real estate markets had not struck the economy yet. A possible SAG strike could have a greater impact because the economy has worsened.
Still, the LASC owner said his ordering and merchandising plans have not changed because of strike fears. “We’re trying to be as aggressive as we can to merchandise and to promote,” Zuidema said.
Danny Marsh, owner of the Studio City, Calif.–based Sy Devore boutique, noticed that some of his entertainment-industry customers have cut down their purchases due to fears of an upcoming strike. Others have not changed their spending habits.
Fred Levine, owner of the chain of more than 21 M.Fredric stores in Los Angeles County, said strike fears have not caused him to change his Fall orders. However, he expects business at his locations in Studio City, Calif., and at The Grove shopping center in Los Angeles to be affected if there is a strike. To meet this possibility head on, M.Fredric has been stocking its stores with light fashions popular in summer.
“Customers are being very careful with their spending, so we are putting them into items that will pay off for them right now—like great summer-print and solid dresses, especially long-length, trendy summer capris and Bermuda shorts and fun summer tees,” Levine said. “These are ’feel-good’ summer dressing that are affordable and soothing when the weather is hot and money is tight.” —Andrew Asch
