Falling Prices, Five Below Open New Discount Stores
Several discount retail stores are expanding. The Sacramento Business Journal's Sonya Sorich says the Carmichael-based chain Falling Prices is planning its fourth Sacramento area site at Florin Towne Centre.
“It also appears Five Below, a popular discount chain from Philadelphia, is entering the Sacramento area with its first local store,” says Sorich. “The possible location would be in Town & Country Village in Arden-Arcade. Five Below is known for selling items that cost $5 or less."
Retail analysts say the clientele for discount stores has evolved over the years. Discount shopping was previously associated with older shoppers, but Five Below says some of its target customers are ages 8 to 14.
Local Recession Fears Dimming
Stocks around the world remained stuck in the spin cycle yesterday as worries about a possible recession collided with hopes that the strongest part of the U.S. economy — consumer spending — can keep going.
But there’s a new economic forecast out of Sacramento suggesting a recession might not be on the horizon after all. It comes from the Sacramento Business Review made up of local financial analysts and economic experts. Sorich says the group's analysts don't expect a national or global recession this year or next.
"Of course, we know these things can change quickly,” says Sorich. “But this most recent forecast is a change from late last year, when some people believed the national economy was on the cusp of a downturn. The local economy continues to grow, and the unemployment rate remains low."
On the flip side, the report finds that labor shortages are among the challenges the region could see in the future. The Business Review's report also cautions that even though the local economy is growing, job growth is slowing, and business confidence is waning.
Sacramento Approves Rent Control Ordinance
The Sacramento City Council this week adopted the first rent control policy in the city's history, effectively taking the issue off next year's election ballot. But it's unclear whether opponents of the new ordinance will still try to put a referendum before voters. Also, the rent control ordinance has a sunset date at the end of 2024, which means the issue is likely to return.
The ordinance restricts year-over-year rent increases to 6 percent and the rate of inflation annually, or no more than 10 percent overall. Sorich says some opponents of the ordinance argue it's too weak to be effective.
"They say this isn't that different from the annual rent increases the city has already seen in recent years,” says Sorich. “Data from RentCafe, for example, says the average rent this year for apartment properties with more than 50 units in Sacramento is 4.3 percent higher than a year ago."
The ordinance also limits how much annual rents can rise on apartment units built before February 1995. So newly built projects can have expensive rents and stay expensive.