New City Budget Won't Provide for City Store

The Austin City Store hasn't been open for a year yet and has already seen its share of controversy. Besides the charges of nepotism involving the shop, the larger problem the store is having is that it is not making a profit. Perhaps because of the disappointing range of items available for sale? Whatever the reason, current projections show that the shop wouldn't be able to cover its own costs until 2013.

This will definitely be a problem for the store in the next fiscal year, because Brewster McCracken wants the city to stop supporting the shop financially (and most of the council agrees with him). The city council will vote on it next week when they vote on the budget. City Manager Futrell has been made aware of this decision, and plans are being made to lease the space out to a retail store that would perform better on Second Street.

So be prepared to say farewell to the badly-planned Austin City Store; the end is nigh for it.

Photo by loudtiger on flickr

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By Elizabeth S. in News on September 6, 2007 1:45 PM 0 Comments

Comments [rss]

guest

Why have a city store at all? Why not just offer city junk at tourist spots like the Bullock museum and the LBJ library and The Mohawk?

guest

Original poster here. I agree with both points. It's a tourist store primarily, and that location will probably be better when there is more tourist foot traffic. It's been open for a year and the W is just preparing to break ground. It will be 18 months before its dumping visitors onto the street every day and ACL Studios are drawing others.

AMLI will open sooner, but that doesn't help too much as Locals have little reason to go there and the merchandise - as stated by other posters - is hardly compelling. Even if every AMLI resident on the existing block and the new one bought there, they'd still likely only do it once. Only tourists will maintain a business like the City Store.

guest

Um, maybe they don't sell what people want. That place is like an airport store. Half the crap in there is sold in stores across the country with only the name of the town being different.

I bought an overpriced KAB calendar in there... under the CityStore price tag was the KAB price, a full $4 less.

I'll buy my ATX coffee mug and stuffed "longhorn" elsewhere, thanks!

Shawn Shillington

You are right that it is currently out of the way, but when the new AMLI opens and even more so when the new W opens, that will be a very high traffic area. That said, I'm not a big fan of the city store - the merchandise is pretty lame. I think whatever else goes in that space will be fine, especially two or three years from now.

guest

Not the least of its problems is its poor location. Sure it's on the new hot 2nd Street. BUT it's removed from almost all of the other retail by at least a block. The only folks hoofing past it are on their way to Lambert's or Leaf. And it isn't enough of a draw on it's own like a loft furniture store may be.

It would likely have done better on Congress Ave, but in truth it is probably just too soon.

Most likely the Block 21 Complex will have a similar store selling ACL merchandise and other gifts that will perform better because of the branding and the much more robust, tourist traffic.