Down times for downtown: Why are Saratoga businesses struggling?

September 25, 2013 — by Sabrina Chen and Samuel Liu
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Downtown is beautiful — why is it failing?

Downtown seems to have all the elements of a successful villa: location, market, cleanliness and high-quality restaurants. So why, then, is downtown failing?

 

Shopkeeper MaryAnn Serpa looks at her watch and sighs. It's been an hour since the last person came into Skin Prophecy, a small store situated a few skips of a stone away from Wildwood Park, and Serpa is worried. 
As she flips through her records, she realizes that only 12 people have entered her shop today, and only three of those 12 have actually bought something. That's slow business — even for a small boutique located in downtown Saratoga.
Serpa is nearing retirement. Born in 1953, Serpa graduated from Saratoga High in 1971, after which she took a variety of jobs working in restaurants and hotels in North Bay. In 2000, she decided to start a business in Saratoga, since she had always wanted to be an active part of her hometown and needed to work closer to home to take care of her aging mother. 
Yet Serpa’s business, which sells cosmetics, accessories, and clothing, has never really flourished, barely managing to stay afloat by relying on repeat customers. 
“[It’s difficult] not having enough foot traffic. It starts to become a Catch 22,” said Serpa on being forced to cut store hours. “I can’t predict when the customers are coming and how to accommodate them with hours.”
Her shop sits in the middle of Saratoga downtown, a small, picturesque street lined with shops and high-class restaurants. Parking spaces are hard to find, and a journey down Big Basin Way leads past Madronia cemetery into scenic Montalvo. 
Sitting right in the middle of a wealthy community, where cash is in no shortage and a market of hundreds of teens lies only a few blocks away, Downtown seems to have all the elements of a successful a villa: location, market, cleanliness and high-quality restaurants. 
Yet for all its inviting atmosphere and clean, quiet demeanor, downtown has struggled to bring in traffic since it was first established 40 years ago. 
So why, then, is downtown failing?
 
A clash of cultures
Residents say that downtown’s problem is not one of quality. Instead, the conflict lies in two opposing cultures: the old-timers who like downtown quiet, and the newer commercial interests. While the restaurants have done well, bringing in wealthy residents who can afford to dine dishes like $99 alligator meat at La Fondue and other such extravaganzas, businesses have failed because the lack of economic diversity fails to generate traffic. 
Irene Breck, who has lived in Saratoga for 17 years, said that she likes the way downtown is right now, though she feels sorry for the struggling businesses. 
“The old-timers want to keep it low-key, and it’s always been like that, but it’s killing the merchants,” Breck said. “I personally like it [the way it is]. [It’s] lovely, smaller, retains character. Hopefully, it will survive.”
The dichotomy between keeping Saratoga “old” and having successful businesses has created conflict. When developers tried to start a Starbucks — a popular coffee chain that would have brought in more traffic while hurting small coffee shops — on Big Basin Way, outraged residents protested against the store. In the end, a compromise allowed Starbucks to be built on the outskirts of downtown, so that downtown wouldn’t be flooded with Starbucks customers.
 
Confined by the wealth around it
A car ride down Highway 9 leads into Los Gatos downtown, which is, compared to Saratoga’s downtown, thriving. Here, two-story buildings and chain restaurants entice students from  Los Gatos High, and many more people go there than just Los Gatos residents. Stores like Powell’s candy shop and the Apple store overflow with customers.
Saratoga mayor Jill Hunter said Los Gatos has gained its popularity because it’s bigger and has allowed big retail stores. 
“[It’s] not that Saratoga doesn’t allow that type of store to come in,” she said. “But [retail stores] generally don’t want to because of our size.”
Saratoga downtown is only a four and a half block area, compared to the 30 blocks in Los Gatos. Because of the high price of land, it can be difficult for Saratoga downtown to expand. Additionally, Hunter said the lack of parking has hurt Saratoga’s chances at luring retail stores, and the lack of options in Saratoga downtown in turn discourages people from parking.
“When people park their cars, they want to go to be able to go to a bunch of different places, not just one or two,” Hunter said. 
Saratoga resident Rishi Kumar has tried before to reinvigorate downtown’s economy. Kumar is the founder and host of Saratoga’s Got Talent, an open-mic event held at Blue Rock Shoot Cafe twice a month.
“With Saratoga’s Got Talent, we bring in families to come out and perform or watch others perform,” Kumar said. “At the same time, it’s an opportunity for families to get out there and do some shopping or dine in downtown.”
But, he said, downtown still cannot consistently attract Saratoga residents, who instead frequent downtown Los Gatos or Cupertino village, despite Saratoga downtown being closer.
“Saratoga downtown, at the end of the day, does not have a wide variety of offerings,” Kumar said. “There are a few excellent restaurants and some really good stores, but they are sort of overlooked, because there is nothing beyond that.” 
Kumar said that beyond the traffic concerns (which can only be fixed with drastic geographical changes to streets), Saratoga needs to focus on smaller tactics in order to draw people into downtown.
“What would be nice is if we could ultimately create a theme for our downtown — say, wine tasting, spa-retreat, or a chocolate candy paradise,” Kumar said.  “That’s how we can differentiate ourselves from Palo Alto or Santana Row. 
Another possibility, Kumar said, is to attract the student population, creating areas to socialize or meet for academic projects.
“If students can decide to hang out, study or eat in downtown, not only are [they] spending money and helping the economy out, but also [they’re] also making downtown a lot more lively,” Kumar said.  “And if a lot of people start doing that, the perception of downtown Saratoga really will change.”
Just this year, a new specialty grocery store aimed at the student demographic has opened. The store, Wildwood Market, is unique in Saratoga in that it sells common products — it isn’t a specialty boutique that shies away from competing with the local Safeway or CVS. 
“There [was] a great need for a real community grocery store to serve the the residents of Saratoga and the folks passing through to other adventures,” said Frank Dutro, the owner of Wildwood Market. Dutro is a longtime resident and a father of two Saratoga High students and hopes to reinvigorate the downtown economy. 
“Wildwood Market is a great first step toward rebuilding the vitality of downtown Saratoga,” he said. “So, no I don't think it will help revive downtown, I KNOW it will help.”
 
The plight of the shopkeeper
The behemoth Safeway sells everything from toilet paper to jelly-filled donuts to specialized greeting cards, and at cheap prices. An individual store cannot easily compete with Safeway, and for many Saratoga businesses the only alternative is selling only a wide variety of merchandise for one niche such as cosmetics or artwork. 
“We have to sell what the customer is looking for,” Serpa said. “Most of my customers are looking for products you can’t just find at any convenience store.”
Yet customers often have such specific requests that even the most ample supplies of a boutique cannot meet, and this business strategy limits store owners, preventing them from selling items that might attract larger crowds and students. 
“You can have an idea of what you want to do, but the public always determines what you’re going to do,” said Sherpa. “I think it’s really important to listen to what the public wants and make changes.”
Serpa added that because rent is so expensive, most shop owners in downtown Saratoga do not hire help. She said that in order to survive in downtown, shop owners must be able to take on a variety of different jobs. 
“You’re going to wash windows, you’re also going to do the ordering and you’re going to vacuum, and you’re going to do whatever needs to be done. There’s always something that needs to be done,” she said.
Sherpa does all the chores for her store — it is a one-woman operation. But for all her work, she isn’t sure what the future of her business holds, though she maintains her optimism. 
“The future of Saratoga always has promise because we really have a lot to offer,” Sherpa said. “The future I’m looking at is my fellow merchants participating and becoming successful together.”
Sherrilyn Ling and Ariel Liu contributed reporting to this story. 
 
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