What happens to small businesses when big retailers shut down?

Destination retailers able to reliably attract customers, like movie theaters, sports centers and grocery stores, often help smaller businesses in their orbit.

When the AMC 24 Hamilton closed in November 2020, many local New Jersey residents may have collectively sighed or shrugged it off as another foregone casualty of the pandemic economy. But for the neighboring businesses, the theater’s absence was a tough pill to swallow. “We were down 30% or 40% (in sales),” said Jim Danay of Bock Group, which owns UNO Pizzeria & Grill in Hamilton. Danay said the UNO location has bounced back since the AMC 24 Hamilton closed, but sales still lag from when the theater was in business. The restaurant once shared a promotion in which customers could get a discount movie ticket. The case of UNO and AMC 24 Hamilton speaks to a much broader issue involving the relationship between big and small business, the importance of foot traffic for retailers and what matters most for brick-and-mortar businesses. The closing of destination businesses, such as movie theaters or a sporting complex, can have serious consequences beyond near-term sales for the smaller businesses in the area.