EL PASO, Texas (KFOX14/CBS4) — Businesses in downtown El Paso, particularly those on El Paso Street, are grappling with a significant decline in sales this holiday season.
Hector Chavez, owner of El Paso Furniture and Style, reported a nearly 50% decrease in sales compared to December of last year.
Chavez, who opened his downtown location in 2024, has witnessed the economic slowdown’s impact firsthand.
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Tom Fullerton, an economics professor at the University of Texas at El Paso, explained that several factors are contributing to the downturn.
“The loss of Imax maquiladora jobs in Juarez and Chihuahua City has reduced the number of travelers coming north this Christmas season,” Fullerton said.
He also noted that rising consumer debt and uncertainty in the U.S. economy, exacerbated by the government shutdown and ongoing healthcare issues, have led to decreased consumer spending.
According to Georgetown University, 22.7% of El Paso County residents relied on Medicaid in 2023.
“A number of consumers are concerned that their health premiums are going to increase substantially,” Fullerton said, adding that this uncertainty is causing consumers to spend less.
Chavez acknowledged that a significant portion of his business comes from Mexican consumers, who may be hesitant to visit due to immigration tensions.
“I would tell them not to be afraid, to come and visit us. We are here to serve, and we respect the laws of this country, but respecting the laws of this country doesn’t mean this country accepts everyone” Chavez said.
Chavez hopes to collaborate with other businesses to propose measures to the city council aimed at revitalizing downtown business.
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