Despite the shaky numbers from the U.S. Department of Commerce, area retailers say the ailing economy has not uniformly impacted business in University City.
The data released Monday by the Department shows a tiny rise of 0.2 percent in consumer spending caused mostly by high fuel and food prices, a small jump after a 0.4 percent decline in February.
Some University City-area merchants, however, protected by a large student population, have seen sales increase, and others report they are not yet sure how the troubled economy will affect their businesses.
Wylie Belasik, manager of the new Philadelphia Runner at 37th and Walnut streets, said that given the newness of the store, he could not say for sure what impact the recession would have.
Still, he said, "All things considered, things have been pretty good."
Other shop owners, too, have seen little negative effect on their businesses.
Hans Rommel, manager for Douglas Parfumerie, a fragrances and cosmetics store near Philadelphia Runner, said he has seen only increases in his store's earnings.
"It's one of our best years," he said, of the store's seven years at Penn.
He said heavy advertising, mailings and promotions, as well as the upscale products and clientele, are reasons for his store's continued profitability.
Still, luxury items elsewhere have taken a sharp hit. Motor vehicle sales saw miniscule growth, while electronics and appliances, clothing and health and personal-care stores all saw drops in spending.
The reason, according to Economics professor Harold Cole, is that consumers stop purchasing "more durable goods" during market contractions than during better conditions.
"Items with a long-term flow of benefits are one of the first things people cut," he said, because they can make do with the products they currently have until the market improves.
The nature of U.S. recessions, in which spending typically only falls 2 or 3 percent, as well as the area stores' potential retail base - Penn students, professors and staff - are other protective barriers for University City stores.
"There are all sorts of idiosyncratic things going on at the establishment level," Cole said.
