How Southern Arizona businesses can conquer the summer slump
As tariffs and inflation squeeze wallets, Southern Arizona entrepreneurs can transform seasonal challenges into profitable opportunities with these expert strategies.
University-area restaurants and shops can use creative strategies to thrive during the summer.
Elena Lopez
The heat is rising, the students are leaving, and local businesses are heading into the annual summer slowdown. But all is not lost. Kathleen Kennedy, associate professor in retailing and consumer science in the Norton School of Human Ecology, shares a roadmap for entrepreneurs to turn challenges into opportunities.
Kathleen Kennedy
This year’s slump may be made tougher by budget-conscious buyers, says Kennedy. The Consumer Confidence Index (CCI), which gauges how consumers feel about the current and future health of the economy, and retail industry forecasts indicate that consumers are expected to remain cautious in 2025 and be more conservative with their spending.
“This is due to factors like concerns about inflation, potential recessions, and trade tensions,” Kennedy said. “Right now, seasonal effects may be less important than the effects of the larger economic environment. While consumers may be more cautious about unnecessary spending, many are likely to indulge in occasional splurges or purchases that bring them enjoyment or boost their morale.”
Summer could be the perfect time to capitalize on these mood-boosting purchases by offering limited-time experiences or products that provide escape from both economic worries and scorching temperatures.
How can a business pivot?
First, ride the wave of summer events. Kennedy notes that summer tourism, festivals and events in Southern Arizona are crowd favorites, despite the heat. Owners can leverage them to promote their business with special promotions or programs tied to these events. Businesses can also boost clientele by teaming up for a win-win with other businesses to create special joint promotions.
“Partner with complementary local businesses, not direct competitors, to create joint promotions or ‘summer passport’ programs that encourage customers to visit multiple local businesses for cumulative rewards,” Kennedy advised.
Next, outsmart the sun. Many Arizona locals shop early morning or evening during summer to avoid peak temperatures. Extended hours could help catch shoppers who are trying to beat the heat. If heat is still a deterrent, go digital and offer local pickup. A customer can order online from your website and pick it up curbside without breaking a sweat, suggests Kennedy.
Last, lean into the summer and stock up on cooling products that help customers deal with the intense heat. Certain product categories linked to personal health and wellness are showing double-digit increases in sales according to Kennedy. That means sun protection, fun outdoor recreation items and activewear accessories designed for the heat are all great options.