Tariffs, rising cost of goods, and economic uncertainty hit hard
The pandemic shutdowns may be five years behind us, but the rising cost of goods, tariffs, theft, and general uncertainty have hit small businesses especially hard. The Alameda Post talked to two independent gift stores on the island—Modern Mouse and Two Marys’ Mercantile—who have been openly struggling this past year. We wanted to find out what factors have affected them and what shoppers can do to help them stay open.
Foot traffic
Driving north on Grand Street towards the water, it’s easy to think that Fortmann Way is closed off due to housing construction. It is in fact open and, for those who make the drive to the end of the street, Two Marys’ Mercantile awaits.
The store, which sells a smartly curated selection of home goods, decor, and clothing, opened in February of this year and is co-owned by Tiffany Southwick and Scott Cordle. Southwick was a stylist for the store Anthropologie and Cordle is also the owner of Mosley’s Cafe, which is located on the same waterfront.
In addition to housing construction that makes it appear as if access to the store is shut off, Southwick and Cordle pointed out that the waterfront walkway in front of Two Marys’ Mercantile has been closed for two months due to repairs. As a result, their foot traffic has plummeted and there are no longer people walking by and coming in to browse. Even regulars who used to frequent Mosley’s Cafe are unsure if the shop is open. “Do you know how many phone calls I get a day at my business? Are you open?” lamented Cordle.
Modern Mouse, located at Alameda South Shore Center, also has experienced reduced foot traffic. The gift store, which sells an array of crafty handmade and local goods, has been open for almost 16 years. The current owner, Matt “Magpie” Ortega, started out as a staff member, got promoted to manager, and then bought the business from then-owner Eleen Hsu in 2017.
“It’s been harder since Beverly’s left,” Ortega said, explaining that customers used to enter the large fabric and crafts retailer from the parking lot and then exit into the mall area where they would shop and browse at other stores. When Beverly’s closed at the end of 2017, foot traffic into the mall was reduced. Later, Kohl’s closed their entrance/exit into the mall to try and reduce theft, which further reduced foot traffic. “Every year there’s been one less way to get into the middle of the mall,” Ortega said.
Tariffs
Even though both Modern Mouse and Two Marys’ Mercantile stock handmade goods that are made locally or in the United States, the tariffs put into place by the Trump administration have negatively affected the stores’ inventories. Many makers’ goods are conceived of and assembled in the U.S., but the parts come from abroad. An artisan who makes enamel pins of their art, for example, may use pins manufactured in China.
On the day that the Alameda Post spoke to Southwick and Cordle at Two Marys’ Mercantile, they had just received a shipment from their top-selling candle brand. As they unpacked the candles, they found out that, due to tariffs, the company could no longer ship the candles in individual boxes. That posed a problem for the small retail store. “Products out of a box don’t stay the way they should,” explained Cordle. “And for a store like this, where it’s gifty, people want the box.”
Southwick pointed to some beautiful bandanas on a shelf and worried about having to increase the price because the company that makes them imports their cotton from India. Ortega also sees the effect of tariffs on makers. “People are having to spend more to get their products out of holding from overseas.”
Artisans who sell their products at Modern Mouse get their art turned into pins and keychains by using foreign companies. “And despite belief around the U.S. and our current administration,” explained Ortega, “there are ethical ways to do that overseas.” Southwick agreed. “India has a sustainable cotton industry.”
As a result of the tariffs, makers are either having to raise prices or in some cases, have ceased making products altogether. “With all the tariffs, makers can’t make,” said Southwick. That means higher prices in the store or a lack of products, both of which have negatively affected sales.
Economic uncertainty
Ortega says that business before the pandemic was “a totally different world. …The economy was definitely better then. And sales were pretty solid. A lot different than they are now.” Modern Mouse was able to stay afloat during the pandemic with a Small Business Administration loan, pivoting to online sales and donations from customers.
Ortega told the Post that in late 2023 through mid-2024, business was finally increasing and “things were looking pretty good.” And then the November 2024 election happened. What was supposed to be their busiest time of year turned out to be a bust. For many retail stores, according to Ortega, the holiday season can make up 75% of a business’s annual sales.
Modern Mouse—and many other businesses—did not have a robust holiday season. Ortega talked to other business owners in Alameda who reported a similar drop in sales. “A lot of folks saw decreased spending during the busiest time of year. …It just feels like everyone is more afraid of spending their money. Like people are scared of what’s going to happen.”
Two Marys’ Mercantile, having opened in February, has not yet experienced a holiday season. And both stores say that rent has not contributed to their uncertain future. Rent has been steady and reasonably priced for them, unlike it was for Bonfare Market and Second Home, both of which have now closed due to untenable rent increases.
The future
Two Marys’ Mercantile and Modern Mouse have been hosting pop-up events in order to bring in more customers and build a sense of community. Two Marys’ Mercantile has been holding workshops for mosaics and charcuterie while Modern Mouse hosted a series of pop-ups featuring their vendors, called Hot Mouse Summer.
Modern Mouse has been able to find volunteers to help staff the store and has used money from a recent GoFundMe to pay for overhead expenses and purchase extra inventory.
Ultimately though, both stores are asking the community to shop small and local at their stores. Southwick would like to remind people, “The next time you need a gift, instead of thinking, oh, let me run through the big box store, consciously say to yourself, ‘Oh, I can go to Two Marys’ or I can go to Modern Mouse.’”
In addition to shopping small and local, Ortega says that spreading the word about their businesses is helpful. Telling people about the store, posting about it on social media, and leaving positive reviews all help boost business.
Ortega feels passionate about Modern Mouse, but pointed out, “The passion isn’t going to keep us going, it’s the monetary aspect.”
Customers can follow Two Marys’ Mercantile at @twomarysmercantile on Instagram and shop online at Modern Mouse at modernmousegifts.com.
Jean Chen is a contributing writer for the Alameda Post. Contact her via [email protected]. Her writing is collected at AlamedaPost.com/Jean-Chen.
