Downtown Billings saw 22 openings, 10 closures, and four relocations of street-level businesses through 2024 — a semi-typical year, though neutral leaning, according to Downtown Billings Association Development Director Mehmet Casey. Snow and ice cover the streets of Downtown Billings on Friday, Jan. 3. Downtown Billings sees an average of 30 new businesses per year, and closures tend to be under 10, he said. The number of new business openings downtown often ranges from high twenties to mid-thirties. So, in retrospect, 2024 was on the lower end for new businesses, and on the higher end for business closures. DBA received a mixed bag of reviews from downtown business owners throughout 2024. While some reported having record sales, others reported a low retail year. Food and beverage sales tended to be higher than retail for some. Businesses with a robust online presence often reported more success than those without. “Some hit catering really hard; some focused on their online presence to be front-of-mind for people, and some focused on building up the personal story of their establishment, team, or quality of their character,” Casey said. Customers walk into the Sourdough Bagel at opening early Friday morning in Downtown Billings. “On the flip side, we also heard that hiring and retaining talent remains tough, cost of goods is going up, which gives fast food chains an advantage over local. Cost of gas reduced tourism, and being in an election year kept people skeptical in general when it came to spending,” he said. "So, if you factor all of the good and bad across the board, it may be fair to say that it was a flat/neutral year." Similar reasons were given by Lil’ Market Groceries owner Lynisa Hoem, when she and husband Travis decided to throw in the towel in October, after five years in business downtown. Unwilling to raise their prices after their distributor moved to Fargo, post-COVID debt, low inventory and petty theft contributed to their decision to close. Lynisa Hoem talks about the closure of Lil' Market Groceries in downtown Billings on Tuesday. “We wish it was easier for small businesses to get the benefits that large businesses do,” she said. “It was good while it lasted…We really appreciate our loyal customers and getting to meet the people and businesses downtown. We’ll miss that fellowship.” Theirs is added to the list of vacant street-level storefronts DBA is working to fill; fillings ground-level vacancies is a priority for DBA. By mid-December, DBA counted a total of 34 ground-level vacancies within the TIF district, a boundary within the Central Business District downtown. Lil' Market Groceries in downtown Billings is going out of business. “We don't yet track upper floor closures or relocations, but it'll be something we hope to track in the future once we eliminate ground level vacancies, which continues to dwindle as a number,” Casey said. “Some of those vacancies are entire buildings so it’ll take time to recruit suitable tenants in an appropriate timeline. Most everything starts above 2,000 square feet, but demand from business owners is looking for smaller units under 1,000 square feet,” he said. DBA’s efforts to fill vacancies include connecting available downtown properties with inquiring businesses, regular vacancy walking tours with city leadership and downtown stakeholders to discuss the current vacancies and resurrecting the Battle of the Plans Program in 2024, “which included participation from over sixteen different retail businesses interested in opening downtown,” Communication & Outreach Director Lindsay Richardson said. Battle of the Plans — a business plan pitch competition — was a program started in 2016, to attract and retain businesses in downtown Billings. Pete’s Meats and Frae Collective, the two winners of the 2024 Battle of the Plans and plan to debut their downtown retail stores in 2025, and renovate their storefronts next year as well. Frae Everyday Goods owner Tiffany Miller-O'Brien is photographed at her store in West Billings on Tuesday, Dec. 3. DBA is looking forward to multiple projects slated to begin in 2025, which are forecasted to positively impact business downtown, including the conversion of eight more one-way streets to two-way streets, and various construction projects utilizing a few key landmark buildings downtown.
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