According to local sources, 2023 brought challenges in the forms of inflation, rapidly rising interest rates, instability in world affairs and the official end to the COVID-19 pandemic.
But while many businesses are looking ahead to 2024 with a conservative eye, small and steady bounce backs from the COVID-19 pandemic are being seen across various sectors.
Here is a look at what retail, financial and tourism industries are forecasting as each move forward into the new year.
Retail
While 2023 saw the impacts of inflation continue to put caution into consumers’ spending habits, Kennedy Mall Director of Corporate Communications and Marketing Director Joe Bell said the organization has witnesses a marked uptick.
“We actually experienced a really good year coming off of a couple years of disruption with the COVID-19 pandemic,” he said. “Things continue to look much better from a retail standpoint, and in terms of merchandise and sales, we’re getting closer to pre-pandemic levels.”
Kennedy Mall, which houses several outlets, is amidst a redevelopment in its merchant mix, with national retailers such as Books-A-Million taking over the former Younkers location, the opening of the locally owned Makers Market and the forthcoming opening of the national HomeGoods chain.
“We’ve always been very busy looking for new opportunities and talking with potential merchants about what kinds of businesses might be a good fit for Kennedy Mall,” Bell said. “We do have available space. And we are looking at opportunities beyond retail, such as in hospitality and entertainment, to shake things up a bit and to add to the whole experience of going out with friends and family to the mall.”
Challenges
A challenge that inevitably will continue to loom will be the influence of inflation, Bell said — something neither retailers nor consumers can control.
“To a large extent in 2023, consumers had to tighten up their spending habits and use more discretion,” he said. “They became a little more wary in their spending habits, and we anticipate that will continue to be the case into 2024. Consumers want to make sure that what they are purchasing has value. They often are holding off to get the best deals, and retailers often are holding off to put items on sale. So, there is a bit of tension there.”
Opportunities
While inflation might continue to pose a hurdle for consumers and retailers, the good news, Bell said, is that Kennedy Mall finds itself in the middle of a prosperous market area.
“Locally, unemployment is low and wages have come up a bit,” he said. “We are starting to see a bit of resurgence in the form of consumer confidence.
“I think the continued emphasis moving forward is going to be on localized retailing. We believe that’s very important because independent retailers bring a certain flavor to the marketplace. We urge people to stay tuned because there are going to be some exciting changes in 2024 that we think will be quite popular.”
Financial
In addition to inflation, a rapid rise in interest rates throughout the financial industry saw the margin of deposit rates and cost of funds often depleting faster than what loans borrowed could reinforce.
“We definitely felt that squeeze in the banking sector,” said Dupaco Community Credit Union Chief Marketing Officer David Klavitter. “So much of what happens in the year ahead depends on what the feds do to slow those rate increases, or at least maintain them, to keep the pressure off financial institutions and their members.”
Dubuque Bank & Trust President and CEO Andrew Townsend said his financial institution has seen similar impacts from 2023.
“The rate environment going up as rapidly as it did, as well as the margin of deposit in particular and bank failures occurring at the national level early in the year put a lot of concern and strain on the overall financial services industry,” he said. “Deposit gathering and retention became even more critical as people began moving huge chunks of their deposits away. That’s unique to our world today by comparison to the recession in 2008, when people couldn’t move their money away via a mobile app in a moment’s notice.
“It really has prompted us to reinforce to our clients over the course of the year that we are stable. We haven’t seen as much growth as we would like, but stability is better than the alternative.”
Challenges
Klavitter echoed that while the banking industry has continued to feel the effects of the COVID-19 pandemic. With results such as inflation and increased interest rates posing additional challenges, communication between banks and members has been critical.
“Part of our mission to our members is to help them build and improve their financial well-being,” he said. “When stresses like delinquency in home loans occurs or people fall behind as student loan payments restart, obviously it creates additional pressure.”
Townsend said in addition to keeping members in the loop, other challenges on the horizon include economic headwinds, as well as current global conflicts and the presidential election.
“Those likely will have an influence on what happens within the financial industry as well,” he said.
Opportunities
Despite the challenges, Townsend said the local market remains solid.
“There are a lot of projects on the drawing board in some form or fashion that will be very positive for the market,” he said. “One of the key issues we face, not just in Dubuque but across the state, is how do we grow? How do we retain talent? There are many variables. But in terms of activity, I think some projects that are on the table could be a good thing in terms of gaining market share beyond Dubuque.”
Klavitter also believes financial institutions, such as community credit unions, can continue to play a pivotal role, whether through the creation of self-serve and mobile banking options that make financial advisors more readily available to assist members or through financial literacy, education and programming.
“I think our biggest opportunity is re-engagement, delivering value in the services we are able to provide and in the number of ways we can serve members in the current marketplace of financial institutions,” he said. “I think what COVID-19 did was to create more awareness around the idea of health and wellness. There is a direct correlation to that and our financial well-being. They go hand-in-hand.
“As people are setting their goals in the new year, they should think about where they envision themselves. Talk about your goals with a financial planner and talk about what ways you can improve your financial well-being through paying your bills on time, having an emergency savings, maintaining a good credit score, having a good debt-to-income ratio and having a robust financial plan. All of that can be broken down into little bites, rather than eating one big elephant.”
Tourism
While travel was among the industries that dealt with one of the greatest disruptions during the COVID-19 pandemic, it’s also an area that has enjoyed a healthy rebound.
“We’ve had a big year,” said Keith Rahe, president and CEO of Travel Dubuque. “It has been absolutely amazing to see the continued growth, be that from hotel/motel and lodging packages to restaurants and the gaming industry and everything else we use to gauge the vibrancy of the area. Dubuque County, and the tri-state area as a whole, has grown and thrived tremendously well, particularly as we become further distanced from the pandemic.”
While the area didn’t experience quite the same impact as it did in 2021 and 2022 with a Major League Baseball game at Field of Dreams in Dyersville, Iowa, river boat excursion traffic continued to draw business to the area.
“Those bring a lot of people here from all over who get to experience our area,” Rahe said. “That type of exposure really helps.”
Challenges
An obstacle the travel industry faces as it moves into 2024 is one that regularly remains.
“I think a challenge is always in finding new ways to reinvent ourselves,” Rahe said. “We want to provide something unique for the people who have never been here before and something new for the people who are coming back.”
Conferences and meetings are an area that have been slower to rebound since the COVID-19 pandemic, with the emergence of virtual meetings. However, Rahe said that also could continue to evolve.
“It’s an area that is coming back, but slowly,” he said. “Those larger conferences and corporate gatherings also bring business into the community, and we do have some exciting things on the books.”
Opportunities
A perk in the new year for local tourism is continuing to find avenues to appeal to a broader base of those traveling to the tri-states, be it for work or for pleasure.
“People who are coming to the area from Chicago, Milwaukee, Des Moines can find a very budget friendly area that offers a lot of different experiences that they can be enthused about,” Rahe said. “And with the continued evolution happening in Dyersville with Field of Dreams, the growth potential is significant.”
Development, too, with community partners will be key to growth.
“Partners like the National Mississippi River Museum & Aquarium do an amazing job with their displays and exhibits. I’m also incredibly excited to see what is evolving with Chaplain Schmitt Island. That’s another step up for the area to continue to evolve, not only Dubuque County but in the surrounding communities, as a destination.”
Megan Gloss writes for the Telegraph Herald.