The owner of a home decor store in Los Gatos is closing her business after more than 24 years.
Sara Fung, owner of Cotton Works, says she was hoping to celebrate the business’ 25-year anniversary in 2026, but unfortunately, she won’t reach that milestone. She says recent tariffs on all the products she sells from other countries have prompted her to close the store now and retire early.
“With the tariffs, it’s increasingly hard for us for planning and merchandising,” Fung said. “The price is not justified. It is so much, and passing it along to customers does not work for me.”
At Domus Home Goods store up the street, owner Margaret Russell says she sells products from more than 30 different countries.
However, because of the new tariffs, she is now paying 39% more for Swiss knives – and that’s just one of several examples.
“I have goods from India that have a 50% tariff and some products from China with a tariff of 50%, of 35%, we are all paying tariffs,” Russell said.
Russell says she tries to adsorb some of increased costs, but admits she has to pass some of the costs onto customers.
CEO of the Los Gatos Chamber of Commerce Jennifer Lin says not all businesses are struggling because of tariffs. Lin says some, including Time Out Clothing, have adopted new strategies.
“Sometimes it’s bringing in new products, finding different places to source from and ordering creatively and getting orders in, in advance,” Lin said.
However, Fung adds she also dealing with inflation and an overall decrease in customer spending.
“People are cutting back. They have a fear of losing their jobs and they just have fear overall, so they are not spending,” said Fung.
Fung says it was the tariffs that marked a turning point that ultimately led her to close after more than two decades. Fung plans to close her store on Oct. 18.
Source: NBC Bay Area
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