Business closures in downtown Durham spark concern, but city leaders point to what's next

DURHAM, N.C. (WTVD) -- Recent business closures in downtown Durham have raised questions about the area's economic health, but local leaders say new investments and upcoming openings point to continued growth.

Downtown Durham Inc. CEO Nicole Thompson said downtown is not in decline, but in a period of transition as business owners navigate rising costs and economic uncertainty.

"I don't see us struggling," Thompson said. "I see us at this moment in time where we get a chance to really decide what the next 25 years look like."

Thompson said factors including inflation, tariffs, market uncertainty and higher gas prices are affecting both consumers and business owners.

"I think inflation. I think tariffs. I think the uncertainty of the market. I think gas prices," she said.

Four downtown businesses recently announced plans to close. At the same time, Thompson said several others are temporarily closing as part of rebranding efforts.

She said 10 new businesses are expected to open in the coming months, including restaurants, bars and retail shops.

"The great thing is that as downtown is evolving, we have more coming in," Thompson said. "It's not that everything is closing and we don't have anything in the pipeline."

One of those newcomers is Boomerang, a classical Pilates studio opening downtown.

"This is where we do our privates, duets and trios," owner Emilie Young said while showing off the studio's space.

Young said downtown Durham stood out because she saw an opportunity to fill a need in the community.

"It felt like something that was missing in my perfect downtown world," she said.

Boomerang's grand opening is scheduled for Saturday, and Young said memberships are already being sold.

"We want to create a welcoming atmosphere that everyone can feel welcome in and truly feel like Pilates is for them," she said.

Yemi Olufolabi and his wife, Lola, made a similar investment in downtown Durham two decades ago when they opened Exotique Boutique and Gallery.

"At that time it was quite difficult because there wasn't much foot traffic, but we persisted," Olufolabi said. "Gradually, there was just an explosion."

After watching downtown evolve over the years, Olufolabi said businesses that succeed are often the ones willing to adapt to changing customer needs.

"You have to really look at the feedback of the people coming in and see how they're responding to what you have to offer and be willing to make changes," he said.

While some businesses are closing or reinventing themselves, Thompson said the continued arrival of new ventures shows confidence in downtown Durham's future and reflects a business district that is still evolving.

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