Susan Mires/St. Joseph News-Press

David Laderoute, owner of Designs by Gordon, talks about how the economy and changes in the florist industry led to the decision to close his shop. The business was founded in 1968 and will close this month.

Closing the store was a tough decision.

David and Linda Laderoute bought Designs by Gordon with high hopes in 2002. Bringing her expertise in horticulture and his business experience to an established floral shop seemed like a winning combination.

“We spent a lot of time and research, but unfortunately we didn’t have a crystal ball,” Mr. Laderoute said.

What they couldn’t predict were high gasoline prices and the reshaping of American spending habits.

“When gas went over $3 a gallon, it was just like taking the wind out of the sails,” he said. “The closer it got to $4, the worse it got.”

Gas prices have fallen in recent weeks, but it won’t make a difference for Designs by Gordon. The shop in Barcelona Square on the North Belt Highway will close by the end of the month. The store was founded in 1968 and at one time employed 20 people.

“Small business success is a tough row to hoe,” Mr. Laderoute said. “Each time one of us goes out of business, a lot of employees go bye-bye.”

Small businesses employ about half of all workers in the United States, according to the U.S. Small Business Administration, and create about 70 percent of all new jobs.

But tough times are taking a toll.

“The consumer drives this thing. If they’re not feeling good, there is an effect,” said Ted Allison, president and chief executive officer of the St. Joseph Area Chamber of Commerce.

Plenty of things have contributed to a dismal consumer mood. Mr. Allison said he believes the shopping scene is just now recovering from a long, hard winter kicked off by an ice storm and power outage. He also believes a constant flow of news about a slow economy causes shoppers to be more conservative.

Higher costs for fuel and food have caused most people to cut back, Mr. Laderoute said.

“If the necessities cost more, they have less money to spend on other things, including flowers,” he said.

In the last few months, St. Joseph has also witnessed the closing of Jerre Anne’s Cafeteria, Bottoms Up Bar and Grill, and Crosslights Christian book store, among other businesses.

Mr. Allison expects the cautious mood to carry through the election and for the Christmas shopping season to be slow as well. But he also sees plenty of reason to be optimistic.

“We are very fortunate our industrial mix here is very diverse and, in a sense, insulated from what is happening out there,” he said. “Manufacturing is the foundation. If that’s stable, the local economy is intact.”

Mr. Laderoute has a background in economics and said his shop was also affected by changes in the floral industry, such as online ordering. Tax-increment financing incentives have helped pull traffic to new stores at the Shoppes at North Village and the East Hills Shopping Center, he said.

Surrounded by packing boxes and discounted flower vases, Mr. Laderoute said while he is not happy about closing the shop, he’s not entirely discouraged.

“I know I’ll pick myself up, brush myself off and something else will come along. I’ve done it before,” he said.

Susan Mires can be reached

at susanm@npgco.com.