The recent closures of two clothing boutiques on the 100 block of 2nd Avenue N. does not indicate a wider pattern of closures in the area, says the executive director of Saskatoon's downtown business improvement district.

White Dhalia opened its doors for the last time on Saturday, with owners planning to take the business back to its original location at Dutch Growers on the outskirts of Saskatoon.

Tonic, another clothing boutique a few doors down on the same side of the street, also closed recently after many years in the location.

Ten Thousand Villages, Unreal City and El Coyote are among the other businesses that have shut down in the past two years.

"Some of those businesses that have left were national brands, it was part of a national brand decision," said Downtown YXE executive director Brent Penner.

"There's a whole variety of factors that enter into why Tonic decided to do what they're doing.

"Part of it — from my understanding — is it has nothing at all to do with whether that business was doing extremely well."

Penner said that prior to the two closures, the concentration of retail businesses on the block north of 22nd Street was higher than it is on the adjacent block to the south — closer to the heart of downtown.

New businesses moving in

While the two stores on 2nd Avenue have closed, along with the El Coyote bar, at least two of them already have new tenants.

Ming's Kitchen, a Chinese restaurant that has been running in Saskatoon since the '60s, is moving into the former El Coyote location at 120 2nd Avenue.

Logan Tufts is hopeful business will improve but says he has seen a significant change on the 100 block of Second Avenue N. since he opened his business about six years ago. (Alicia Bridges/CBC News) W Bridals will take over the former White Dhalia location on Aug. 28.

White Dhalia owner Nikki Vanduyvendyk said W Bridals' interest in taking over the lease was part of the reason she decided to relocate back to Dutch Growers.

"It's more for us the cost of being downtown, versus the sales — it just doesn't do enough for us," said Vanduyvendyk.

She said "there is a lot of negativity going around" about the block, adding that the cost and inconvenience of downtown parking is a factor in the amount of customers that travel to the area.

But she thinks location is just one factor in some of the closures she has seen over the past few years.

"I see the revolving door where there's maybe some new businesses that have come and haven't built a strong business plan, nor do they have the funds to even succeed from the start," said Vanduyvendyk.

The location for us has been a big success actually. - Blair Therrien, Uno Print Co. owner

Other business owners believe the cost of rent and the proximity to the bus mall are factors in the turnover rate.

Logan Tufts, who owns The Woods Ale House, said he has seen a significant change in the area since he opened the business in 2012.

"I think a lot of the people who signed onto the leases, they were in a different market and economy when they signed onto it and they can't afford to stay in their spaces any longer," he said.

"I think what's going on right now, the rent should be considerably less, it's just everybody signs on for multi-year leases and doesn't take into account whether business is booming or slow."

Tufts believes the location of the bus mall deters people from walking in the area because they feel unsafe if they are approached or asked for change.

Tufts said he will have to close his bar and restaurant if business doesn't improve.

But new hospitality businesses are still moving into the area, including the Mexihco cafe.

Rents too high: New cafe owner

Daniel Godinez with his brother Juan, who together co-own the La Bamba Cafe on Boychuk Drive, opened their new cafe, Mexihco, on Second Avenue at the start of June.

Godinez said the lunchtime crowd keeps the restaurant busy over the noon hour, but the evenings have been slow.

He believes the rent in the area is overpriced for the value it provide to retailers and hospitality businesses.

"Landlords, they own the land, they don't have any interest in renting to small businesses so they're looking for the big franchise that has, a background and a lot of financial support," said Godinez.

"So rent is really, really expensive so small businesses cannot take over a lot of spaces downtown."

New printing company loves location

But the owner of a new custom printing company said the 100 block of 2nd Avenue N. is proving to be a great location for a "destination" business.

Uno Print Co. owner Blair Therrien opened the Saskatoon storefront to expand the business he started in Regina.

"The location for us has been a big success actually, we get more foot traffic than any other print shop, any of our competition would get because of our location, so we're really happy with the decision to do this," he said.