Since the economic downturn last year, some local student-oriented businesses are feeling the pinch from tightening student budgets.

Heery’s Clothes Closet, a fashion boutique on College Avenue, has taken a hit from the economy.

“We’ve noticed a drop in sales,” store owner Rusty Heery said in a phone interview Wednesday. “Times are definitely different than they were a year ago.”

Early last year, economic forecasts made by the Georgia State University Economic Forecasting Center placed Athens in a favorable position over the rest of the state. A quarterly outlook attributed Athens’ predicted recession dodge to the University.

But many local businesses haven’t been able to dodge the effects. Heery continues to slash prices with annual clearance sales. And Heery’s isn’t alone in profit losses this season.

John Widmer, co-owner of boutique Encore on Clayton Street, said fewer students are shopping.

“Students have pulled back,” he said. “But we feel that’s only natural as it trickles down from parents tightening their belts.”

The “trickle effect” became evident in December, he said. For stores like Encore, the trend was unprecedented.

“In the past we hadn’t seen that,” Widmer said.

The owner of Jittery Joe’s, a local coffee shop that originated in downtown Athens, attributed product price increases to his stores’ profit losses.

“Net income was down about 40 percent,” Bob Googe said in a phone interview Wednesday. “[The loss] comes from things like drastically higher prices for milk, coffee, mixers and syrups.”

On the other hand, the University’s Bulldog Bucks, a student-targeted debit system, has recorded increases in transactions, said William McGee, Bulldog Bucks manager. Initial setbacks in the economy affected the system for a short period but failed to become a long-term concern, he said by phone Wednesday.

“We did take an initial hit, but by December we had a 19 percent increase in off-campus sales,” McGee said. “We’re continuing to grow in multiple market areas with 118 current locations.”

With discounts and spotlights on merchants, purchases are steady, he said.

Some owners are prepared to see drawbacks.

“We reviewed our orders. I don’t think we’re going to keep up with spring 2008 sales,” Heery said. “We’ve been more cautious with what we order.”