Business Brief
Austin's indie retailers adapt as South Congress gets pricier
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Illustration: Gabriella Turrisi/Axios
We checked in with Brandon Hodge, owner of toy store Monkey See, Monkey Do and Big Top, a candy shop on South Congress Avenue, about the state of retail in Austin.
Why it matters: In a city that has long promoted local buying, homegrown retailers have to navigate a landscape of higher rents and luxe chain stores, geopolitical issues like tariffs and ongoing competition from online sellers.
Background: Hodge, president of the South Congress Merchants Association, last year moved his toy store from South Congress to the corner of Menchaca and South Lamar.
- Earlier this month he expanded Big Top to Hyde Park, by Duval and 43rd streets.
This conversation has been edited for clarity.
It feels like a lot of retail is moving out into Austin neighborhoods — that's what's happening with your stores.
"One thing that I always complimented Houston for was neighborhood pockets of commerce — I never felt like Austin really had it. ... Austin has that now — you can be successful in neighborhoods across the city."
What's an unexpected key factor facing retailers in 2026?
"Tariffs. A lot of my toy inventory comes out of China. We've had to raise prices but it has cut into our profit margin because we can't mark up as much as the tariffs, so we're leaving money on the table."
Has the spread of metered parking on South Congress helped business, as intended?
"Unequivocally, parking on South Congress is easier and more convenient than it has been in decades, with more turnover in parking spots with an equitable solution that allows employees to park in the neighborhood. But the public perception, however, has not shifted and that has been a huge problem."
How come?
"If there's local abandonment, then we're left with tourism. And now that the Convention Center is gone and SXSW got neutered, out-of-town and tourism dollars have been hindered as well."
So parking perception was a factor in the relocation of your toy shop?
"A huge factor. We have parking spots right in front of the store, and every day, at least a dozen times, we hear from customers, 'Thank God you're not on South Congress anymore.' And we've been beating our single-day sales record."