Rodeo Drive empties as Los Angelenos stop shopping in Beverly Hills

Even Rodeo Drive is feeling the recession.

Calif. shopping mecca Beverly Hills is experiencing a devastating drop in sales and tax revenue, causing stores in the tony town to slash prices, CNN reported.

The city's tax revenues will drop by more than $24 million in the next 16 months -- the single biggest blow to the Beverly Hills budget in its nearly century-long history, Beverly Hills officials said.

Local businesses have had to institute dramatic sales to stay afloat, according to CNN.

Boutique owner Parvin Yonani said she's slashed price tags by about 85 percent, selling an $1,800 pair of shoes for a meager $245.

Financial  woes in the wealthy 90210 zip code show that the recession has hurt virtually all economic classes, University of California-Los Angeles economist Jerry Nicklesburg said.

"The collapse in consumption was widespread and based on a fear -- uncertainty -- about the future," he said.

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