State and local retail sales up, should translate to holiday spending
It could be a very green holiday season for area retailers.
Taxable retail sales in the state were up a whopping 10.5 percent during the second quarter of 2006 – that’s the biggest percentage gain in 16 years, according to the Washington Department of Revenue. Figures for the third quarter are not yet available, but should trend up.
This bodes well heading into the holidays, said Eric Hovee, principal of E.D. Hovee & Co., a Vancouver-based economic research and development firm.
"The biggest thing is the economy is doing very well in Clark County," he said. "We’re looking at record low unemployment for the last 10 years, good incomes and good inward migration."
The county is still feeling the effects of reducing sales leakage as a result of new retailers joining the local market, added to increasing unwillingness to hassle with Portland traffic, he said.
The state Employment Security Department echoed the positive outlook.
Several months of positive retail growth and a positive economy puts the state in a good position for the holidays, said Employment Security Department Commissioner Karen Lee.
Sales by Washington businesses reached $27.6 billion during the April through June period, a $2.6 billion increase over the second quarter of 2005. Retail trade rose 9.2 percent to $12.3 billion. Retail trade tracks sales at retail outlets and excludes volatile sectors, such as construction.
Clark County saw a 9.2 percent boost to $1.2 billion while Vancouver was up 9.3 percent $655.2 million. Around the state, sales in Seattle increased 10.9 percent to $3.9 billion, Spokane rose 10.1 percent to $960.4 million and Everett jumped 24.3 percent to $681.3 million.
Local stores limit competition with national retailers
Around town, businesses are looking eagerly to the holiday shopping dash.
Janna Moats, co-owner of the downtown Vancouver clothing and gift boutique Willows, said sales during the holidays have increased steadily each year in its nearly 10 years of operation. She expects this year to be no different.
Sales were a little light in the summer, Moats said, but increased noticeably starting with fall and have been good for the last couple of months.
Over the years, Willows has decreased its holiday merchandise to battle the impact of big box stores.
The store used to carry a wider selection of holiday items, but because Target and Wal-Mart are heavy hitters in that market, Willows shifted its focus to clothing and gifts. The tactic has been overwhelmingly successful, Moats said.
The Employment Security Department last month projected that good economic times and retreating gas prices mean stores will be able to hire more seasonal employees to handle the retail rush this season.
Washington’s retail employment through December is expected to increase by 4.1 percent over the first three quarters of 2006. That equates to an increase of 15,000 retail jobs for the season and an increase of 1.7 percent over last year.
Moats said Willows has hired two temporary employees to assist its three regular employees.
Columbia Crossing picks up speed
At Best Buy, general manager Kevin Rose said the store has seen a huge ramp up of sales within in the last month.
The store opened Sept. 8, and he said sales have picked up in part due to the coming holiday season and in part because the Columbia Crossing shopping center has started filling in. The new East Vancouver shopping center includes Pier 1 Imports, Cost Plus World Market and Kohl’s.
Department of Revenue statistics indicate computer and software sales throughout the state were up 30 percent to $306.7 million. Rose anticipates the influx will carry over to holiday purchases.
The store’s pricing is extremely aggressive and competitive market-wise, and "the advertising we’ve done this year is good at going after the marketplace," he said.
Rose’s forecast is that notebook computers are going to be big, along with LCD and plasma TVs and gaming, a staple of the business. The latter is no surprise with the recent mayhem surrounding the release of the coveted PlayStation3 gaming console.
The store was able to increase its holiday help by 20 to 25 for the season in addition to the 90 to 100 regular associates, Rose said.
Large retailers keep shoppers here
Keith Koplan of Koplan’s Home Furnishings, a longtime downtown Vancouver staple, said he thinks the Department of Revenue figures may be illustrative of the constant flow of new big box stores opening in Clark County.
"As they open and we get more Targets and Wal-Marts, we keep more people shopping in Clark County," he said.
Koplan said the store’s sales are healthy, especially coming off the end of a major storewide sale, but that the 10.5 percent growth figure doesn’t translate to his business.
Koplan added that the holiday season in the furniture business tends to end before the middle of December. Unlike the jewelry or clothing industries, in which fall can make or break the year, furniture sales are spread out, he said.
Koplan will look for slightly up numbers during the holidays, but said the store is working against very good numbers from last fall.
Nationally, holiday sales are expected to increase 5 percent over last year, representing $435 billion. According to the National Retail Federation, one-fifth of retail sales occur during the holiday season, making it the most important time of the year for the industry.
