Sales tax, retail sales show Victoria on an upswing
Retail industry appears to be on upswing
Dianna Carey, of Woodsboro, looks at necklaces at Foster Creek Station. Carey bought her friend a gift certificate after she was told about the store.
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QUARTERLY SALES TAX
2009
April: $1,411,030.83
May: $1,720,191.60
June: $1,357,851.00
Total: $4,489,073.43
2010
April: $1,315,387.03
May: $1,789,786.27
June: $1,430,502.14
Total: $4,535,675.44
Source: Texas comptroller's website
From purses to planters, boots to boats, Victoria boasts a variety of retail shops to cater to Crossroads residents. And it appears those residents are taking advantage of those offerings.
As the national economy works to right itself, Victoria's retail industry has seen an upswing.
The city of Victoria collected $4,535,675.44 in sales tax income during 2010's second quarter, according to the state comptroller's website. That's slightly up from the $4,489,073.43 collected during 2009's second quarter.
Victoria's Foster Creek Station saw a 6 percent increase in May from the same time last year, said Susan Teinert, who co-owns the boutique with Joyce Foster. The big sellers seem to be Yellow Box flip-flops, Brighton jewelry and dresses, she said.
Teinert attributed her increased business to improved consumer confidence.
"They're just able to spend a little bit more on things for themselves," she said, explaining that, year-over-year, sales are about even.
It's difficult to pinpoint exactly what contributes to the local rise, said Joe Harper, director of the University of Houston-Victoria's Small Business Development Center.
Like Teinert, he said it appears there's been a shift in consumer confidence. Whether that shift is here to stay or temporary, however, has yet to be seen.
He urged retailers to work with a plan.
"We're cautioning our clients not to increase inventories a great deal," he said. "Let's take a measured response to this thing."
Merchants should deal with inventories that are currently moving and don't have a long shelf life, Harper said. The longer an item sits on a shelf, the longer it takes for a business to see a return on the investment.
"We're not saying, 'Load up because you think it will sell,'" he said. "We're saying, 'Look at what fits the current cash flow cycle.'"
The crew at Texas Tool & Hardware has remained busy in recent months, but the type of business it's seen has changed, said Keith Redburn, the company's president. Residential construction took a hit last year but commercial construction is alive and well.
Two years ago, a job might garner three or five construction businesses bidding on it, said Redburn, whose company sells doors, hardware and accessories. Now it could be up to 20 companies bidding.
Walk-in business is down, Redburn admitted, explaining people are trying to stretch their dollar further and make due with tools they have at home.
"All in all, we're very busy right now," he said. "We're not making as much money as we'd like to, but we're very busy."
Victoria's numbers follow the national trend, which showed a 6.4 percent retail sales increase during 2010's second quarter, according to a United States Census Bureau news release.
While quarterly numbers were up, May numbers were on the decline nationwide, likely because consumers maintain some uncertainty regarding long-term economic stability, Gary Locke, the United States commerce secretary, said in the release.
"Overall, consumer spending has increased modestly this quarter, and as Americans continue to cut down their debt, financial positions will improve," he said. "That will help spur future economic growth and help put people back to work."
Recent rain has also boosted the local agricultural industry, said Gill Dollins, who owns Victoria Farm and Ranch Supply. The area is coming out of a two-year drought, he said, which hurt everyone in the industry.
Lawn and garden sales are on the rise at Dollins' store, he said, as is horseback riding equipment. Grass is growing in the fields and the calf market looks to be good, he said, explaining he expects good things down the road.
And not only for agriculture.
Oil and gas and other industries are faring better, too, Dollins said, and things are going to get better.
"We've seen better days, but we've seen worse," he said. "It's on the up."
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BigJ, your post said...
"Stop. STop. How can retail sales increase when you have a some people are moving out of the area? "
Since these comments are about a news story, not a blog, would not the comment you made be to whomever reads it?
If not your comment should have been directed to Allison Miles, Susan Teinert, Joe Harper, Keith Redburn, Gary Locke, or Gill Dollins. The writer of the article and persons quoted.
You have often mentioned "code words", you say "a[s] some people are moving out of the area", then claim the source as VicAd.
I remember the "news" item, it questioned why African Americans were moving out of the area and you offered your opinion, mainly having to do with the Jackson County DA ect.
The article said "African Americans" not what you always claim is "code words", like, "some people", that you yourself used.
So my comment, by your very own description of "code words", is accurate. Using the term "some people" is by your own definition, "code words".
July 14, 2010 at 6:18 p.m.Well ................I though so.
July 14, 2010 at 5:33 p.m.Legion357.
Excuse, Jerry. Was I talking to you? Huh? There is no serect that people are moving out. THE VICTORIA ADVOCATE even wrote not one, but TWO, YES TWO Stories about the decrease in poplutation.
July 14, 2010 at 5:24 a.m.These people in don't care about Victoria's future, they only care about their kid's trust funds!
July 13, 2010 at 7:03 p.m.All that the people in power care about is filling their pockets with tax payer money.
Everyone that is in power is in bed with everyone to make a quick buck off your hard work.
July 13, 2010 at 7 p.m.Just give up. All the money is being poured into the downtown sidewalks. Doesn't matter if sales tax go up or down, were so far in debt, there is no way out, and even if there were, there is nothing we can do because were not in the right class.
Victoria is on it's last leg. You better get out now before you are taken to jail for not paying your taxes.
The end is almost here.
July 13, 2010 at 6:49 p.m.Code word detector alert!
"a some people"
July 13, 2010 at 5:22 p.m.Stop. STop. How can retail sales increase when you have a some people are moving out of the area?
July 13, 2010 at 5:05 p.m.Careful Jeff, you don't want to end up on the Mayor's list of "Prophets of Doom" & "Idiots of Destruction."
www.victoriaadvocate.com/weblogs/para...
Oh wait, you may already be on the list:
www.victoriaadvocate.com/weblogs/para...
I don't expect the prevailing attitudes on the council to change. They have a legacy to build.
July 13, 2010 at 4:30 p.m.justataxpayer,
You raise the biggest concern, how is city council going to address the REALITY of the situation or are they only going to listen to the hype.
Last July when Jan-Jul statistics indicated sales tax receipts were down by $292K some on the council said these numbers "were not important" and approved a budget based on a 2% INCREASE in projected sales tax revenues. Now that receipts are down by $1.1million I believe I heard they were projecting only a 1% increase in sales tax revenue. Reality is receipts are down more then 3 times what they were last year but the response is to still project an increase in revenue for the coming year. I know it is too much to ask but it is my hope the administration and the council will be realistic and CUT spending significantly and not go into this budget process with the belief things are improving, they are not.
July 13, 2010 at 10:07 a.m.Does this mean that people are bringing their boots?.........
July 12, 2010 at 9:02 p.m.You can try and prove any statement with statistics and by taking 2nd quarter numbers out of context it appears the trend is changing. In reality it is not. Look at the last 7 months of statistics from the State Comptroller:
Jan-Down $251,000 or 17% below last year
Feb-Down $332,000 or 15% below last year
Mar-Down $257,000 or 18% below last year
Apr-Down $96,000 or 7% below last year
May-Up $70,000 or 4% above last year
Jun-Up $73,000 or 5% above last year
Jul-Down $374,000 or 21% below last year
Sales tax payments to the city are down $1.167 million in the last seven months with 15 of the last 19 months being down and July 2010 being the second largest percentage decrease during the last 19 months. Not all sales tax is driven by retail but a significant portion is. For the 7 months these statistics cover, sales subject to sales tax are DOWN $116,775,307. If retail is up as reported other areas of the economy that generate sales tax have to be down even more. I am happy for those select retailers that are seeing an upswing but their results are by far the exception to the trend.
July 12, 2010 at 5:18 p.m.