Things are looking up on the retail front these days. Sales in the U.S. were stronger than anticipated in March and local retailers said consumer spending continued the positive trend during April. Meanwhile, local city officials said sales tax revenue is recovering incrementally. “It’s evident consumers were feeling much better about the economy and their finances (in March),” said Rosalind Wells, chief economist for the national retail trade association. March retail sales (which include categories such as autos, gasoline stations and restaurants) increased 1.6 percent seasonally adjusted over February, and 10 percent unadjusted year over year, according to the U.S. Department of Commerce. Clothing and clothing accessory store sales increased 2.3 percent over February; building material, garden equipment and supply sales increased 3.1 percent; and sales of home furnishings increased 1.5 percent. Sporting goods, hobby book and music store sales registered a 1.0 percent increase. “Retail sales are slowly starting to pick up,” said Andree Walper, economic development associate for the City of Santa Clarita, adding Westfield Valencia Town Center experienced a single digit percentage increase in sales during the month of March. The City of Santa Clarita’s sales tax revenue consistently declined during most of 2008 and the first quarter of 2009. Sales tax revenue showed an upward trend in the remaining three quarters of 2009. But numbers were still less than 2008. “March was very strong and we’re seeing an increase in traffic,” said Theone Miller, director of marketing for Westfield Valencia Town Center. “Consumer confidence is stronger.” The Grove in Los Angeles and Americana at Brand in Glendale experienced a 22 percent increase in traffic during March, said Jennifer Gordon of Caruso Affiliated. And retailers at the two shopping centers reported sales increases ranging from 7-33 percent. Some chain stores at the malls outperformed counterparts in the region. Americana at Brand introduced a trolley system that shuttles consumers to the mall from all over the city, which also helped boost traffic, said Gordon. “April is looking really good with traffic being up in the double digits,” she said, though the final numbers are not in yet. “Momentum is definitely building, and people seem to be feeling more positive about the economy and buying.” Center: The Americana at Brand logged a 22 percent increase in traffic in March. Consumer confidence rises The Conference Board Consumer Confidence Index rebounded in March and increased further in April. The Index now stands at 57.9, up from 52.3 in March. The Present Situation Index increased to 28.6 from 25.2. And The Expectations Index improved to 77.4 from 70.4. Jack Kyser, founding economist of the Kyser Center for Economic Research, said there’s evidence retail sales are gaining momentum. But the early Easter could have been a big factor. “What I have noticed is that people are concerned that March sales were strong because of the early Easter,” said Kyser. “The proof will be in the pudding when we see April numbers.” Tax revenues for other cities in the greater San Fernando Valley area are also showing signs of improvement. Overall Q4 2009 sales tax allocations decreased 1.62 percent for Palmdale, compared to Q4 2008. The City of Palmdale’s gross receipts were $3.911 million compared to $3.975 for the same period. On a positive note, Palmdale experienced an increase in sales tax during related to autos and transportation, building and construction, business and industry, and restaurants and hotels, according to City’s monthly status report. The City of Thousand Oaks is also seeing a recovery in its sales tax revenue in some business segments, even though overall numbers are down compared to 2008. Gross receipts for the City were $5.8 million in Q4 2009 compared to $6 million in Q4 2008, representing a 3.6 percent decrease, according to the City’s sales tax update. Autos up However, gross receipts related to autos and transportation were $1.5 million compared to $1.4 million. Receipts from fuel and service stations also increased from $346,587 to $366,125. “The fourth quarter of 2009 declines in sales tax significantly decreased (from prior quarters),” said John Adams, finance director for the City of Thousand Oaks. “And we feel there’s some movement in a positive direction.” The Oaks Shopping Center in Thousand Oaks definitely experienced the uptick in retail sales during the month of March, said Julia Ladd, senior property manager for the regional mall. Retailers reported single digit sales increases and double digit increases in traffic. And consumers are spreading their money across the board, she said, versus the 2009 trend of primarily spending at restaurants, theaters and middle price point retailers. “People are shopping at all price levels and apparel and jewelry sales are strong,” said Ladd. “April is still steady but a little more varied. Some of that might be related to tax season. And we’re expecting a strong May.”
