PRESS RELEASE: November 17, 2011
Dr. Robert Carreira
Director, Center for Economic Research
Cochise College
901 N. Colombo Ave.
Sierra Vista, AZ 85635
Phone: 520-515-5486
Email: cer@cochise.edu
Countywide sales continue to struggle
In August, Cochise County’s restaurant and bar sales were up slightly, while accommodation and retail sales were down, compared to August last year. Countywide restaurant and bar sales were up 0.3 percent in August. In the first 8 months of this year, however, sales were down 0.1 percent. Despite the overall decline, sales have been up in 9 of the most recent 12 months.
Countywide retail sales in August were down 0.7 percent after the inflation adjustment. In the first 8 months of the year, retail sales countywide were down 0.6 percent compared to the same period last year. Retail sales have alternated between positive and negative monthly growth, with sales up in 6 and down in 6 of the past 12 months.
Cochise County’s accommodation industry saw a 33.7 percent decrease in sales in August compared to August a year ago. Accommodation sales include hotel, motel, RV Park, and other temporary lodging stays of less than 30 days. The decline is largely attributable to the scheduling of the Empire Challenge military exercise in June of this year, moved from July and August last year. As a result, the spike in accommodation that came in July and August last year was seen in June this year, leading to lower levels of sales in July and August.
Countywide accommodation sales were down 12 percent in the 8 months from January through August, compared to the same period last year. Sales have been down in 9 of the past 11 months, following 8 consecutive months of growth.
At the city level, restaurant and bar receipts in Benson were down 8 percent in August. From January through August, sales were down 10.3 percent compared to the same period last year. Sales have been down in 13 of the most recent 14 months.
Benson’s accommodation receipts in August were down 34.5 percent. In the first 8 months of 2011, sales were down 5.8 percent. Sales have been down in 8 of the most recent 10 months.
Retail sales data are not available for Benson. Retail sales tax revenue for sales occurring in August, however, was down 9.4 percent (unadjusted) when compared to August a year ago. In the first 8 months of the year, retail sales tax revenue was down 8.1 percent (unadjusted) compared to the first 8 months of 2010.
Retail sales in Bisbee were up 19.1 percent in August compared to August 2010. In the first 8 months of the year, sales were up 11.3 percent. Sales have been up in 8 of the most recent 11 months, largely due to the opening of the new ACE Hardware store late last year.
Bisbee’s restaurant and bar sales were down 25.2 percent in August. From January through August, sales were down 6.1 percent compared to the same period of 2010. Sales have been down in 8 of the past 13 months.
Bisbee’s accommodation receipts were down 11.7 percent in August. In the first 8 months of the year, sales were down 13.7 percent. Sales have been down in 12 of the past 14 months.
In Douglas, restaurant and bar sales were up 10.2 percent in August. In the first 8 months of the year, sales were up 14.2 percent. Sales have been up in 9 of the most recent 14 months. The strong performance is likely attributable, in large part, to the deployment of National Guard troops to the area to assist in border security, along with an increased Border Patrol presence. Another factor might be increased tax enforcement and compliance as the city took over its own sales tax collection late last year.
Retail and accommodation sales data are not available for Douglas. Retail sales tax revenue for sales occurring in August, however, was up 6.3 percent (unadjusted) compared to August a year ago. In the first 8 months of the year, retail sales tax revenue was up 7.7 percent (unadjusted) compared to the first 8 months of 2010.
In Huachuca City, retail sales were up 4.2 percent in August, compared to August a year ago. In the first 8 months of the year, sales were up 0.3 percent. Sales have been up in 3 of the past 6 months. Accommodation and restaurant and bar sales data are not available for Huachuca City.
In Sierra Vista, retail sales were down 5.2 percent in August, compared to August 2010. In the first 8 months of 2011, sales were down 4.5 percent compared to the same period of 2010. Sales have been down in 10 of the past 13 months.
Sierra Vista’s restaurant and bar sales were down 9 percent in August. In the first 8 months of the year, sales were up 3.6 percent. The city’s restaurant and bar sales have been up in 4 of the past 7 months, likely due to the opening of new restaurants in the city, including Olive Garden, Chipotle Mexican Grille, and Panda Express.
Sierra Vista’s accommodation sales were down 21.5 percent in August, due largely to the scheduling of the Empire Challenge military exercise earlier in the year. In the first 8 months of 2011, sales were down 6.3 compared to the same period of last year. Sales have been down in 5 of the most recent 7 months.
In Tombstone, retail sales were down 8.2 percent in August. From January through August, sales were up 0.6 percent. Despite the overall increase, sales have been down in 7 of the past 12 months.
Tombstone’s restaurant and bar sales were down 42.4 percent in August. In the first 8 months of the year, sales were down 17.6 percent. Sales have been down in 4 of the past 5 months.
Accommodation receipts in Tombstone were up 19.9 percent in August. In the first 8 months of this year, however, sales were down 8.3 percent compared to the same period last year. Sales have been down in 11 of the most recent 15 months.
In Willcox, restaurant and bar sales were down 28.5 percent in August. In the first 8 months of 2011, sales were down 11.9 percent compared to the same period last year.
Accommodation receipts in Willcox were down 17.7 percent in August. From January through August, however, sales were up 12.2 percent.
Retail sales data are not available for Willcox. Unadjusted retail sales tax revenue, however, was up 17.3 percent for sales occurring in August. In the first 8 months of the year, retail sales tax revenue was up 20.3 percent (unadjusted) compared to the first 8 months of 2010.
Dr. Robert Carreira is director of the Center for Economic Research at Cochise College. If you have any questions on the economy, please contact the CER at (520) 515-5486 or by email at cer@cochise.edu. Check out the CER’s website at www.cochise.edu/cer.
COCHISE COUNTY SALES | ||||||||
August 2011 | August 2010 | % Change | Inflation-adjusted Growth* | YTD 2011 | YTD 2010 | Annual % Change | Annual Inflation-adjusted Growth* | |
Cochise County | ||||||||
Retail | $57,148,389 | $55,458,841 | 3.0% | -0.7% | $485,136,796 | $473,573,418 | 2.4% | -0.6% |
Restaurant & Bar | $10,371,294 | $9,965,769 | 4.1% | 0.3% | $91,535,775 | $88,969,890 | 2.9% | -0.1% |
Accommodation | $2,810,713 | $4,009,332 | -29.9% | -33.7% | $28,889,383 | $31,732,005 | -9.0% | -12.0% |
Benson | ||||||||
Restaurant & Bar | $825,920 | $862,200 | -4.2% | -8.0% | $7,654,560 | $8,259,880 | -7.3% | -10.3% |
Accommodation | $181,711 | $262,156 | -30.7% | -34.5% | $3,031,911 | $3,118,156 | -2.8% | -5.8% |
Bisbee | ||||||||
Retail | $2,910,000 | $2,367,600 | 22.9% | 19.1% | $24,256,240 | $21,214,520 | 14.3% | 11.3% |
Restaurant & Bar | $408,920 | $520,680 | -21.5% | -25.2% | $4,816,560 | $4,971,600 | -3.1% | -6.1% |
Accommodation | $100,220 | $108,840 | -7.9% | -11.7% | $1,084,240 | $1,213,920 | -10.7% | -13.7% |
Douglas | ||||||||
Restaurant & Bar | $1,175,071 | $1,030,964 | 14.0% | 10.2% | $9,700,107 | $8,277,357 | 17.2% | 14.2% |
Huachuca City | ||||||||
Retail | $327,000 | $302,800 | 8.0% | 4.2% | $2,705,267 | $2,619,400 | 3.3% | 0.3% |
Sierra Vista | ||||||||
Retail | $36,547,200 | $37,087,371 | -1.5% | -5.2% | $321,386,857 | $326,112,629 | -1.4% | -4.5% |
Restaurant & Bar | $5,595,769 | $5,903,500 | -5.2% | -9.0% | $50,819,000 | $47,672,154 | 6.6% | 3.6% |
Accommodation | $2,085,982 | $2,535,400 | -17.7% | -21.5% | $16,890,000 | $17,459,582 | -3.3% | -6.3% |
Tombstone | ||||||||
Retail | $552,000 | $577,320 | -4.4% | -8.2% | $5,985,680 | $5,774,600 | 3.7% | 0.6% |
Restaurant & Bar | $349,600 | $569,600 | -38.6% | -42.4% | $4,419,640 | $5,177,240 | -14.6% | -17.6% |
Accommodation | $170,894 | $138,218 | 23.6% | 19.9% | $1,556,640 | $1,643,891 | -5.3% | -8.3% |
Willcox | ||||||||
Restaurant & Bar | $405,600 | $538,900 | -24.7% | -28.5% | $4,472,267 | $4,910,767 | -8.9% | -11.9% |
Accommodation | $202,343 | $235,171 | -14.0% | -17.7% | $2,451,229 | $2,126,743 | 15.3% | 12.2% |
YTD = Year to Date * Inflation rate determined by change in the Consumer Price Index. Source: Arizona Department of Revenue and Cochise College Center for Economic Research. Figures shown are estimates, based on transaction privilege tax collections. | ||||||||
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