Wrangell shoppers saddled themselves down with appliances, wares and other sundries during the borough’s Tax-free Day on May 2. Twice a year, sales taxes are waived for local businesses in an effort to boost retail purchases.
During the autumn tax holiday, grocers Bob’s IGA and City Market tend to hold their big case lot sales, and Front Street shops often feature special offers and discounts on Tax-free Days.
“Every time we have one it gets bigger,” said Bob Robbins, owner of Bob’s IGA. He said the last three such days have each beaten out the one previous in sales.
“It was a good day,” agreed Jack Pino of Buness Bros. Pino noticed this year most of the purchases at the store were larger items, like household appliances and furniture.
“It went well,” said Bryan Ottesen, manager at Ottesen’s True Value. “It definitely works. We had a lot of traffic on that day.”
Wrangell NAPA Auto Parts owner Roger Olds felt sales were higher in the past when Tax-free Day was held later in May, during the annual King Salmon Derby. However, Olds also noticed business in general seems to be influenced a lot by larger-scale construction projects, and there were fewer taking place this year than in past years.
Weather can have an affect as well, for some businesses. Angerman’s Outdoor owner Jeff Angerman felt business was affected by the mild, wetter winter, since there were fewer opportunities for snowmobilers and other outdoor activities.
Overall, business does not seem on the decline. Angerman’s opened up a new shop, Closeout Corner, on May 2, and the Island Boutique and Beyond is expected to open by the beginning of June. The stores deal in surplus and second-hand goods, respectively, filling a niche left by the closure of Bear Basics in December and the Salvation Army Store in March.
Wrangell Cooperative Association will be opening up a gift shop to sell locally crafted wares at its new carving facility as well. Shelving has already been brought into the space, and the store is slated to open later this summer.
Asked about retail trends, Robbins felt sales have been increasing.
“Over the last couple of years it’s been more of a positive trend than I’ve seen in a long time,” he said.
This trend is mirrored by sales tax figures collected by the city, indicating taxes were up four percent in 2014 over 2013, from $2.48 million to $2.59 million. Taxes for the 2015 fiscal year are projected to continue rising, to $2.67 million.
In its By the Numbers Report for Southeast Conference (SEC) last September, Juneau analysts Rain Coast Data found the region had reached an economic plateau after five years of growth. Falling metal and oil prices and reductions in government spending have contributed to fewer dollars reaching area communities.
While SEC tracks jobs and workforce data, it does not specifically include retail sales in its measure of the region’s economy. To get a better sense of the current business climate, SEC staff are currently conducting survey, continuing from one taken in 2010.
“It’s an overarching view of what business owners feel the business climate is,” explained Shelly Wright, SEC director. “What this tells us is what are the obstacles, what are the benefits of doing business in Southeast Alaska.”
She said SEC is looking for wider involvement, and the survey is open to all residents without targeting any particular sector. Those interested in taking the survey can visit http://www.surveymonkey.com/r/SEbusinessSurvey to weigh in.
SEC will also be wrapping up its five-year economic development plan this year, which will be presented at its Mid-Session Summit next March. The plan will use economic and survey data and joint planning sessions to produce an economic blueprint for the region that looks ahead to 2020.
Reader Comments(0)