Taxable retail sales nosedive in county

By Rolf Boone | The Olympian • Published April 11, 2009

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Year-over-year taxable retail sales in Thurston County fell more than 10 percent in the fourth quarter of 2008, shattering the record for the largest-ever drop, new state Department of Revenue data show.

By the numbers

In the fourth quarter of 2008, year-over-year taxable retail sales:

Thurston County: Fell 10.63 percent to $984.1 million from $1.10 billion

Olympia: Fell 12.96 percent to $423.6 million from $486.7 million

Lacey: Fell 13.53 percent to $261.1 million from $301.9 million

Tumwater: Fell 12.61 percent to $101.7 million from $116.4 million

Yelm: Fell 0.28 percent to $41.7 million from $41.8 million

The state Department of Revenue also releases a separate category of taxable retail sales known as retail trade, which is considered a better measure of consumer purchases. That shows:

Thurston County: Fell 10.06 percent to $493.9 million from $549.1 million

Olympia: Fell 15.57 percent to $225.7 million from $267.3 million

Lacey: Fell 7.11 percent to $153.1 million from $164.8 million

Tumwater: Fell 6.43 percent to $51.1 million from $54.6 million

Yelm: Fell 1.80 percent to $22.79 million from $23.21 million

What's next

Although the state Department of Revenue data are released about three months after a quarter has ended, it appears that current economic activity hasn't improved, state Chief Economist Arun Raha said Friday. The rate of decline has slowed but won�t flatten until the third quarter, he said.

The previous record was set in 1982, when year-over-year taxable sales fell 5.8 percent in the first quarter, Revenue spokesman Mike Gowrylow said.

Many consumers spent significantly less on holiday shopping because of the slowing economy or were limited by snowstorms that paralyzed Thurston County in the days before Christmas.

Fewer sales of new and used cars and furniture, as well as a drop-off in building activity throughout the county, also pulled taxable retail sales lower, according to the data.

Taxable retail sales statewide generated by sales of new and used cars in the year-over-year period fell 31 percent; in Olympia, the decline was 37 percent, the data show.

Olympia Auto Mall Dealers Association Executive Manager Alicia Nelson said dealers are hopeful that the market will improve. In the meantime, they are keeping their expenses in control and are servicing the "heck" out of every customer, she said.

"It will get better," she said about the car-sales market. "It's kind of like having the flu. You feel like it's never going to get better, but you know it's going to get better."

In Tumwater, building materials, construction and taxable retail sales generated by electronics and appliances fell by 17 percent or more in the fourth quarter, the data show. In Lacey, construction fell 31.3 percent, apparel and accessories 22.2 percent and furniture and home furnishings 40.5 percent in the period, the data show.

Some businesses, however, are bucking the slower economy � even those selling furniture in Lacey.

Hawks Prairie Home Furnishings Outlet owner Jeff Olson, who opened his business just as the economy slowed in the third quarter of 2008, said the business has exceeded every expectation.

"We've been growing 10 percent to 15 percent a month since we opened," said Olson, who launched the business with girlfriend Stevie Rotella on Sept. 1. The business, which sells new furniture, also has grown to 10 employees, he said.

"Things have definitely been good," Olson said.

Rolf Boone covers business for The Olympian. He can be reached at 360-754-5403 or rboone@theolympian.com.