Retail Sales in the Rio Grande Valley
NAI Rio Grande Valley
Click Here for Full Report
Photo: Mike Blum, Broker and Managing Partner for NAI Rio Grande Valley
By the time you are reading this post, 2009 will be a far-away memory. Another decade has begun. And while we all hope for a better economy, more jobs, improved living conditions, and peace in the world, it is always good to reflect on where we have been so we can measure where we are going and how to manage things when we get there.
From a retail sales standpoint, 2009 was a fairly good year for the Rio Grande Valley. Retail sales tax collected in Valley cities exceeded $179 million as compared to $189 million in the previous year. While this was a 5.1% decline from the previous year, it reflects a still vibrant retail economy valley wide. These taxes were collected on roughly $10.3 billion in retail sales that are subject to tax.
The absorption of sales tax collections were materially different in 2009 vs 2008 as new store openings across the valley caused a shift in where sales occurred. For example:
• The City of Mercedes experienced a 6% increase in sales tax collections, a direct result of new store openings at the Chelsea Outlet Mall.
• The small community of Penitas had a 67% increase. A true reflection of the impact a new Super Wal-Mart store can have on a small community.
• The Shoppes at Rio Grande Valley in Edinburg has continued to add retailers attracting shoppers to its location.
• In 2010 the absorption of sales tax dollars is predicted to shift to Weslaco even more when the new JC Penny and Lowes stores’ sales tax are taken into account. This shift will mostly be felt in McAllen and Harlingen as customers will have a more convenient option to major retailers.
Declines in bridge crossings and housing starts, valley wide have also contributed to the 2009 decline in sales tax collections. However, with the opening of the Anzalduas International Bridge in McAllen/Mission future sales tax collections valley wide are predicted to increase. The new international bridge will reduce travel time for Mexico shoppers by 45 minutes and offers a more direct corridor that leads them directly to several shopping destinations with national tenants.
Now another way to appreciate the unique nature of the Valley’s retail economy is to understand how we compare with other markets. The following table shows the Sales and Use Tax Comparison Report for the top 20 Cities in Texas ranked by 2008 population.
McAllen, on its own, ranked 14th on the Report, 12th in Sales Tax Collections. More importantly, 3rd Per Capita and Per Household sales tax collections (total sales tax collected/total population or households). This confirms despite the current economy, Valley residents continue to spend on retail goods. Moreover, it reinforces just how crucial Mexico shoppers are to our economy...
Click Here to View Chart
McAllen MSA posts highest annual growth rate in 2009
McAllen-Edinburg-Mission, TX Ranks 12th in Farmers Insurance Group's Most Secure U.S. Places to Live for 2009
Rio Grande Valley Region better understood in Asia
Posts
