Nevada retail market stays strong despite national woes

May 16, 2003 - So many numbers, so much confusion.

That's the opinion when it comes to gauging national and local retail sales figures and consumer sentiment.

Local and national retail sales have sea-sawed in the past year on the whims of a moody economy and consumer. Meanwhile, the retail reports chronicling the sales shifts in retail sectors are keeping everyone guessing.

A recent U.S. Commerce Department report indicated softer than expected national retail sales in April. Total non-automotive retail sales slid 0.9 percent from the previous month, in contrast to predictions from U.S. economists of a 0.4 percent increase. The drop was the largest since the Sept. 11, 2001 terrorist attacks.

The report also indicated softness in clothing outlet sales. Clothing sales dropped 3.2 percent alone. The report also said that declining gas prices were the primary reason for the overall April drop.

On the local retail sales front, Applied Analysis, a valley-based economic research firm, tracks various state retail sectors' monthly sales.

According to information received from the research group, in general, Nevada retail sales continue to stay strong.

February apparel and accessory sales jumped 3.7 percent compared to February 2002, while January sales were up 16.8 percent over January 2001. General merchandise also saw 9.5 and 8.9 percent increases, respectively, for the February and January months. General retail was also up 8.8 and 8.4 percent, respectively, for the same time periods.

Jeremy Aguero, principal for the research firm, said the year-ago monthly comparisons are not a reliable indicator, as early 2002 figures were dampened by terrorism fears following Sept. 11.

But year over year, apparel and accessories stores sales still climbed 6.4 percent in 2002, compared to 2001, while general merchandise and miscellaneous retail showed a 5.6 percent increase and 0.2 percent decline, respectively.

Aguero added that overall, the valley's retail sector is stronger than the rest of the nation because the valley has taken on a shopper's paradise image in recent years. But he still views the future with caution.

"In general, Nevada has fared better than the nation, but I think we're all looking for a little stronger uptick in the national economy," he said. And to Aguero, those upticks come in the form of increased business spending, a stop to the slowly escalating unemployment levels and increased consumer confidence.

But although some national sentiments appear to apply to Nevada, many of the figures really don't, added Aguero.

"Most of the national (figures) we see we discard. It just doesn't apply," he said.

One of the reasons national figures don't apply to Nevada is because 18 percent of the valley's population is comprised of visitors, said Aguero.

"That gives a huge boost to retail sales in our state," he said.

But beyond the Strip's shopping offerings, shopping centers in general appear to be doing well on the national and local front, as well.

According to information recently released by the International Council of Shopping Centers (ICSC), nationwide, shopping centers registered $1.23 trillion in sales in 2002, a 4.2 percent increase over 2001 figures. The sales total comprised 49 percent of total non-automotive retail sales, the ICSC report said. However, shopping center employment declined slightly from 10.8 to 10.7 million.

"The thing is that the consumer has been pretty resilient even though there's a recession," said Malachy Kavanagh, a spokesman for the ICSC. "People have been cashing out their equity on their homes and have had some cash to spend. Also because interest rates are so low, people are buying homes, which fuels more spending."

Kavanagh also said April shopping center sales are up 3.2 percent nationwide

Vicki Duncan, marketing director for the Galleria at Sunset Mall in Henderson, could not give sales specifics for her property, but said the mall was doing well despite the up-and-down movements on the national level.

"I can tell you that for our first quarter we're expecting to be up," she said about sales. "It's a little tough to gauge (retail sales trends) because there are so many conflicting stories in the media. ... But here in Las Vegas because of our growth rate we tend to buck the national trends."

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Article Copyright ©: B. Sodoma, Las Vegas Business Press