By Ingrid Stegemoeller, Tri-City Herald, Kennewick, Wash.
Aug. 8--New Kohl's and Target stores in Richland, construction at Chiawana High School in Pasco and strong new and used motor vehicle sales in Kennewick likely propelled the Tri-Cities' first-quarter taxable retail sales well above the state's.
Kennewick and Richland experienced nearly 8 percent gains over the first quarter of 2007, while Pasco's taxable retail sales jumped nearly 10 percent.
Washington's taxable retail sales grew about 1.4 percent, to $26.6 billion.
Benton County reported 8.2 percent growth, to $595 million, and Franklin County's taxable retail sales grew 16.2 percent, to about $257 million.
Work at Hanford and Coyote Ridge Corrections Center as well as growth in the food processing industry are helping keep the local economy steady, said Dean Schau, state regional labor economist.
"The Tri-Cities has a very balanced economy," he said, also citing the benefits the declining dollar value has for agriculture.
"For a community that exports food all over the planet, a falling dollar is a good thing," he said.
The opening of Target and Kohl's in Richland last October meant astronomical jumps in the city's clothing and shoe store sales -- more than 1,300 percent to $2.8 million -- and department store sales: More than 272 percent to about $4.5 million.
Overall retail trade in Richland grew almost 17 percent, driven partly by those new stores.
Retail trade tracks sales at retail outlets only and excludes more volatile sectors such as construction, wholesale trade and hotels and restaurants. It's generally a stronger measure of consumer spending, according to the Department of Revenue.
While the city continues to promote itself to chain businesses, it's focusing on small business development as well, said Gary Ballew, economic development manager for Richland.
"We're also looking at ways to support and grow local businesses, including retail," he said.
A host of new venues also grew the city's sales at restaurants by nearly 6 percent to $16.8 million.
A couple of new Mexican restaurants, the Starbucks and Panda Express at Queensgate and Wheat Montana are some of the main new eateries, Ballew said.
Taxable retail sales for construction in Richland were down about 11 percent to $42 million, likely because of the end of construction on Highway 240, he said.
Toyota of Tri-Cities' move to Kennewick continues to affect both cities' taxable retail sales for motor vehicles.
Kennewick's new and used auto sales jumped more than 39 percent in the first quarter, to $35.6 million.
Across the river, Pasco lost more than 16 percent of its car sales, to $30.8 million.
"Next year, we should start to absorb the full impact of Toyota (moving)," said Gary Crutchfield, Pasco's city manager. That means auto sales should start growing again.