Local economy doing better

Jerry Whitworth has long-term historical perspective of local merchandising.
He started his 44th year in January as owner of McGinty-Whitworth, 101 E. Madison Ave., which permits him to draw on a broad accumulation of knowledge to analyze local retail trends.
Meanwhile, Allen County is in an upward economic swing, sales tax collections indicate, which started in 2009, as the economy in general began to recovery from the Great Recession.
“My sales have been steady through the period,” Whitworth allowed, with the observation that he thinks most of the upswing may be laid to increased sales of food — both in groceries and restaurants — and vehicles.
“Look at A&W and Sonic and some of the other places to eat,” Whitworth said. “They’re always busy, and it’s easy to understand why. A lot of women work and when they get home in the evening they’re beat.”
Whitworth’s observation is borne out at mealtime in a drive-by of any eating spot. Numerous vehicles always are parked nearby.
If not eating out, families often “grab a hamburger or a pizza, and eat that at home,” rather than mom spending time in the kitchen preparing a sit-down meal.
“Lifestyles have changed,” he said.
“Food prices also have gone up,” Whitworth said. “Just ask anyone, especially women. They’ll tell you.
“And you see a lot of new (or new to a family) cars on the streets.”
Sales at Sigg Motors, 1721 East St., mesh with Whitworth’s observation.
“In 2009 sales where a little better than 2008 and then in ’10 and ’11, sales were much stronger,” said Mitch Sigg. “Things fell off a little last year, but that was because of family health problems that had me not working four or five months.”
Meanwhile, prices of clothing Whitworth sells haven’t increased.
“On the average, clothing prices have gone down over the last 20 years,” he said. “The fact is 90 percent is made out of the country now, in India, China, Sri Lanka, Vietnam,” where wages are fraction of what they would be in the U.S. and lead to lower prices. “The same’s true of shoes. About 95 percent are made out of the country.
“Missouri used to have a lot of shoe manufacturers, such as Florsheim, but they’re all gone now,” Whitworth said.

IN GENERIC view, retail sales trends of the past three years indicate that recovery from the recession has taken hold locally
Purchases to which sales taxes were applied totaled a tad over $188 million in Allen County during 2012.
Of note is that sales have steadily increased since 2009.
Countywide sales were $171.4 million in 2010 and $179.3 million in 2011. Those upticks occurred after sales had fallen to $162.2 million in 2009, the first full year after the recession gripped the nation.
To give a little more comparison, sales in 2008 were $176.4 million, the first full year for the new Walmart store at the north edge of Iola, which opened in spring 2007.
Going back 10 years to 2003, countywide sales were $113 million, but that comparison is misleading since it isn’t adjusted for a decade of inflation, which hasn’t been as great in recent years but still is a factor.
Another perspective of increased retail sales is the benefit it provides local governing bodies.
The county has two half-cent taxes, one for the landfill and the second to support the general fund, a good portion of which is shared with cities and is determined by population.
During 2012, the half-cent landfill tax generated $940,000, the same as the other half-cent, which netted the general fund about $492,000 after distributions to cities.
Figures for Iola were similar.
The city’s income from a one-cent sales tax totaled $1,164,468 in 2012, meaning retail sales in town were just a smidgen less than $116.5 million. Half the city’s sales tax revenue is earmarked for general expenses, half for streets.
Also, the countywide quarter-cent sales tax to support construction of the new hospital, approved by voters in November 2010 and applied to sales starting in June 2011, has raised nearly $550,000 through the end of February.