The department collects taxable sales data on numerous business classifications using the NAICS, (North America Industrial Classification System), and the reporting of this by select categories since 2006 indicates the condition of the Richmond metro's retail market as summarized below. To see which businesses are covered by each classification, please go to this link. The Richmond Metro includes Chesterfield, Hanover, Henrico and Richmond. (Click on the table to see larger image)
Note the percent change from '06 - '09 column, particularly in Building Materials, Garden & Supplies. This is a huge drop at companies such as Lowes and Home Depot and represents a decrease of $413 million annually. The table below adds the remaining MSA's counties and cities taxable sales to the metro and then compares this grand total to the number of single and multi-family housing permits occurring in the Richmond MSA in 2006 and 2009.
On it's face, it appears the pie has shrunk dramatically for this key area of our local economy, but the number of companies, (referred to as Dealers) has also decreased as can be seen in the following table.
Since the number of dealers hasn't fallen as much as their respective market, then it would appear their share on average would have also gone down and the following table shows just that outcome for the Building Materials, Garden & Supplies companies.
The major outcome of these reduced sales will be continued retailer closings, lower municipal revenues from sales taxes, and increasing retail vacancies. As the foregoing table showed, in these categories, the Richmond Metro saw a loss of 51 dealers during this time period while overall, taxable sales increased by 7%.
But if you look strictly at percentage growth in dealers, the three highest of the categories covered are Health & Personal Care, (beauty salon, nail salon, cosmetics), at 43%, Nonstore Retailers, (not located in retail space) at 40% and General Mechandise, (Wal-Mart, Target, CostCo, Sams, K-Mart, Walgreens, CVS, etc) at 38%.
Two retail categories, Food & Beverage Stores and General Merchandise continue to represent a larger share of this retail sales pie. In 2006, the two represented 45%, (20% and 25% respectively) and in 2009, they accounted for 55%, (26% and 29% respectively).
While this increasing share was occurring, more of these two retailing categories stores were being opened. In fact, the number of Food & Beverage dealers increased from 529 to 631, a 19.3% increase from 2006 - 2009. However, their average taxable sales per dealer increased to $2,704,273. With respect to General Merchandise, the number of dealers rose from 120 dealers in 2006 to 166 in 2009, an increase of 38.3%. Since this rise was greater than the increase in sales during that same period, the average sales per dealer declined by 9% to $11,531,631.
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