County malls? sales up; Crossroads the exception

Business Report Correspondent

In a meeting Jan. 4 with President-elect George Bush, 35 chief executive officers commented on the nation’s economic outlook and said retail sales nationwide are slowing. Someone forgot to tell Boulder County.

At regional malls, including Boulder’s Pearl Street Mall, Longmont’s Twin Peaks and Broomfield’s FlatIron Crossing, retail sales revenue has been rising. Only Boulder’s Crossroads Mall sales are declining as its redevelopment remains unresolved for yet another year.

With figures available through October 2000, the year-to-date net sales/use tax receipts at the Pearl Street Mall was $62.5 million and sales taxes were up by 13.75 percent from last year, according to Boulder’s revenue/sales tax division reports. Same store sales, or gross sales for the same store tracked from year to year, was even better for some. George Karakehian, owner of Art Source International in the 1200 block of the mall, said his sales are up 15 percent from last year.

“My sales were excellent, especially when you remember that the previous year (1999) was the largest retail year in U.S. history,” he said. “The opening of FlatIron Crossing had a minimal effect on my business; in fact, I think it helped because it brought more people to Boulder.” The Pearl Street Mall is vibrant, Karakehian said.

Art Source International is an art gallery offering custom framing and specializing in 18th and 19th century maps, prints, paintings and books. It also sells historic photographs.

Sales tax revenue for Boulder should climb even more with the city’s sales tax awareness campaign, which began in December. Called “It Pays to Shop in Boulder,” the campaign aims to help people understand that when they buy taxable items in Boulder, they help pay for hiking trails, open space, the arts and other programs that provide a high quality of life. “Our intention was to develop a guilt-free message that encourages residents to shop in town, particularly for routine purchases,´ said Jana Petersen, director of public affairs at the city.

In Longmont, the Twin Peaks Mall year-to-date sales revenue through October was $83.9 million, up 7 percent from last year, according to Sean Lykins, sales tax auditor at the city. While Mark Haynes, store manager for J.C. Penney, would not disclose the store’s numbers, he said sales are up from last year, and his store is well-positioned for growth.

Haynes sees Longmont and the Twin Peaks Mall becoming a shopping destination in Boulder County. “When the (J.C. Penney) store at Crossroads Mall closes this month, we will have the opportunity to serve our Boulder customers.”

Haynes said other indicators are positive for sales at the Twin Peaks store, including the increasing numbers of well-paid, high-tech workers moving into the area. “Higher incomes in the county and increased housing means more variety of retail,” Haynes said. While he faces competition from a new Kohls and an Office Depot near the mall, he is optimistic. “Growth creates competition but flags Longmont as a destination.”

Year-to-date sales tax revenue through October is down 9.1 percent at Crossroads Mall, according to Boulder’s revenue/sales tax division reports. Sales figures were not available. The J.C. Penney store at the mall is scheduled to cease operations on Jan. 20, said Store Manager Jim Kelly. Kelly will permanently leave the company about 10 days later when he has officially closed the store because he doesn’t want to relocate. But there are no other store manager openings at J.C. Penney anyway, he said.

Other retailers also will be leaving Crossroads sometime after the first of the year. Macerich company spokesman Michael Busenhart, senior vice president of acquisitions, would not disclose the number of stores pulling out or their names. “It is not unusual for stores to leave a mall after the Christmas season,” he said. “They wait until then to leave because Christmas is when they make the most money.” He said even retailers at FlatIron Crossing will be leaving this time of year.

Janet Beaudry, senior marketing director at FlatIron Crossing, however, said no permanent retailers will be leaving FlatIron Crossing. “Specialty cart retailers might be leaving because their contracts are typically six months. We change them frequently to keep the specialty products on carts in the shopping center vibrant with new products,” Beaudry said. “Permanent retailers? No. Why would they be leaving? They just got here, and they’re doing well.”

Sales revenue for FlatIron Crossing, according to state figures provided by Roxanne Huber, revenue manager at the city of Broomfield, was $15.4 million for August; September: $29.5 million; and October: $22.4 million.

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