Boulder?s first-quarter sales off to slow start

BOULDER — By far the most disappointing first-quarter retail sales tax revenues in Boulder County come from the city of Boulder, where sales on the downtown Pearl Street Mall are down by more than 5 percent from a year ago, and Crossroads Mall sales tumbled 33 percent.

Overall, the county’s retail activity continues to accelerate, reaching $1.76 billion in the first quarter, 15 percent higher than the first quarter of 2000. Normally, there’s always a seasonal dip in the first quarter from the busy holiday shopping at the end of the year.

But other county cities, adding many more new retailers, are capturing more of the regional shopping dollars.

January looked bright with an 11 percent gain in Boulder sales tax revenue compared to January 2000. But in February, Boulder’s retail sales tax revenue dipped to 12 percent under the year-ago figures. Computer-related business or business-to-business retail continues to be the strongest component of retail sales tax, according to Tom Hagerty, Boulder’s deputy finance director.

Transportation and utilities also increased to 15 percent year-to-date through March, probably due to the increased volume of natural gas and electric sales because of cold weather and higher energy rates, based on the city’s March report.

Brad Power, executive director of the Boulder Urban Renewal Authority, said although FlatIron Crossing mall is affecting business in Boulder, he expects that impact will lessen over time. “There is a period of adjustment going on related to what’s happening in Broomfield,” he said. “Hopefully that’ll eventually even out.”

While Boulder used to attract more customers from other areas such as Broomfield and Westminster, Power said, the city should continue to serve people living in Boulder Valley, or the city and immediately surrounding areas.

Sales are up overall this year at University Bicycles, which has been at 839 Pearl St. for 15 years, but they haven’t increased at the same pace as past years, said Aaron Dennis, sales manager. “We’ve noticed a slowdown in our growth of sales,” he said.

Dennis does not feel the store will be impacted by FlatIron Crossing or other area malls because malls generally do not have retail bicycle shops, he said. “I feel like we’re such a specialized market,” he said. “There aren’t going to be specialized shops in a mall. There would be wide-range sporting goods stores.”

Although business has picked up recently at April Cornell, a children’s and women’s apparel and home accessories store located on the Pearl Street Mall at 1123 Pearl St., sales were down over the winter, said Nancy Mader, store manager. “Over the winter it was rough, and this summer has not been as good as usual,” she said.

Business at April Cornell has been impacted by FlatIron Crossing mall, but Mader expects that to improve, Mader said. “FlatIrons is a novelty because it’s new,” she said. “So maybe people will return to what they’re accustomed to and what they’re loyal to.”

Sales at Fresh Produce Sportswear, which sells clothing for ages six months to adult and has its headquarters in Boulder and one of its 16 stores on the Pearl Street Mall at 1218 Pearl, are down about 3 to 5 percent from last year, said Sean Murphy, district manager. “We’re about flat from last year,” he said.

Since FlatIron Crossing opened, Murphy said he has seen less people at Pearl Street Mall and more empty stores. However, he expects sales to pick up at his store for the rest of the year, he said.

Retail sales revenues for Boulder County, which totaled $1.76 billion, increased about 15 percent during the first quarter compared with the same period a year ago, with Broomfield and Longmont experiencing solid growth. In the first quarter of 2000, the county’s retail sales totaled about $1.56 billion

Retail sales in the soon-to-be-county of Broomfield rose 139 percent in January and March and 169 percent in February, for an average quarterly rise of 149 percent compared to the same period in 2000. “So far, we’re pleased with the revenue being generated from the new mall (FlatIron Crossing),´ said Roxy Huber, revenue manager for the city of Broomfield, in classic understatement.

While the shopping center added 270 new stores to Broomfield’s tax base, the city doesn’t get to keep all of the sales tax revenue from FlatIron. In its agreement with the developer, Broomfield shares 50 percent of the mall’s sales tax revenue to pay for infrastructure.

Not every business in Broomfield, however, experienced this phenomenal sales increase. Bud Rogers, owner of the Broomfield Pawn Shop for the past eight years, said his business was down slightly. “The pawn business consists of two parts, sales and loans. Over the past six months, loans are about the same, but sales are down,” he said.

Retail sales for the first quarter also were up in Longmont, according to figures from Sean Lykins in the city’s finance department. Net taxable sales for the first quarter are 16 percent more in 2001 than last year, with February showing the largest increase at 19 percent. Total net taxable sales for the first quarter are $254 million.

The family store appliance business in Longmont also is doing well. Even though his employer competes with big-box retailers as well as Sears, Mark Galloway, sales manager of Lynn Cunningham Appliances on Main Street, said sales are up more than 10 percent for May from last year. “We went from about $55,000 last year in May to $66,000 this year,” he said.

Galloway said the firm’s value is in its service and follow-up, which won the Longmont Chamber of Commerce’s small-business award in 1999. He said the store hasn’t experienced any indication of an economic downturn because the building trades, a major source of appliance sales, are still flourishing.

“Our business is about 60 percent contractors and 40 percent consumer business, which includes replacements or upgrades,” he said. In addition, parts and labor are so costly that many people think it makes more sense to replace their appliances rather than have them repaired, Galloway added.

Prices on appliances have gone down over the years. “An 18-cubic-foot refrigerator that cost $649 in 1956 costs $499 today,” Galloway said. “Why spend $200 or more to repair an appliance that may break again if you can buy a new one for $375?” he asked.

Customers who are do-it-your-selfers, however, still prefer to keep an older appliance running, according to Galloway. “Most of our walk-in business is parts related,” he said.

Cunningham Appliances also is expanding its product line and is getting ready to offer high-end products because of customer demand. “We have had a lot of requests for high-ticket items,” Galloway said. “More high-income people have been moving in to the area, and Longmont hasn’t had a high-end dealer of appliances and home products for some time.”

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