Report says Texas cities tops for retail

May 19th, 2009

Austin Business Journal
Tuesday, May 19, 2009, 10:16am CDT  |  Modified: Tuesday, May 19, 2009, 3:19pm


Four out of the top five metropolitan areas deemed most likely to experience quarterly retail sales growth for the remainder of 2009 and into 2010 are in Texas, according to research from Pitney Bowes Business Insight.

Austin ranked first on the list, with what PBBI’s research called “consistent healthy growth in gross metropolitan product, personal disposable income and consumer expenditures, coupled with a decline in personal bankruptcies.”

Seattle, the only non-Texan city to make the list, came in second. Although Seattle’s housing and employment indicators will continue to be soft through 2010, according to PBBI that market was able to maintain respectable comparative sales for the last six quarters.

Dallas, San Antonio and Houston took the third, fourth and fifth place spots on the list, respectively.

The research group found that disposable income in Dallas grew in 2009, along with an increase in housing construction. San Antonio has been sustained by growth in personal expenditures and consistent growth in gross metro product. And Houston has shown strong comparative sales growth in the drug store and high-end retail sectors, the group found.

To predict which metro areas are most likely to experience the best relative health in the retail sector, the group identified the top five best performing metros based on comparative sales history and their ability to remain relatively stable for the past six quarters, and used trend data to predict the metro areas most likely to see sales growth from the third quarter of this year through the last quarter of 2010. PBBI’s research included various retail sectors, from drug stores and high-end retailers to mid-tier retailers and value retailers.

“Our reports enable real estate professionals to track the economic variables that affect store performance in local markets, helping them make more profitable decisions about lease re-negotiations, capital re-investment, store closures, inventory management and budget allocations,” said Devon Wolfe, managing director of Americas strategy & analytics services for Pitney Bowes Business Insight.

On a related note, the International Council of Shopping Centers is hosting its annual convention in Las Vegas this week. The event, sometimes called the Super Bowl of retail, is traditionally where many deals in the sector get done.

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