Local retail sales see record decline

YAKIMA, Wash. -- Yakima County saw taxable retail sales drop to a record year-over-year decline during the second quarter of this year.

Sales for the period totaled just under $699.1 million, a 9.78 percent drop from the same quarter in 2008, according to figures released by the state Department of Revenue on Friday.

It's the worst showing for Yakima County since 1975 -- the earliest year for which comparable records are available -- and surpasses the previous record set in the fourth quarter of 1985, when sales declined 7.32 percent.

That's bad news for local governments, which depend heavily on sales tax revenue to fund operations.

Several government bodies, including the city of Yakima and Yakima County, have blamed dropping sales tax revenues for impending layoffs and budget cuts.

The county, however, fared better than the state, which saw taxable retail sales drop 14.03 percent, the worst decline on record.

Kittitas County showed a 17.28 percent decline, while Benton County had an increase of 4.39 percent. The county with the greatest gain in the state was Ferry County in northeastern Washington (19.78 percent). The greatest loss belonged to Grant County (25.87 percent).

"These are big drops," said Mike Gowrylow, spokesman for the state Department of Revenue.

Retail trade sales, which make up nearly half of all sales in the county, experienced a less steep decline than the overall number. Sales in that category, which reflect consumer spending, dropped 5.45 percent from a year ago.

Several subcategories of retail trade saw an increase. They included general merchandise stores, which had the greatest gain at 11.3 percent, apparel and accessories, drug and health stores, and food and beverage stores. Those gains, however, were offset by a 20 percent year-over-year drop in motor vehicles and parts.

Statewide, sales in the retail trade category were down 9.78 percent, an improvement from the 11.9 percent decline seen in both the first quarter of 2009 and the fourth quarter of 2008.

"It's going in the right direction, but (it's) far from positive," Gowrylow said.

*Mai Hoang can be reached at 509-577-7685 or mhoang@yakimaherald.com.