Chasing our (Re)Tail? Not Likely...
Retail
activity is a critical component of our economic health. Let’s face it –
we are a consumer-driven economy. Consumer spending makes up roughly 2/3
of U.S. Gross Domestic Product, and on the whole Americans spend approximately
$4 trillion – that’s trillion with a T – each year just in the retail
environment.
This week, we
have the release of the Florida Retail Activity Index and it looks like Florida
consumers are taking to the shops. Florida’s index – pegged at 138.7 for
March 2013, is a six percent jump from the same month a year prior. It’s
also the highest index figure since March 2007, prior to the economic
crisis.
Steve Knopik,
CEO of one of Florida’s largest retailers, Beall’s, sees this as a great sign
for the future. “We are very encouraged by the increase in the Florida
Retail Activity Index. It’s exciting that consumers are feeling more inclined
to get out and make purchases in a way that they had not been in a long
time. We hope to see continued increases in future months. The work of
the Florida Legislature, the Governor and key agencies in support economic
development, jobs growth and the other key themes of the Florida Chamber’s
vision for the future of Florida, are beginning to bear fruit.”
The retail activity index is a key indicator for
the state, and allows for the comparison of activity across major market areas.
The metric is measured in a manner to smooth volatility in sales data, and is
constructed by aggregating and benchmarking taxable sales, which are estimated
to comprise 40-45 percent of all retail sales. Given that Florida’s index
rose for the eighth time in the past nine months, and has increased six percent
in 12 months, it’s a great trend for such a critical component of Florida’s
economy.
