Local sales shrink 7.5 percent in two years

shoppingSales at metro area businesses continued to decline in 2009, falling almost 6 percent from 2008, according to data from the Virginia Department of Taxation.

From 2007 the fall has been even steeper, a total decrease in local taxable sales of 7.5 percent.

For Richmond, Chesterfield and Henrico, combined taxable sales for 2009 was $10.3 billion, $600 million less than the total in 2008 and $835 million less than 2007.

The figures include sales from retailers, manufacturers and wholesalers.

Area sales in the fourth quarter did not show any signs of improvement, falling almost 5 percent from the year before to $2.52 billion.

Some of the hardest hit retail sectors include clothing stores (declining 23.5 percent), electronics stores (declining 16.3 percent), and building and garden stores (declining 13.1 percent). Automotive sales, also including parts dealers, fell 6.7 percent.

The area restaurant industry has remained for the most part resilient, declining in sales by only 1.9 percent. Area restaurants generated more than $1.12 billion in 2009.

The big winners in the area continue to be general merchandise stores (such as Wal-Mart) and grocery and convenience stores. General merchandise retailers brought in $1.68 billion in 2009, a 5.6 increase from the year before. Meanwhile food and beverage stores brought in $1.53 billion, an increase of 6.7 percent.

The number of area businesses paying sales tax to the state has also declined slightly by half a percentage point. The total of number of dealers in 2009 was 12,913. That is 59 fewer dealers from the year before.

Although the number of businesses declined in Richmond and Henrico, Chesterfield added 48 in 2009.

shoppingSales at metro area businesses continued to decline in 2009, falling almost 6 percent from 2008, according to data from the Virginia Department of Taxation.

From 2007 the fall has been even steeper, a total decrease in local taxable sales of 7.5 percent.

For Richmond, Chesterfield and Henrico, combined taxable sales for 2009 was $10.3 billion, $600 million less than the total in 2008 and $835 million less than 2007.

The figures include sales from retailers, manufacturers and wholesalers.

Area sales in the fourth quarter did not show any signs of improvement, falling almost 5 percent from the year before to $2.52 billion.

Some of the hardest hit retail sectors include clothing stores (declining 23.5 percent), electronics stores (declining 16.3 percent), and building and garden stores (declining 13.1 percent). Automotive sales, also including parts dealers, fell 6.7 percent.

The area restaurant industry has remained for the most part resilient, declining in sales by only 1.9 percent. Area restaurants generated more than $1.12 billion in 2009.

The big winners in the area continue to be general merchandise stores (such as Wal-Mart) and grocery and convenience stores. General merchandise retailers brought in $1.68 billion in 2009, a 5.6 increase from the year before. Meanwhile food and beverage stores brought in $1.53 billion, an increase of 6.7 percent.

The number of area businesses paying sales tax to the state has also declined slightly by half a percentage point. The total of number of dealers in 2009 was 12,913. That is 59 fewer dealers from the year before.

Although the number of businesses declined in Richmond and Henrico, Chesterfield added 48 in 2009.

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