Below is an Oro Valley news release we received today. You are welcome to comment.
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For Immediate Release
Oro Valley Retail, Restaurant Sectors Report Strong Sales
Report shows steady increases over last two years
ORO VALLEY, AZ (Sept. 25, 2007) - The Town of Oro Valley announced sales tax collections from the retail sector have increased an average of nearly 5% over the past two fiscal years, and restaurants and bars have increased an average of 3.3%.
An analysis was conducted of operations in these two major sectors for fiscal years 2005/2006 and 2006/2007 to assess the impact of the opening of two major retail centers, Oracle Crossings and Steam Pump Village. Town Finance Director Stacey Lemos said the purpose of the analysis was to determine whether the new businesses that have opened are taking away sales from existing establishments, otherwise known as "cannibalization."
"Based on our findings, we're pleased to see that the existing retail and restaurant base continues to grow with new businesses entering the market," Lemos said. "This is good news for our community as it means they have more choices and variety for their shopping and dining experiences."
Oro Valley is now home to nearly 43,000 residents. David Andrews, Oro Valley's town manager, says the growing population is clearly a factor in the strong sales reported. "Obviously, you need a robust market base to support businesses. This analysis clearly demonstrates that we have a healthy community from an economic development standpoint."
Contact: Mary K. Davis
Communications Administrator
(520)229-4712
email: mdavis@orovalley.net
2 comments:
Once again, statistics in the hands of the ignorant are dangerous!
Statistically speaking: It's not possible to detect cannibalization in a town that is growing. My guess is that the increase in tax revenues is merely because of an increase in population, both in Oro Valley and in Pinal County.
"Cannibalization" occurs when one retailer takes business from another. There is no way to determine this based on the data.
Oro Valley's population in 2000 was 29,700. If it's now at 43,000, that's an increase of about 6.4% per year. So if sales are going up only 5% per year, and restaurant reciepts are going up only 3.3% per year, they are not even keeping pace with the growth in population, let alone any inflation or drawing people in from outside Oro Valley.
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