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By Ed Moosbrugger
June 8 -- Finding the direction that retail sales
are headed this year is like coming to an unmarked fork in
the road. Just as was the case a year ago, store sales results,
business forecasts and economic reports don’t provide
clear direction.
Carlson’s Appliance Center on Fifth Street perhaps
captures the uncertain outlook well.
“I had a superb first quarter and a poor April,”
said General Manager Mike Nichols. “I’m up slightly
for the year.”
Some other Downtown Santa Monica retailers also reflect the
mixed picture, ranging from sales declines to increases. What
does seem clear, however, is that sales gains are tougher
to come by as consumers face record gasoline prices, a soft
housing market and mixed signals on the job outlook.
Downtown Santa Monica, which has faced increased competition
in recent years from new and renovated shopping centers, is
coming off a year that also showed a mixed picture.
Sales tax revenue for Santa Monica from the Third Street
Promenade and Santa Monica Place declined, but revenue jumped
in the Bayside District outside the Promenade, which benefited
from new stores.
On the Promenade, sales tax revenue for 2006 dipped to $3.02
million from $3.05 million in 2005. But after taking into
account various adjustments to the figures to give a truer
picture of actual sales activity, business on the Promenade
was up almost 2 percent, said David Carr, the City’s
principal budget analyst for investments.
The leveling off of sales on the Promenade came after a string
of very strong gains from 2003 through 2005, after a recovery
year in 2002 in the aftermath of 9/11.
“There was a definite slowing” in 2006, Carr
said.
The Bayside outside the Promenade rose to $1.36 million in
sales taxes from $1.15 million in 2005.
Santa Monica Place, which is preparing for a major redo beginning
next year, decreased to $951,797 from $1.05 million. This
year, Downtown Santa Monica must deal with the challenges
of increased competition and slower growth in the economy.
It hasn’t been easy.
Mark Hennessey, owner of the Hennessey & Ingalls art
and architecture bookstore, said sales at the Wilshire Boulevard
store are down a little this year after a level 2006 following
a very strong 2005.
The pace of activity nearby affects his sales.
“I do count on walking traffic a lot,” Hennessey
said. “When the Promenade is busy, I’m busy.”
Naren Patel, owner of Shiva Imports on the Promenade, said
he’s seeing lots of people on the street, but not a
lot are carrying shopping bags unless there are big sales
events going on.
Sales at Shiva are down this year after a bad April, he said,
and customers want to know what’s on sale. Shiva’s
sales last year were about even with its strong 2005, Patel
said.
Carlson’s, where sales rose about 8 percent in 2006,
had a string of 35 to 40 days when sales were below average,
before business picked up on some hot weather days in May,
Nichols said.
Adamm’s Stained Glass & Gallery on 4th Street continues
to do well after a solid 2006 in which sales rose about 10
percent, said owner Adamm Gritlefeld.
Business is up this year. “I’m happy,”
Gritlefeld said. “Things are good.”
At Puzzle Zoo on the Promenade, "it’s pretty good,"
said President Jay Demircift, who is encouraged by "a
really good March."
Meanwhile, Downtown merchants are looking forward to an influx
of tourist to boost business.
“I’m hoping for a busy summer,” Hennessey
said.
BIG MOVE. The prominent architectural firm
Van Tilburg, Banvard & Soderbergh, AIA will be relocating
from Downtown Santa Monica after outgrowing its space in a
building developed by one of its partners.
The firm will move into a building at 1738 Berkeley St. formerly
occupied by Rainbow Records.
The architectural firm, which has about 80 employees in Santa
Monica, has been in the building at the northwest corner of
the Promenade and Arizona Avenue developed by Johannes Van
Tilburg since July 1990.
Partner Navy Banvard said he initiated the search for a new
location to bring more cohesiveness by having everyone in
one space. The firm had been spread on different floors of
its present location and in another building.
“It was time to get all the people together,”
Banvard said. “The goal is to move in September.”
Van Tilburg and Banvard are equal partners and own the vast
majority of the new building, Banvard said.
The firm didn’t limit its search for new space to Santa
Monica and, in fact, didn’t think it could afford to
stay in the city. But, Banvard said, “our heart is in
Santa Monica” and Craig Berrett of Muselli Commercial
Realtors in Downtown Santa Monica was able to find the space.
HONORED. Mary Sue Milliken and Susan Feniger,
owners of Border Grill on 4th Street and two other restaurants,
have been honored by the Monterey Bay Aquarium for their commitment
to the environment.
The chef/owners won the “Cooking for Solutions”
Conservation Leadership Chefs of the Year award for their
continuing commitment to sustainable seafood.
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