Retail sales boom county-wide

While the state’s taxable retail sales realized the biggest percentage gain in 16 years during the second quarter of this year, Island County slightly surpassed Washington’s 10.5 percent jump.

County taxable retail sales went from $188 million during the second quarter of 1995 to more than $208 million this year, an increase of 10.6 percent.

Unincorporated Island County saw the biggest increase, jumping 13 percent for the April-through-June period this year compared to last year. The sales increased by more than $12 million, topping out at almost $105 million. Oak Harbor’s taxable retail sales leapt 7.2 percent, increasing $5.7 million to approximately $85 million.

Although Coupeville’s retail sales were understandably lower than Oak Harbor’s, the county seat’s sales increased by more than $1 million, jumping 12.2 percent to $10.5 million. Langley saw the biggest single percentage increase in the county, a 17.5 percent — or $1.2 million leap — to slightly more than $8 million.

During the first quarter, unincorporated Island County actually saw a 14.6 percent increase over the previous year’s first quarter numbers. Oak Harbor and Langley also experienced jumps, but less than the second quarter. Coupeville actually had lower retail sales in the first quarter compared to last year’s, dropping by 9.5 percent.

Sales by Washington businesses reached $27.6 billion during the second quarter, a $2.6 increase over the second quarter of 2005. The 10.5 percent increase marked the largest jump since sales rose 10.9 percent during the second quarter of 1990.

“These are good numbers and very solid indicators of a healthy economy,” said Jill Johnson, executive director of the Greater Oak Harbor Chamber of Commerce. “Although I am somewhat concerned that Oak Harbor’s percentage of growth is the lowest on the island despite our growing population. That tells me that we are still losing a lot of sales to off-island retailers and we need to take a good hard look at why that is and what we can do to keep folks shopping locally.”

Johnson added that the county-wide growth is encouraging and should be viewed as positive news.

Oak Harbor had approximately $85 million in taxable retail sales for the quarter, $8.7 million of which came from the sale of building materials. Frontier Building Supply, based in Anacortes with stores in Oak Harbor and Freeland, saw marked increases in sales over the summer months.

“As a company, which Island County is part of, we’re showing double-digit increases across the board,” said Chuck Posey, Frontier general manager.

As Posey sees it, the family-owned business has continued to thrive due largely to its excellent customer service and loyal customer base. The company has also seen extraordinary longevity in its employees.

“Our average is about 11 to 12 years,” Posey said. “It’s a reflection of the company I work for.”

Business does cool off in the third and fourth quarters, he added.

“Generally the economy is slowing down going into the elections,” Posey continued. “And the weather. Our business tends to be somewhat seasonal. You can’t put foundations in when it’s muddy.”

More than $23 million in building materials were sold county-wide in the second quarter.

Accommodations and food services in the county combined for almost $16.5 million in sales, the bulk seen in the latter category. Zane Platt, Best Western Harbor Plaza manager, said the hotel has enjoyed more business each year.

“Business has been steady and growing,” she said. “We’re doing more and more to promote business on the island.”