HomeMy WebLinkAbout2018 Sales Tax Digest Second Quarter
CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR
June 10, 2019
The Honorable City Council
Palo Alto, California
City of Palo Alto Sales Tax Digest Summary Second Quarter Sales (April
- June 2018)
We received $7.8 million for second quarter sales of 2018 which is $0.9 million (12.6 percent)
more than the same quarter of 2017. The following files are attached for this informational
report for which no action is required.
ATTACHMENTS:
• Attachment A: Avenu Sales Tax Digest Summary (PDF)
• Attachment B: Economic Categories and Segments (PDF)
• Attachment C: Avenu Economic News and Trends (PDF)
Department Head: Don Rhoads, Special Advisor to the Office of the City Auditor
Page 2
City of Palo Alto
Sales Tax Digest Summary
Collections through September 2018
Sales through June 2018 (2018Q2)
www.avenuinsights.com (800)800-8181 Page 1
California Overview
The percent change in cash receipts from the prior year was -1.1% statewide, 0.1% in Northern
California and -2.0% in Southern California. The period’s cash receipts include tax from business activity
during the period, payments for prior periods and other cash adjustments. When we adjust for non-
period related payments, we determine the overall business activity increased for the year ended 2nd
Quarter 2018 by 5.0% statewide, 4.5% in Southern California and 5.9% in Northern California.
City of Palo Alto
For the year ended 2nd Quarter 2018, sales tax cash receipts for the City increased by 1.9% from the
prior year. On a quarterly basis, sales tax revenues increased by 5.2% from 2nd Quarter 2017 to 2nd
Quarter 2018. The period’s cash receipts include tax from business activity during the period, payments
for prior periods and other cash adjustments.
Excluding state and county pools and adjusting for anomalies (payments for prior periods) and late
payments, local sales tax increased by 7.5% for the year ended 2nd Quarter 2018 from the prior year. On
a quarterly basis, sales tax activity increased by 10.8% in 2nd Quarter 2018 compared to 2nd Quarter
2017.
Regional Overview
This seven-region comparison includes estimated payments and excludes net pools and adjustments.
% of Total / % Change
City of Palo
Alto
California
Statewide
S.F. Bay
Area
Sacramento
Valley
Central
Valley South Coast Inland
Empire North Coast Central
Coast
General Retail 31.0 / -2.5 44.5 / 2.6 44.3 / 2.7 44.2 / 4.2 45.7 / 5.8 44.2 / 2.1 45.5 / 1.5 41.5 / 2.6 41.4 / -1.8
Food Products 18.0 / 4.1 19.5 / 5.7 20.1 / 4.2 16.2 / 7.0 15.2 / 5.3 21.4 / 6.1 15.8 / 7.2 17.0 / 2.8 28.3 / 0.0
Construction 1.7 / -33.6 6.4 / 17.8 6.6 / 16.9 7.3 / 19.1 8.0 / 19.1 6.0 / 17.4 6.5 / 20.6 9.1 / 13.7 4.9 / 1.5
Business to Business 25.1 / 22.9 7.1 / 10.3 8.6 / 7.5 6.0 / 8.1 7.1 / 21.4 6.7 / 7.0 6.9 / 24.9 4.5 / 11.5 2.9 / 9.5
Miscellaneous/Other 24.2 / 15.6 22.8 / 0.0 20.8 / 8.7 26.4 / 5.0 24.8 / 3.5 22.1 / 2.9 25.7 / 2.9 27.9 / 4.4 22.1 / 7.8
Total 100.0 / 7.5 100.0 / 5.0 100.0 / 5.2 100.0 / 6.5 100.0 / 7.5 100.0 / 4.1 100.0 / 5.7 100.0 / 5.5 100.0 / 1.4
City of Palo
Alto State Wide S.F. Bay
Area
Sacramento
Valley
Central
Valley South Coast Inland
Empire North Coast Central
Coast
Largest Segment Restaurants Miscellaneo
us Retail
Miscellaneo
us Retail
Miscellaneo
us Retail
Miscellaneo
us Retail
Miscellaneo
us Retail
Miscellaneo
us Retail
Miscellaneo
us Retail
Miscellaneo
us Retail
% of Total / % Change 16.1 / 4.8 27.7 / 1.6 28.5 / 2.1 26.9 / 3.1 27.0 / 6.6 27.4 / 1.1 28.2 / -1.2 23.2 / 3.3 24.7 / -1.2
2nd Largest Segment Auto Sales -
New Restaurants Restaurants Auto Sales -
New
Department
Stores Restaurants Restaurants Service
Stations Restaurants
% of Total / % Change 16.0 / 13.4 14.9 / 4.5 15.5 / 4.2 12.3 / 5.0 11.7 / 3.7 16.7 / 4.6 11.3 / 5.0 10.4 / 12.1 21.4 / -1.6
3rd Largest Segment Leasing Auto Sales -
New
Auto Sales -
New Restaurants Auto Sales -
New
Auto Sales -
New
Auto Sales -
New Restaurants Auto Sales -
New
% of Total / % Change 10.4 / 39.3 10.8 / 2.7 11.3 / 7.4 11.4 / 5.1 10.7 / 2.8 10.5 / 0.2 10.4 / 1.4 10.3 / 2.5 11.7 / 13.4
*** Not specified to maintain confidentiality of tax information
CITY OF PALO ALTO
ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 2nd QUARTER 2018
ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 2nd QUARTER 2018
BENCHMARK YEAR 2018Q2 COMPARED TO BENCHMARK YEAR 2017Q2
Attachment A
City of Palo Alto
www.avenuinsights.com (800)800-8181 Page 2
Gross Historical Sales Tax Performance by Benchmark Year and Quarter (Before Adjustments)
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
BENCHMARK YEAR QUARTERLY
Net Cash Receipts for Benchmark Year 2nd Quarter 2018: $29,720,022
*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2018Q2 BMY is sum of 2018 Q2, Q1, 2017 Q4, Q3)
Restaurants
14%
Leasing
9%
Department Stores
7%
Furniture/Appliance
7%Food Markets
1%
Recreation Products
1%
All Other
49%
Net Pools &
Adjustments
12%
Attachment A
City of Palo Alto
www.avenuinsights.com (800)800-8181 Page 3
TOP 25 SALES/USE TAX CONTRIBUTORS
The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order
and represents the year ended 2nd Quarter 2018. The Top 25 Sales/Use Tax contributors generate
53.3% of Palo Alto’s total sales and use tax revenue.
Anderson Honda Lucile Packard Children's Hosp Stanford University Hospital
Apple Stores Macy's Department Store Tesla Lease Trust
Audi Palo Alto Magnussen's Toyota Of Palo Alto Tesla Motors
Bloomingdale's Neiman Marcus Department Store Tiffany & Co.
Fry's Electronics Nest Labs Urban Outfitters
Hewlett Packard Enterprise Company Nordstrom
Department Store Usb Leasing
Hewlett-Packard Shell Service Stations Varian Medical Systems
Houzz Shop Space Systems Loral Volvo Cars Palo Alto
Integrated Archive Systems
Sales Tax from Largest Non-Confidential Economic Segments
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Benchmark Year 2018Q2 Benchmark Year 2017Q2
Attachment A
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 4
Historical Analysis by Calendar Quarter
Economic Category % 2018Q2 2018Q1 2017Q4 2017Q3 2017Q2 2017Q1 2016Q4 2016Q3 2016Q2 2016Q1 2015Q4
General Retail 25.2% 1,965,691 1,851,152 2,635,136 1,860,347 1,952,490 1,684,023 2,784,731 1,983,231 2,141,794 1,673,846 2,526,551
Miscellaneous/Other 20.9% 1,629,266 1,516,808 1,881,732 1,602,213 1,301,138 1,392,756 1,621,044 1,727,134 1,617,307 1,413,133 1,491,158
Food Products 15.8% 1,237,941 1,183,895 1,206,578 1,184,645 1,189,257 1,192,662 1,235,801 1,213,382 1,194,369 1,126,103 1,166,195
Business To Business 22.9% 1,789,526 1,639,073 1,569,619 1,448,336 1,284,056 1,240,962 1,004,883 1,027,730 1,140,526 974,162 1,428,210
Net Pools & Adjustments 15.2% 1,191,568 -183,952 1,136,075 1,374,372 1,210,511 1,631,125 1,351,709 831,377 1,313,745 1,072,794 1,226,261
Total 100.0% 7,813,992 6,006,976 8,429,140 7,469,913 6,937,452 7,141,528 7,998,168 6,782,854 7,407,741 6,260,038 7,838,375
Economic Segments % 2018Q2 2018Q1 2017Q4 2017Q3 2017Q2 2017Q1 2016Q4 2016Q3 2016Q2 2016Q1 2015Q4
Miscellaneous/Other 48.0% 3,747,045 3,373,907 3,791,527 3,233,434 2,986,873 2,910,133 2,939,228 3,027,081 2,973,047 2,607,097 3,237,983
Restaurants 14.4% 1,124,991 1,045,496 1,054,073 1,049,565 1,058,606 1,043,747 1,071,053 1,068,101 1,068,502 1,005,688 1,029,733
Miscellaneous Retail 5.6% 439,601 412,952 701,369 419,279 452,135 435,757 1,002,389 581,831 681,345 469,360 714,151
Department Stores 6.3% 495,267 471,419 642,666 458,066 510,561 392,565 641,541 491,433 546,629 435,470 714,831
Apparel Stores 5.8% 451,110 390,780 585,892 440,005 449,402 372,033 553,250 398,170 444,383 337,880 519,318
Service Stations 2.0% 154,446 163,072 148,906 147,499 159,371 119,552 130,396 138,155 144,735 123,004 140,758
Food Markets 1.3% 97,870 117,783 128,671 117,256 112,566 131,676 145,179 126,755 109,108 104,676 116,778
Business Services 0.7% 57,433 155,193 157,861 173,439 75,722 43,548 102,095 47,066 65,510 51,647 76,156
Recreation Products 0.7% 54,661 60,326 82,100 56,998 76,514 61,392 61,328 72,885 60,737 52,422 62,406
Net Pools & Adjustments 15.2% 1,191,568 -183,952 1,136,075 1,374,372 1,055,702 1,631,125 1,351,709 831,377 1,313,745 1,072,794 1,226,261
Total 100.0% 7,813,992 6,006,976 8,429,140 7,469,913 6,937,452 7,141,528 7,998,168 6,782,854 7,407,741 6,260,038 7,838,375
*Net Pools & Adjustments reconcile economic performance to periods’ net cash receipts. The historical amounts by calendar quarter: (1) include
any prior period adjustments and payments in the appropriate category/segment and (2) exclude businesses no longer active in the current
period.
Attachment A
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 5
Quarterly Analysis by Economic Category, Total and Segments: Change from 2017Q2 to 2018Q2
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Campbell 4.5% 11.6% 6.7% 3.3% 10.2% 2,642,482 2,465,102 7.2%I.T. Infrastructure Biotechnology Misc. Vehicle Sales Health & Government
Cupertino 0.6% 4.4% 39.1% 13.9% 0.1% 6,024,291 5,814,060 3.6%Bldg.Matls-Retail Leasing Drug Stores I.T. Infrastructure
Gilroy 3.3% 1.1% 1.0% 13.7% 5.3% 4,024,142 3,874,427 3.9%Heavy Industry I.T. Infrastructure Food Processing Eqp Health & Government
Los Altos 3.3% 1.2% 6.8% 28.1% 0.0% 598,470 583,152 2.6%Food Processing Eqp Energy Sales Heavy Industry Miscellaneous Other
Los Gatos -14.7% -12.7% 10.9% -38.6% -11.7% 1,377,363 1,612,621 -14.6%Bldg.Matls-Whsle I.T. Infrastructure Liquor Stores Electronic Equipment
Milpitas 0.1% 1.5% 20.7% 0.6% 0.2% 6,067,007 5,979,155 1.5%Electronic Equipment Misc. Vehicle Sales Bldg.Matls-Whsle Florist/Nursery
Morgan Hill 3.0% 0.6% 8.3% 19.3% 1.3% 2,231,823 2,140,859 4.2%Chemical Products Food Processing Eqp Light Industry Miscellaneous Other
Mountain View 0.1% 0.9% 5.0% 29.0% 11.5% 4,516,770 4,338,804 4.1%I.T. Infrastructure Biotechnology Auto Sales - New Heavy Industry
Palo Alto -2.6% 4.2% -19.0% 34.3% 16.7% 6,622,424 5,976,092 10.8%Biotechnology Heavy Industry Miscellaneous Other I.T. Infrastructure
San Jose 6.3% 1.7% 4.4% 13.8% 2.9% 40,283,809 38,243,625 5.3%Energy Sales Green Energy Heavy Industry Chemical Products
Santa Clara 9.9% 10.2% -1.0% 5.6% 0.9% 12,173,439 11,556,826 5.3%Miscellaneous Other Biotechnology Leasing Energy Sales
Santa Clara Co.59.7% 8.1% 18.9% 7.8% 47.6% 1,443,834 1,020,269 41.5%Electronic Equipment Leasing Biotechnology Drug Stores
Saratoga -32.0% -9.7% 3.3% 13.0% -28.7% 190,999 227,300 -16.0%Electronic Equipment Misc. Vehicle Sales Light Industry Leasing
Sunnyvale 0.2% 0.3% 1.7% 14.4% 6.3% 6,220,521 6,035,007 3.1%I.T. Infrastructure Energy Sales Chemical Products Food Processing Eqp
Attachment A
Economic Categories and Segments
Economic Category Economic Segment Description
Business to Business ‐ sales of
tangible personal property from
one business to another business
and the buyer is the end user.
Also includes use tax on certain
purchases and consumables.
Business Services Advertising, banking services,
copying, printing and mailing
services
Chemical Products Manufacturers and wholesalers
of drugs, chemicals, etc.
Electronic Equipment Manufacturers of televisions,
sound systems, sophisticated
electronics, etc.
Energy Sales Bulk fuel sales and fuel
distributors and refiners
Heavy Industry Heavy machinery and
equipment, including heavy
vehicles, and manufacturers and
wholesalers of textiles and
furniture and furnishings
Leasing Equipment leasing
Light Industry Includes, but is not limited to,
light machinery and automobile,
truck, and trailer rentals
Office Equipment Businesses that sell computers,
and office equipment and
furniture, and businesses that
process motion pictures and film
development
Construction Building Materials – Retail Building materials, hardware,
and paint and wallpaper stores
Building Materials ‐ Wholesale Includes, but is not limited to,
sheet metal, iron works, sand
and gravel, farm equipment,
plumbing materials, and
electrical wiring
Food Products Food Markets Supermarkets, grocery stores,
convenience stores, bakeries,
delicatessens, health food stores
Food Processing Equipment Processing and equipment used
in mass food production and
packaging
Liquor stores Stores that sell alcoholic
beverages
Restaurants Restaurants, including fast food
and those in hotels, and night
clubs
Attachment B
Economic Categories and Segments
Economic Category Economic Segment Description
General Retail – all consumer
focused sales, typically brick and
mortar stores
Apparel Stores Men’s, women’s, and family
clothing and shoe stores
Department Stores Department, general, and variety
stores
Drug Stores Stores where medicines and
miscellaneous articles are sold
Florist/Nursery Stores where flowers and plants
are sold
Furniture/Appliance Stores where new and used
furniture, appliances, and
electronic equipment are sold
Miscellaneous Retail Includes, but is not limited to,
stores that sell cigars, jewelry,
beauty supplies, cell phones, and
books; newsstands, photography
studios; personal service
businesses such as salons and
cleaners; and vending machines
Recreation Products Camera, music, and sporting
goods stores
Miscellaneous/Other Miscellaneous/Other Includes but not limited to
health services, government,
nonprofit organizations, non‐
store retailers, businesses with
less than $20,000 in annual gross
sales, auctioneer sales, and
mortuary services and sales
Transportation Auto Parts/Repair Auto parts stores, vehicle and
parts manufacturing facilities,
and vehicle repair shops
Auto Sales ‐ New New car dealerships
Auto Sales ‐ Used Used car dealerships
Miscellaneous Vehicle Sales Sale and manufacture of
airplanes and supplies, boats,
motorcycles, all‐terrain vehicles,
trailers and supplies
Service stations Gas stations, not including
airport jet fuel
Attachment B
ECONOMIC NEWS & TRENDS
November 5, 2018
This non-confidential edition includes excerpts from articles, studies,
and economic research. The content focuses on trends and news
between August 1, 2018 and the date of publication. Please contact
your Client Services Executive for regional trends.
CONTENTS
▪Highlights (Pages 2 to 4)
▪U.S. Economy (Pages 5 to 7)
▪California Economy (Page 7)
▪Auto Sales and Gasoline (Page 8)
▪Retail Trends (Pages 8 to 9)
▪Retailer, Grocery, and Restaurant Updates (Page 10)
www.avenuinsights.com
Attachment C
ECONOMIC NEWS & TRENDS November 5, 2018
2 www.avenuinsights.com
HIGHLIGHTS
National Economic Indicators / Influences
GDP: GDP increased 3.5% in 3Q2018; 4.2% in 2Q2018
(was 2.2% in 1Q2018; 2.9% in 4Q2017; 3.2% in 3Q2017,
3.1% in 2Q2017, 1.4% in 1Q2017, and 2.1% in 4Q2016).
Growth Pickup Factors: Consumer spending, business
investment, net exports and government spending.
Consumer Spending: Consumer spending is being
powered by plentiful jobs. The unemployment rate fell in
September to its lowest level since 1969, meaning more
income in household pocketbooks, and tax cuts have
added to purchasing power.
Government Spending Helps Grow the GDP: Over the
last year and a half government spending, especially
defense helped the acceleration of the GDP. (WSJ,
October 26, 2018)
Growth Rate: Private analysts and the Federal Reserve
say a slowdown is looming; the growth rate will slow to
2.5% by the first quarter of next year and 2.3% by the
third quarter of 2019. The Fed is expecting growth to
slow further to a 1.8% rate by 2021.
Services Sector: 2Q2018 Total Revenue: An increase of
3.2% from 1Q2018 and up 5.3% from 2Q2017.
Personal Consumption: The personal-consumption
expenditures price index rose 0.1% in September from
August. That marked the fourth straight month in which
the Federal Reserve’s preferred inflation gauge fell short
of the 0.165% monthly pace needed to meet its 2%
annual target.
Consumer Confidence Hits 18-Year High: The
Conference Board reported its index of consumer
confidence rose to 137.9 in October, the highest level
since September 2000.
Inflation Hits Home: US companies are raising prices on
everything from plane tickets to plastic, passing on to
customers higher costs for fuel, metal, and food after
years of low inflation. It’s tricky: unemployment is at its
lowest point in decades and the economic growth is
strong. At some point higher prices could damper
economic growth. Change in price of selected food items
in 3Q2018 from a year earlier: McDonalds Big Mac is up
4.7%; Chipotle Steak Burrito is up 4.4%; Starbucks
freshly brewed coffee is 8.9%; Panda Express Orange
Chicken is up 2.8%. (WSJ, November 1, 2018)
Economic Forecasts: Unemployment: Ending 2018 at
3.7%, unchanged from 3.7% currently; Crude Oil: Trading
from $65 to $70 per barrel in December. Social Security
COLA: Payouts will rise 2.8% in January 2019 and likely
2.3% in January 2020. (Kiplinger)
The $80 Trillion World Economy in One Chart: The
World Bank puts global GDP at roughly $80 trillion in
nominal terms for 2017.In nominal terms, the U.S. still
has the largest GDP at $19.4 trillion, making up 24.4% of
the world economy. California became the 5th largest
economy in the world in 2017 with $2.75 trillion in gross
domestic product. http://www.visualcapitalist.com/80-
trillion-world-economy-one-chart/
Unemployment: Year end is predicated to end a 3.7%,
unchanged from 3.7% (September). Current is the
lowest jobless reading in 49 years. California: 4.2% in
August and September 2018 is 4.1%.
Wage Growth: Wages and salaries paid to private-
sector U.S. workers rose 3.1% from a year earlier in the
3Q2018. That was the strongest gain since 2Q2008.
Tariff - Impact on Consumers: Companies like Walmart
and Target have asked the White house to back off plans
for a tariff on items like Christmas lights, bicycles,
cooking grills, air conditions, school essentials. The NFR
estimated that at 25% tariff on furniture would cost
Americans $4.5 billion per year. Items such as bicycle
helmets, car seats, Apple Watches and Air Pods are not
on the list. (Money.com, September 19, 2018)
Attachment C
ECONOMIC NEWS & TRENDS November 5, 2018
3 www.avenuinsights.com
E-Commerce, Retail Sales and Outlook
E-Commerce as a Percent of Total Sales: 9.6% in
2Q2018; 9.4% in 1Q2018; 9.1% in 4Q4017; 9.0% in
3Q2017; and 8.8% in 2Q2017. Other Historical:
December 21, 2015 (7.5%); December 21, 2011 (5.10%);
December 31, 2008 (3.60%); December 31, 2005
(2.60%).
Top 10 U.S. Companies / Ranked by E-Commerce Sales
Share, 2018: Amazon 49.1%; eBay 6.6%; Apple 3.9%;
Walmart 3.7%; The Home Depot 1.5%; Best Buy 1.3%;
QVC 1.2%; Macys 1.2%; Costco 1.2%; Wayfair 1.1%.
Total U.S. Retail ecommerce sales equals $252.69 billion
in 2018; top 10 companies’ sales share equals 70.1% of
total retail ecommerce in 2018. (EMarketer, July 2018)
Holiday Spending
Holiday Spending: Will spend 4.1% more than last year;
will spend an average of $1,007.24 this year. Ecommerce
will be driven by mobile commerce, which is expected to
jump 32.6% and will account for 44% of holiday
ecommerce spending. 2018 US holiday ecommerce sales
are expected to grow 16.2% to $123.39 billion.
Tariff / Consumers/ Holiday Merchandise: Retailers are
monitoring the impact on tariffs that have been slapped
on a variety of different goods imported from China,
although holiday merchandise will likely not be affected
because they’re already in U.S. warehouses. Any price
increases are expected to come starting early 2019.
Halloween Spending, US Candy Industry Halloween retail
spending will be $9 billion in 2018. It's a little less than
2017's record of $9.1 billion.
On-Line Grocery Shopping
E-Commerce Reshapes Grocery Stores: Food shoppers
are going on-line and forcing supermarkets to alter
layouts and rethink operations. An example, replacing
candy stands with freezers, and implementing pick up
point. (WSJ, October 3, 2018)
Gas and New Auto Sales
2018 Vehicle Projection: 2 million; 2017 was 2.05
million. First Half of 2018: New car sales exceed 1
million. California Market Share: Declined for the fifth
consecutive quarter in 2Q2018 versus a year earlier.
Electric Sales in California: Currently is 3.1% of new
sales and increase of 2.4% from last year. Gas makes up
83% of new cars sold in 2018. (CNCDA, August 2018)
Gas: November 4, 2018. The national average at $2.765
per gallon. California’s is $3.753; $3.033 a year ago;
highest was $4.671 in October 2012. Reduced refinery
runs, due to peak maintenance season, have contributed
to stable gas inventors amid lower demand.
Tourism in California
Total visitation to California is forecast to grow 2.9% in
2018 following a 2% expansion in 2017. International
overseas visits to California will slow from 4.5% in 2017 to
4.3% in 2018, with similar growth expected to continue
each year through 2022.
Housing
U.S.: Sales of new single-family houses in the United
States dropped 5.5% from the previous month in
September of 2018, following a downwardly revised 3.0%
decline in August. It is the lowest rate since December
2016. Average interest in October is around 4.9% and
expected to reach 5.5% next year.
California Single-Family: September, down 4.3% from
August and down 12.4% from September 2017. Median:
$578,850, down 29.% from August; up 4.2% from
September 2017. September year-to-date down 3.3%;
largest sales decline since March 2014; 27% of
households could afford to purchase the $588,530
median-priced home in 3Q2018, up from 26% in 2Q2018
and down from 28% a year ago. Minimum income of
$125,540 was needed for payments of $3,140 (w/ PIT, 30-
year fixed at a 4.77%). 35% of home buyers were able to
purchase the $479,390 median-priced condo or
townhome. An annual income of $102,260 was required
to make a monthly payment of $2,560. (CAR)
Attachment C
ECONOMIC NEWS & TRENDS November 5, 2018
4 www.avenuinsights.com
Dining and Food
Food at Home: Sep 2018 (-.1); Aug 2018 (0); Jul 2018 (.2)
Food Away From Home: Sep 2018 (.2); Aug 2018 (.2); Jul
2018 (.1)
Full Services Meals and Snacks: From Sep 2017 to Sep
2018 (2.3%)
Mobile Vendors and Vending Machines: From Sep 2017
to Sep 2018 (3.9%)
Wine: From Sep 2017 to Sep 2018 Wine At Home (1.4%);
Wine Away From Home: (3.4%).
Travel App Grabr Enables Delivery of Goods to Shoppers
Abroad: Grabr, says it currently has over 500,000 world-
wide registered users to offer a platform allowing
shoppers to request international deliveries.
Grocery Store and Food Trends
Grocery Shopping Channel in 2017 From 2016: E-
commerce (26%); Limited assortment store (6.7%);
Dollar store (6.6%); Fresh format 6.2%); Supercenter
(3.5%) Super warehouse (3.2%); Small grocery (3.0%);
Wholesale club (2.8%); Convenience store (1.7%);
Traditional supermarket (1.3%)
The Future of Food: Meals that you print, facial
recognition for cows, edible bar codes, addressing waste,
and other innovations that transform everything from
farm to table. (WSJ, October 3, 2018)
Phones and Technology
Cable and Satellite TV Service: From Sep 2017 to Sep
2018 (1.3); Wireless Telephone Service: From Sep 2017
to Sep 2018 (-0.2); Land-Line Telephone Service: From
Sep 2017 to Sep 2018 (1.8)
Cellphone Customers Are Keeping Smartphones for
Longer: Pricier devices, demise of the contract, and other
reasons have led consumer to wait an average of 2.83
years to upgrade their phones. This is up from 2.39 from
two years earlier. The November 2, 2018 WSJ article
“Cellphone Radiation Linked to Rat Cancer” will be
interesting to follow.
Consumer Credit/ Lending
Credit Scores: FICO plans to roll out new system in 2019
that factors how consumers manage the cash in their
savings, checking and money market accounts. The idea
is to boost the number of approvals for cards and loans,
by taking this information into account.
Payday Lending Rules Get Do-Over/ Impact on
Consumers: There will be a redo of earlier rules that
aimed at curbing predatory lending. The new propose
rules will ease restrictions for the industry. Local
agencies should follow this issue closely.
Retailers Push Back on Cards with Perks: Consumers are
addicted to credit cards with rewards programs; some
retailers are trying to cut them off. Some networks are
trying to end the card networks’ “honor all cards” rule.
Amazon.com, Target Corp., and Home Depot are amongst
them.
Retailers Calculate What Their Customers are Worth/
Customer Lifetime Value: Scores can determine the
prices a customer pays, the products and ads you see,
and the perks received. The article looks how this works
with phone service, apparel, cars, air travel and credit
cards (WSJ, November 2, 2018)
Gambling
Sports Betting/ States Can Legalize: Sports betting
legalization moves forward following a U.S. Supreme
Court ruling Murphy v. National Collegiate Athletic
Association, leaving states free to legalize the practice.
State and Local Tax Deduction
Cities Set to Challenge Proposed IRS Ruling: A coalition
of New York municipalities is preparing to challenge the
proposed IRS ruling that clouded the ability of cities and
towns to set up funds that allow residents to pay their
local taxes as charitable contributions.
Attachment C
ECONOMIC NEWS & TRENDS November 5, 2018
5 www.avenuinsights.com
SECTION 1: U.S. ECONOMY
U.S. Economy and Indicators
https://bea.gov/newsreleases/national/gdp/gdpnewsrele
ase.htm (October 26, 2018)
https://www.bls.gov/news.release/cpi.htm (October 11,
2018)
GDP: GDP increased 3.5% in 3Q2018; 4.2% in 2Q2018
(was 2.2% in 1Q2018; 2.9% in 4Q2017; 3.2% in 3Q2017,
3.1% in 2Q2017, 1.4% in 1Q2017, and 2.1% in 4Q2016).
Growth Pickup Factors: Consumer spending, business
investment, net exports and government spending.
Consumer Spending: Consumer spending is being
powered by plentiful jobs. The unemployment rate fell in
September to its lowest level since 1969, meaning more
income in household pocketbooks, and tax cuts have
added to purchasing power.
Growth Rate: Private analysts and the Federal Reserve
say a slowdown is looming; the growth rate will slow to
2.5% by the first quarter of next year and 2.3% by the
third quarter of 2019. The Fed is expecting growth to
slow further to a 1.8% rate by 2021.
Personal Consumption/ Household Spending/ Inflation:
The personal-consumption expenditures price index rose
0.1% in September from August. That marked the fourth
straight month in which the Federal Reserve’s preferred
inflation gauge fell short of the 0.165% monthly pace
needed to meet its 2% annual target.
Consumer Confidence Hits 18-Year High: The
Conference Board reported its index of consumer
confidence rose to 137.9 in October, the highest level
since September 2000. https://www.conference-
board.org/data/ConsumerConfidence.cfm
Inflation: Will be 2.1% in 2018; 2.0% in 2019 and 2.1% in
2020. (The Balance, October 2019)Interest Rates: Was
raised to 2.25% in September 2018; an indicator of the
economy’s health. Federal Reserve signaled would raise
rates to 2.5% in December 2018, 3.0% in 2019 and 3.5%
in 2020. (The Balance, October 2019)
Economic Forecasts: GDP Growth: 2.7% in 2019; down
from 2.9% in 2018. Unemployment: Ending 2018 at
3.4%, from 3.7% currently; Crude Oil: Trading from $65
to $70 per barrel in March. Social Security COLA:
Payouts will rise 2.8% in January 2019 and likely 2.3% in
January 2020. U.S. Manufacturing: Production will grow
2.4% in 2018; down from 2.6% in 2018. (Kiplinger,
November 2, 2018 and October 19, 2018)
Services Sector 2Q2018 Total Revenue: An increase of
3.2% from 1Q2018 and up 5.4% from 2Q2017.
Gasoline: From September 2017 to September 2018
(9.1%); Sep 2018 (-.); Aug 2018 (3); Jul 2018 (-.6)
New Vehicles: From Sep 2017 to Sep 2018 (.5%); Sep
2018 (-.1); Aug 2018 (0); Jul 2018 (.3)
Used Cars & Trucks: Sep 2018 (-3.0); Aug 2018 (.4); Jul
2018 (1.3)
Leased Cars and Trucks: Sep 2017 to Sep 2018 (7.3%)
Apparel: : Sep 2018 (.9); Aug 2018 (-1.6); Jul 2018 (-.3);
Food at Home: Sep 2018 (-.1); Aug 2018 (0); Jul 2018 (.2)
Food Away From Home: Sep 2018 (.2); Aug 2018 (.2); Jul
2018 (.1)
Full Services Meals and Snacks: From Sep 2017 to Sep
2018 (2.3%)
Mobile Vendors and Vending Machines: From Sep 2017
to Sep 2018 (3.9%)
Wine: From Sep 2017 to Sep 2018 Wine At Home (1.4%);
Wine Away From Home: (3.4%).
Cable and Satellite TV Service: From Sep 2017 to Sep
2018 (1.3)
Wireless Telephone Service: From Sep 2017 to Sep 2018
(-0.2)
Land-Line Telephone Service: From Sep 2017 to Sep
2018 (1.8)
Lodging Away from Home: From Sep 2017 to Sep 2018
(.6)
Shelter: From Sep 2017 to Sep 2018 (3.%)
Miscellaneous (Sep 2017 to Sep 2018): Bacon and
Related Products (-7.8%); Eggs (10.1%): Instant Coffee (-
4.2); Floor Coverings (3.0%); Window Coverings (-6.0%);
Living Room Furniture (2.3%); Women’s Dresses (7.3%);
Jewelry (-4.6%) ; 18.6%); Toys (-10.0%); Gardening and
Lawn Care (8.8%)
Attachment C
ECONOMIC NEWS & TRENDS November 5, 2018
6 www.avenuinsights.com
Services Sector for 2Q2018
www.census.gov/services/index.html (September 7, 2018)
2Q2018 Total Revenue: An increase of 3.2% from
1Q2018 and up 5.3% from 2Q2017.
Personal Consumption Expenditures: Up 2.1% from
3Q2017.
Transportation and Warehousing: An increase of 8.6%
from 1Q2018 and up 5.3% from 2Q2017.
Utilities: Decrease of 10.5% from 1Q2018 and up 2.0%
from the 2Q2017.
Real Estate, Rental and Leasing: An increase of 9.1%
from 1Q2018 and up 5.3% from 2Q2017.
Professional, Scientific and Technical Services: An
increase of 2.0% from 1Q2018 and up 5.2% from 2Q2017.
Accommodations: Increase 11.7% from 1Q2018 and
down 2.3% from the 2Q2017.
Arts and Entertainment: An increase of 13.6% from
1Q2018 and up 4.0% from 2Q2017.
Personal Services: Sep 2017 to Sep 2018 (2.6%); Legal
Services (4.6%); Financial Services (5.5%).
E-Commerce 2Q2018
https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf (Next release is on November 19, 2018)
E-Commerce as a Percent of Total Sales: 9.6% in
2Q2018; 9.4% in 1Q2018; 9.1% in 4Q4017; 9.0% in
3Q2017; and 8.8% in 2Q2017. Other Historical:
December 21, 2015 (7.5%); December 21, 2011 (5.10%);
December 31, 2008 (3.60%); December 31, 2005
(2.60%).
E-Commerce Sales Percent Change from Prior Quarter:
Increased 3.9% from 1Q2018.
Total Retail Sales for 1Q2018: An increase of 1.6% from
1Q2018.
Luxury: By 2025, online will represent 25% of luxury
goods.
Retail: 15% of retail sales take place online now. In 2013
it was 9%. Amazon nets 44% of those internet sales. 75%
of households with yearly income of $100,000 or more
have an Amazon Prime membership. (Kiplinger, June
2018)
Imports, Export and Tariff
https://www.census.gov/foreign-trade/Press-Release/current_press_release/ft900.pdf (November 2, 2018)
Trade Deficit for September (+1.3%); Exports (+1.5%);
Imports (+1.5%).
Exports and Imports: Exports increased 8.4%; Imports
increased 8.4%, year to date from August. California’s
trade slowed in September. Exports of manufactured
goods were up 1.7% in September, non-manufactured
goods dropped 1.7%. California accounted for 10.4% of
the nation’s overall merchandise export trade in
September, down from 10.9% last year. The state’s
exports in the first nine months of 2018 amounted to
$133.47 billion, 5.5% higher than the $126.46 billion
during the same period last year. California was the
state-of-destination for 18% of all U.S. merchandise
imports in September, with a value of $38.19 billion, an
increase of 2.1% from the $37.39 billion in imported
goods in September 2017. Manufactured imports totaled
$34.10 billion, up 0.5% from the $33.92 billion recorded
one year earlier. Non-manufactured imports in
September were valued at $4.10 billion, 18.2% higher
than the $3.47 billion reported in September 2017. For
the first nine months of the year, California imports
totaled $325.27 billion, a 1.5% gain over the $320.53
billion during the same period last year. (Beacon
Economics, November 2018)
Impact on Consumers: Companies like Walmart and
Target have asked the White house to back off plans for a
tariff on items like Christmas lights, bicycles, cooking
grills, air conditions, school essentials. The NFR
estimated that at 25% tariff on furniture would cost
Americans $4.5 billion per year. Items such as bicycle
helmets, car seats, Apple Watches and Air Pods are not
on the list. (Money.com, September 19, 2018)
Attachment C
ECONOMIC NEWS & TRENDS November 5, 2018
7 www.avenuinsights.com
Employment/ Workforce
https://data.bls.gov/timeseries/LNS14000000
Unemployment Forecast: Ending 2018 at 3.7%,
unchanged from 3.7% currently.
U.S. Firms Pledge More Job Training: The White House
announced pledges from companies to create over 6
million job-training opportunities; an initiative to address
job market changes and a shortage of qualified workers.
Women in the Workforce: For most of the last two
decades, the share of women participating in the U.S.
labor force was in decline. Labor-force participation
among women 25 to 54 rose to 75.2% from 73.3% three
years ago, as unemployment dropped to the lowest level
since the 1950’s. (WSJ)
Gig Economy/ A Guide for States, Counties and Cities:
The rise of “gig-work” platforms are one part of a bigger
trend. For the low-skilled, the chances of getting a
traditional job with steady hours and income, benefits
and chances to progress is diminishing rapidly. GAO
highlight estimates that over 30% of the workforce could
now be working precariously. This trend has swept
through retail, hospitality, distribution, healthcare and
other sectors. http://beyondjobs.com/wp-
content/uploads/2018/07/Making-a-Market-for-Irreg-
Employ-Full-Report-070918.pdf
SECTION 2: CALIFORNIA ECONOMY
https://www.sco.ca.gov/Files-EO/07-18summary.pdf
http://www.dof.ca.gov/Forecasting/Economics/Economic_and_Revenue_Updates/index.html
https://www.bea.gov/newsreleases/regional/gdp_state/qgdpstate_newsrelease.htm
(July 24, 2018; next release is November 14, 2018)
https://industry.visitcalifornia.com/Research/Report/California-Travel-Tourism-Forecast-State-2018
Tourism and Forecast in California: Total visitation to California is forecast to grow 2.9% in 2018 following a 2% expansion
in 2017. International overseas visits to California will slow from 4.5% in 2017 to 4.3% in 2018, with similar growth
expected to continue each year through 2022. Overnight travel is expected to accelerate 2.6% in 2018 before returning to
below 2% growth in 2020.
Unemployment: California was 4.2% in August and September 2018 is 4.1%, a sign it will get harder to fill positions.
Employment Forecast: The forecast for 2018, 2019 and 2020 total employment growth is 1.7%, 1.8% and 0.8%,
respectively. Payrolls are expected to grow at a 1.7%, 1.8% and 0.8% rate each respective year. Real personal income
growth is forecast to be 2.5%, 3.6% and 2.9% in 2018, 2019 and 2020, respectively. California’s average unemployment rate
is expected to have its normal differential to the U.S. rate at 4.2% in 2020. Home building will accelerate to about 140,000
units per year by the end of the 2020 forecast. (UCLA, September 2018)
California WARN Notices & Permanent Closures: July 2018: 51 notices/ 28 closures; August 2018: 51 notices/ 28
closures; September 2018: 35 notices/ 17 closures; October 2018 (as of October 25, 2018): 76 notices/ 43 closures.
Current Revenue Stats: Personal income tax: For September were $260 million above the month’s forecast of $8.146
billion. Sales and use tax: for the first three months of the fiscal year were $61 million below forecast. Receipts for
September were $31 million below the month’s forecast of $2.039 billion. Corporation tax: for the first three months of
the fiscal year were $66 million above forecast. Revenues for September were $60 million above the month’s forecast of
$1.172 billion. Estate, alcoholic beverage, tobacco taxes, and pooled money interest: for the first three months of the
fiscal year were $26 million above forecast and were $3 million above the forecast of $67 million for September. "Other"
revenues for the first three months of the fiscal year were $2 million above forecast and were $42 million below the
forecast of $62 million for September. (DOF, October 2018)
Attachment C
ECONOMIC NEWS & TRENDS November 5, 2018
8 www.avenuinsights.com
SECTION 3: AUTO SALES AND GASOLINE
California Car Sales / 2Q2018
https://www.cncda.org/wp-content/uploads/California-Covering-2Q-2018.pdf (August 2018)
2018 New Vehicle Projection: 2 million; 2017 was 2.05
million
First Half of 2018: New car sales exceed 1 million units.
California Year-to-Date Thru June: Cars (-10.1%); Light
Truck (5.6%)
US Year-to-Date Thru June: Cars (-12.1%); Light Truck
(7.7%)
California New Market Share: Declined for the fifth
consecutive quarter in 2Q2018 versus a year earlier.
Small Car Market Share Thru June: Declines to 23% from
26% a year ago.
Gap Between New and Used Cars: Is wider pushing an
increasing number of consumers to used-car lots, putting
pressure on auto makers to deepen discounts on new
cars to keep them competitive.
Electric Sales in California: Continue to increase, but
disparity among regions including the Central Valley;
Northern California seem to be adopting the idea of
electric vehicles. Currently electric makes up 3.1% of total
new sales and increase of 2.4% from last year. Gas
vehicles make up 83% of new cars sold in 2018. (CNCDA,
August 2018)
Gas: November 4, 2018. The national average at $2.765
per gallon. California’s is $3.753; $3.033 a year ago;
highest was $4.671 in October 2012. Cause: Reduced
refinery runs, due to peak maintenance season, have
contributed to stable gas inventors amid lower demand.
(AAA Gas Prices)
Manufacturing/ Foreign Auto Makers Look at More US
Content: Foreign car makers are looking at moving their
parts manufacturing to the US, following the recent US
trade deal with Canada and Mexico. The tentative deal,
which replaces Nafta, requires auto makers to build at
least 75% of a cars value in North American to remain
duty free. Car companies also have to ensure 40% to
45% of the car is made by workers earning at least $16
per hour, a provision aimed at steering more work to the
US to generate manufacturing jobs.
SECTION 4: RETAIL, TRENDS AND INFLUENCES
Retail Categories in September 2018
10 of 13 major retail categories showed month-over-
month increases and 3 fell. Down: Food services and
drinking places (-1.8% compared to 0.3% in August);
gasoline stations (-0.8% compared to 1.1%); and health
and personal care stores (-0.3% compared to 0.5%).
Increases: Furniture/ furniture stores (1.1% compared to
-0.8%); non-store retailers (1.1% compared to 0.5%);
electronics/ appliance stores (0.9% compared to 0.6%);
motor vehicles/ part dealers (0.8% compared to -0.5%);
sporting goods, hobby, musical instrument/ book stores
(0.7% compared to -0.5%); clothing/ accessories stores
(0.5% compared to -2.8%); general merchandise stores
(0.3% compared to 0.1%); food/ beverages stores (0.2%
compared to -0.3%); building material/ garden equipment
(0.1% compared to 0.8%); and miscellaneous store
retailers (0.1% compared to 2.7%). (Trading Economics)
Holiday Spending
Consumer Holiday Spending: Will spend 4.1% more
than last year; will spend an average of $1,007.24 this
year. Consumers will spend in three main categories
during the holidays – gifts, at $637.67; non-gift holiday
items such as food, decorations, flowers and greeting
cards, at $215.04; and other non-gift purchases that take
advantage of the deals and promotions throughout the
season, at $154.53. (NFR) The 2018 holiday season
features the longest-possible calendar with a maximum
32 days between Thanksgiving and Christmas.
Ecommerce will be driven by mobile commerce, which is
expected to jump 32.6% and will account for 44% of
holiday ecommerce spending. 2018 US holiday
ecommerce sales are expected to grow 16.2% to $123.39
billion. https://www.emarketer.com/content/holiday-
shopping-2018-10
Attachment C
ECONOMIC NEWS & TRENDS November 5, 2018
9 www.avenuinsights.com
Best Black Friday / Thanksgiving Day Retail: Closing on
Thanksgiving (and Black Friday) has given some retailers a
customer loyalty boost. REI goes a step further. For a
third year in a row, it will be closing its 151 stores on both
Thanksgiving and Black Friday.
https://bestblackfriday.com/blog/stores-closed-on-
thanksgiving-day-2018/
Amazon Black Friday Launched on November 1:
Amazon published its Black Friday Deals Store, giving
access to a variety of deals and sales through its online
marketplace. Amazon is set to clear $258.22 billion in US
retail sales in 2018, according to eMarketer’s figures,
which will work out to 49.1 % of all online retail spend in
the country, and 5 %of all retail sales.
https://www.amazon.com/b?ie=UTF8&node=384082011
Small Business Saturday / November 24, 2018:
https://www.americanexpress.com/us/small-
business/shop-small/promote?extlink=CH=ps-CU=us-
BU=GABM-skw=B_NB_SBO_2018_Img+Ext_Core+SBS-
B_NB_SBO_2018_Img+Ext_Core+SBS_Local_NB_E-
p37681801972-TST=SBS2018_SBO-
EEP_URL=g_psea&cpid=g_psea
Teaching and Learning the Benefits of Supporting the
Local Economy: The Financial Literacy section of Kid’s
Scoop includes a ‘shop local’ series and asks the younger
generation to consider: What happens to the money you
spend in stores? Why is it important to support small
local businesses in your community? How do the
community in turn benefit from those businesses?
http://www.kidscoop.com/downloads/sales-tax/.
http://www.kidscoop.com/downloads/category/financial
-literacy/
Shopping Center Trends
Retail Rent / New Formula: It’s a rubric in which stores
are integral to the supply chain; all at once, they function
as: Sales and marketing showrooms with product
displays and sales staff; Transaction hubs with registers
and point-of-purchase opportunities; Mini-warehouses
for inventory storage, shipping and receiving;
and Logistics centers for product delivery and returns.
These separate uses are now beginning to break apart.
Inventory storage is becoming less and less essential at
retail stores, an accelerating trend that began years ago
as chains started moving inventory to warehouses
located outside of expensive retail submarkets. For
retailers, carrying less in-store inventory translates into
reduced need for storage, shelf and floor space. Less
“showroom inventory” allows shoppers to see a wider
variety of merchandise within the same, easier-to-
navigate store. https://retailleader.com/new-formula-
retail-rents
Plan for Storefront Vacancies: Filling vacant spaces with
new entrepreneurs on short-term deals then create
events and encourage retailers to hold their own
programs. While a New York scenario, readers are
encouraged to read the article. (WSJ, October 31, 2018)
Attachment C
ECONOMIC NEWS & TRENDS November 5, 2018
10 www.avenuinsights.com
SECTION 5: GROCERY, RESTAURANT AND RETAIL NEWS
Sources: The Shelby Report; Plain Vanilla Shell, California
Employment Development Department - Period Covered:
July 2018 to October 31, 2018
Black Friday / Thanksgiving Open and Closures
https://bestblackfriday.com/blog/stores-closed-on-
thanksgiving-day-2018/
Albertsons/Rite Aid: Planned merger between grocery
and drug store chains was terminated due to shareholder
concerns. Albertsons merged with Safeway in 2015 and
now seeks a partner to go public.
Batteries+Bulbs: Will open 12 new stores in Southern
California over the next 2 years including Santa Clarita,
Palmdale, Lancaster, Burbank, and Glendale for a total of
54 California locations and 700 nationwide.
Best Buy: Closed in Long Beach (EDD WARN)
Blue Apron: Increased customer losses for meal kits due
to competition.
Bon Appetit: Closed in San Francisco (EDD WARN)
Costco: Comparable sales growth for 4Q was 9.5%.
Dollar General: Opened 15,000th store.
Dunkin’: New name for Dunkin’ Donuts.
Harbor Freight: Low-priced high- quality tools; opening
new locations, including in California.
Joe & The Juice: Opened new locations in Palo Alto; is
the company’s 50th location.
Kmart: Closed several California locations (EDD WARN)
Lazy Acres Natural Market: Part of Bristol Farms opens
fifth location in Los Angeles County.
Lululemon: While E-commerce is an increasingly
important, stores remain key to their success. Expect 40
new locations with 23 temporary seasonal stores.
Loop Neighborhood: All-in-one convenience opens in
Silver Creek and Norco.
Lowes: Closing 51 stores, including California locations.
Plans to close all 99 Orchard Supply Hardware stores by
the end of the year to focus on its own line of home
improvement warehouse stores.
Mattress Firm: Filed for Chapter 11 bankruptcy - will
close up to 700 of its 3,230 company owned stores.
Michael Kors: Purchase of Versace expands its high-end
brands after purchase of British shoe maker Jimmy Choo.
Nike: Leading sportswear rebound.
Orchard Supply: Closed several California locations (EDD
WARN)
PF Changs China Bistro: Closed in El Segundo (EDD
WARN)
Planet Fitness: Opened 44 new gyms in Q2 and a total of
more than 200 since last year – how has 1,600 outlets
and over 12.1 million members. Expansion mirrors overall
gym sector growth.
Raley’s: Promotes on-line shopping with video campaign.
Savers: Closed in Milpitas (EDD WARN)
Starbucks: Commitment to build 10,000 ‘greener stores’
globally by 2025; enlisted Alibaba Group to help deliver
in China; higher prices helped for the store delivery its
strongest quarterly sales (3Q2018) gain in a year. See the
October 27 Wall Street Journal article “Can Starbucks
Perk Back Up” that discusses how the increase in coffee
competition has left the company “in the middle.”
Sears: Sears filed for bankruptcy; will shutter 142 stores
toward the end of the year. Several closures in California
(EDD WARN)
Smart & Final: 200th Extra store opens in Long Beach.
Sprouts: Opened in Vacaville.
Stater Bros. Market: Store planned for Ontario; reopens
four renovated stores in Southern California.
Target: As a competitive jab at rivals Amazon and
Walmart, Target announced free 2 day shipping this
holiday season with no minimum purchase or
membership requirements.; Closed in San Bernardino
(EDD WARN)
Tempur-Pedic: Plans to open 40th store by the end of
2018; 60-80 stores by end of 2019.
Under Armor: Shed 400 jobs globally to combat weak
sales.
Urban Outfitters: Continues to perform well with its
fourth straight quarter of growth due to double digit
online sales and increased retail store sales. The company
recently opened 25 new outlets (11 Free People stores, 7
Urban Outfitter stores, 6 Anthropologie stores, and one
restaurant).
Walmart: Plans new high-tech grocery store in Shafter,
California and DC. Walmart is growing. With its e-
commerce business soaring by 40%in recent quarters and
its sales growing the fastest in 10 years, this signals
strong growth.
Attachment C