Bristol Retail Sales Take Nosedive

Retail sales for Bristol Tennessee and Virginia were 12.4 percent lower for this year’s first quarter than they were for the same time period last year, local economist Steb Hipple reported this week.

“During the first quarter, the U.S. economy and the regional economy continued to descend into the worst business contraction in a generation,” Hipple, an economics professor at East Tennessee State University, said in a written statement on the report, which was released Monday.

A possible reason for the drop in sales could be the closure of businesses operating in one of Bristol’s top retail corridors. Between September and February, 11 businesses operating at Exit 7 shut down, according to a Herald Courier investigation. Among the businesses that closed were the Linden Square shopping center’s American Mattress, Dicing Diva, Treasure Hunt Toys and Uncle Steve’s Cabin.

The city’s retail sales reflect these closures, showing the last quarter’s 12.3 percent drop and a 5.6 percent in the fourth quarter of 2008. City officials said in February they noticed the closures and were afraid of what might result.

“I don’t know if the economy is the total reason for the closures or not, but we have seen an exit of businesses and it is a concern,” Mayor Jim Rector said that month. Rector was worried about a loss in tax revenue that the city might experience due to the closures, but he said the most important effect was the loss of jobs.

First quarter retail sales in Kingsport and Johnson City also were down compared to a year ago, Stipple said. Kingsport’s fell by 2.8 percent, Johnson City’s fell by 5.2 percent. Retail sales for the entire United States fell by 10.2 percent for the past year.

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