Holding their own

Based on gross receipts taxes paid to the city, stores seem to be doing OK — but not every owner is town is sanguine

Bob Quick | The New Mexican

8/18/2008 - 8/19/08

Not too many people run four stores in downtown Santa Fe, but that's exactly what Andy Carrabus does as operations manager of Yippie Yi Yo, Ortega's on the Plaza, Mimosa and Simply Santa Fe.

The stores feature different merchandise — Mimosa is clothing, Simply Santa Fe carries an eclectic mix of home furnishings, jewelry, gifts and high-end men and women's clothing, Ortega's has jewelry while Yippie Yi Yo features what Carrabus said was a "unique variety of locally made goods, including gifts, food, books and souvenirs."

Overseeing so many retail shops selling a variety of items, Carrabus is in a good position to see how retail sales are doing in the downtown area.

From the city of Santa Fe's perspective, based on gross receipts taxes, local retail is doing fairly well. Retailers paid more than $2 billion in gross receipts taxes in the city's budget year that ended June 30, 2008. That was an 8 percent increase over the previous year.

About 9,000 people work in the retail trade in Santa Fe, about 100 more than last year. Retail is the fourth largest component of the Santa Fe economy, behind state government (16,000 workers), educational and health services (9,700) and leisure and hospitality (9,400).

There is expectation among many in the retail trade that the city's new convention center will bring more people to town, and they will go shopping when they get the chance.

On the other hand, the national economy is soft, job concerns have increased, fewer people are traveling because of high gas prices and sales have dropped in some stores.

At three of the four stores he runs, "we had a tremendous July," Carrabus said. 'I think the high-end products were moving very well. We were running ahead of last year."

But at Yippie Yi Yo, where the merchandise is less costly, "that was the only place that was lagging," Carrabus said. "The store sells more touristy souvenirs."

In looking at his results, "It's all cyclical," Carrabus said. "It depends on whose coming to town. I would say that the people who shop in Ortega's and Simply Santa Fe and Mimosa are not too affected by the economy's ups and downs. The people who have money seem to be making money no matter what the economy does."

Watches are an important part of what Tino Chavez sells at Chavez Fine Jewelers at DeVargas Center. And this year, "my watch count (of watches sold) is exactly the same as it was last year," Chavez said. "We keep track on a weekly basis. There's no trend there."

On the other hand, "we're selling the big, big pieces of jewelry," he said. "We're lucky enough to be doing that. I hope it continues. We have two or three more prospects over the next week or so."

As for the less expensive pieces of jewelry, "sales of the mid-price points are slower," Chavez said.

At another jewelry store that carries watches, Baca Design and Gems, "watches are doing good," saleswoman Mary Baca said, adding that the store's higher-end watches run from $1,000 to $25,000. "People look at them as investments."

But mid-price watches, selling for up to $700, are also doing well this summer, Baca said. "The ones that do the best are Citizen."

Nancy Brown Custom Jeweler, on Old Santa Fe Trail in La Fonda, had a "great" first quarter, but then sales slowed in the second quarter, said saleswoman Adrienne Rommel.

More recently, "there seem to be a lot of people in town, and they're spending money. We're very positive."

At Azul Gallery on Water Street, which offers a mixture of home furnishings and jewelry, "People don't need jewelry," saleswoman Julie Faber said. "They want it. And they have the money for it. I just showed a very expensive necklace" that looked like it could sell soon.

Overall, the number of visitors seems to be off this year, Faber said, and most shopkeepers are saying that things are slower than they were last summer.

"Hopefully with the new convention center, there will be more foot traffic in downtown," she said. "The Rail Runner will also bring more people, too."

Gallery owner Stephen Fox, owner of New Millennium Fine Art on Water Street, said sales at his business "were as slow as it was after 9/11" in 2001 and after the first Gulf War in 1990-1991.

The Bush administration "has been shoveling money in military weapons and the security business," Fox said. "Those people are getting rich, but they're not the kind of people who come to Santa Fe, let alone buy art."

At a retail store near the Plaza, "it's slow," said the owner, who asked not to be identified. "I can't imagine anybody saying they're fine."

The retailer added: "There's a lot of afraid people."

Two long-time retail businesses —
Five and Dime, which is on the Plaza, and Jackalope, a Cerrillos Road business — are in the midst of a so-so summer.

"We're about even with last year," said Mike Collins, manager of Five and Dime, which is celebrating its 10th year in business. "I don't think we're as susceptible to the economy as a lot of retailers are. The items we sell are a necessity."

At Jackalope, owner Darby McQuade said sales are down 15 percent for the year, but that August sales at the store were up 5 percent.

"Our furniture is doing very well," he said. "Furniture is our number one line." Jackalope imports furniture from India, China, Indonesia and Mexico.

Jackalope is also getting a lot of business from gardeners shopping at the store's greenhouse.

"Some people seem to be postponing large projects, but when it comes to gardening, there's not a huge outlay," he said. "Gardeners just have to garden."