Published: January 11, 2009 11:34 pm         

Berry to recommend saving Enid’s sales at MAPC tonight

Enid developer Bob Berry is chairman of a Greater Enid Chamber of Commerce committee on salvaging “big box” locations. Not surprisingly, his recommendations include many things he has talked about before.

In a report to the Metropolitan Area Planning Commission planned for tonight, Berry will share his ideas with the committee.

Berry said Enid has 400,317 square feet of grocery stores, all occupied. There are 2,430,432 square feet of shopping centers that are 78 percent occupied, although people tend to focus on the 21.2 percent that is unoccupied.

Berry is concerned with what he calls “retail leakage,” retail sales that are lost because people go to other towns to purchase items they can obtain here. Sometimes they do not know they can buy those items here. For example, Berry said many people buy specific brands of clothing. If an Enid store closes or stops selling that brand, those sales are lost to Enid. But they are retrievable, according to Berry.

“Presently, we estimate the retrievable retail leakage in Enid to be from 10 percent to as much as 20 percent; $66,170,000 to $132,340,000 every year,” he said. Berry said that represents $2,315,000 to $4,631,000 in sales tax.

He obtained data from Oklahoma Tax Commission based on SIC codes, which describe specific types of businesses, such as general merchandise, food, etc., and divide that amount by 3.5 percent sales tax rate to achieve a gross taxable retail sales figure. Berry thinks it is urgent Enid act to prevent the possible closing of more stores in Enid.

In the past year, several stores have announced closings, including Steve & Barry’s and Rex TV & Appliances in Oakwood Mall. Enid recently lost Goody’s Department Store and Hancock Fabrics.

“If Enid wants a Christmas in 2009, we must be ready to make our case to major retailers shortly after the 2008 sales are tabulated,” he said.

A new three-year plan is determined by major retailers each December. Berry said regional managers will come to Enid unannounced, visit two or three stores in a day, and drive back to Oklahoma City, Tulsa or Dallas. Enid must be prepared for those managers with up-to-date, effective information to convince them Enid is a good town for their business.

Berry said the headquarters of major stores that have branches in Enid are located in major metropolitan areas where the economy now is deteriorating. Based on that, they could make decisions that affect Enid, so Enid must be prepared to show regional managers for those stores Enid still is good for business. Even affluent retailers will use the national economic crisis to jettison as much as 25 percent of what they consider dead wood and cities they feel from their New York and Chicago viewpoints have little future.

Berry said it is important to focus on sales rather than sales tax. Berry’s vision is to increase retail sales, and therefore, sales tax collected by people who really want to shop in Enid.

He is recommending specific actions he said will bring Enid into the new world economy by refining and implementing the city comprehensive plan and additional strategies.

He is recommending obtaining demographics prepared by recognized retail industry consultants. Those reports would include:

• Retail leakage reports

• Retail space with recruitment/retention analysis and success probability

• Missing brands and products analysis

• Missing retail store analysis

• Consumer market survey

• Enid sales per square foot by SIC code

• Determine trade areas and target improvements

• Inventory of successful long term strategies

• Restraints and self help programs

• Help Enid recruit brands to existing stores and new stores where they are needed

• Develop retail sales projection programs to more accurately predict future sales on an Enid basis

Berry also has talked for a long time about infrastructure improvements, and he continues to say they are important, specifically the U.S. 412 and U.S. 81 corridors.

He also recommends the MAPC implement the comprehensive plan, with immediate changes in certain codes and development regulations.

Another part of the plan is for aggressive municipal participation in all federal “stimulus” packages, such as the one available through the Department of Housing and Urban Development, Oklahoma Department of Transportation stimulus program.

His final report will focus on a public-private partnership to improve retail sales and by doing that, sales tax. It will cost both the public and private sector, but will have immediate visible and financial payback, he said.

“We are going to recommend the city take a one-time portion of economic development funds to shore up the city’s repetitive income source of ‘sales tax,’by completing the recommendations by June 30, 2009,” Berry said. “We don’t feel this risks economic development as Enid has no available work force at the same time American industry is in flux and certainly not expanding.”

Berry also recommended an increased and stable sales tax to permanently fund economic development and other city programs.

MAPC study session begins at 5 p.m. with the regular meeting at 6 at city hall, 401 W. Garriott. Both are open to the public.