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Published April 16, 2008 11:58 pm -

Gas prices have impact on retailers


By Cathy Spaulding
Phoenix Staff Writer

High gas prices may have contributed to slower retail sales around Muskogee over the past few months, but area retailers remain hopeful.

They’re hopeful for the same reason: High gas prices.

“We’re optimistic as gas prices rise, local shopping will become more and more popular,” said Darrell Hamby, chairman of the Greater Muskogee Area Chamber of Commerce retail committee. “Online shopping and local shopping are growing in popularity because of the gas prices.”

Rising gas prices prompted a 0.2 percent rise in retail sales nationwide for March, the U.S. Commerce Department. The rise comes after a 0.4 percent decline in February. However, remove a 1.1. percent jump in sales at gas station and retail sales would have been flat, the Commerce Department said.

Muskogee retail sales for the first quarter went down 2 percent, Hamby said.

“Gas prices took a bite out of that,” he said. “And then they raised food prices. It was a double dip to fill your tank and also fill your tummy.”

Hamby, owner of Tumble In Furniture and Appliances, said he expects retail sales to fare better in the second quarter when people start spending the Economic Stimulus rebates due from the federal government.

“That tax relief will help a lot of people,” he said. “That will put $600 in a single person’s pocket. We already have people coming into the store looking for $400 to $600 items.”

Hamby said he does not expect high gas prices to keep shoppers from surrounding communities from coming to Muskogee. He said only about half of Muskogee shoppers live in the ZIP codes 74401, 74402 and 74403.

Also, the opening of a Wal-Mart SuperCenter in Checotah in March has not had an effect on Muskogee shopping, he said.

“That SuperCenter does not sell appliances,” Hamby said.

Mike Ebert, manager of Muskogee’s Wal-Mart SuperCenter, said sales have been what he projected and that the opening of the Checotah store has not had much effect.

Michael Allison, manager of Ross Dress For Less in the River City Plaza, said sales have been going well over the past few months.



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