Napa’s economy continues to show signs of growth as city shopping center sales rose 5.4 percent in the third quarter of 2013 compared to the same quarter in 2012, according to recently released city data.
Out of 10 shopping zones, the Trancas/Jefferson corridor, which includes Napa Crossing North and the Staples/Ross strip mall, and the Soscol Gateway had the largest increases in quarterly sales — 11.6 percent and 14.2 percent, respectively.
Three shopping centers saw decreases: South Napa Marketplace, Napa Premium Outlets and the GrapeYard/Jefferson area, according to data gathered from MuniServices.
Downtown, which registered a 4.4 percent sales gain, remained the city’s largest business zone with quarterly sales of $46.4 million. Soscol Gateway, which includes Auto Row, was second with $33.8 million in sales, according to city figures.
“I think the numbers show steady recovery in most areas,” said Robin Klingbeil, economic development project coordinator with the city of Napa.
The city regularly estimated gross sales of shopping zones based on sales tax revenue to the city. While the data are already about six months old, “it looks like they are fairly consistent with the slow, but steady increase as the local economy continues to recover,” she said.
Restaurants continue to be the largest category citywide with 18 percent of sales tax revenue, followed by service stations, new auto sales and department stores, wrote Klingbeil.
Compared to the third quarter of 2012, there were slight but steady gains seen in both the building materials sector and in new automobile sales, she said.
“The Trancas/Jefferson corridor continues to experience revenues due to the new stores at Trancas Crossing and from the strength of its grocery-anchored centers at Jefferson Square and Northwood Shopping Center,” she said.
Klingbeil added she believes the Soscol Gateway increase “reflects vehicle sales, which is up in all areas, regional, statewide.”
Kevin Massie, president of Napa Ford Lincoln in the Soscol Gateway, said he was “very happy” to hear about the zone’s overall increase in taxable sales of 11.6 percent.
“We saw a substantial increase in our new vehicle sales last year,” Massie said. Sales rose double digits in 2013, he said. “It was a great year.”
He attributes that jump to an improving economy and easier conditions for buyers to get auto loans.
“We’re seeing a more positive view from customers in terms of how they see their jobs and their income. That’s directly reflected in car sales,” said Massie.
Massie believes that once the new Shops at Napa Center debuts in downtown, the local economy will take off even further. “Let’s get the new stores built” and taxable sales will “soar,” he said.
Matt Connolly of Strong & Hayden is leading leasing efforts at the GrapeYard center. The GrapeYard and Jefferson shopping corridor saw a 8.5 percent decline in sales in the third quarter.
Connolly said part of that drop could be attributed to the Verizon store, which relocated to Napa Crossing North in 2013.
“From what I understand the other tenants are doing well,” said Connolly. He cited Sushi Haku, a restaurant that opened at the former Pasta Prego site, as an example of the center’s health.
The overall increase in taxable sales in Napa is great, Connolly said.
Looking at Napa as a whole, Connolly said, “people are shopping. It’s showing that we’re serving our community better. People can stay in Napa and shop here versus going out of town.”
When Napa Crossing South opens, with tenants Marshalls, HomeGoods and Michaels, “that’s only going to help increase sales tax and keeping people in town,” said Connolly.
“It creates a positive story to show those national retailers” and helps explain why it makes sense for new retailers to choose Napa, he said.
The report also covered economic activity at a non-shopping area, Napa Valley Commons, formerly Napa Valley Corporate Park, which had a 24.2 percent increase in estimated gross sales.
Klingbeil said the significant jump in the corporate park activity is due to a one-time sale from one business which she declined to name for confidentiality reasons. “The one-time revenue was related to the purchase of both technical hardware and software,” she said.
Klingbeil said that the Corporate Park area, with estimated gross sales of $19.6 million, is seeing increased revenues due to the upturn in the construction sector, with business-to-business sales and related contractor services on the rise, and from hospitality and wine-industry serving businesses located in the park.
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