TRI-CITIES -- At Kennewick's Ranch & Home store, co-owner Bill Dress said every department, from sporting goods to clothes and footwear, has seen an increase in customer demand.
"We've got a lot of community support," he said.
Most Tri-City businesses reported stronger sales in the first three months of this year compared to 2010, the state Department of Revenue said.
Benton County businesses saw a 9 percent gain compared with last year, reaching about $653 million in state taxable sales during the first quarter of 2011. Franklin County saw an overall growth of almost 5 percent to $232 million in taxable sales.
In the Tri-Cities, Richland businesses saw the most growth, with a 14 percent increase, or about $209 million, in taxable sales.
Kennewick sales were up by almost 6 percent, or about $351 million, while Pasco saw steady retail sales, with 0.3 percent growth, or about $194 million.
Part of Richland's growth in retail sales could be attributed to McCurley Integrity Dealerships opening McCurley Integrity Honda in Richland in April 2010, said Gary Ballew, Richland's economic development manager.
But he suspects the increase also was caused by people being more willing to spend money. Locals were concerned by the national economy and that influenced some spending, he said.
Increased retail sales means additional sales tax revenue for cities, Ballew said. Retail sales tax is one of the three major revenues for cities, along with property tax and utility taxes and fees.
Clothing and shoe stores in both counties saw an uptick in sales, with Benton County businesses reporting a 3 percent increase and Franklin County businesses experiencing 52 percent growth.
At Kennewick's Treasure Tree Consignment Boutique, managers have seen sales in its women's consignment clothing grow compared with last year. Carie Starke, co-manager of the store, said that partially could be attributed to the store changing locations from Ely Street near Highway 395 to Marineland Village.
The clothing store has seen an average of up to 40 new customers a month, she said. And it has begun planning sales about two months ahead and providing more notice to customers.
Computer and software sales also saw a boost -- by almost 18 percent in Benton County and 11 percent in Franklin County.
At The Tech Store in Richland, owner Lowell Eberle said his customers have been bringing in computers for repair rather than buying new.
He estimates repair work has increased by more than 25 percent compared with last year. When people don't have the money to buy a new computer, then they get it fixed, Eberle said. He expects the repair trend will continue as long as the economy stays tough.
Sporting goods, toy and hobby and craft stores saw a gain of almost 22 percent in Benton County and a drop of 33 percent in Franklin County.
Toy sales stayed steady, like at Aunt Franny's Toys in Richland. Owner Frances Finfrock said the 11-year-old toy store is on par with previous years.
One of the more popular toys right now is the stomp rocket, which sells for about $17, she said. A person playing with the rocket stomps on an air bladder, which sends the rocket 100 to 200 feet.
Other popular toys include wooden trains and blocks, Playmobil and Melissa & Doug, a brand of relatively inexpensive wooden toys, she said.
Other areas that saw gains included gas stations and convenience stores, which reported increases of almost 9 percent in Benton County and 7 percent in Franklin County.
Sales of motor vehicles and parts were up nearly 25 percent in Benton County and 19 percent in Franklin County.
Retail sales overall grew in both counties, with Benton County businesses reporting increases of 8 percent and Franklin County businesses seeing 5 percent growth.
Construction taxable sales dipped by about 12 percent in Franklin County while they rose 17 percent in Benton County in the first three months of this year compared to 2010 .
Lower construction-related taxable sales wasn't surprising to Rick White, Pasco community and economic development director.
White said residential, industrial and commercial projects that have received permits in Pasco reached a lower total value so far this year compared with last. As of June, Pasco saw $74 million in investment through construction projects, compared with $86 million for the same time period in 2010.
But if 2010 is taken out of the mix, White said 2011 so far is the highest it's been since 2007, before the values started to dip.
White attributes part of the difference between 2010 and 2011 to the federal tax credit for first-time home buyers, which was offered during the first part of 2010.
And commercial and industrial projects seem to be having a difficult time getting financing, he said.
Construction was the hardest-hit area for sales tax in the Tri-Cities, Ballew said. In Richland, residential and commercial construction slowed with the recession.
But that has begun to pick up, he said.
-- Kristi Pihl: 582-1512; kpihl@tricityherald.com
