The positive outlook for St. Clair County is supported by census statistics that state that the median family income is on the rise in St. Clair County.

Many shoppers will be heading out Friday to take advantage of after Thanksgiving sales and while retailers make cuts to improve their bottomline in a struggling economy, it appears that St. Clair retailers will do well while others in the greater Birmingham area might follow the national trend of trying to keep afloat during a recession.

“We’re looking at a very severe downturn in retail sales which is going to produce some serious shortfalls at the county and state and city levels for operating funding for the next year,” said Dr. Robert A. Robicheaux, professor and Chair of the Department of Marketing and Industrial Distribution at the UAB School of Business.

He said that the City of Hoover—which is arguably the largest retail city in the greater Birmingham area—is already reporting a downturn in retail revenue this year. “That’s pretty disconcerting for [its] community leaders,” Robicheaux said.

Retailers in St. Clair County on the other hand are fairing well and have been for sometime, which guarantees good bottomlines for city funds.

A recent study by the International Council for Shopping Centers stated: “Despite this year’s economic uncertainty, St. Clair County’s growth has created opportunities for an increase in retail development. Since retail sales taxes are the lifeblood of local education and capital improvements, these developments will play a major role in improving the overall quality of life in St. Clair County.”

In 2008, there have been announcements for two major developments in the Gateway Towne Center in Moody and the Grand River project in Leeds. As a cooperative venture, the City of Leeds, the City of Moody and St. Clair County worked together to make the Bass Pro Shop a reality.

There have also been numerous retail groundbreakings across the county such as Pell City’s Bankhead Crossing, Springville announcing a Best Western hotel, Moody opening a new Tractor Supply Store and there are future plans for hotel projects off their interstate corridor. Also, Moody has recently announced the construction of a new, larger CVS store. Margaret recently had a grand opening for its new commercial strip center and the Town of Steele has passed a development agreement with Love’s Travel Center, which will provide additional restaurant options for their citizens as well as increase their overall sales tax revenue by 30 to 40 percent

Dr. Robicheaux said that St. Clair County in particular is one of the strongest in terms of population growth feeding retail growth in the state. He and his team of students have commissioned several studies on the retail impact of the cities of Moody and Pell City and are beginning one for Springville.

“All three of those communities—despite the recession and despite the downturn in the economy—are looking at really strong opportunities for retail expansion, Robicheaux said, “That’s going to persist for the foreseeable future.”

The positive outlook for St. Clair County is supported by census statistics that state that the median family income is on the rise in St. Clair County with a 32 percent increase since 1999. The national average has only risen 14 percent since then. The St. Clair Economic Development Council said that because of the work of local leaders, St. Clair County’s median family income will soon be above the national average.

In the coming month, it will most likely be the those workers who reap the benefit of price cutting at retail stores in the area, since shops will be slashing prices in order to get customers to flock to their store for Christmas gifts and seasonal items.

But while shoppers benefit, retailers are expected to take one on the chin in 2008.

“I think we’re heading toward a very disastrous Christmas for retailers,” Dr. Robicheaux said. “Retailers are really struggling and this last quarter of the year is when if they don’t do well then they don’t make any profits in the year, because until the fourth quarter, their overhead costs are so great and they don’t break even until then. So this is shaping up to be one of the more disappointing holiday seasons in years in retailing in recent memory.”

Last week Congressman Spencer Bachus (R-6th District) told the News-Aegis that he believes that the banking system as a whole is partly to blame for a prediction of dismal holiday sales.

Earlier this week Bloomberg News reported that the “U.S. Government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, which is half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago. The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg.”

Congressman Bachus said of the overall problems, “Our economy is facing challenging times, but as Americans we have always met challenges. One problem for consumers and businesses is the tight availability of credit, which is affecting car financing, bank loans and credit cards. Another is a lack of confidence and people are rightly concerned. And when there is anxiety, they pull back on their spending–it’s natural and even prudent. Gas prices are coming down and that helps. Commodity prices are dropping which could give us relief on food prices and other staples and put money back in people’s pockets.