Clark County businesses experienced a 5.56 percent decline in sales in 2Q

Clark County’s retail businesses saw sales drop 5.56 percent, to $500.2 million, in the three months ending June 30, according to figures released this week by the Washington state Department of Revenue.

They reported $529.7 million in retail sales during the same period in 2007. The drop in second-quarter retail sales followed a nearly identical decline in the first quarter. Total retail sales in Clark County added up to $957.8 million for the first half of 2008, down from $1 billion in sales during the first half of 2007.

Statewide retail sales also declined, though not as much. Washington registered a 3.5 percent second-quarter decline.

Clark County building supply, furniture and new car sales all suffered two-digit declines in the second quarter, which did not surprise Jon Creedon, owner of the Vancouver Ford/Hyundai/Suzuki dealership near state Route 500 and Andresen Road. Creedon said new car sales typically track closely with new home sales.

“People don’t like to park ‘Old Betsy’ in the new driveway,” Creedon said.

He expects vehicle sales to begin turning around slowly in 2009, a situation that could be helped along by falling oil prices that translate to lower prices at the pump.

“That improves the resale value” of trade-ins and less fuel-efficient vehicles, Creedon said. “It means the value of their car has gone up appreciably.”

Spending on luxury items, such as jewelry and fine dining, has dropped off in Clark County as well, the state report said. That’s because consumers are reining in on expenses, said Pamela Lindloff, a retail expert with NAI Norris Beggs & Simpson commercial real estate in Vancouver.

“So much of it comes down to discretionary spending. If gas prices go up or you have a job loss, you have less money to spend,” Lindloff said.

Cami Joner covers retail. She can be reached at 360-735-4532.