Contact: Colleen Roche (212) 788-2958, Deirdra L. Picou (212) 788-2971
Bernadette O'Leary (212) 312-3523 (EDC)
Based on preliminary reports from surveyed retailers, the New York City Economic Development Corporation (EDC) estimates that sales during the first day of the week-long sales tax exemption for clothing and footwear are significantly higher than on a typical Saturday in January.
Beginning yesterday and continuing through January 24, New York City shoppers do not have to pay sales tax on clothing and footwear purchases under $500. The promotion is an effort, spearheaded by Mayor Giuliani, to boost retail sales and encourage shoppers to spend in New York City.
Mayor Giuliani is traveling to all five boroughs throughout the week to further encourage residents to take advantage of the savings. Yesterday he kicked off the week at the Manhattan Mall at 33rd Street and 6th Avenue and the Staten Island Mall at 2655 Richmond Avenue, and today he went shopping at the Queens Center Mall at 90-15 Queens Boulevard.
"Saturday's surge in retail activity is proof that our call for a sales tax reduction can truly make a difference," Mayor Giuliani said. "New Yorkers experienced the advantage of shopping in New York City, rather than traveling to New Jersey to save money. Ultimately, a sales tax reduction will not only make life better for New York City residents, it will also add thousands of jobs to our local economy."
Businesses surveyed included large and small, high-end and discount retailers throughout the City, and major shopping centers. Most reported dramatic increases in shoppers and sales volume, with some retailers reporting sales up 100 percent from a typical Saturday in January. Smaller retailers that typically depend on foot traffic for customers reported a smaller increase in sales. Most small stores surveyed attributed this to the extremely cold weather.
The Staten Island Mall reported that sales were up substantially. Several retailers reported it was comparable to the Christmas season. Kings Plaza in Brooklyn noted that it was "unbelievably busy" with "long lines at the cash register," and Bayside Plaza in Queens said that its parking lots were 100 percent full by 2 p.m.
"Sales are fabulous! Unbelievable! I expect to double the sales plan for the day," said Greg Cabral, of Today's Man in Lower Manhattan.
Retailers surveyed noted an early morning surge in shoppers, with customers forming lines outside store doors before opening. Many retailers noted that the volume of customers was up and that these customers seemed to spend more money than during an average shopping trip on a similar Saturday in January.
"There is definitely a surge in the air. I credit the Mayor for being so receptive to business concerns," said Joel Feigenbaum of Century 21. "We had lines of people waiting outside before the store opened."
Fran Reiter, Deputy Mayor for Economic Development and Planning, said, "The increase in shopping in just this first day of the sales tax exemption week is evidence of the increased economic activity that the City would see if the sales tax on clothing was reduced. This decrease would save New York City families hundreds of dollars a year and create millions of dollars in new spending."
"New York City led the nation in retail activity at Christmas. What it all boils down to is lower prices, more economic activity and more jobs. This is a positive way to start off the new year," said EDC President Charles Millard.
In his State of the City Address earlier this month, Mayor Giuliani outlined his plan to push for a 2 percent reduction in City sales tax on clothing and footwear under $500, and called for the State to match the City's reduction, bringing the tax down to 4.25 percent. It is estimated that such a reduction would create 8,400 jobs and $590 million in direct and indirect spending in New York City.
EDC is the City's primary vehicle for economic development services. Using its real estate and financial resources, EDC helps develop businesses and create jobs throughout the five boroughs.