Gross Taxable Retail Sales – April
- The “Top Ten” represent 45% of the market.
- The “Top Twenty” represent almost 60% of sales.
- State-wide April increases were 13.3%
- The “Top 10%” gainers include:
- South Jordan +86.3%
- Lehi +50.1%
- Riverton +45.1%
- The “Bottom 10%” include:
- North Salt
- Holladay -14.1%
- Midvale -9.2%
- Payson -5.3%
- Woods Cross +2.6%
April 06 Retail Sales – Top 45 Cities (Large
Monthly Filers Only)
Congratulations to Cottonwood Heights! This is
the first time they have appeared in the Tax
|Rank (March Rank)
||City||April 2006 (000)
06/05||Mkt Share March 06 (% of Total)
|34 (31)||North Salt
Tesco plans Las Vegas supermarkets
Tesco’s unusually stealthy US expansion strategy
is about to take it to Las Vegas, one of the fastest
growing cities in the US, in addition to its previously
reported plans to open stores in the Los Angeles and
Phoenix areas next year.
The US expansion comes as the UK’s biggest
supermarket chain, which already takes £1 in every
£8 spent on the British high street, powers ahead in
its home market. Verdict Research, the retail
analysts, predict it will become Britain’s biggest non-
food retailer by the end of the year, overtaking Argos
The US push is part of a double-pronged effort to
expand in its domestic market and abroad.
Commercial real estate brokers say the chain is
looking for sites in Las Vegas for its planned Tesco
Fresh & Easy range of mini-supermarkets. It has also
registered its two US subsidiaries – Tesco Stores
West and Tesco Stores Holdings – in the city’s home
state of Nevada, as well as in California and Arizona.
In Arizona, Tesco was so keen to keep its arrival
quiet that it placed newspaper advertisements in
May announcing “Buttoncable West”, a Delaware
registered corporation, was about to start a “retail
sales” business in the state. A few weeks later,
Buttoncable changed its name to Tesco Stores West.
Tesco announced its US plans in March, after
conducting comprehensive market research that
included a trial store in a warehouse in Los Angeles
that it passed off as a film set.
Tesco has not said how many stores it plans to
open in the US and declined to comment on its
strategy for Las Vegas.
The company said in March it will invest £250m
($476m) a year to fund its US expansion, a budget
that Goldman Sachs analysts estimate should enable
it to open as many as 200 stores a year. Las Vegas,
with 1.7m people, is expanding at a rate that has
made Nevada the fastest growing state in the US.
Two phone books are printed every year to keep up
with the city’s rapid rate of expansion.
Las Vegas is witnessing intense competition for
new customers between its existing traditional
supermarkets – dominated by Kroger and Safeway –
and Wal-Mart, the largest US retailer, which now has
about 20 per cent of the overall US grocery market.
Tesco’s strategy is based on creating a range of
small stores on sites of about 14,000 sq ft based
loosely on its Tesco Express concept in Europe. The
stores will stock private label and branded goods, as
well as perishables and prepared foods.
Source: The Financial Times, 2006
US hospitals for the 21st century
US hospitals rank among the triumphs of 20th-
century technology and organization. Yet they must
change drastically to adapt to the needs of the
US hospitals are under fire: recent reports have
highlighted medical-safety issues, the uneven quality
of emergency rooms, high costs, and lengthening
wait times. Simultaneously, these institutions face
increasingly severe economic pressure as their
competitiveness against more focused alternatives
declines and health care consumers become more
value conscious. To overcome such difficulties, the
industry must make some big moves. Many hospitals
will have to reorganize around a narrower range of
clinical activity, differentiate themselves on quality
and service, think more like the retailers they are
fast becoming, and overhaul their relationships with
How did US hospitals—a triumph of 20th-century
technology and organization—reach the point where
such dramatic changes are needed? Like the
vertically integrated businesses that emerged
contemporaneously early in the last century,
hospitals once exploited economies of scale and
scope by combining and managing a specific set of
assets, such as pharmacies and imaging
departments, clinical laboratories, and emergency
rooms. Thanks to the professional nursing and
aseptic procedures of hospitals, they were just about
the only places that offered high-quality medical
treatment. For physicians, practicing in hospitals was
far more productive than traveling door to door. In
addition, the standard of excellence hospitals are
known to adhere to, as well as their inspirational
mission made them frequent beneficiaries of
philanthropy, which in turn helped them acquire
expensive cutting-edge technologies that further
enhanced the care they offered.
Little noticed were the seeds of future problems.
Hospitals never really had to depend upon their most
direct customers—patients—for revenue. The
generosity of philanthropists and volunteers, the rise
of employer-sponsored insurance in the 1930s and
1940s, and the emergence of government-sponsored
insurance in the 1960s all insulated hospitals from the
need to compete for patients. Today hospitals
are "price takers" for nearly 50 percent of their
revenues, which is subject to the political whims of
the federal and state governments. Hospitals are also
required to see, evaluate, and treat virtually any
patient who shows up, solvent or not.
Furthermore, physicians were productive because
hospitals put a great deal of capital at their disposal.
Yet these hospitals didn't enforce standardized and
efficient approaches to the delivery of care. At many
hospitals today, doctors still bear only limited
economic responsibility for the care decisions they
make. Little wonder that it is often they who
introduce expensive—and sometimes excessive—
nonreimbursable technologies or that hospitals not
only suffer from declining margins but are also
performing less well than other players in the health
care value chain.
These structural weaknesses have created
openings for more focused providers that increasingly
offer superior value: lower prices, higher quality, and
better service. Stand-alone ambulatory service
centers, diagnostic-imaging centers, endoscopy
suites, and specialty hospitals have become powerful
competitors. More are surely on the way as the
equity markets (both public and private) and
physicians themselves pour capital into the sector.
At the same time, payers and consumers are
becoming much better at recognizing and acting on
price and value differences. Patients have much more
at stake with the advent of high-deductible health
plans, whose growth has accelerated as a result of
the introduction of health savings accounts (HSAs).1
Enrollment in US consumer-directed health plans
(CDHPs) of all types seems likely to exceed seven
million people by the end of 2006. And a growing
number of "infomediaries"—from payers to
independent Web-based services to state
governments—now help consumers make more
informed decisions by providing information in areas
such as hospital prices, quality, and service.
Knowledgeable, value-conscious patients are
beginning to view some hospitals as less effective
places to seek care compared with many of their
alternatives, including physicians' offices.
Hospitals can't respond to this shifting
competitive and consumer landscape without tackling
the underlying structural issues. A vital first step is
to compete on the basis of strengths in specific
clinical service lines rather than relying on the power
of full integration. In areas such as cardiology,
neurosciences, and oncology, it's impossible to
sustain excellence with just a few patients a day, so
all but the largest hospitals will need to rationalize
their activities and become more focused: only with
a critical mass of patients for individual service lines
will they achieve competitive quality at reasonable
cost. Several large payers are already nudging
hospitals in this direction by adopting a "center of
excellence" approach, which allows these payers to
inform patients about (and reward them for using)
preferred institutions. Hospitals that resist organizing
around a narrower set of clinical services will
probably enter a downward performance spiral as
they experience greater difficulty recruiting top
physicians, paying for the best specialty-service and
equipment providers, exploiting economies of scale,
and implementing best practices consistently. But
hospitals that do these things well will also capture
direct financial value from the quality improvements.
When hospitals become more focused and their
patients more value conscious, they will start to
resemble companies in other competitive service
industries. Like cutting-edge retailers, they must
identify the characteristics of the patients they can
best serve and attract those people by creating
specific value propositions. Indeed, since different
patients want different types of improved services
(such as private rooms, catered meals, and more
attentive nursing), hospitals must understand what
customers want and how they want it.2 Along with
players in many other competitive service industries,
hospitals are likely to find that a key source of
differentiation is the consistent execution of frontline
tasks, such as adhering to clinical protocols,
maintaining efficient patient flows, administering
drugs safely, and coordinating disparate activities
The importance of execution will extend beyond
clinical activities. Hospitals that can't or won't quote
prices before delivering service will drive away
selective, value-conscious consumers. Hospitals with
weak skills and systems for extending credit or
making collections at the point of service may have
higher bad debts. Better execution will require drastic
behavioral changes from physicians, nurses,
administrative personnel—and senior executives,
whose jobs are becoming more complex. Better
training, performance metrics, and compensation
structures will all be needed to help hospitals
Given the central role of physicians in operational
and resource allocation decisions, it will be difficult to
effect change without building a much stronger
cultural and economic alignment between physicians
and hospitals. For many physicians—particularly
clinical specialists in the service lines where hospitals
hope to differentiate themselves—the traditional
arm's-length and more recent competitive
relationship must give way to some sort of formal
employment or to gain-sharing schemes such as joint
ownership of equipment or even whole facilities.
Furthermore, performance criteria for physicians must
shift. In a world in which transparent quality, service,
and prices help patients choose places to seek
treatment, metrics such as admissions volumes will
become less relevant. The more important
considerations will include a physician's adherence to
well-established standards of medical practice,
willingness to embrace teamwork, and bedside
manner, as well as a selection of services and
equipment that strikes the right balance between
cost and performance.
Changes of this magnitude may seem a tall order,
but they are not impossible. US hospitals still
represent the medical world's greatest accumulations
of technological, human, and financial resources. If
hospitals improve their focus, execution,
responsiveness to consumers, and internal alignment,
they can better their economic performance and
make an even bigger contribution to health care in
the 21st century than they did in the 20th.
Source: McKinsey & Co.
"April Retail Sales - City Rankings"
Improve Minority Businesses!
- Minority Business Enterprise Center
- POSTED: 7/26/2006
- FUNDING SOURCE: Dept. of Commerce
- ELIGIBILITY: For-profits and nonprofits
- $ AVAILABLE: $7,490,000
- GRANTS AVAILABLE: 28
- MAX GRANT SIZE: N.A.
- DEADLINE: 9/20/06
- CONTACT INFORMATION: 888-324-1551
- DESCRIPTION: Funds to operate a program that
will provide business consulting to minority-owned
businesses in selected communities.
|Economic Snapshot – FY 2006
The Utah Tax Commission estimates that, based
on preliminary fiscal year 2006 revenue collections,
actual revenue will exceed the February Consensus
Forecast by $355.5 Million, with over three quarters
of this amount coming from individual and corporate
income taxes. Final numbers for FY2006 will not be
available until early September.
Source: Utah State Tax Commission, 7/19/06
- Consumer Credit (G19)
- Consumer credit increased $10.3 billion or
5.7% at an annual rate in June. The latest increase
in consumer credit was driven by gains in both
nonrevolving and revolving credit. The latter
continues to post strong growth as high interest
rates undermine home equity borrowing.
- Global Business Confidence
- Business confidence is sliding once again,
under pressure from developments in the Middle East,
but it remains consistent with a global economy that
is expanding at its potential. This comes after
sentiment in July recovered much of its May and June
losses. Sales have been unable to sustain their
improvement through the first three weeks of July.
Investment has also led the decline while hiring has
held up better. Pricing pressures remain intense,
although they too have moderated. North American,
Asian, and South American business confidence is
about as equally as optimistic. European business
confidence continues to lag. High-tech firms are the
most positive. Non-auto manufacturers also remain
optimistic. Vehicle manufacturers, retailers,
entertainment and educational firms are negative
- FOMC Meeting
- After 17 consecutive rate hikes, the FOMC
held the fed funds rate steady at 5.25%, citing
slowing growth, including a weakening in the housing
market and the lagged impact of higher interest rates
and energy prices. While noting higher core inflation,
the statement said this is likely to moderate given
slower growth. The FOMC maintained its tightening
bias, referring to “additional firming that may be
needed”. The decision was not unanimous, with one
member favoring a 25 basis point increase in the fed
- Chain Store Sales
- Chain store sales fell 0.2% in the week ending
August 5, according to the ICSC. Year-over-year
growth rose to 2.5%, the best growth in four
- MBA Mortgage Applications Survey
- Mortgage demand increased last week, with
the market index rising 4.9% in the week ending
August 4. Purchase applications increased 3.4% and
refinance applications increased 7.1%.
- International Trade (FT900)
- The nominal U.S. trade deficit in goods and
services narrowed in June. In June, the U.S. trade
deficit came in at $64.8 billion, $0.2 billion less than
May’s revised $65.0 billion, according to the Bureau
of Economic Analysis. In June, exports increased
more than imports. The goods deficit with China,
however, widened again to $19.7 billion in June.
- Federal Budget
- The unified deficit for July was $33.2 billion,
on track with the CBO’s preliminary estimate.
Through the first ten months of fiscal year 2006 the
U.S. has run a unified deficit of $240 billion, 21%
smaller than at the same point last year.
- Job Openings and Labor Turnover Survey
- The U.S. labor market created 4.76 million
new jobs in June, while 4.55 million left their jobs.
Both the number of hires and separations fell. As a
result, the hire rate fell to 3.5% from 3.7% in May
and the separation rate fell to 3.4% from 3.6% in
May. Meanwhile the number of openings increased to
4 million, suggestive of difficulty finding qualified
- Oil and Gas Inventories
- Crude oil inventories fell 1.1 million barrels for
the week ending August 4, according to the Energy
Information Administration, which was above
expectations of a 0.8 million barrel decline. Gasoline
inventories also fell sharply by 3.2 million barrels for
the week, which was far above expectations of a 1.1
million barrel draw. Weaker gasoline imports and
strong demand growth weighed on gasoline
inventories. Refinery utilization edged up slightly. This
report will have a clearly bullish impact in prices.
|This Weeks Leads
- Le Creuset Store and Le
Creuset Outlet Store
- Schiller Stores, Inc. trades as Le Creuset Store
and Le Creuset Outlet Store.
- The 38-unit chain operates locations nationwide.
- The stores, selling cast iron cook wares, occupy
spaces of 900 sq.ft. to 2,500 sq.ft. in freestanding
locations, lifestyle, outlet and specialty centers and
- Plans call for six openings nationwide during the
coming 18 months.
- For details, contact: Vikki Jackson 114 Bob
Early Branch, SC 29916
- Bubbles, Haircuttery and Salon Cielo and
Spa. Bubbles and Salon Cielo and Spa
- Ratner Companies trades as Bubbles, Haircuttery
and Salon Cielo and Spa. Bubbles and Salon Cielo and
Spa operate 40 locations throughout FL, MD, NC,
Philadelphia, PA and Washington, DC.
- The hair
salons and spas occupy spaces of 1,200 sq.ft. to
1,600 sq.ft. in malls and strip centers.
opportunities are sought throughout the existing
markets during the coming 18 months. Typical leases
run five years with five-year options. Haircuttery
operates 1,000 locations throughout DE, FL, GA, IL,
IN, MD, NC, NJ, NY, PA, SC, VA, WI, WV and
- The hair salons occupy spaces
of 1,100 sq.ft. to 1,400 sq.ft. in strip centers. Plans
call for 75 openings throughout the existing markets
during the coming 18 months. Typical leases run five
years with one, five-year option.
- For details,
contact John Colvin, 1577 Spring Hill
Vienna, VA 22182; 703-269-5280, Fax 703-269-
5418, Email: email@example.com Website:
- Consolidated Theatres
- Consolidated Theatres, a 26-unit chain operates
locations throughout GA, MD, NC, SC, TN, VA and
- The movie theatres occupy spaces of 40,000
sq.ft. to 100,000 sq.ft. in mixed-use and power
- Plans call for four locations east of the Mississippi
during the coming 18 months.
- For details, contact:
David Orr, Consolidated Theatres , 5970 Fairview
Road, Suite 700 , Charlotte, NC 28210
704-643-7740, Fax 704-643-1884
- Fudgery, Inc. trades as Fudgery at 26 locations
AL, FL, IL, LA, MA, MD, MO, NC, NY, NV, PA, SC, TN,
TX and WA.
- The confection shops occupy spaces of 600
sq.ft. to 1,400 sq.ft.
in entertainment, outlet and tourist centers and
- Growth opportunities are sought nationwide
during the coming 18 months.
Typical leases run five years. A vanilla shell is
- For more information, contact:
119 Green Street Northeast
Gainesville, GA 30501
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