STRICTLY BUSINESS: LEGISLATION COULD OFFER SALES TAX BREAK ON CLOTHES

A new strip mall is in the planning for a location in front of the Jackson Wal-Mart.

"We don't know just what stores will be there," said Ken Parrett, president of the Jackson Chamber of Commerce. "But land has already been acquired, and construction could be under way in the near future."

There's some additional interest in the Cape Girardeau/Jackson retail market area.

The Mattiace Co., of Jackson, Miss., which recently acquired the Dyersburg, Tenn., mall, has been watching Cape Girardeau County area with interest.

"We're always watching a growing area," said Bob Flower of Mattiace. "We focus on expansion in a number of areas, and stay positioned to take advantage of any opportunity."

Mattiace has some large operations in the Jackson, Miss., area ranging from two 65,000-square-foot areas to three projects over 300,000 square feet, including the Home Depot Metro Station at 400,000 square feet.

The immediate Cape Girardeau area has been "under watch" for the past decade. The area has outpaced the economy of Missouri during the past 10 years with multi-million dollar expansions, including a $500 million facility addition Procter & Gamble and $100 million expansion by BioKyowa. Also included have been expansions and remodeling by giant retailers Wal-Mart, Kmart, Schnucks Markets and Albertson's grocery. The area is also home to other big retailers like Sam's Club, Lowes, Target, and the Westfield Shoppingtown Center, which includes JCPenney's and Famous Barr.

The population growth in the "lower east central-Cape region," which includes Washington, Ste. Genevieve, St. Francois and Cape Girardeau has been about 9.4 percent, compared to 6.7 percent for the rest of the state.

Maybe it's time to move to the Show Me state

Overall, Missouri was the third "least expensive" state in which to live during the final quarter of 2000, according to a survey compiled by the American Chambers of Commerce Research Association (ACCRA).

Missouri's larger metropolitan areas had cost of living (COL) indices that were close to the national average in the third quarter, but no city had an index over 100.

Missouri cities reported as follows: Columbia, 97.1; Joplin, 89; Kennett, 92.1; Poplar Bluff, 88.5; Springfield, 92.5; St. Joseph, 92.9; and St. Louis, 96.7.

Kansas City, Cape Girardeau and Nevada did not report to ACCRA in the fourth quarter survey.

During the final reporting period of 2000, cities in 46 states and the District of Columbia reported cost-of-living expenses. Missouri had the third-lowest cost of living in the United States at 92.7, down seven-tenths of a percent from the previous quarter's 93.4. This change was attributed to declines in grocery, utility, transportation and miscellaneous goods and services costs. Of the states reporting, only Arkansas and Oklahoma had lower cost-of-living indices.

As the economy slows across the nation, Missouri should remain a strong competitor for new economic development opportunities as lower utility and transportation costs make it more affordable to do business in the state, said Joseph L. Driskill, DED director.

In general, the most expensive areas of the country continue to be Alaska, New England states, California, and Nevada, while the least expensive areas continue to be the Midwestern and Southern states.

Chambers of Commerce in cities across the nation participate in ACCRA's survey on a volunteer basis. No cities in Hawaii, Maine, New Jersey or Rhode Island participated in the fourth-quarter survey.

ACCRA's Cost of Living Index has been published since 1968. The items in the index have been chosen to reflect the different categories of consumer expenditures, such as the cost for groceries, transportation, health care, housing, utilities and miscellaneous goods and services. Weights assigned to relative costs are based on government survey data regarding expenditure patterns for mid-management households. All items are priced in each place at a specified time and according to standardized specifications.

Sales tax holiday' for clothing proposed

The Missouri Chamber of Commerce supports legislation approving a "sales tax holiday" for out-of-state clothing customers in Missouri border towns.

There are two legislative proposals out there:

* HB 172 sponsored by James V. Froelker, R-Gerald, and

* HB 186 sponsored by Rep. Quinsy Troupe, D-St. Louis.

Froelker's proposal has drawn a lot of comment. It would allow a four-day tax holiday for all retail sales of clothing valued at less than $100 during the month of August.

Quincy's bills would create a sales and use tax holiday for clothing purchased before the start of the 2001-2002 school year.

Froelker's bill would have a positive impact in Missouri's border cities, say chamber officials. A similar bill was implemented in Texas and the results have been applauded by members of the retail industry in that state.

Froelker's tax exemptions, which amount to 3 percent, would apply to state tax only, but local governments would be allowed to exempt the items also, through a local ordinance.

We're assuming that Cape Girardeau, by being a "border town" could take the exemption, which could present an interesting contrast.

A pair of giant Wal-Mart operations are located within five miles of each other. One of them is located in Cape Girardeau, the other in Jackson, which could translate into a 3 percent savings for the Cape, but not for the Jackson store.

We'll be keeping an eye on these bill.

Meanwhile, the nation's largest retailers said their March sales figures fell short of expectations in another sign of a worsening slowdown in consumer spending.

A department store, Dillard's, with stores at Carbondale, Ill. and Paducah, Ky., was hit hard. But even usually strong performers like discounters Wal-Mart and Target suffered. Wal-Mart warned that its first-quarter profits will probably fall short of the 32 cents per share predicted by analysts.

Sears, Roebuck and Co. said first-quarter profits will be 53 cents per share, below the 57 cents projected.

March historically has been one of the least important months in the retail year, but the weak sales suggest stores will need to increase markdowns, further hurting profits.

The Commerce Department reported last week that retail sales edged down 0.2 percent in March, a weaker showing than expected.