Area businesses reap benefits of stimulus checks

As the first economic stimulus checks reached Americans in March, Slumberland manager Jon Stephens was excited about the possibilities the money would bring to the Cape Girardeau furniture store.

Four months later, the stimulus checks have resulted in increased sales for the business at 1809 N. Kingshighway. Bedroom furniture and sofas are among items customers have purchased with the checks, he said.

"When people first started receiving their money, we had some of them come into our store and mention that they were looking forward to spending some of the checks here," Stephens said. "And for the most part, people have been coming in and purchasing furniture at an increased rate."

"In our business, there are cycles of ups and downs," he said. "Even though the economy isn't the strongest, the checks have given folks a break from spending what they would have on gas in exchange for something they want, like a new bed or television."

Passed by Congress in January, the economic stimulus package has delivered checks ranging from $300 for filers who report an income of at least $3,000 to $1,200 for married couples with a tax liability of at least $1,200.

The full effect of stimulus payments has yet to show up in sales tax receipts due to a difference between the time a retailer collects the money and when it reaches a local government, but Cape Girardeau and Jackson officials anticipate a favorable effect from the stimulus checks.

Cape Girardeau Mayor Jay Knudtson cited a recent report on the city's sales tax receipts, which are up 0.1 percent for the year, compared to those surrounding areas whose revenue is down since 2007.

"In Cape Girardeau we feel very fortunate to be bucking local, state and national trends pertaining to sales tax revenue, and we fight the fight every day to make sure our cash registers are humming," Knudtson said.

Jackson Mayor Barbara Lohr said while most residents would have preferred to spend the money on nonessentials like out-of-town vacations, much of that money has been spent on essentials such as gas and groceries.

"Originally, I felt that consumers would be able to spend the money on items that would help the economy," Lohr said. "But it boils down to people have to buy what they need instead of want they want. I suspect that our businesses here in Jackson will benefit from whatever folks spend their money on, even if it isn't a new big-screen TV."

One such business that has benefited is Jackson Tire Center, which has seen an 8 to 10 percent increase in sales since Jan. 1 compared to the same period last year.

"In the past, people may have waited a few months to get some repairs on their vehicles," said assistant manager Dusty Rhodes. "But since the checks were issued, people have been using that money to pay for the necessary car work. For us, we have felt the effects of the stimulus payments in a positive way."

Julie Duenne, assistant vice president and branch manager of Capaha Bank in Cape Girardeau, said most of her customers have either spent their checks or deposited them to pay off debt.

"I think you will see consumer spending increase due to the checks for a brief time, which was the whole idea behind the program," Duenne said. "However, I do also believe most consumers feel good about receiving a little money from Uncle Sam, but know that it's just a Band-Aid during these tough economic times."

bblackwell@semissourian.com

335-6611, extension 137