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MainPlace Mall <br />Net Fiscal Impact and Economic Analysis <br />December 2018 <br />Page 12 of 33 <br />3.0 Retail Market Trends <br />3.1 Local Retail Trends <br />Santa Ana has seen slow retail growth since the "Great Recession" started a decade ago. In <br />2008, the City had an estimated $3.9 billion in taxable sales reported in their Annual Financial <br />Report. By 2010, this figure had dipped to $3.1 billion, and It has only been in the last few years <br />that retail sales have exceeded their pre -Recession levels ($4.1 billion in 2017). <br />Part of this slow growth Is potentially indicative of changing retail trends and the growth of the <br />digital economy. Today's consumer is using online websites such as Amazon.com for <br />purchasing clothing, shoes, electronics, appliances, and more. Because of this, even the most <br />vibrant of communities are susceptible to the closure of major department stores and the sales <br />tax revenues that accompany them. <br />Orange County and the City of Santa Ana are by no means exceptions to these trends. <br />Countywide retail vacancy rates, as reported by Kidder Mathews, have slowly increased over <br />the past three years rising from 3.6% to 3.9%, A trend which has been felt particularly amongst <br />several of Orange County's key shopping centers. Across the county, major sites such as the <br />Brea Mall, Laguna Hills Mall, MainPlace Mall, and more have seen major tenants such as <br />Macy's and Sears close their doors. The cause for these closures are by no means local, but <br />instead the result of broader global retail trends. <br />3.2 National Retail Trends <br />Santa Ana, like most cities, will face many unavoidable challenges as the global retail market Is <br />affected by the continued growth of the digital economy. In order to remain competitive in this <br />evolving retail environment, the City will need to recognize and understand how global trends <br />continue to shape the new retail economy. <br />Foremost among these trends has been the growth of e-Commerce sales within the retail <br />Industry. As seen in Exhibit 3.2.1, from 2014 to 2017 e-Commerce sales grew by 70% and are <br />projected to grow an additional 100% within the next four years. <br />Reflective of this growth, Exhibit 3.2.2 shows that the number of digital buyers has also <br />Increased significantly in the past four years. Since 2014 the number of digital buyers has <br />increased 340 million, <br />The analyses, projections,assumptions, and any examples presented herein are for <br />kosingl�, Illustrative purposes and are not a guarantee of actual and/or future results. Tax analyses <br />are projections only. Actual results may differ from those expressed In this analysis. <br />75D-547 <br />