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News and thoughts from our staff

 
Amazon sales hit new records

Amazon sales hit new records

By Brittney Sherman

Have you noticed an increase in Amazon delivery trucks this past week? Amazon is currently delivering millions of items sold on Prime Day, a two-day sales event on its e-commerce platform that took place July 16 and 17. American consumers spent a total of $14.2 billion this year, an 11% increase year-over-year. The largest product categories included electronics, furniture and back-to-school items. As a whole, United States online retail spending is projected to hit $1.2T resulting in a potential 9.8% increase as compared to 2023.

 
The top 100 retailers

The top 100 retailers

By Brittney Sherman

Each year the National Retail Federation (NRF) publishes a list of their anticipated top 100 highest performing retailers. After 6-months into the 2024 year, their predictions are still holding true. The top 20 retailers continue to perform and hold their status, reflecting the same top 20 retailers outlined in last year’s 2023 top 100 list; think Walmart, Target, Home Depot, Costco, etc. Grocers represent 6 spots in the top 20, many of which enjoyed sales increases year-over-year. Electronics companies experienced a decline in revenue due to the downside of the surge in electronic purchases during the pandemic.

Read the full NRF article HERE.

 
Investors double down on Extended Stay hotels

Investors double down on Extended Stay hotels

By Brittney Sherman

Hotel deals are expected to increase in the last half of 2024 with a focus on adding mid-market and extended stay hotels to portfolios. Extended stay hotels are leading hotel deals and investment by yielding the highest performance measures and profit margins in the industry.

A Morgan Hill Hotel Industry Snapshot-

There are 14 lodging facilities in the City of Morgan Hill not including the Downtown Hotel MOHI currently under construction and the Holiday Inn Express currently in the permitting process. The Residence Inn by Marriott and Extended Stay America are both extended stay properties. Morgan Hill collects an 11% Transient Occupancy Tax (ToT) on every overnight hotel stay, less than 30-consecutive nights. The overall ToT collected accounts for 5% of the General Fund Budget which pays for services such as fire, police, parks, roads, etc. There are four vacant parcels in Morgan Hill where a future hotel could be developed by right.

 
2024 Sales tax gets a slow start

2024 Sales tax gets a slow start

By Brittney Sherman

Morgan Hill sales tax generation year-over-year was down 4.5% largely due to a decline in recreational auto sales and a misallocation in the Business and Industry Group back in 2023. When compared to this same quarter last year, the State was down 0.2% and the Bay Area was down 2.2%, however Santa Clara County was up 2.5%

Read the full report HERE.

 
Presentation to the Rotary Club of Morgan Hill

Presentation to the Rotary Club of Morgan Hill

By Brittney Sherman

The Economic Development Team was honored to be a guest presenter at the July 17, 2024 Rotary Club of Morgan Hill Luncheon. Director Matt Mahood took a deep dive into the four key areas outlined in the Economic Development Blueprint: jobs/industry, retail, tourism, and healthcare.

Review PowerPoint Part #1 HERE

Review PowerPoint Part #2 HERE

 
Gen Alpha consumer trends

Gen Alpha consumer trends

By Brittney Sherman

Every week approximately 2.5M Gen Alphas are born resulting in this group of future adults’ spending power being greater than that of Millennials and Gen Zers combined. To best capitalize on this group of future consumers, food and beverage businesses should focus on sustainable practices, healthy choices, brand integrity, digital-first marketing, and clean labels.

Read the full article in the USA Food Navigator HERE.

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