What is a Trade Pull Factor and what does it mean for retail in Finney County?
A County/City Trade Pull Factor (CTPF) is a measure of the relative strength of the retail business community. The CTPF is computed by dividing the per capita sales tax of a county by the statewide per capita sales tax. A CTPF of 1.00 is a perfect balance of trade. The purchases of county residents who shop elsewhere are offset by the purchases of out-of-county customers. CTPF values greater than 1.00 indicate that local businesses are pulling in trade from beyond their home border. Thus, the balance of trade is favorable. A CTPF value less than 1.00 indicates more trade is being lost than pulled in, that residents are shopping outside the community. This is an unfavorable balance of trade.
Counties/cities with a trade pull factor greater than 1.00 are regarded as regional retail centers. Each contains one or more cities that draw shoppers into their communities. They generally have large national chain stores that provide goods that may not be available in neighboring counties. Many also have higher education institutions or regional and local businesses that bring people into the community.
The Kansas Department of Revenue's "Annual Report of Trade Pull Factors and Trade Area Captures," issued in November 2009, ranks Garden City seventh of the 25 cities listed as 1st Class Cities in Kansas, with a pull factor of 1.31. From these 25 cities, 71 percent of all retail sales tax collections are accounted for as well as being home to 55 percent of the state's population in fiscal year 2007.
Garden City had a pull factor of 1.31, with Fiscal Year Collections 2007 at 24,864,305; Liberal, 1.28 with 18,315,936; and Dodge City, 1.14 with 20,889,212.
Finney County Economic Development Corp. recognizes the importance of retail not only to assist with community growth by pulling outside revenues, but as an increasingly useful tool for recruitment with primary job employers as an increased quality of life standard. After reviewing the growth of new and expanding retail businesses in the community over the last three years, the numbers show that Finney County continues to recruit new retail as well as promote the entrepreneurial spirit with 14 new and 13 existing businesses that have expanded their services over the last couple of years with success into our community.
Depperschmidt is president of the Finney County Economic Development Corp.