Retail.

• Author: Langland, Shane
• Position: 2006 Alaska Forecast

With all of the opportunities in our state for resource development, not to mention the apparent growth in tourism, based on early bookings, I am very positive about the coming retail trade for 2006. As wealth, employment and tourism grow in Alaska, so does the retail trade. While I have concerns about the disposable income of Alaskans, due to the increasing cost of energy, I still feel strongly that employment growth and the growth of our economy will outpace the cost of energy.

Some concerns about the coming year for retail, however, do revolve around the cost of energy. Freight costs have grown dramatically over the last 12 months, due to the cost of fuel, and will most likely not decrease in the near term. This puts many of our smaller Alaska retailers at a distinct disadvantage when competing with the larger stores. The larger the retailer, the better break they get on freight...