If WalletHub Study is Correct Retailers in Elk Grove, City Coffers Could Enjoy Merry Holiday Season

November 14, 2017 |

If the findings of a study released today prove to be correct, retailers catering to Elk Grove Holiday shoppers and city coffers could enjoy a healthy shopping season.

In a report released by WalletHub.com, if Elk Grove shoppers stay within a series of budgetary guidelines, they could be in the top 15-percent nationally of recommended budget for Holiday shopping expenditures. In a survey of 567 American cities, Elk Grove was ranked 60th.

In determining the ranking, WalletHub assessed an appropriate budget using "five key characteristics of the population, such as income, age, and savings-to-monthly expenses ratio." Applying these factors, WalletHub said Elk Grove individuals on the average could budget $1,223 for Holiday expenditures, which is ahead of the National Retail Federation's estimate of $967 for 2017 individual Holiday spending.

At the top of the list was the Chicago suburb of Naperville, Illinois which the study said could afford a budget of  $2,381 for Holiday shopping. At the bottom of the list was Flint, Michigan with a recommended budget of $69.

Among other area cities on the list were Roseville, 127th with a budget of 900; Rancho Cordova, 364th with $571; and Sacramento, 389th at $541. 

According to WalletHub analyst Jill Gonzalez, Elk Grove ranked relatively high based on the average resident's income, age, debt, savings, and expenses. 

"The average resident has a very high monthly income of $7,658 and monthly expenses of $5,098, as well as savings of $7,848. These figures allow the Elk Grove's residents to enjoy a higher budget than about 90 percent of the rest of the country," Gonzales said. "Because of that, the local economy should get more of a boost this holiday season."

Given that Elk Grove and other California municipalities are highly dependent on sales tax revenues to fund city services, if these shoppers patronize retailers in Elk Grove, a robust Holiday shopping season could help bolster city finances. Likewise, if the city experiences strong sales tax growth during the 2017 shopping season, it could hamper justifications for placing a sales tax increase, which the city is currently exploring, on next year's ballot.