A plan to boost retail sales in Castle Rock by offering monetary rewards to consumers is being met with enthusiasm and has propelled local businesses just ahead of the holiday shopping season.
Rock Your Dollar, a one-month program to stimulate town revenues and get consumers back into stores, has far exceeded expectations. The program was so well-received that Castle Rock Town Council decided to allocate another $75,000 in town funds — in addition to the initial $100,000 — to keep the program running through the end of September.
Although the concept was introduced in Lamar earlier this year, Castle Rock was the first town to take it to such a large scale. The results speak for themselves — 2,925 rebate cards worth $50 each were handed out to shoppers who redeemed $500 or more in sales receipts at town hall and a temporary location on Perry Street.
That means more than $1.46 million was spent in stores during September. However, officials will not know the full extent of the impact until November, said Charles Montoya, the town’s finance director.
Shoppers have come from Colorado Springs, Denver, Parker and all over the Front Range to spend money on big-ticket items and take advantage of the free money being offered. The gift cards, loaded with Castle Rock Cash, can be spent at most businesses throughout the town during October.
Managers at restaurants and stores like Lowe’s, Home Depot, and Douglas Lumber & Building Supply, as well as several tire outlets, reported a noticeable spike in customer traffic. But some smaller retailers who had high expectations were disappointed with the results — including a gift shop and an auto repair business.
Labor costs were not eligible, but many did not know that vehicle parts qualified.
Still, Rock Your Dollar had the desired impact, and shoppers were clearly happy with the idea of being rewarded for making purchases while helping out the local economy.
Debbie Demis, who was at town hall redeeming receipts Oct. 1, said she was out of town during much of September and did not know about the program until she returned Sept. 30. Her husband and son, however, racked up $3,000 worth of purchases during the Rock Your Dollar program.
Each resident over the age of 18 is eligible for $100 in rebates.
The Demis family, which has lived in Castle Rock for more than 22 years, will collect $300 in free money after purchasing new doors for their home, car tires and clothes, among other items.
The idea of stimulating sales for Castle Rock shop owners was an added bonus for Debbie Demis.
“I think it promotes people to buy things locally instead of going to Denver or Colorado Springs,” she said. “It’s a good idea.”
Rock Your Dollar was so successful that town council members have already discussed the possibility of rolling out the program again next year, said Kim Mutchler, community relations manager for Castle Rock.
“It has been great for us. I hope that the merchants will continue to see [a positive sales trend],” she said. “Now people are going to start spending their cash cards.”
Some shoppers even killed two birds with one stone by utilizing Rock Your Dollar and Rock Your Renovation, a separate stimulus program that waived building permit fees for home upgrades and remodels.
“They are cashing in on both projects,” Mutchler said.
The final tallies for September will not be available until November because of delays in reporting. Officials will compare sales receipts with figures from the same month last year. Castle Rock typically collects between $1.8 million and $1.9 million in sales tax revenue per month.
Montoya is optimistic that final numbers will reflect a jump in new sales.
“This has been one of best programs for Castle Rock ever,” he said.
Breakdown Your Dollar (as of Oct. 1)
2,925 rebate cards given out
$146,250 in rewards
$1.46M in sales town-wide