Hundreds of Black Friday shoppers at the Mercedes outlet mall, as most Valley cities see higher sales tax revenue

Jessica Garza woke up at 5 a.m. on Black Friday to start her holiday shopping at the Rio Grande Valley Premium Outlets. 

Garza, a native of Mission, said it was her first time at the outdoor mall in Mercedes and that she typically drives nearly 5 hours to San Marcos Premium Outlets or more often prefers to shop online. 

But the in-person deals were not nearly as deep a discount as she remembers door busters being in years past —. no more than 50% off clothing. 

“It’s not as good as it used to be. It turned out to be okay, it wasn’t great,” Garza said. “Before there were huge lines, people waiting everywhere, just to get that really good deal. We don’t see that anymore. Especially with our economy and prices going up so high. It’s really hard to find anything that’s really worth it anymore.” 

Ultimately, she did pick up $5 pajamas and a few Christmas gifts for herself and her children, but she expects to stay home for Cyber Monday deals next year instead. 

But the parking lot at the Rio Grande Valley Premium Outlets was still full of vehicles by 9 a.m. Friday, many with Mexican license plates. 

Hundreds of shoppers carried bags with American brand names, and some stores still had lines out the door to limit the number of shoppers inside at any given time. By mid-morning, more shoppers were driving into the parking lot, hunting for a spot. 

Retail shoppers at the Mercedes outlet mall generate significant revenue for the city’s coffers. In 2024, Mercedes was allocated $9.3 million in sales and use tax revenue, according to records from the Texas Comptroller. This year, the city collected $8.6 million from sales and use tax revenue so far. 

Next door to the outlet mall is a new retail plaza under construction. 

The Shops at Mercedes, a project of Merit Commercial Real Estate, is expected to be 250,000 square feet. A $32.7 million Marshalls will anchor the plaza and will include Burlington, Boot Barn, Rack Room Shoes, DD’s Discount, and Ross. 

Mercedes city leaders estimate the total investment over the next decade will be nearly $53 million – the bulk of which stems from property and sales tax revenue. 

In the past year, the Rio Grande Valley city with the most significant increase in local sales and use tax revenue was Port Isabel, which collected $3.9 million – a 15.3% increase from 2024. Edinburg saw a 12.9% increase in sales and use taxes, totaling $39.7 million for its coffers. 

Harlingen had a 5.3% increase for $33.4 million; Weslaco saw a 4.5% increase to $19.5 million; Mission had a 4.4% hike to $26.7 million, Pharr increased by 3.7% to $28 million, and McAllen hit $91.7 million – just shy of 3% increase.