The interviewer would like to know if they will need to compete with other companies when it comes to hiring you. It always puts a little bit of fire under the hiring manager if they are aware that you are actively looking for a new position. Tell the interviewer about your search so far without disclosing every single detail.
"I am keeping an eye out for viable positions. Although I am not in the final stages with any other company, I am actively seeking a new position."
"I am in the process of exploring opportunities at companies that appeal to me; however, I am choosy about where my applications go. I am very excited about this particular opportunity and look forward to the next round of interviews."
"I have been passively seeking a new role for the past few weeks. I am putting feelers out there, but it needs to be a position where I can see a long-term fit, like this one!"
"I am applying to other jobs, and am actively interviewing. I do have a strong interest in your role and am wondering what your timeline looks like for the next round of interviews?"
"I have put out a few application the past couple of days and expect to be getting some calls in the next day or so. There are a lot of retail opportunities open this time of year."
"It's safe to say that it's a candidate's market right now, with so many available opportunities. With that said, I am only applying to the best roles with companies with which I can grow. I look forward to further discussing your opportunity here at Company ABC."
"I have not applied to any other roles at this time but will be taking a closer look at other openings in the next few days. When I heard there was a position open with your district I had to jump on the opportunity to apply!"
"I am keeping an eye out for viable positions. Although I am not in final stages with any other company, I am actively seeking a new position."
"I am actively seeking a new position; however, your organization is my top choice. I like that your company puts their employees and safety at the forefront of everything you do. If offered a position here, I would be thrilled."