For Immediate Release

November 23, 2005

LANSING — Friday’s “official start” of the holiday shopping season finds Michigan retailers with improving sales and rising expectations despite major challenges.

The overall retail industry experienced one of its best months of the year in October, with sales and short-term projections both climbing, according to the monthly Michigan Retail Index, a joint project of the Michigan Retailers Association (MRA) and Federal Reserve Bank of Chicago.

“October’s improved sales couldn’t have come at a better time,” said MRA Chairman and CEO Larry Meyer. “Retailers want to generate some momentum going into the holiday shopping season. We all know the challenges out there, especially in light of Michigan’s economic troubles, but retailers are entering the season on an upbeat note.”

The Index survey found that 40 percent of retailers increased sales in October over the same month last year while 47 percent recorded declines and 13 percent saw no change. The results create a seasonally adjusted performance index of 48.4, up from 39.6 in September and the highest figure of the year.

In addition, 56 percent believe their sales will increase for November–January, while 21 percent forecast declines and 23 percent project no change. The results create a seasonally adjusted outlook index of 78.7, up from 64.5 in September and also the year’s highest mark.

Nineteen percent also indicated they had started their holiday promotions earlier this year, while 80 percent started the same time as last year.

In the September survey, Michigan retailers said they are projecting holiday sales gains averaging 5 percent, in line with national forecasts.

The Michigan Retailers Association is the unified voice of retailing in Michigan and the nation’s largest state trade association of general merchandise retailers.

Note: William Strauss, Senior Economist and Economic Advisor with the Federal Reserve Bank of Chicago, can be reached at 312.322.8151.