For Immediate Release

March 22, 2006

LANSING — Michigan retailers are looking forward to spring with greater optimism, despite February sales that returned to lower 2005 levels.

February’s Michigan Retail Index, a survey project of the Michigan Retailers Association (MRA) and Federal Reserve Bank of Chicago, found the biggest jump in short-term sales forecasts since last fall. The industry’s overall sales performance for the month, however, fell to pre-January levels.

“February’s lower sales appear to confirm our view that January’s stronger performance was fueled by redemption of gift cards and represented an extension of the holiday shopping season,” said MRA Chairman and CEO Larry Meyer. “But retailers are finding optimism in two things: spring is here and recent sales numbers are no worse than last year’s despite continued gloomy economic news.”

The Index found that 36 percent of retailers increased sales in February over the same month last year while 45 percent recorded declines and 19 percent saw no change. The results create a seasonally adjusted performance index of 47.5, down from 54.3 in January and closer to December’s 47.7.

In addition, 64 percent believe their sales will increase for March–May, while 12 percent forecast declines and 24 percent project no change. The results create a seasonally adjusted outlook index of 72.0, up significantly from 62.6 in January.

Central Michigan retailers posted the best overall performance, with 50 percent ringing up higher sales. They were also the most optimistic, with 75 percent forecasting short-term gains.

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.