For Immediate Release
November 22, 2006
LANSING — Friday’s “official start” of holiday shopping finds Michigan retailers with rising expectations about what promises to be a highly promotional season offering consumers tremendous bargains and values.
More retailers are getting a jump on the season by opening on Thanksgiving day or at midnight Thursday. In fact, many have been working steadily for weeks to lure early shoppers, in hopes of achieving the industry’s overall projection for a 4.5-percent sales increase over last year’s lackluster performance. The Michigan Retailers Association estimates holiday shoppers will spend some $15 billion in the state during November and December.
The latest Michigan Retail Index, a joint project of MRA and the Federal Reserve Bank of Chicago, found that nearly 26 percent of retailers started their holiday decorations, advertising and other promotions earlier than last year. Less than 5 percent said they started later.
“Every retailer wants this crucial season to get off to the best start possible,” said MRA Chairman and CEO Larry Meyer. “Friday may be the festive Opening Day, but the season already has begun in earnest. Shoppers will benefit from the tough competition.”
The Index also found that retailers’ optimism grew despite some slippage in October sales.
It showed that 36 percent of retailers increased sales in October over the same month last year, while 48 percent recorded declines and 16 percent saw no change. The results create a seasonally adjusted performance index of 44.2, down from 50.6 in September.
In addition, 48 percent believe their sales will increase for November–January, while 25 percent forecast declines and 27 percent project no change. The results create a seasonally adjusted outlook index of 69.3, up from 63.4 in September.
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.
