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Retailers jump-start holidays with promotions If it looked like stores started the holiday
shopping season earlier this year … it’s because many of them
did. Nearly one of every four retailers, or 24
percent, planned to begin holiday promotions earlier than last year, according
to the Michigan Retail Index survey of Michigan Retailers Association
(MRA) members. Only 5 percent planned to start later. “We expected this to be a huge promotional
season, even bigger than before, with retailers pulling out all the stops
to attract shoppers to their stores,” said Larry Meyer, MRA chairman
and CEO. “Retailers wanted to get this crucial sales period off to
a strong start.” Meyer pointed to another practical reason
for starting earlier: the six fewer shopping days this year between Thanksgiving
and Christmas. “With the shortened holiday shopping
season this year, retailers were forced to hit the ground running,”
Meyer said. “Doing more with less time to do it is always a challenge.” Stores’ sales performance climbed slightly
in October, according to the Index, a joint project of MRA and Federal
Reserve Bank of Chicago. It found that 30 percent of retailers reported
increased sales over the same month a year ago, while 56 percent said
sales declined and 14 percent reported no change. The results create a
seasonally adjusted performance index of 39.1, up from 39.0 in September. Audrey Kondziela, owner of The Basket Shop
in Petoskey, said that when the economy is bad, promotions are sometimes
not enough. “Yes, I had holiday promotions, but I can’t give
stuff away,” she said. “Consumers are so cautious right now
it would take a better sale than I can afford to run to draw them out.” Virginia Sears, owner of Ginnie’s Hallmark
Shop in Clio, echoes those remarks. “I ran holiday promotions two
weeks early this year in hopes of seeing some increased sales numbers,”
she said. “But I don’t know how much it helped. When the big
retail shops are already deep discounting, a little shop like mine is
not going to be able to compete.” Reports show that what retail stores sell
can make them more or less prone to ride the swells and dips of the state’s
economy. Specialty stores and establishments that carry exclusive and
popular products often remain safely above the fray of a tough retail
climate. “My store sells high-end personal care
and beauty items,” said Arthur Hahn, owner of Mulbury’s of London
in Grand Rapids. “The clientele are repeat customers who are not
particularly price conscious, so I am lucky in that respect. My sales
right now are stronger than last year at this time. I run holiday promotions
to generate new business, but I certainly don’t live and die by them.” The Index also found that 52 percent expect
to increase year-to-year sales for the November-January period and another
24 percent expect flat sales. The results create a seasonally adjusted
outlook index of 62.9, down from 63.5 in September. Retailers entered the holiday season expecting
gains averaging 3.7 percent, in line with national projections. Last year’s
holiday gains averaged 3.3 percent. Complete results of this month’s Michigan Retail Index - including data on sales, inventory, prices, promotions and hiring - are available at www.retailers.com/news/retailindex.html. The website includes figures dating back to July 1994.
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