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Retailers remain cautious about 2nd Quarter Michigan retailers remain cautiously optimistic
for sales growth in the 2nd Quarter, following a boost in overall sales
performance during March—the industry’s best showing since last
summer. The findings are contained in the monthly
Michigan Retail Index survey, a joint project of the Michigan Retailers
Association (MRA) and Federal Reserve Bank of Chicago. For the April-June period, 53 percent expect
to increase sales from the same period last year, while 18 percent forecast
declines and 29 percent project flat sales. The results create a seasonally
adjusted outlook index of 61.0, virtually unchanged from 61.2 in February.
“More retailers saw sales growth in
March, but they remain cautiously optimistic for 2nd Quarter performance,”
said Larry Meyer, MRA chairman and CEO. “Although economic uncertainties
remain, the positives include the end of the war in Iraq and warmer weather
that can unleash pent-up consumer demand.” In February, Michigan retailers said that
resolving the conflict with Iraq would do the most to stimulate consumer
spending. They also ranked stock market vitality and job growth high on
the list of factors leading to improved sales. Meanwhile, the monthly sales performance
index for February declined slightly from January. Twenty-seven percent
of retailers increased sales from the same month a year ago, while 61
percent experienced declines and 12 percent reported no change. The results
create a seasonally adjusted performance index of 34.3, down from 35.6
in January. 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/news.html. The website includes figures dating back to July 1994.
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