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April sales improve slightly, optimism grows The late arrival of spring weather and an
increase in sales have Michigan retailers projecting continued improvement
through mid-summer. Retailers’ level of optimism rose to
its highest point in five months during April, following an uptick in
sales for the second consecutive month, according to the monthly Michigan
Retail Index. The Index is a joint project of the Michigan
Retailers Association (MRA) and Federal Reserve Bank of Chicago. For the May-July period, 62 percent expect
to increase sales from the same period last year, while 15 percent forecast
declines and 23 percent project flat sales. The results create a seasonally
adjusted outlook index of 68.9, up from 61.0 in March and the highest
since November 2002. The monthly sales performance index for April
rose to its highest level in nine months. Thirty-six percent of retailers
increased sales from the same month a year ago, while 50 percent experienced
declines and 14 percent reported no change. The results create a seasonally adjusted
performance index of 43.0, up from 39.2 in March and the best since July
2002. “The arrows continue to move in the
right direction, which is welcome news,” said Larry Meyer, MRA chairman
and CEO. “Although most retailers are still not
seeing the kind of improvement they need, these small and steady increases
are boosting their optimism for late spring and early summer.” Northern Michigan retailers had the highest
level of optimism in the state, with 71 per cent projecting increased
sales for the May-July period. They were followed closely by Central Michigan
retailers at 69 percent. Eastern Michigan retailers were the least
optimistic, at 38 percent. Jewelry retailers led the industry in April,
with 48 percent reporting increased sales. Furniture and applicance retailers
were second at 39 percent. General merchandise retailers trailed the field in April at 22 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/news.html. The website includes figures dating back to July 1994.
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