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Retailers' projections rise for start of new year A last-minute shopping surge appears to
have helped retailers achieve their objectives for the holiday shopping
season. Michigan retailers had predicted a sales increase of 5 percent
over last year, in line with national projections of 4 to 6 percent. Michigan retailers’ holiday sales via
credit and debit cards increased 10.67 percent, based on same-store bankcard
sales for the 34 days between Thanksgiving and December 31 this year and
the 33 days last year. The period between Thanksgiving and Christmas Eve
saw an increase of 13.01 percent. Increased consumer use of bankcards over
cash and checks accounts for a portion of the overall increase, perhaps
as much as 4 percent, according to Larry Meyer, MRA chairman and CEO. “Sales came on strong in the last-minute
rush, plus there was an additional day this season,” said Meyer.
“Overall, it appears to be a good season for retailers—as good
or better than predicted.” Michigan retailers look forward to the start
of the new year with their highest level of optimism in four years. The Michigan Retail Index, a joint project
of the Michigan Retailers Association and Federal Reserve Bank of Chicago,
found in November that more retailers than at any time since late 1999
expected to increase sales for the three-month period from December 2003
to February 2004. Fifty-four percent projected increased year-to-year
sales for December-February, while 22 percent saw declines and 24 percent
predicted flat sales. The results create a seasonally adjusted outlook
index of 81.4, up from 74.8 in October and the best since 83.4 in December
1999. The spike in optimism came despite a falloff
in sales for November after two months of solid gains. Thirty-eight percent of retailers increased sales over the same month a year ago, while 47 percent saw declines and 15 percent reported no change. The results create a seasonally adjusted performance index of 47.2, down from 53.7 in October. Complete results of this month’s
Michigan Retail Index—including data on sales, inventory, prices,
promotions and hiring
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