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Retail sees best first four months since 2000 Continued positive retail sales in April
helped Michigan’s retail industry post its best four-month period
since early 2000 while nudging up retailers’ optimism for a good
summer, despite rising gasoline prices. The Michigan Retail Index, a joint project
of the Michigan Retailers Association (MRA) and Federal Reserve Bank of
Chicago, found that 52 percent of retailers increased sales in April over
the same month last year, while 13 percent reported as-good sales and
35 percent recorded declines. The results create a seasonally adjusted
performance index of 56.7, down from 59.9 in March but the best April
since 1999. Furniture and appliance retailers led the industry during April, with 68 percent boosting sales over last year. “February and March of this year were
the best consecutive months rung up by Michigan retailers since the beginning
of 2000, and April’s results extend the current string,” said
Larry Meyer, MRA chairman and CEO. “Last July marked the start of
the turnaround, which continues to gain momentum. The big question is
whether gas prices above $2 a gallon will cut into retail sales this summer.” Retailers’ projections for the next
three months rose slightly in April. Sixty-eight percent forecast better
sales for May–July over the same period last year, while 22 percent
project as-good sales and 10 percent expect declines. The results create
a seasonally adjusted outlook index of 72.3, up from 70.2 in March and
three points ahead of April 2003. March sales were somewhat stronger than April
sales, resulting in the best 1st Quarter performance since 2000. An early
Easter may account for the difference from last year, when a late Easter
meant better April sales. For March, the Index found that 52 percent of retailers increased sales over the same month last year, while 14 percent reported as-good sales and 34 percent recorded declines. The results create a seasonally adjusted performance index of 59.9, up from 53.1 in February and the best for any month since March 2000. 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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