LANSING – As retailers entered holiday shopping mode in October more than half expected higher sales than the year prior – 45 percent of them got their wish, according to the Michigan Retail Index.
The index, a joint survey from the Federal Reserve Bank of Chicago and Michigan Retailers Association, found along with the 45 percent, one in three retailers actually saw sales drop in October and 22 percent of retailer sales were stagnant.
That’s a slightly less rosier picture than the 54 percent of retailers who expected October through December to be gangbusters for their shops, based on the September index.
But because a slightly fewer number of retailers experienced sales decreases for the month, the October index stood at 58.3, up from September’s 57.9.
Index values above 50 generally indicate positive activity for the retail sector.
“There are a number of positives out there, including declining or stable gasoline prices, an improving unemployment rate and resilient consumer spending leading into the final twomonths of the year,” said James Hallan, MRA president and CEO. “The numbers suggest that consumers have already started their holiday shopping and could be on their way to meeting retailers’ and analysts’ expectations.”
Although Black Friday is just two days away, several retailers have announced Black Friday deals beginning Thanksgiving Day evening.
Looking ahead, 49 percent of Michigan retailers say sales will be robust from now through January, while about one in three expect no change and 19 percent predicted a drop in sales compared to last year’s holiday season.
Those figures put the index at 64.4, up from September’s index of 61.4.
This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com
a>>
