LANSING, MI -- (MARKET WIRE) -- March 28, 2007 -- Michigan retailers' spring sales forecasts
improved slightly after a tough February, according to the Michigan Retail
Index, a joint project of Michigan Retailers Association (MRA) and the
Federal Reserve Bank of Chicago.
Retailers' three-month outlook rose by nearly a point on the Index, while
the industry's February sales performance fell by 3.5 points.
"Unseasonably cold weather hurt sales by keeping some shoppers at home and
discouraging others from buying spring apparel. It was the same story in
Michigan as it was across the nation," said Larry Meyer, MRA chairman and
CEO.
Nationwide retail sales, excluding autos, fell by 0.1 percent in February,
the U.S. Commerce Department reported. It was the worst performance since
last October.
The Michigan Retail Index showed that 36 percent of retailers increased
sales in February over the same month last year, while 40 percent recorded
declines and 18 percent saw no change. The results create a seasonally
adjusted performance index of 46.9, down from 50.4 in January.
In addition, 47 percent believe their sales will increase for March-May,
while 19 percent forecast declines and 28 percent project no change. The
results create a seasonally adjusted outlook index of 57.7, up from 56.8 in
January.
North Michigan retailers fared the best in February, with 49 percent
ringing up better sales. Of the 10 MRA members from Gaylord who responded
to the online survey, 72 percent reported higher sales.
The Michigan Retailers Association is the unified voice of retailing in
Michigan and the nation's largest state trade association of general
merchandise retailers.
Note: William Strauss, Senior Economist and Economic Advisor with the
Federal Reserve Bank of Chicago, can be reached at 312.322.8151.
Michigan Retailers Association/Federal Reserve Bank of Chicago
Michigan Retail Index
February 2007 results
Index figures dating to July 1994 are available at
www.retailers.com/news/retailindex.html
February Performance
Retailers reporting increased, decreased or unchanged sales, inventory,
prices, promotions and hiring compared to the same month a year ago
(numbers in parentheses indicate January results)
% Increased % Decreased % No Change Index* Responses
Sales 36 (36) 40 (37) 18 (22) 46.9 (50.4) 183 (207)
Inventory 33 (25) 23 (32) 34 (31) 52.0 (45.7) 176 (193)
Prices 26 (32) 10 ( 8) 57 (50) 53.5 (56.3) 181 (197)
Promotions 24 (32) 6 (10) 59 (47) 53.8 (57.0) 173 (194)
Hiring 9 ( 9) 12 (17) 67 (62) 43.6 (40.5) 171 (191)
Outlook for Next 3 Months
Retailers expecting increased, decreased or unchanged sales, inventory,
prices, promotions and hiring compared to the same period a year ago
(numbers in parentheses indicate January results)
% Increased % Decreased % No Change Index* Responses
Sales 47 (45) 19 (22) 28 (27) 57.7 (56.8) 183 (204)
Inventory 29 (29) 20 (25) 42 (35) 44.7 (42.1) 177 (194)
Prices 32 (29) 6 ( 6) 54 (55) 57.0 (55.7) 180 (197)
Promotions 37 (41) 4 ( 6) 49 (42) 59.3 (60.0) 176 (194)
Hiring 12 (15) 8 (11) 71 (61) 46.3 (43.7) 177 (189)
February Sales Performance & Outlook for Next 3 Months, by Region
(the first number indicates sales performance for the month; the number in
parentheses indicates outlook for the next three months)
% Increased % Decreased % No Change
North 49 (48) 36 (22) 12 (27)
West 36 (57) 36 (13) 21 (25)
Central 34 (44) 47 (12) 19 (40)
East 33 (33) 56 (11) 11 (56)
Southeast 32 (48) 46 (28) 20 (22)
Contact Information: Contact:
Tom Scott
517.372.5656
Email Contact