Retailers report second consecutive month of sales decrease
Michigan Retailers Association today reports that November 2023 sales fell for the second consecutive month, landing at 41.0 on the 100-point Retail Index. Sales dropped from October 2023’s Index value of 43.1. Last November, the Retail Index came in at 52.6.
Thirty-three percent (33%) noted an increase over October sales, fifty-four percent (54%) of Michigan retailers surveyed reported a sales decrease and 13% reported no change.
The 100-point Index provides a snapshot of the state’s overall retail industry. Index values above 50 generally indicate positive activity, the higher the number, the stronger the activity. The seasonally adjusted performance Index is conducted by Michigan Retailers Association (MRA) in cooperation with the Federal Reserve Bank of Chicago’s Detroit branch.
“Michigan retailers are worried,” said William J. Hallan, President and CEO of the Michigan Retailers Association. “They’re seeing the grip tighten on consumer spending and a decrease in overall store traffic. As the holiday season approaches, let us remember the profound impact we can make by choosing to Buy Nearby to support our local businesses. Each purchase made locally is not just a transaction; it’s an investment in the heartbeat of our community.”
Three-Month Optimism Declines
When asked about their 3-month sales outlook, twenty-nine percent (29%) of retailers predicted their sales will continue to rise through February, and 49% said they expect their sales to decline. Twenty-two percent (22%) anticipate no change. That results in a 50.0 Index rating, a steep decrease from last month’s prediction Index rating of 62.7, and a year-over-year drop from 56.7 in 2022.
“This is a wake-up call to Michigan residents. Finish your Christmas shopping in our nearby retailers before it’s too late.”
Regional Thanksgiving Weekend Statistics
Surveyed Michigan retailers reported Black Friday to be their strongest day of sales following Thanksgiving through Cyber Monday. Small Business Saturday was the next strongest. Overall, retailers reported sales were moderately down over the extended holiday shopping weekend, many seeing a decrease in more than 5%.
National Thanksgiving Weekend Statistics
The National Retail Federation reported a record number of shoppers made purchases during the Thanksgiving holiday weekend, with 200.4 million consumers. The number surpassed expectations of 182 million and rose over the 196.7 million shoppers in 2022. Their report included a breakdown of in-store shoppers versus online by day. Black Friday saw the most shoppers with 76.2 million shopping in-store and 90.6 million shopping online.
Unemployment Rates
The national unemployment rate dipped to 3.7% over October’s 3.9%. Last year, the national unemployment rate was 3.6%. The unemployment rate for Michigan has not been announced for November 2023. Last year, the rate came in at 4.4%.
