Michigan Retailers Association Survey Reports Sizable Decrease in October over September Sales
Michigan Retailers Association today reports that October 2022 sales decreased over September 2022.
The October Retail Index survey came in at 48.9, a steep dip from September’s 61.5. Forty-five percent (45%) of Michigan retailers reported a sales increase over September. Thirty-nine percent (39%) noted a decrease, and 16% 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 momentum we saw in September slowed into October,” said William J. Hallan, President and CEO of the Michigan Retailers Association. “Retailers rely on Q4 sales to make or break their year. As you map out your Thanksgiving weekend shopping list, look to local stores first before you send your money to an out-of-state retailer with no ties to Michigan.”
The seasonally adjusted performance Index is conducted by Michigan Retailers Association (MRA) in cooperation with the Federal Reserve Bank of Chicago’s Detroit branch.
Promising 3-Month Outlook Predicted
Forty-five percent (45%) of retailers predict their sales will continue to rise through January, but 26% said they expect their sales to decline. Twenty-nine percent (29%) anticipate no change. That results in a 65.0 Index rating, a favorable rise over last month’s prediction Index rating of 59.5, and a positive indication for high sales activity over the next three months and into 2023.
“These next few weeks into the end of the year are vital for retailers. To see a drop in October sales over September should be a rallying call for shoppers to visit local stores this holiday season,” said Hallan.
NRF Thanksgiving Weekend Forecast
According to the National Retail Federation, an estimated 166.3 million shoppers will make purchases during Thanksgiving weekend. In 2021, an estimated 158.3 million were expected to shop over the holiday weekend, thus increasing year-over-year by 9.0 million shoppers.
Support Local
As retailers head into Black Friday, Small Business Saturday and Cyber Monday in the next few days, MRA encourages all shoppers to support their local stores and Buy Nearby. If shoppers redirected just 10% of their out-of-state purchases to a Michigan-based store, it would add more than 16,000 new jobs and Michigan would gain $2.2 billion in gross economic output.
The national unemployment rate rose to 3.7% in October, compared to 3.5% in September. Last year, the national unemployment rate was 4.6%. Michigan’s unemployment rate rose to 4.2% in October, compared to 4.1% last month. Last year, Michigan’s unemployment rate was 5.4%.
