Even With Dip, August's Retail Sales Higher Than Last Year, Experts Say
September 24, 2024
Amanda Forrester / news@whmi.com
Retail sales in Michigan dipped in August, but are stronger than this time last year, a press release from the Michigan Retailers Association said.
August sales were at 44.9 on the 100-point Retail Index, compared to 47.5 in July.
Despite the drop between July and August, there was an improvement since August 2023, when the Index was 32.4.
Many retailers saw a drop in sales between July and August, but over 40% reported an increase.
“Fifty-one percent noted a decrease in August sales over July, 42% of Michigan retailers surveyed reported a sales increase, and 7% reported no change,” according to the press release.
Numbers over 50 generally show positive activity. The higher the value, the stronger the activity.
“August’s decline in sales serves as a great reminder that Michigan’s retailers need our support. The future remains optimistic as we head into the holiday shopping season," William J. Hallan, President and CEO of the Michigan Retailers Association, said in the press release. “But it’s important to find ways to shift our out-of-state spending to support local as often as possible.”
Over half of retailers predicted a rise in sales through November.
The “Buy Nearby” campaign, which aims to have people shop at Michigan-based companies, is Oct. 4-6.
“Every purchase makes a difference, big or small,” Hallen said. “Buy Nearby Weekend is coming up on October 4-6. We encourage every Michigander to shop small and keep their dollars circulating right here in our communities. Redirecting just 10% of our estimated out-of-state e-commerce to Michigan-owned businesses would generate $2.6 billion in economic output for Michigan, according to our recent economic survey.”
Kids returning to school before Labor Day was seen as a contributing factor for the decline by some retailers. Trips at the end of summer are lower due to families needing to accommodate school schedules, impacting seasonal and tourist-dependent businesses.
Experts say inflation and unemployment have also affected retailers.