Sunday, May 5, 2024

Increased sales make merchants optimistic

March 2, 2001
Journalism freshman Lindsey Ingram browses through Cool Creations, 209 MAC Ave., for the first time. The retail business is predicting an increase in sales over the next few months.

Cory Curtisis hoping once again his sumo wrestler clocks will pull their weight in sales.

The owner of Cool Creations, 209 M.A.C Ave., said the novelty items, which are sumo wrestler figurines with working clocks attached on the front, are among some of the items that are selling.

And according to The Michigan Retailers Association’s Michigan Retail Index released this week, getting that kind of weight off the shelves can be expected.

The report predicted sales during the next three months will increase, which will be a pleasant change from the sales slump experienced in January.

“I’m being optimistic,” Curtis said. “Once people get more settled they will shop more.”

The survey, which contained retailers’ expectations for the next three months compared to the same period a year ago, reported 40 percent of the retailers surveyed predicted an increase in sales. Only 30 percent predicted rises in sales in December.

“Sales did rebound somewhat in January,” said Tom Scott, spokesman for the retailers’ association.“Sales are still not great but they are better than before.

“That has fueled some of the (retailers’) optimism.”

Scott also said the rumors of interest rate cuts, tax cuts and the drop in gasoline prices also may cause consumers to spend more.

“I don’t think anyone has a crystal ball to say where the economy will be for the rest of the year,” he said. “In the short term, we expect a little bit of a pick-up, but those are just expectations.”

Jim Crocker, manager of 21st Century Comics & Games, 515 East Grand River Ave., said the slump in the economy was overrated and is sure sales will continue to rise.

“We are confident enough that business will grow,” he said. “All the predictions of doom and gloom in the retail sector have not born out for us.”

The survey also said jewelers led the retail industry in January with 50 percent reporting sales increases.

Kevin Wheat, owner of Wheat Jewelers, 2285 W. Grand River Ave., said he had a very good January and he expects spring sales to continue in high numbers.

“In the springtime there is something in the air,” he said. “Guys get in a big hurry to buy something nice for the ladies.”

However, William Strauss, senior economist and economic adviser with the Federal Reserve Bank of Chicago, said it is doubtful the economy will continue to rise to the same numbers as last year.

“In January, we saw a little bit of a bounce back from the poor levels in December,” he said. “When you are at a very low base it is not hard to do better.

“I am not so sure we are going to see that same high rates going into the future.”

He also said he hopes the economy can just grow at a constant rate, unlike last year’s fluctuations.

“Last year was a tale of two halves,” he said. “And I hope we don’t get back to the high levels because those were unsustainable and the second half of the year was incredibly weak.”

Jim vanRavensway, East Lansing’s director of planning and community development,said city sales tend to be the same as regional sales, so if there is an expectation of a rise regionally, it will probably be reflected in the area.

“We are not immune to regional problems,” he said. “And if there is a big boom in regional activity, we see the same thing.

“We kind of work in harmony.”

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