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Michigan retailers feel optimistic on this Black Friday

Courtesy Photo

By Rob South, WKAR News

http://stream.publicbroadcasting.net/production/mp3/wkar/local-wkar-936947.mp3

Lansing, MI – Black Friday could be the best one in years for Michigan retailers. Economic forecasters predict holiday shoppers will be out in force over the next month. WKAR's Rob South spoke with the Michigan Retail Association's Jim Hallan about what retailers can expect this season.

AUDIO:

James Hallan: "Well, we've been tracking retail sales, really, with the federal reserve in Michigan for the last 15 years, and the last three months of this year - August, September and October - we've seen very strong sales, and we also asked the retailers to project what they think their holiday sales will be for the upcoming season, and we track that against previous years, and what we're seeing is, this year, that consumer confidence, retailer sales and expectations are the strongest they've been in six years, which is extremely encouraging."

Rob South: "Put some numbers to that. How is it been different than it has been in past years?"

Hallan: "Our survey indicates that retailers expect holiday sales to be up six percent, which is stronger than the national forecast of two-and-a-half percent. I think it indicates that you know, unemployment is down two percentage points from a year ago, so people are feeling more confidant over their job situation than they were a year ago. I think we realize we've hit the depth of our dip a couple of years ago and we're crawling our way out of it. We've got a long way to go, and we're up against some very soft numbers, so we have to be realistic, but this is really the first signs of enthusiasm that we've seen in quite some time. So, we're very encouraged."

South: "What are retailers doing to get people out and shopping?

Hallan: "They're doing they're pulling every trick out of the bag. Most retailers now have different formats, they've got the brick-and-mortar format, they also have an internet presence, they're using Twitter, they're using cell phones, they're using electronic media for different forms of messaging to let consumers know what the hot items are."

South: "How has the internet and social media changed some of the retail picture, especially around here?"

Hallan: "Well, I think (there's) a couple of things there. One is that, in the old days before the internet, the consumer audience for a retailer is really a five-mile radius. And now, if they have the brick-and-mortar format, they still have that five-mile radius, but their audience is really unlimited, because, with shipping and messaging through the internet, their audience has really expanded. So, if they're able to develop both of those, it's really helpful."

South: "I think a lot of people, when they think of Black Friday, envision the crowds at the big box stores waiting in line, but a lot of smaller, local businesses also have things going on. How are they competing against some of the bigger markets?"

Hallan: "One of the keys of retailing is to determine what your niche is. And, once your determine what your niche is, whether you're a big box, or whether you're a small independent, you provide good value, you provide good customer service, and that's defined by the retailer themselves on how they want to play in that niche, and it may be trying to provide the large crowds lining up before the door on a Friday morning, or it may be, 'let's do more personal service and target our customer base and attract them into the store.'"

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