Full text of G.17 Department Store Credit : September 2, 1948

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1

G.17.3

DE^ARTiviENT STGR£ CREDIT
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J"-RESEARCH DEPARTMENT

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••••-••

""SEP : 3 i348
FEDERAL RESERVE BANK

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Instalment accounts' "receivable of' department: stores' sh< TTPH
crease in Jul£y $nd were 68 pe? .pent larger than' 9 year. Earlier; ' Collection's on- • • *
instalment accounts dropped h per cent below the"June volume, and represented
23 per cent of instalment accounts outstanding at the beginning of. the month, 'a
slightly lower ratio than, in. June. • At this rate of collection instalment"
accounts woulid b'e outstanding about" seven and one-half months, a somewhat
'
iongbr- period: than, prevailed- last year. '
f . i
•' . • ' .
Change:accounts outstanding were reduced by about the customary amount'
in. July, but still': exceeded the;- year-ago.; leyel by 1$ per cent. Collections on
\
charge accounts were 2 per cent.les? than ift the preceding month, &nd the ratidJ " . '
of /these collections to accounts outstanding on July 1 declined one point to
Si per . cent. The average .repayment'-period for charge'accounts outstanding in ' "
July was approximately 59.days. • j
' : . '•
The 'volume of both cash and credit sales declined seasonally from
June to July. Cash sales, accounting for 51* per ..cent of'the total, were orlly1
slightly above the July 19h7 volume.;. Instalment sales showed a year-to-year -gain .of 39 per cent, and charge-account sales, 11 per cent.
Department' Store Sales,. Accounts Receivable and Collections
Percentage change from: :
June- I9I1.8 July 191*7
to
: V •• to
.
July 1918
July 19^8 .
Sales during month
Cash .
v;
. Instalment
Charge account - '

:
;

!
' .'
. .' :
•
<

* • '

Accounts receivable, end of month ; ,
Instalment accounts
'
Charge accounts '
Collections during- month
Instalment accounts ...
Charge accounts
,

- " : . -18
.
: .-10
= . •;

' . . :'

'

•

,'i :
•'
;/ • •

'

.+ 2

;

-13

+ 2
+39
+11
+68
+15
+36
+12

' - h
- 2

'

Ratio of collections during month to accounts receivable at beginning of month.
•July
19L8 .

Instalment accounts
Charge accounts
:

June
1918
2h

52

 for July 19U8 are preliminary and subject to revision.
. Note.—Figures


July
m i

28
53 •

13

G.17.3

-2-

DEPARTJ.LNT STORES - JULY 19^8
Cash and Credit Sales, by Federal Reserve Districts
Indexes; 19itl average = 100
Charge--account sales
Instalment sales
Cash sales
July
June
June
July
July
July
July
June
July
19b8p
19ii8p
19b8
l?h8p
1918
1917
19L7
1916
19k7

Federal
ReserveDistrict

: l6l

Boston
:York

227.
223

1#
1$6
190

Philadelphia
Cleveland -

211
213
219
237
239
219
2#
232
2L3
232

173

RichmondAtlanta
Chicago
St. Louis
•Minneapolis
Kansas City
Dallas
San .Francisco

2L2
2.06
19h
209
25l
2L0
210

..U. S. Total

,228

187

12$.
lUi 131.
18$

1L8
160
1#
181
161
230
195 1
196
208 :
250
253
221 .

259
lljp
209
187
208
28$
160

18L

160

112

100:

179
182

103
99

167

200
108
219
l6k

132
-81
1L8
112

136
127
1L5
162
119
186
161 ,

217

•111

167

192
209"
257

136

162

• lii 7

181.

182
12&

207
18L

173
178

.115

208 '
195
213
215
2lh .
207
219
200
: 223

. 217
215
2lh

112

118

.

129
119
132
159
116
1L8

15U
153
181

173

:• 211 lh3

159

Accounts Eecei-fable and Collections, by Feideral i-eserve Districts
Federal -Reserve
District -. :
Boston -

-

Nev York

Philadelphia
Cleveland.1
Richmond
Atlanta
Chicago '•

St. Louis .
"Minneapolis
Kansas City
Dallas
San Francisco
U. S. Total

Accounts 01itstanding,end of month
Collection ratios'""
Indexes ; 19al averci?.e = .100
staLment "* • Charge account's
' In;
Instalment 1 Charge accounts
July June July July- June July July June July July June Jul)
19u8p 19li8 1917 19L8p 19k8 19L7 19L8p I9L8 19L7 19li8p l?k8 19i7
21
22

1

23" -22
22
2h

160 - 186
178
158
176
205
176
213
173
153
167
183
165
195
186 . 209
189
158
163
183
181 - 199
172
191

22

27

139' 22
17
139
.29
lh7

22

213
137

111
80
151 78
153 103
107 7 2
186 92
109 65
152 • 7 7
116 el.
181 8 2
236 9h
136 91

139

136

168

116

-95
115
1L7

172'

107'
193
109
153
1U5

185

10k

117

p - Preliminary.

83

193

lb2
138
115
153

19
.23
liil 20
18
13?
152 . ,32
156

lL6

23

23

20

25

2k

2h

15

h9
h9

h9
• h9

53
50

Sh

37
37
62
53
57

-L5

21
18

21
25

3h
25

hi

62

33
32
35

5L
57
56
53

17
29 .
30 • ho
2L

28

15

U5

35
38

h3

53
hi

61
56

56
52

6h

62

56
60
,61
65

51

52

53

- Collections. during month as percentage of accounts 'receivable at beginning
of month.
ICOT'E.—These- data are based on reports of about L7$ large department stores
reporting, sales by .type of transaction, more than IjOO having charge accounts and
about 300 having instalment accounts. Back figures may.be obtained on request, from
the Division
of"research and Statistics.
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