Full text of G.17 Department Store Credit : February 2, 1950

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DCkiRD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
.:February 2, 19^0

G.17.3

DEPARTLjSNT STORE' CREDIT
DECEIVER 19b9 '

"

•

Instalment accounts receivableLof department stores were 13 per cent
larger at the end of December than a month earlier and continued substantially
above the year-ago amounts outstanding. Collections on instalment accounts
rose 8 per cent in December and, when related to first-of-month accounts receivable, yielded a collection ratio of 20 per cent,' the same as for November.
For the year as a whole, however, the rate at which; outstanding indebtedness
is being repaid has slackened from that prevailing a year earlier.
Charge accounts outstanding expanded sharply as is customary in December. For the first time since February, end-of-month accounts receivable
rose above the level of the preceding year. Collections on accounts of. this
type were up 6 per cent but failed to keep pace with the growing indebtedness;
consequently the collection ratio dropped two points to $2- per cent in December.
Department store sales showed somewhat more than the usual marked
rise in December. Cash sales were $h per cent larger than in November but
remained below the 1 % 8 volume. Charge-account sales also expanded sharply—
by hit per cent—and were slightly above the year-earlier total. A less
pronounced seasonal increase normally occurs in instalment sales in December
which in that month of 19h9 exceeded the November- volume by 26 per cent.
Transactions of this type were arair. substantially above those in >the corresponding period of 19li8. In 19h9} credit sales on both instalment and' charge
accounts accounted for a greater part of total department store business than
a year earlier.
Department Store Sales, Accounts Receivable, and Collections

I
I

. Percentage '
Nov. 19b9
Dec. 191*8
to
Dec. 19L9
Dec: 19b9

Item

Sales during month
• Cash
Instalment
Charge account

:

'
+5h
+26
+Uti

'
•-

•

Accounts receivable, end of month .
Instalment accounts
.
Charge accounts
Collections during month
Instalment accounts
Charge account's "

.

.

.

;

•

- 7
+17
+ 1 ^

J

+13
+3h

- +22
+ 1

+ 8
+ 6

+ 7
-3

Ratio of collections during month to accounts receivable at beginning of month:'
Dec._
Nov.
. Dec. •
- M 2
12k2 '
19li8
Instalment accounts
20
20
23
Charge accounts
'
$2
$b
5>3


NOTE.—Figures for December


19k9 are preliminary and subject to revision.

IBPARTmiT STORES Cash anaccredit Sales, by
Federal
Reserve
District
.oston
:^h:a
:le-^land '
: = :._'.ond
v.Tlan-ca
^r.icago
"
Ic.is
..mnearclis
_E.-.:as Ci:y
1alias
San Francisco
U.

5 . :o%al

= 100
- Indexes;. 19' ave-,
1 Charge-account sales
Inst a:1-T^nt s,
-,rcNov.
Dec.
Dec.
Dec
Dec.
i9aop
irae
19a8
191:8 '19L9P
1919
19L9

Cash sales
Dec.
191/n

19':9

386
35':

25L
2L1

395
352
390
li89
369

a n
37a •

259
230

U35

395

2h9
286

360

h C'5

3 1

215

' 399
390

3C0
287

512

25a
278

uLU

lea

LG3
397

228

380

2L7

1919

Federal Reserve Districts

a53

518'
a27
^aos

326
339

273.
278

372
329

280
a53

288
367 296..
305 -,

271 2c0237
330
233
299

279
328
31a

352
329

383

255
216

237
332
23.5

252

.365.
365Ii30
36a.
360
ai9

393

331

396
1,69

275

232
3ao

255
. 22a

351
330
385
373
355

3C9
252
253
289
258

293

210

238

ac6

286.
26a
30a
. 2li7

326

259

278

373

260

a&5

ai8
36a
ja?

266

389

380
a56

'396
370

Accounts Receivable and Collections, by federal Reserve Districts
Federal
Reserve
• District

::e-T York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis ._
Minneapolis.
Kansas_City
Dallas •
San Francisco
U. S. Total

Accounts outstandii:g,ond of ronth
Collection ratios-::Indexes; 1 9 ^ 1 avorape = 1 0 0
Char;je account
Charj?e account
Instalment
In:stali-on t
Dec.. i:ov. Dec. Dec. Nov. Dec. Dec. Nov. Dec, Dec. Nov. Dec.

19a9o 1919
199
170

176
ias

181
331
177

203
159
300
157
220

22a
228

2-ai
203
2a6
369
225
21a

193

i9as i9a9p 19a9
151
19a

209
ia9
235
132-

i ; a a i9a9p i9a9

28a

220

262
250
3a3
292
25a
275

285

215

- 288

267

198

353

19a
- 26a

258

213
197

286

17
17
17
19
18
15
23

3ia . 21
21
27a
270 22

191'8 i9app 19a; i9ae

18

20

17
19
18
20
15
'23
20
22

19
20
20
20
19
30

25

56
53
57

56.
52
56

59
53
55

23

52

5a

53

216
273
171

295
293
297

221
202

22

288

22

15
20

189

176

285

213

281

20

20

285

16

% a6s

6a
53
60

197

219

53

50
a?
a3

55
57

26
26

222
335

U2

51
a3

50
a.8

•&
.52
55

191

306 ' 253
161 201 211
196

a6
a5

2a

20

p - Preliminary.
...
v- - Collections during month as, percentage of accounts receivable at beginning of
month. "These data have been revised for recent months.
DOIZ,—Thene data, are based on reports of about U7f> large department stores reporting sales by type, of transaction, more than i*CO having charge accounts and about
•-3C.0 having instalment accounts. Back figures may be.,obtained on request from the
Z.vision of Research and Statistics.