Full text of G.17 Department Store Credit : July 7, 1950

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V

BOARD 01? GOVERNORS OF THE FEDERAL RESERVE SYSTEM
July 7, 1950

G.17.3
DSFARTIMT STORE CREDIT
WAY 1 9 #

.

..

:

Instalment' accounts outstanding at department, stores -shaved a moderate
increase in' Lay and at the month"end' were approximately two-fifths larger than on
the corresponding date last year. Collections on instalment accounts increased 3
per cent, in Kay and, when related to first-of-month accounts, receivable*yielded a
ratio of 18 per cent, 1'point more;than for April. At the current rate of collection accounts would be repaid in about 10 months, nearly 2 months longer than in.
the corresponding period last year.
Charge-accounts receivable at the end of Lay were 2 per cent above the
amount outstanding on both April'30-and the corresponding date.of 19k9- Collections on .these accounts rose 6 per cent during the month but were only slightly
above the volume of a year earlier. The ratio of these collections to balances
outstanding at the beginning of May was 5>2 per cent compared with 50 per cent for
April. At the current rate 'of repayment charge accounts would be repaid on the ,
average in about £8 days, a slightly longer period than was required in the corresponding month of 19lt9..
Both cash and credit sales showed slight- increases — 2 per cent and 6
per cent, respectively. Cash sales- continued somewhat below the year-ago levelInstalment sales were above those of a year earlier for the tenth consecutive
month. Charge-account sales were up it per cent from May 19h9, the first year-toyear increase to occur in sales of this type since December.
Department Store Sales, Accounts Receivable, and Collections
Percentage change from:
Lay 19U9
'• Apr. 1950
. to
to -Lav 1950
Lay 1950

Item'

Sales during month
• Cash
Instalment
Charge account

\

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

J

.
•

•

+ 2
+ 6
. + 6

-2
+20

+ 3
+ 2

+U2
+ 2

+ 3
+ 6

• +18
+ 1

'r"

Ratio of collections during month to accounts receivable at beginning of month:
Hay
Arr.
Lay'
1£22
I[g3
M 9
Instalment accounts
16
17
22
Charge accounts
52
SO
53

Digitized for UOTE.—Figures
FRASER
for Lay 1950


are preliminary and'subject to revision.

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Mb
0.17.3

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-2 -

. DEFARTI.3NT STORES - 1LIY 1920
Cash and Credit Sales, by Federal Reserve - Districts

1

Indey'es: 19b1 average = 100
-account sales
Cash sales
Insta.linent sales
Fay
Kay
Lay
t:ay .
Apr.
Fay
. Apr.
I Apr.
1920p
1920p
1 9 %
1920
1920
1920- 19k9
19k9
19.19

_1S ul _LCt

Boston.
rev; York
" Philadelphia
Cleveland
Rich~ond
Atlanta
Chicago
'St; Louis
Minneapolis
Kansas City .
lalias
San Francisco.
U . S . Total

200
- 160
20k
196
213
273
212
20k
2k9
2c0
270
200

210
2'm
180
191.
207
199
20k
192
22J
21b
271
#9
212
205
217
192
239 " 2 k 2 .
262
2^2
268
262
202
197

'202

202

210

219
227
197
221.
202
316
201
267
2.1c
221
k83
16?

22k
19k
20k
220
163
301
198
228
220
239
kk8
.123

179
198
178
199
183
332
128
223
168
223
.310
119

21b

189

226

201 .
177
228
223
21k
269
212
218
273
238
279
212

198
17u
212
207
206
221
197
20k
2k6
219
222
202

202
170
221
212
210
222
210
209
239
219
22k
.20k.

217

202

209

Accounts Receivable and Collections, by Federal Reserve Distr
Feceral
Reserve
District

jiostcn
Fe-.vYork
Philadelphia
Cleveland
Richmond
Atlanta '
Chicago
'St. louis
Minneapolis_
Fansas City
Dallas
San Francisco
U. S. Total

Accounts outstan'ding,end of ;
month
collection ratios-:indexes; 19kl average = ItCO
Instalment
Charge-account
• Charge-account
In;5xalment
Fay Apr. Fay
Fay A or. Hay
Fay Apr. Fay
Fay Apr. Uay
1920p 1920 191:9 1920p 1920 19k9 1920p 1920 19k9 I920p 1926 19k9
212
172
21,0
238
162
369
172
227
191
2k6
kk3
217

212
128
211
23 k
162
329
17k
221
192
239
kl2
21k

136
130
16k
183
130
230
111
169
Ikk
172
232
120

182
129
222
202
183
232
193
229
199
211
202
193-

181
180
172 ' 172
221
216
201
193
177
179
200
202
18k
18k
227
219
191
192
202
190
199
199
182
189

217

212

123

192

190

191

12
18
17
17
17
Ik
20
1819
19
13
18

16
16
17
17
17
•lk
20
18"
- 20
20 .
Ik
18 -

18

17

19
k7
20. k2
20 . 22
20
21
20
kk
18
k7
61
26
23
5k
23
26
22
2k
20
23
23
2k
22

22

k8
k2
21
23
kk
k2
63

k6
k3
20
. 21
k2
k2
27
h?
22
23
. 20
22

26
22
21
22

20

23

%

- Collections during month as percentage of accounts receivable at beginning of
month.
.. .
ROTZ.—These data are based on^ reports of about lj.72 large department stores report.; '
ing sales by type of transaction, more than kOO having charge accounts and a
about 3C0 having instalment accounts. Back figures may bo obtained on request
from the Division of Research and Statistics.