Full text of G.17 Department Store Credit : May 6, 1948

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12^
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
RESEARCH DEPAEBfliEdiJ .918

G.17.3

MAY 1 0

DEPARTMENT STORE ORF.DTT

1948

FEDERAL RESERVE BANK
OF RICHMOND

. MARCH -12U8 - .

Instalment actiouhts outs.tan4irig at. department stores showed a small i n crease in March'&&&• -at. .the., eiid of the montri were 7 0 pfeir ^cent.Mgher than a year
parlierV .' C o l l e c t i o n s .• cfti; iriSti&^erit accounts, which generally show a substantial
r i s e ) i n March, wef e j - l l / p e r : c e n t larger than i n February. ^ The r a t i o of c o l l e c t i o n s
to, atcoimts outstanding'on. March 1 was \2 7"per "cept as' compared with 23 per' cent in
February. " Afr'the current ,rat6:> df' repaymeiit instalment accounts would be'outstanding
'about
arid one-hklf monfbhs, more*'than bne month • longer. than a year e a r l i e r .
i
- Charge accounts r e c e i v a b l e showed less', than the Visual gain in March, but
• vrere nearly o n e - f i f t h above the year-ago l e v e l . ; Eveji though" charge-account c o l l e c • tioiis declinedr5 per cent> the March c o l l e c t i o n r a t i o rose four points to 53 per
•'cent.. The'average f repayment period f o r charge accounts outstanding i n March was 57
days.
'
' ;
; :. ,
"
i
''
j
•
The volume of both bash and c r e d i t s a l e s at department stores showed- a
marked expansion in March, due l a r g e l y to pre-Easter buying. A s l i g h t s h i f t from
cash to credit purchasing was evident during the month but cash s a l e s s t i l l accounted fc?r more than half the t o t a l volume. Cash s a l e s were at the March- 19^7
l e v e l . The year-to-year -:gain for, charge-account s a l e s was 15 .per cent, and jfor i n stalmdnt s a l e s , 35 per cdnt.
...

' :'

Department Stqre S a l e s , Accounts Receivable and C o l l e c t i o n s
Percentage change from:
February 1%8
March 19U7
. to •
to
•Mairch 1 9 1 8 '
March 19k8 '

......

Sale's during month'
= Cash

"

:

Instalment
Charge account

.

:
!

:

. , ' •

-

Accounts r e c e i v a b l e , end of month'
• Instalment accounts
Chargje accounts
Collection's 'during month
! Instalment accounts
; Charge accounts

,

• - v V- .
t •' ;•

. :

'
!
i

.

'

;

1 J

;

0

.

+36

+38

' , : F

+70
+19

+ h

;
>•,. • '
. •

+35

>. ' +11
; - 5 ..

* +38
+12

Ratio of c o l l e c t i o n s duritig month t o "accounts refieivabi Le at ^beginning c>f month
;
1
• Mar.

..
•'

Instalment accounts
Charge accpunts

*

"

f

'i,:.;

' '
27
53

Feb.

Mar.

w

1917

23
h9


Note.—Figures for-., liar oh
19b8 are preliminai^y and subject to r e v i s i o n .


33
56

.

DEp/iRTLENT STORES

MARCH 1 9 1 0

Cash and C r e d i t S a l e s , - b y F e d e r a l Reserve D i s t r i c t s
Federal
Reserve
District

Indexes; 19L1 average =
Cash s a l e s ''
Instalment s a l e s
Mar.
Feb.
Mar. . Mar.
Feb.
Mar.
19L8p
19L8
19A8p
1917
19L8
19L7

Boston
Nev: York
Philadelphia
• Cleveland
Richmond
.Atlanta
Chicago
S t . Louis Minneapolis Kansas City
Dallas
• •
San F r a n c i s c o .

221
219
2L8
222
226
- 317
232
2L1
272
298
316
2L7

JJ, ;S. Total-

236

210
151'
'=165
220
' 167 : 2 1 6
168
218
161
219:
2l?3 ' 3 0 9
182
238
176
231
209
275
228
29S
239
323
256
191
177

. 235 .

196 .
.190
223
2#
200
253.
172
226
196
212
252
166

100
Charge-account s a l e s
Mar.
Feb.
Mar.
19L8p
19L8
19k7

131179
. 13U - . 1U3
13h
1U9
.. 175
153
105 . • 165
^150
2W
127
129159
159
156
1U3
181
ILL
168
201
118 .
137

197 :

H4I1

116.

212
193
2#
219
223
293
217
22.7,
231
239
289
220

178
137
168
136
156
197
191
159
172" - 2 m
"183"
217 .
165183
2M
161171
197
180
19L
221
213
167
201
161

223

193

Accounts Receivable and C o l l e c t i o n s , by F e d e r a l Reserve D i s t r i c t s

'Boston
Ne-.vYork
Philadelphia
Cleveland
Richmbnd
Atlanta
Chicago"""^'
S t . Louis
Minneapolis
Kansas C i t y
Dallas
San F r a n c i s c o
J J . S.- Total

Accounts o u t s t a n d i n g , e n d of monthC o l l e c t i o n ratios-::Indexes ; 19hl average = 100 ' ...
- In:r.taliSent
Charge accounts
Instalm;ent
Charge accounts
Feb.
Mar. Fub.
Mar-. Feb, Mar, iiar. Feb. Mar.
19k8p 19L8 191:7 19ii3p 1918
19k8p 19^8 W
19h8p 19L8 19L7

il

F e d e r a l "•
Reserve
District

165
101
119
137
170
198
130

122 "81
109 76
138 76
1LO 90
100 71
151 89
100 50
1 1 5 73
135 89
166
81
16I4 87
126 65

a
1&5" 170 179
26
172 150
186 16k
208
23
20L
192 165
25
130 1 6 0 .
173
23
191 . 177 152 . 22
18L
175 155
37
217
203 16k • 32
188 1 6 0
32
195
178
169 lh7
27
21;
185 160
199
lei 6
183 165
30 -

129

12k

190

120
112
118
lk5
101

75

17k

181

160

27

18
22
•20
22
20
19
:
32
27 '
29 •
2h

18

27
23

UQ
23
28
51
32
53
50
29
28
•314
• ill
29
" 1.49 • 61;
53
39
60
35
50
38
32 . 5 8
62
39

33

53

12

lilt

• h7
ha

1x9
1,8

59
56
U2
U8
3 8 ' 1.14I4 57 '6h
61
I18
63 ~
53
51
6356
62
55
59
149

56

p - Preliminary.'
- C o l l e c t i o n s during month' as percentage of accounts r e c e i v a b l e a t beginning of
month.
Note.—These data are based on r e p o r t s of about Li7$ l a r g e department s t o r e s r e p o r t ing s a l e s by type of t r a n s a c t i o n , more than LOO.having charge accounts and
about 300 having i n s t a l m e n t a c c o u n t s . Back f i g u r e s may be obtained on
•request from the Division of Research and S t a t i s t i c s .