Full text of G.17 Department Store Credit : May 8, 1951
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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM G.17.3 Hay 8, 1951 DEPARTiM STORE CREDIT - MARCH 1951 Department store instalment accounts receivable continued to show a 'small decline in March. At the month-end, however, these accounts were 22 per cent above the level of March 31, 1950. - An increase in March collections on instalment accounts was reflected in the higher collection ratio of 2.0 per cent, 3 points above that for February and 1 point above that for the preceding Mai^ch. Continued repayment at the March irate would result in the liquidation of instalment accounts receivable in about 9 months, the .same average repayment period prevailing'a year earlier. Charge accounts receivable declined further in March, in spite of an early Easter. The decline resulted from; the fact that charge account collections continued to exceed charge account sales, even, though collections had declined and sales had increased from February levels. There was an increase in the collection ratio from i|6 per cent in February to 51 per cent in March. The average repayment period for charge accounts outstanding-in March was 5? days, somewhat above the •level of the corresponding period, a year ago. Instalment sales increased by 11 per cent during March, compared with increases of 26 and 22 per cent for cash and charge account sales, respectively. Instalment sales were but 1 per cent above the volume of the previous March, while cash sales were up 6 per cent and charge account sales 13 per-cent. Department Store Sales, Accounts Receivable, and Collections Percentage change from: Mar, -1950 Feb. 1951 to to. Mar." 1951 Mar. 1951 Item Sales.during month Cash Instalment Charge accounts +26 • +11 +22 Accounts receivable, end of month Instalment accounts Charge accounts Collection's during month Instalment accounts Charge accounts , ' + 6 + 1 +13 , - 3 -h +22 +23 +10 .-3 +27 +17 Ratio of collections during month to accounts receivable at beginning of month: Mar. Feb. Mar. •1951 1951 1950 Instalment accounts Charge accounts DigitizedNOTE:—Figures for FRASER for March 1951 20 51 17 1*6 are preliminary and subject to revision. 19 53 DEPART: STORES - :LtRCH 1951 Cash and Credit, S a l e s , by" F e d e r a l Reserve Districts Indexes.; 19U1. average » 100 Charge-account sales Instalment sales 1 Cash sales Uar. Feb. Mar. Feb. I Mar. ! Mar. 1 Feb. Mar, 1951 : 1950 I95lp 19$lp 1951 1950 19# 1 1951^ ! 1951 r gderal rest on :9i 131 158 lo. 186 211 . 162 I 21U 1 M 17- 200 193 215 ' 228 2;a 257 197 16? 199 1 235' 221 220 265 22:5 2 73 205 . 266 - 398252 331: 199 231 | 265 210 21L 225 201 170 276 253 21:2 115 222 315 201 192 ' 280 221; 1:00 . 2li7 220 . 236 286 L96 199- . 179 231. . 211 1% 188 191 2W: 112 I 11:9 1 188 ! 186 226 1 201 228 : 213 287 200 236 181 213. 213 232 213 263 21:9 . 308 195 233 . 228 215 2 CI 23: • 202 226 2c2 202 1 187 Accounts Receivable and Collections, by Federal Reserve Districts ir-standine. 7 month Collection ratios* J %es; 19&1 average = 100• Charge-accounL ' Instalment iCharge-account I Instalment Feb. Feb. ! Mar. IMar. Feb. Mar. !::ar. Feb. !l951p 1951 1950. 1951p 1951 1950 195lp 1951 1950 1951P 1951 195G cCStOr 219 159 -.2 23 1 299 2 , 2.3 188 226 215 511 : 2". 2C0 169 170 18 18 16 19 17 2 71 211i 230 238 185 231: 236 2^1 - 235 2 0 0 228 236 181 23 261 291 220 20 228 175 22 237 21:5 196 •21 2 i o . 237 . 196 15 232 250 188 21 16 18 19 15 19 17 18 15 1-U 15 20 23 18 19 20 . 21 19 22 Hi 15 19 15 50 50 h6 50 1:3 hh 57 1:6 53 52 51 55 1:3 • a U6 u6 • 1:2 liO 52 1:7 5h 50 1:9 U3 , 51 18 .52 li5 hi 62 52 58 51 ''I -262 ' 209 227 236 185 20 17 . 19 51 • .' 2.6 , 53 Collections during month as percentage cf accounts receivable at beginning of -• —i'r.ess asxa ar.e eased on reports of about h75 large department stores reporting sales c-y type of transaction. more than hCO having charge accounts and about 300 having instalment accounts. Back figures may be obtained on request from the Division of Research and Statistics.