Milford chronicle., 1958-12-19
Federal Reserve Bank
Says Christmas Buying
Looks Good" :

InlS year ChTlSLmaS DuyluS
season at department stores in the
Philadelphia Federal Reserve Dis
trict seems to be going well. And,
unlike last year, holiday business
was preceded by period of many
weeks In which sales were an ele-
ment of considerable strength in
the local economy.
For this District as a whole, dol
lar volume at department stores
was maintained above 1857 levels
in all but two weekly periods from
July through November Moreover,
in better than half of these weeks
the margin of increase over 1857
ran to per cent or more.
Preseason spending patterns
changeabIe
Although the pattern of consum-
er spending in this whole period
seemed to indicate preference Inr
soft goods lines, the late SIMMER
and early fall brought an ncouiag-
ing Improvement In the dems nd for
some durables, including msjor
appliances, teIevision, and the re-
Gently introduced sterophonic
sound equipment. This trend was
apparent In the breakdown of de-
partment store figures and it was
hopefully mentioned by many of
the appliance dealers with whom
we discussed the situation.
For a time It looked very much
as though 1858 might be much more
OF an appliance Christmas than
1857 turned out to be. But, after
October, consumer buying interest
in these big ticket" durabIes items
seems to have waned Some depart
ment store executives and appli-
ance dealers, particularly those in
our smaller metropolitan areas, re-
NAMED optimistic as the Christmas
season approached. However, a
marked diversity of opinion has
developed and many of our mer-
chants are expressing doubt as to
just how much appliances. tele-
vision, and similar expensive
equipment will contribute to the
Christmas sales totals.
This renewed hesitancy of con-
sumers (they are Christmas shop
pers now to commit themselves
to a heavy expenditure for a single
item is in line with the latest find
ings of the University of Michigan's
Survey Research Center. This re-
port, covering conditions In the
country as a whole, noted a surge
of consumer optimism beginning
just after mid-year. But it also es-
tablished the fact that this opti-'
mism was tempered with caution
when 1t came TO making expendi-
lures for all the more costly dur
ables, including appliances.
Shopping VS.. buying
Thanksgiving, by tr a di t o n,
marks the beginning of the Christ
mas shopping season everywhere.
And on the day following, it is
situation normal" for retail mer-
chants to play host to the crowds
of shoppers intent on examining
all the wares that are offered.
Sometimes these preliminaries take
many days. That is how it was last
year. But this 1858 season seems to
be shaping up differently.
Many of the department store
executives we have talked with
lately tell us that buying is going
hand-in-hand with shopping. Their
impressions of early season busi-
ness suggest a higher rate of sales
for a budget balance to a continued
In some cases st0re-wide promo
ton sale has opened shoppers poe
textbooks. But for the most part
people are not just bargain hunt
ing; this years crop of Christmas
4. 80
purchase their gifts early. Perhaps
they remember the last-minute
crush that wound up a record 1867
Christmas season.
Price consciousness In many places
It would be most unusual if
shoppers did not take second look
at a price tag now and then. They
are acutely aware that consumer
, prices continued to rise during the
recession and early recovery and
have ony recently leveled OFF. And
IL a gift can be bought somewhere
for less, that's where they will go.
So our merchants have to be care
ful about markups on this seasons
merchandise. The competition is
keen everywhere and in just about
all departments.
Selections In gift merchandise
Some merchants tell US II is
little early to define trends in
strictly gift merchandise. Others
say business is in what might be
called luxuries is already in the
limelight. But that does not neces-
sarily mean expensive Injuries.
These articles usually are not pur-
chased in quantity until much later
In the season. The term as used
here must be defined more nearly
as items ordinarily in greatest de-