More Checks Means More Sales

The retail industry saw some measurable gains in January 2001, according to TeleCheck Services, Inc. (Houston). The company that electronically accepts or rejects checks shoppers tender as payment, and tracks the results, same-store sales for January rose 2 percent over the same period last year. The Southwest region led the nation, followed by the Southeast, the Midwest, the Mid-Atlantic, the West and the Northeast.

The TeleCheck Retail Index is based on a year-over-year, same-store comparison of the dollar volume of checks written by consumers at more than 27,000 of TeleCheck's 228,000 subscribing locations.

Why did retail appear to rebound in January – at least, according to this index – following a weak holiday shopping season, widespread talk of slipping consumer confidence in the economy and possible recession and a calendar oddity that gave the month only four shopping weekends instead of the customary five? “Despite this calendar shift, and heavy discounting by retailers attempting to liquidate excess merchandise, the retail sector of the U.S. economy continued to expand at a moderate pace,” said William Ford, TeleCheck's senior economic advisor. “In addition, mid-January inaugural events helped boost shopping traffic in the Greater Washington D.C. Metropolitan Area, well above the regional average.” Ford also noted that the finally settled Presidential election, culminating with the inauguration, restored confidence.