North Dakota Holiday Sales Predicted To Be Up 1 - 2%
That’s certainly better than the prediction for the nation as a whole, which is calling for a 1% decline, but that’s not exactly wonderful news for North Dakota either.
BISMARCK, N.D. — Shoppers in North Dakota turned out in force on Black Friday, lending support to a prediction by the head of the state’s Retail Association that holiday sales will be up, bucking the national trend.
Association President Mike Rud said he expects holiday sales in North Dakota to be up 1 to 2 percent over last year, compared with a predicted 1 percent drop nationally. North Dakota has not been hit as hard by the economic recession as other parts of the country.
“Consumer confidence is going to drive this thing,” Rud said of Christmas sales. “If people are really happy with where the economy is, if that increases their confidence, they’re going to be out there spending money. I think in North Dakota ... people are a little more happy with what’s happening with the economy.”
Rud was interviewed on the Scott Hennen show today by SAB commenter/contributor Gene Graner. You can listen to the interview here.
One thing to keep in mind is that this isn’t exactly great news. We can console ourselves with being somewhat better off than the rest of the nation, but in terms of actual dollars and cents this is a troubling sign.
If there’s only a 1 - 2% increase that’s not really an increase at all once you calculate in things like price inflation (which, by rule of thumb, is about 2% annually) and inflation in overhead (remember that retailers use a lot of low-skill labor and have a lot of turn over and so have been hit particularly hard by the minimum wage hikes and expanded unemployment benefits) has no doubt eaten into profit margins.
This may be a sign that North Dakota’s economy is a lot weaker than many in the state want to admit.
