State of the Industry: Christian retailers in a ‘major transition’

Written by Eric Tiansay

Monday, 08 July 2013 04:28 PM America/New_York

CBA’s annual report says most independent stores suffered declines in 2012 but some saw sales jumps

Christian retailers saw sales jump 8.55% in 2012 compared to 2011, according to CBA’s annual State of the Industry report. Every quarter last year saw a sales increase versus the same period in 2011.

However, the also found that about 60% of independent retailers suffered sales declines in 2012. But some independents, who reported sales surges, had “very strong increases”—mostly above 7%, with a strong percentage more than 15%, according to CBA’s CROSS:SCAN sales data, which is aggregated from 600-plus Christian stores. It’s the first year CROSS:SCAN has been used extensively in the survey, CBA officials said.

“Christian stores are in a major transition,” CBA President Curtis Riskey said. “Retail success is being defined by two primary strategies: either competing on price or by creatively defining retail space in terms of engagement and relationship.

“The stores that reported sales increases are strong and connecting better with customers both through technology and compelling in-store experiences,” he added. “They are adapting to selling e-books and deploying more digital marketing and customer interaction. It’s not just about price.”

Other key findings from the report:

*Black Friday sales in 2012 were up 22%, overturning a two-year slump of same period declines. However, total Christmas-season sales were up only slightly (1.6%). Political grandstanding over the “fiscal cliff” federal budget talks and payroll-tax increases dampened Christmas season spending overall, according to retail economic analysts.

*There were 39 net store closings in 2012 compared to 22 in 2011 and 63 in 2010. The bump in net store closings was blamed on the lingering recession and high unemployment.

*Books and Bibles remained the top categories for Christian stores. DVD sales increased significantly from 2010 to 2012, up 24.1% in units and 17.9% in dollar sales at suggested retail price.

Usually published in March, the report was delayed by technical development of new CROSS:SCAN reporting tools and internal changes. The 2013 report is free to CBA members who took part in the survey and is available at www.cbaonline.org.