Almost 350 Christian retail stores closed in 2005, a 17% increase over 2004, CBA President Bill Anderson revealed in his State of the Industry address at Independents Day, yesterday.

Speaking at the independent retailers' focus gathering prior to CBA Advance's formal opening, Anderson disclosed that 24% of the 337 closures CBA identified last year were trade-association members, while 74% of the member stores that closed did under $250,000 in annual sales.

Despite the closures, Anderson noted that there were still more openings in 2005-437 locations, including new stores, new store locations for current retailers and church stores becoming stronger.

Christmas sales grew 6.4% in 2005, with consumers “holding out for last-minute markdowns,” according to the National Retail Federation (NRF), Anderson said. Because of a surge in gift cards, “the third-most-requested holiday gift,” Anderson said, the holiday sales season had extended farther than ever into January and could even continue through early February due to returns and people redeeming their gift cards.

Noting that CBA's core demographic is baby boomers, particularly women, and that U.S. consumers ages 50 and over spend more than $1.7 trillion annually-accounting for half of all consumer spending, according to the National Retail Federation-Anderson gave seven tips for appealing to this crucial demographic, including agelessness, authored experience, trusted advice, consciousness of environment, future view, balance and meaning and connections.

Anderson emphasized the importance of stores' “ambience,” observing how twentysomethings and thirtysomethings particularly were looking for something different: “relevant stores, relevant product.” Old, dirty or outdated stores and store fixtures could lead consumers to think the products are as well, Anderson said.

CBA Director of Communications and Marketing Leon Wirth outlined responses to the association's State of the Industry survey, based on 109 responses on behalf of 158 stores.

Of the respondents, 88.5% said they are actively using a P.O.S. system, while 86.5% reported having broadband Internet access in-store. In addition, 8.3% said they would sell their store in 2006, and 4.6% said they would close. Additional store locations opening was up 6.9% over the previous year, while store expansion (11%) and relocation (5.5%) were down in the previous 12 months.

Wirth noted Christian store sales were more dramatic than last year, with “highs higher (and) lows lower.” Of stores that opened prior to 2004, 53% said sales were down. “Flat” sales were reported at 29% of stores that had been open prior to 2004.

Respondents to the survey named big-box discounters like Wal-Mart and Target their No. 1 competitor out of eight categories. Christian-market Internet sellers such as Christian Book Distributors' Christianbook.com were ranked at No. 2, with other Christian retailers ranked No. 3. “Category killer” bookstores such as Borders and Barnes & Noble ranked fourth, from sixth last year.

Of the respondents, 68% anticipated that sales will be up in 2006, while 66% expect increased profits. Looking ahead, Anderson said, retail sales are expected to grow 4.7% this year, a dip on the 6.1% of 2005. He also said 57% of retailers plan to spend more money on technology in 2006 than in 2005.

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