There was some warming news in chilly Indianapolis yesterday in the State of the Industry report presented at the Future of the Industry conference.

CBA President Bill Anderson revealed that while 286 stores closed in 2006, that was a 15% decrease from the previous year when 337 stores folded. Of the 286 stores, 22% were CBA members and 14% were chain stores.

Also on the upside, Anderson reported that 589 stores opened in 2006, a 30% increase from 2005 when 437 stores were launched, sources said.

Anderson was joined in presenting Christian retail channel data by Mark Kuyper, president of the Evangelical Christian Publishers Association; John W. Styll, president of the Gospel Music Association; and Peter Dunn, president of gift company P. Graham Dunn and a CBA board member.

Other highlights from the State of the Industry report included:

* Retailers are becoming more book-oriented: Book sales in Christian retail stores last year comprised 29.8% of total revenues, compared to 26.9% in 1999.

* Christian/gospel music sales increased 3.4% in 2006, with 44.9 million units sold-one of only four genres to see growth over the previous year.

* A quarter of sales in the typical Christian retail store were in inspirational giftware, a segment that was “trending up,” and bringing “excitement and sizzle” to stores.

Anderson said that overall retail sales had increased 6.2% in 2006, although the National Retail Federation forecast only a 4.7% jump. Sales during the 2006 Christmas season rose 4.4% compared with 2005.

Anderson also noted that online Christian retail business was “coming of age,” with sales amounting to $102 billion in 2006, a 24% increase from 2005.

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