Current and future outlooks for US retailers
With the recent economic recession out of the way, retailers are starting to feel confident about the direction of their operations, both currently and in the near future. The holiday season is expected to be strong, as American consumers are also becoming more confident. Companies are investing more in additional purchasing channels, and hiring is also climbing. However, there are still lingering concerns over what will happen in the coming months, and retailers are remaining cautious.
How do retailers really feel?
Recent research by the CIT Group aimed to gain a better understanding of the current outlooks of the nation's retailers. Titled "Taking Stock in Tough Times: U.S. Retail Sector Outlook," the study revealed that to boost their operations, merchants are focusing on growing their products, services and revenues. Forty-five percent of the businesses surveyed stated they are expanding their product selection, and 42 percent are starting to offer customer loyalty programs to drive retention.
Investments in social media and mobile marketing are on the rise. More than half of retailers said they are very active or active on social networks. Forty-three percent are engaged in mobile marketing initiatives, with 63 percent of those respondents currently operating mobile applications.
On the other hand, there are still concerns about the economy, as 61 percent said they expect the recent financial crisis to come to a complete end at some time in 2013 instead of sooner. Forty percent think full recovery will take until 2014.
"Beyond the holiday season, while the election is settled, uncertainty about tax rates, anxiety with regard to the 'fiscal cliff' and an uncertain regulatory climate are prompting a more cautious approach to 2013," states Burt Feinberg, group head of CIT Commercial and Industrial. "It seems that the sting of the Great Recession still affects the psychology of retail executives and growth initiatives are more focused on maximizing business through technology versus major expansion."
Retailers looking to ecommerce future
Perhaps one of the biggest resources that retailers will be paying attention to is ecommerce, as more consumers are going online to buy items. Forbes reports that $224.4 billion will be spent online by the end of 2012, representing a 15.4 percent increase from 2011. With these significant figures, merchants will be putting more focus on growing their businesses through internet purchases.
