[November 20, 2014] |
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Middle Market Retailers Remain Cautiously Optimistic for the Holiday Season
NEW YORK --(Business Wire)--
An annual retail outlook study (www.cit.com/retailoutlook)
of more than 250 senior middle market retail executives conducted by CIT
Group Inc. (NYSE: CIT) cit.com,
a leading provider of commercial lending and leasing services, found
cautious optimism among respondents. Fifty-five percent of executives
anticipate their total holiday sales will increase by 6% or more in
2014, as compared to only a third last year. In addition, more than 60%
of respondents expect their annual sales will increase by 6% or more
this year, as compared to only 42% in 2013. The online study, conducted
by Harris Poll, concluded in October 2014.
"Looking toward the upcoming holiday season, middle market retailers are
cautiously optimistic as U.S. consumer confidence continues to rise,"
said Jon
Lucas, President of CIT
Commercial Services. "Retailers are also adapting to the changing
attitudes of the American consumer through investments in new products,
expanding their digital strategy and utilizing social media to maximize
the consumer buying experience."
Burt
Feinberg, President of CIT Corporate Finance, Commercial
& Industrial, added, "Our study shows that most respondents do
not believe a brick-and-mortar-only store strategy is sustainable in the
long-term without a focus on building a complementary e-commerce and
digital strategy. In addition, nearly half of the respondents were
skeptical as to the economic viability of the 'American Mall' over the
long-term due to reduced foot traffic resulting from the increased
popularity of e-commerce and the lackluster performance of certain
anchor tenants."
Other insights from the CIT Retail Outlook include:
-
Online Holiday Shopping Reigns Supreme: A majority (53%) of
retailers expect online shopping to have the biggest incremental
impact on holiday sales, while 43% expect in-store and online
discounts to have a notable impact.
-
Holiday Season Starting Earlier: Over the past five years, 64%
of retailers have moved their holiday promotions earlier, for most by
two weeks or more.
-
Holiday Staffing Expected to Increase: More than half of
retailers plan to increase staff during the holiday season - 60%
expect to increase the number of hourly employees and 54% expect to
increase staff specific to internet/mobile sales hannels.
-
Investments Focused on Innovation, Marketing and Online/Mobile:
Retailers remain focused on making investments to increase sales,
including new product development (56%), marketing (49%), online
presence (48%) and social media (46%).
-
'Made in America' Important to Consumers: A majority of
retailers (55%) indicated that U.S. consumers care more than ever
about buying products that are exclusively 'Made in America.'
-
Financial Condition Healthier Today: Eighty-two percent of
retailers indicated that their company's current financial condition
was "healthy" or "very healthy" as compared to seventy percent in 2013.
-
Online Shopping Driving Growth: Retailers indicated that their
revenue is growing from website traffic (73%) even more so than
in-store sales (57%) and catalog sales (27%). Many believe the top
uses by consumers for online/mobile channels are for comparing prices
(82%) and shipping items (70%). However, the top uses for
brick-and-mortar channels are viewed as purchasing items (72%) and
making returns (67%).
-
Mobile Apps Provide an Edge: More than 80% of retail executives
(81%) believe that those who have mobile apps have an advantage over
retailers who do not. Today, on average, about 6% of retailers' sales
are generated via mobile. Only 9% of retailers today say mobile
generates over 15% of their sales, while 26% of retailers anticipate
that over 15% of their sales will come from mobile in one to three
years.
-
Social Media Important to Brand Awareness: Seven in ten
retailers believe social media is important to building their brand
awareness (71%) and customer loyalty (70%). Among retailers, 32%
consider themselves "advanced" and 21% consider themselves "expert"
when it comes to social media strategies. Last year, the majority
classified themselves as "intermediate" (42%) or "beginner" (16%).
Download a free copy of the full report and related infographics at cit.com/retailoutlook.
About the Study
On behalf of CIT, Harris Poll conducted an online study among 251 senior
middle market retail executives at companies with revenue between $5
million and $3 billion. The study occurred from September 16 - October
3, 2014.
The data for this research study was weighted to ensure that the data is
balanced and accurately represents the firms of interest to CIT. Figures
for: industry, title, functional role, decision-maker role, company
ownership structure and company location/region were weighted to bring
them into line with the respondent profile from prior research.
EDITOR'S NOTE:
Watch CIT's corporate overview video (cit.com/corporatevideo)
and View from the Middle™ video (cit.com/viewfromthemiddle),
which showcase our insights and ability to put our knowledge to work for
the small business, middle market and transportation sectors. Follow us
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and Facebook
or register to receive press releases at cit.com/newsalerts.
About The Harris Poll
Over the last five decades, Harris Polls have become media staples. With
comprehensive experience and precise technique in public opinion
polling, along with a proven track record of uncovering consumers'
motivations and behaviors, The Harris Poll has gained strong brand
recognition around the world. The Harris Poll offers a diverse portfolio
of proprietary client solutions to transform relevant insights into
actionable foresight for a wide range of industries including health
care, technology, public affairs, energy, telecommunications, financial
services, insurance, media, retail, restaurant, and consumer packaged
goods. Contact us for more information.
About CIT
Founded in 1908, CIT (NYSE: CIT) is a financial holding company with
more than $35 billion in financing and leasing assets. It
provides financing, leasing and advisory services to its clients and
their customers across more than 30 industries. CIT maintains leadership
positions in middle
market lending, factoring,
retail
and equipment
finance, as well as aerospace,
equipment
and rail
leasing. CIT's U.S. bank subsidiary CIT Bank (Member FDIC),
BankOnCIT.com, offers a variety of savings options designed to help
customers achieve their financial goals. cit.com
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