C-suite survey: Healthcare costs, maintaining margins top business concerns in retail

New York - The cost of healthcare, the ability to maintain margins
 and the ability to continue to grow revenue are the top business challenges in the retail sector. That’s according to GE Capital’s new national survey of c-suite executives at middle-market companies (ranging from $10 million - <$1 billion in sales).



The survey also found that the retail industry continues to experience steady growth in terms of revenue and hiring new employees. It also is undergoing a shift to mobile payments, with nearly half of middle-market retailers’ web sites now optimized for mobile purchases.



Just under half of retail firms expect industry expansion and one-third expect increases in capital expenditures in the coming year. And half of retail businesses will consider additional financing for equipment in the next 12 months.



Below is an overview of the key findings:



• Economic confidence is high, particularly on the U.S. and local levels. Seventy-five percent of respondents are “extremely confident” or “somewhat confident” in their local economy, and 72% indicate the same for the U.S. economy.



• Mobile capabilities are increasingly becoming a priority for middle market retailers. Forty-five percent have a website that is optimized for mobile purchases, and another 15 percent plan to optimize their site in the next 12 months.



• The online channel is used for one in five retail transactions, and about half of middle-market retailers expect this proportion to grow in the next year.



• Employment growth is poised to continue in the retail sector. Over one-third of retail firms expect to add jobs over the next 12 months. Additionally, 45% of retailers believe the sector will expand in the year ahead.



• Spending on advertising among middle-market retailers is concentrated in print and internet ads