More holiday discounts expected

CHICAGO Almost-three quarters (73%) of chief marketing officers at leading U.S. retailers believe there will be a greater number of discounts and promotions this holiday season compared to last year, according to a new study by BDO Seidman.

The survey found that credit concerns was the main reason chief marketers cited for the increased number of deals this season. These same credit concerns have led almost two-thirds (64%) of the chief marketing officers to be more cautious in their sales and inventory purchase plans than in 2006. Despite a majority (54%) predicting flat sales this holiday season, overall the they are forecasting a 5.03% increase in same-store sales.

“When you consider that discounting was widespread during the 2006 holiday shopping season, the forecast of even more discounting this season communicates both a growing anxiety among retailers about reaching sales goals and the potential for value buying for consumers,” said Al Ferrara, a partner in the Retail and Consumer Product Practice at BDO Seidman.