Report: Retailers doing more with less even as they look to invest in growth

Washington, D.C. Having survived the worst of the economic downturn, many retailers are collectively breathing a slight sigh of relief while cautiously looking ahead to 2010, according to the eighth annual Retail Horizons: Benchmarks for 2009, Forecasts for 2010.

The report, released by the NRF Foundation and KPMG LLP, examines benchmarks for the retail industry, reports retailers’ key business priorities and plans, and tracks established and emerging retail trends. The report, based on a survey of more than 300 retailers, examines how companies reshaped strategic priorities last year and what core process improvements are necessary for a successful 2010.

According to the report, retailers last year overwhelmingly cited cost reduction as a top priority in store and field operations; human capital; marketing and advertising; and merchandising and IT.

"One of the overriding themes of the survey is that retailers are striving to do more with less. And we expect that this theme will continue into 2010 and beyond, “said Mark Larson, global head of retail, KPMG.

With all signs pointing to an improved economy and a more confident consumer in 2010, many companies are eager to invest in various growth opportunities again, according to the report. A few survey highlights include:

• Forty three percent of survey respondents said they expect to maintain the same number of stores throughout 2010; More than one-third (37%) said they plan moderate to aggressive expansion.
• Nearly half (49%) of those polled report that personalization of their Web site will be a major investment priority for 2010.
• After 61% of respondents said customer acquisition was a big part of their initiatives in 2009, only 49% will focus on that in 2010.
• One-third (30%) of those polled say they will focus on store allocation and markdown optimization over the next 18 months.
• More than two-thirds (67%) of respondents said customer database/data mining will be a priority for 2010.
• Thirty two percent of survey respondents cited both eTraining and self-service kiosks as a priority in the next 18 months.