Retail CFOs feeling less bullish
Market uncertainty around the world is taking a toll on retail CFOs confidence in the future.
That’s according to a new BDO U.S.A. survey in which retail CFOs predict a 3.4% increase in total sales for 2016. It’s the second consecutive year that the total store sales projection has dipped since the spike to 5.1% in 2014.
In addition, a notable decline in the number of CFOs expecting consumer confidence to increase this year was also revealed, which dropped nearly 50% year over year.
“Global market volatility, which twice as many CFOs this year said would impact consumer confidence, is certainly contributing to the softening projections,” said Doug Hart, partner in the consumer business practice at BDO. “In the face of these concerns, the majority of retailers do remain optimistic, which could be a sign that they're holding out hope that the combination of low energy prices, low inflation and an improving jobs market will encourage consumers to open their wallets.”
In other findings:
Retail competition and consolidation were the top (29%) risks cited by CFOs for 2016, followed by federal, state and local regulations (21%), and geopolitical events and natural disasters (20%), and protection of consumer data from potential breaches (15%).
