Survey: Retail CFOs upping investment in store remodeling/redesign

Retail CFOs are bullish on online sales growth, but they are focusing fewer dollars on building out their online presence in 2016 as they look instead to enhance the in-store experience in response to omnichannel expectations.



That’s one of the findings of BDO’s 10th annual Retail Compass Survey of CFOs which found that, following several years of ramped-up investment, only 9% of CFOs say they will invest the most capital in their e-commerce channels, down from 22% last year. By contrast, 31% plan to invest the most capital in redesigning and remodeling stores, up from 9% in 2015.



Mobile appears to remain somewhat of a priority, with 41% planning to increase their spending on mobile platforms. But it still a big decline from last year when 68% of the CFOs planned to grow their spend.



“The smart money is now going towards bringing the convenience, customization and interactivity of e-commerce to the stores,” said Natalie Kotlyar, partner with BDO’s Consumer Business Practice. “Savvy retailers are looking to supplement customers’ online shopping habits with tactile, engaging in-store experiences.”



However, CFOs expect to see strong online sales — and with the continued popularity of e-commerce, a growing focus on cybersecurity, as well. Additional findings include:



• CFOs expect online sales to grow by nearly 10%;

• 69% expect cybersecurity regulation to increase;

• 52% have increased their spending on cybersecurity protections, and

•Three-quarters say they are currently EMV compliant.