Survey: Retailers report strong economic health; 26% looking to open new stores
Despite an uncertain economic landscape, the overwhelming majority of retailers are feeling positive about their current business health.
That’s according to a new third-quarter survey from cash back partner Upside, which reveals that of 1,806 retailers across 10 categories, 61% say their current outlook is “excellent,” marking a 14-point increase over the first quarter of this year. In all, 96% of respondents feel positively about the current state of their business. This figure is up by eight percentage points over the first quarter, when 92% felt positively about current business health.
Upside’s survey found that with increased optimism, retailers are looking to expand their brick-and-mortar presence. The number of retailers focused on opening new stores has increased by seven points, from 19% a year ago to 26% today.
By industry, the retailers most likely to report excellent current business health are discount stores (82%), health and beauty stores (76%), and pharmacy and drug stores (65%).
[READ MORE: Survey: In-store shopping remains key for holiday consumers]
Only 4% of respondents say their current business outlook is “fair,” and a surprising zero respondents (0%) say their outlook is “poor”. Restaurants are least optimistic about the current state of business, with only 39% of respondents claiming excellent current health. However, only 5% of restaurant respondents feel business was fair or poor, which is in line with overall averages.
For the third survey in a row, inflation is the most common answer to what the biggest challenge facing business is, but this quarter it was reported among fewer respondents. Almost half (48%) of all businesses said inflation was a challenge last year, while only 32% of respondents feel challenged by it today, a 16-point decrease year-over-year.
Digital strategy is followed by multiple items related to cost (supply chain costs, labor costs and hiring) as concerns. However, each of these concerns are not challenging retailers as they were earlier in the year, with each response having fallen between three and 12 percentage points since the first quarter.
When asked how they expect their business to change through the first quarter of next year, 54% of respondents say they think their financial health will get much better, and 35% expect it to get a little better.
