Slow Economy, Disappointing Jobs Numbers Bode Ill For Retail Sales
CHICAGO, Nov. 20, 2013 /PRNewswire/ -- With the holiday shopping season days away, how will continuing slow economic growth and disappointing employment numbers impact retailers? McGladrey audit partner and national lead for consumer products, Carol Lapidus, and Jeff Edelman, director of retail and consumer services for McGladrey, recently talked with Bloomberg Senior Economist Joe Brusuelas about trends affecting retailers.
Edleman expects "a weaker Christmas than we've seen in a number of years" due to continued economic stagnation, heavy promotional activity by retailers and more value focus on the part of shoppers. Lapidus points out that the expected slow holiday season will impact both retailers and the companies that supply them, saying "there's going to be lots of extra inventory at the end this holiday season," which could result in charge-backs and inventory returns, and which will affect the retail industry well into 2014.
Some other points made during this 20 minute video discussion include:
- The expectation that the disappointing economic and employment pictures will affect everything from where consumers shop to lower inventory levels throughout the retail supply chain
- Prospects for this year's holiday shopping season and a shifting retail environment makes concepts like Black Friday a thing of the past
- Differentiation is the key to success and the growing role of social media in the retail marketing mix
- Consolidation, mergers and acquisitions, and the growing role that private equity plays financing growth for middle-market companies in the consumer products market will continue
- The Marketplace Fairness Act will affect the industry
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