Retailers Expect Holiday Blues

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
min read

A survey released today by accounting and consulting firm BDO Seidman LLP states that chief marketing officers at major retailers expect holiday sales to decrease nearly 3 percent compared to last year.

Three-quarters of those surveyed said their stores will be more cautious about inventory, and 88 percent say their retailers have plans for discounts and promotions to attract wary consumers. Most of the chiefs (65 percent) reported they don't envision an economic turnaround until at least late next year. "The pessimism among chief marketing officers this year is unprecedented and highly attributed to the recent turmoil in the financial markets," says Al Ferrara, a partner at BDO Seidman. "While there is much uncertainty in the retail sector this season, retailers have been consistent in citing reduced inventory purchases as a result of tightened credit and slow spending. Without a doubt, we can expect a very promotional environment that will appeal to cost-sensitive consumers, despite the impact it may have on shrinking margins."

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur