Retail CFOs are doubling down on m-commerce as investment shifts to building mobile platforms, according to a recent BDO USA survey.
Mobile and online sales will continue to drive growth for retailers in 2014. The growth rate for e-commerce is beginning to stabilize now that it's an integral part of retailers' strategies. According to the survey a majority (64 percent) of retail CFOs expect that online sales will grow in the year ahead. That's a 10 percent decline from the number of CFOs expressing similar sentiments last year.
At the same time, 34 percent anticipate that their online sales will remain consistent with last year, up 62 percent from 2013. Retailers are confident that e-commerce will remain a profitable channel in 2014, as they project 8.2 percent growth in online sales this year.
And they're looking at mobile to make that happen: 34 percent of CFOs are focusing primarily on developing their e-commerce and mobile commerce platforms. Many companies are attempting to streamline and integrate multiple channels in order to compete with Amazon.
"After a banner year of e-commerce and m-commerce growth in 2013, retailers largely expect these platforms to keep delivering big returns in the year ahead," says Natalie Kotlyar, partner in the retail and consumer products practice at BDO USA. "But safeguarding this future growth requires retailers to invest across channels in order to deliver a safe, seamless and efficient experience for shoppers. All the moving parts—mobile apps, websites, supply chain IT systems, brick-and-mortar—need to be carefully coordinated for companies to hold their own in this fiercely competitive landscape."
These findings are from the eighth annual BDO Retail Compass Survey of CFOs, conducted in January 2014, which examined the opinions of 100 chief financial officers at leading retailers located throughout the country.
-See this BDO USA press release
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