Retail suppliers are optimistic about spring and could see a much needed sales jolt to end the year stronger than 2015.
According to a new survey conducted by Capital Business Credit (CBC), the vast majority of retail suppliers surveyed believe that 2016 will either be better than or the same as 2015, and 45.5 percent believe spring and summer will be stronger than last year. Roughly 38.6 percent think it will remain the same.
Close to 75 percent of those surveyed believe that retail sales will grow by 4 percent or more, outpacing core GDP growth.
"While retail sales for January and February were lower than initially anticipated, this hasn't seemed to deter retail suppliers' confidence or business activity," said Andrew Tananbaum, executive chairman of CBC. "In fact, nearly 90 percent of importers and suppliers are reporting reorders for the spring/summer shopping season. Retailers have become increasingly reticent to stock shelves if they do not believe products will sell or consumers will buy. These reorders mean that the major retail chains and individual stores are optimistic."
Nearly half of the suppliers surveyed said retail orders have increased.
Retail CEOs are feeling optimistic as well, with 35 percent confident that revenue will grow over the next 12 months, according to PwC's 19th Annual Global CEO Survey.
- see this PwC survey
- see this CBC press release
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