We founded about what to buy as gift this year, how to offer a gift and now we will learn the statistics made by a study of BDO Seidman, LLP who releves the sales orientation in 2007 : comparing 2006 this year sales gains will increase with 5% in holiday season.
BDO Seidman, LLP Press Release:
According to a new study by BDO Seidman, LLP, one of the nation’s leading accounting and consulting organizations, almost three-quarters (73%) of chief marketing officers at leading U.S. retailers believe discounting and promotions will be more plentiful this holiday season compared to 2006 due to the current credit crunch. These same credit concerns have led almost two-thirds (64%) of the CMOs to be more cautious in their sales and inventory purchase plans than in 2006. Despite a majority (54%) predicting flat sales this holiday season, overall the CMOs are forecasting a 5.03 percent increase in same store sales.
When you consider that discounting was widespread during the 2006 holiday shopping season, the forecast of even more discounting this season communicates both a growing anxiety among retailers about reaching sales goals and the potential for value buying for consumers,” said Al Ferrara, a Partner in the Retail and Consumer Product Practice at BDO Seidman. “The 5.03 percent holiday growth forecast is a full percentage point higher than the forecast of the National Retail Federation, but represents a large drop in optimism among retail CMOs when you consider this same group of professionals predicted 7.8 percent growth for the 2006 holiday season.”
These findings are from the most recent edition of The BDO Seidman Retail Compass Survey which examined the opinions of 100 chief marketing officers at leading retailers located throughout the country regarding their expectations of the 2007 holiday shopping season. The retailers in the study were among the largest in the country, excluding automotive dealers and restaurants, with revenues of more than $100 million, including 15 percent of the top 100 based on annual sales revenue. The survey was conducted in October of 2007.
Some of the major findings of The BDO Seidman Retail Compass Survey of CMOs:
A Flat Holiday Season. More than half (54%) of CMOs at leading retailers expect same store sales to be flat during the 2007 holiday shopping season. A sizable minority (41%) still expect increased sales results over the 2006 holiday shopping season, while only 5 percent are predicting a decrease in sales.
C-Level Forecasts. Overall, the CMOs are predicting a 5.03 percent increase in same store sales this holiday season, compared to 2006. In September of this year, a BDO Seidman survey of chief financial officers at leading U.S. retailers predicted sales growth of 5.6 percent for all of 2007.
A Crucial Season. According to the survey, these leading retailers generate 26 percent of their annual sales revenue during the holiday shopping season. Last year, the CMOs said they generated 24 percent.
Critical Concerns. Credit concerns have overtaken high energy costs as the most critical issue impacting holiday shopping sales this year. When asked to pick one external issue that will have the greatest impact on the holiday shopping season, more than a quarter (27%) of the CMOs cited credit concerns compared to 22 percent who focused on high energy costs. Other issues cited were the weak housing market (17%), product safety issues (15%) and the stock market (14%). In 2006, a majority (52%) of the CMOs viewed high energy costs as the clear number one issue impacting the holiday season.
The China Factor. More than one-quarter (26%) of the CMOs say the safety issues surrounding Chinese products has affected their planned inventory assortment and led them to focus more of their marketing efforts on U.S. made products. However, only 15 percent of the CMOs say they have made changes to their supply chain due to the much publicized product recalls linked to Chinese suppliers.
It’ll be a Green Christmas…More than a third (37%) of the CMOs say they are increasing their marketing focus on “green” products this holiday season compared to 2006.
The BDO Seidman Retail Compass Survey is a national telephone survey conducted by Market Measurement, Inc., an independent market research consulting firm, whose executive interviewers spoke directly to chief marketing officers, using a telephone survey conducted within a scientifically-developed, pure random sample of the nation's largest retailers, excluding automotive dealers and restaurants.
BDO Seidman, LLP has been a valued business advisor to retail and consumer products companies for almost 100 years. The firm works with a wide variety of retail clients, ranging from multinational Fortune 500 corporations to more entrepreneurial businesses, on a myriad of accounting, tax and other financial issues.
About BDO Seidman, LLP
BDO Seidman, LLP is a national professional services firm providing assurance, tax, financial advisory and consulting services to a wide range of publicly traded and privately held companies. Guided by core values including, competence, honesty and integrity, professionalism, dedication, responsibility and accountability for almost 100 years, BDO Seidman provides quality service and leadership through the active involvement of its most experienced and committed professionals.
BDO Seidman serves clients through 35 offices and more than 300 independent alliance firm locations nationwide. As a Member Firm of BDO International, BDO Seidman, LLP serves multi-national clients by leveraging a global network of resources comprised of 621 Member Firm offices in 107 countries. BDO International is a worldwide network of public accounting firms, called BDO Member Firms, serving international clients. Each BDO Member Firm is an independent legal entity in its own country.
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