RETAILERS AND MANUFACTURERS PREDICT HOLIDAY SEASON WILL EXPERIENCE MODERATE GROWTH
December 11, 2013
New York –Despite a number of economic factors that have shaken consumer confidence in Q4 2013 like speculation over rising healthcare prices, the government shutdown and continued high unemployment rates, retailers and manufacturers believe holiday sales will rise slightly compared to last year, according to Capital Business Credit (CBC), a non-bank lender that services the retail sector.
According to the quarterly Global Retail Manufacturers and Importers Survey, 77 percent of importers of retail goods believe that the winter/holiday season will be the same or slightly stronger than last year, up 3 percent from their predictions in 2012. Of those who believe that it will be stronger, majority third of respondents estimate that sales will increase by approximately 3 percent when compared to last year. Nearly half of respondents (48.9 percent) cited that their retail customers ordered more this holiday season than last year.
Only 26 percent of manufactures indicated that they were negatively affected by the government shutdown, citing that some orders were put on hold. While only a minority was impacted by the shutdown, 50 percent still worry that the shutdown may affect holiday retail sales as it shook consumer confidence.
“An uptick in orders does not necessarily mean that we are in for a robust holiday season, as consumers remain reticent to open their wallets due to macro-economic factors,” said Andrew Tananbaum, Executive Chairman, CBC. “While the season may not be gangbusters, it won’t be negative either. In our opinion, holiday sales will moderately increase year-over-year.”
Fall (August through October 2013)
While the holiday season will remain relatively stagnant, manufacturers of retail goods grew their business during the 2013 fall/back-to-school season. Nearly 60 percent of those surveyed indicated that sales were better than last year, with the majority specifying that they were up more than 3 percent. In 2012, only 42 percent reported growth for this season. Additionally, 78 percent of clients received re-orders for fall merchandise from retailers.
“The feedback that we are getting from the respondents is that things are better than the year before, but only moderately,” said Tananbaum. “As we have seen for the past several years, retailers will continue to rely on deep discounting and promotions to drive sales this holiday season.”
About Capital Business Credit
Established in 1988, Capital Business Credit, LLC (www.CapitalBusinessCredit.com) is a commercial finance company specializing in providing creative supply chain financing solutions. The Company’s service offerings include: full-service factoring; immediate cash for receivables; single debtor credit coverage; letters of credit; accounts receivable management services; inventory lending; and international financing. CBC Trade Finance, a division of CBC, provides trade finance solutions for U.S.-based importers working with Asia-based suppliers (exporters). Capital Business Credit is based in New York, with offices in Hong Kong; Shanghai; Los Angeles; Charlotte; NC; and Ft. Lauderdale, Fla.