Survey: Retailers to Increase Holiday Discounts, Promotions
Chicago, According to a new study by BDO Seidman, LLP, an accounting and consulting organization, almost three-quarters (73%) of chief marketing officers (CMOs) 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% increase in same store sales.
In addition, more than one-quarter (26%) of the CMOs said 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% of the CMOs said they have made changes to their supply chain due to the much-publicized product recalls linked to Chinese suppliers.
More than a third (37%) of the CMOs polled said they are increasing their marketing focus on “green” products this holiday season compared to 2006.