News

Survey: Retailers surviving, but not thriving so far this year

February 11, 2019

Despite rosy predictions by economists, a leading retail organization and the White House administration, retailers aren't expecting a robust 2019 sales season.

In fact nearly half, 44 percent, are prepared for a "market correction," according to a BDO survey. More than half, 54 percent, are "just surviving," according to the 2019 BDO Retail Rationalized survey of 300 executives.

The study defines "survivors" as retailers which are stable and breaking even and "thrivers," as profitable and enjoying robust growth. A good majority of pure play e-commerce retailers are thriving, according to a release on the report. One in five department stores are struggling.

"The majority of retailers are stuck in survival mode," said Natalie Kotlyar, national leader of BDO's Retail and Consumer Products practice, in the release. "Playing catch-up in perpetuity is preventing retailers from seizing new opportunities and leapfrogging the competition. It's time for retailers to get rational: Scale with stability. Focus with foresight. Invest with intention."