The latest installment of CIT’s Executive Insights video series (cit.com/executiveinsights) discusses the retail industry’s holiday sales expectation, their growing interest in social media and mobile marketing, and some of the challenges that will be confronting them in 2013 and beyond.
The video features Burt Feinberg, Managing Director and Group Head of CIT Commercial & Industrial, cit.com, discussing CIT’s recent U.S. Retail Sector Outlook, (cit.com/retailoutlook2012), which analyzed the insights of more than 250 middle market retail executives on the U.S. economy.
Key points from the video include:
- Black Friday and Cyber Monday Drive Holiday Sales
- Retailers Focused on Growth Initiatives
- Technology and Social Media a Key Component of Retail Today
- Economic Uncertainty Prevails – Retailers Look To Future For Recovery
Black Friday and Cyber Monday will Fuel Stronger Holiday Sales
More than a third (37%) of U.S. middle market retail executives expect stronger sales this holiday season, due in part to Black Friday and Cyber Monday, according Feinberg.
Shift from Bricks and Mortar to Innovation
Retailers continue to focus on growing their businesses, but have shifted from traditional bricks and mortar storefronts to drive this growth. “Retail executives are focused on being more innovative, expanding product lines, improving service and staffing, marketing initiatives, advertising, utilizing new media and implementing loyalty programs to drive growth,” said Feinberg.
Gaining Market Share through Social Media and Technology
Technology and social media are playing an increasingly larger role in retail today. “It’s critical for retail executives to be on top of where social media’s going,” says Feinberg. “About half of our respondents said they’re active or very active in using social media and more than sixty percent have created mobile applications, having shifted marketing dollars from other channels. Others have implemented e-mail marketing campaigns, texting programs and expanded the use of handheld devices.”
Retailers are excelling at mining their customers through electronic platforms. “They know who their customers are and how to communicate with them,” says Feinberg. “They now send their customers e-mails, coupons and promotions, which are all part of retention strategies that keep customers coming back.”
Looking to the Future for Recovery
Middle market executives surveyed believe the U.S. economy will not fully recover until 2013 or 2014. “There’s still high unemployment, and healthcare and energy costs are up,” says Feinberg. “Although our political landscape has been decided for the next four years, there are prevailing economic problems in Europe. There’s still a tremendous amount of uncertainty in the U.S. economy.”
