Economic Conditions Linger as Chief Concern for
Retailers in 2010
– BDO Study Identifies Leading Risk Factors at 100 Largest Public Retailers –
May 17, 2010 11:18 AM Eastern Daylight Time
CHICAGO--(EON: Enhanced Online News)--Research released today by BDO, a leading professional services
firm, identifies general economic conditions (96%) as the leading risk factor by far among the 100 largest public U.S.
retailers for the second year in a row. Despite this, of the retailers who cite general economic conditions as their chief
concern, only 49 percent cite financial market turmoil, a drastic reduction from the 97 percent of retailers who cited
it as a concern in 2008. This year retailers are more concerned over unemployment (70%), interest rates (56%) and
inflation (41%). Concerns over U.S. and foreign suppliers and vendors jumped to the second spot this year (86%)
while credit availability and company indebtedness (84%) dropped in importance (#4), but remains a critical concern
for retailers in 2010.
“Although the economy has improved over 2009, retailers are still concerned about general economic conditions,
unemployment and consumer credit. The April 2010 sales results confirmed that the consumer rebound is still a work
in progress. Until consumer spending is fueled from actual income growth and not savings accounts, retailers have
modest expectations for a consumer comeback,” said Doug Hart, a Partner in the Consumer Practice at BDO. “In
the interim, retailers need to continue focusing on the fundamentals of cost control and careful inventory management,
while selectively looking for strategic growth opportunities.”
These are just a few of the findings in The 2010 BDO RiskFactor Report for Retail Businesses. The report
examined the risk factors listed in the most recent SEC filings of the largest 100 publicly traded U.S. retailers; the
factors were analyzed and ranked by order of frequency cited.
The following is the list of the Top 20 Risk Factors of the Largest U.S. Retailers: