Financial executives in the retail industry are optimistic about financial performance this year, according to a new survey by BDO USA.
CFOs surveyed by BDO predicted that total sales will rise 4.9% this year, up from their 3.4% projection of 2016. Not surprisingly, digital sales are expected to rise significantly faster, at a 10.7% level.
The healthy outlook strikes a slightly discordant note amidst the upheaval in the industry, an imbalance noted by the BDO itself, which speculated that “there may be a bifurcation of industry performance this year.”
Natalie Kotlyar, the national leader of BDO’s consumer business practice, referred to the 2016 holiday season as “a day of reckoning” in the industry: “Some are fired up following record-breaking results,” she said, “and others are catching their last sparks.”
A key factor for 2017 performance will be tax and regulatory policy in the wake fo the 2016 presidential election. More than 60% of the surveyed CFOs said that a reduction in in the US corporate tax rate would have the greatest impact on their business.