CIT Report: Recession Brings Greater Efficiency to Vendors, Retailers
NEW YORK-Retailers and their suppliers are finding more efficient ways to manage cash flow, inventory levels and sales, according to a report issued by CIT Trade Finance.
Titled "U.S. Small Business and Middle Market Outlook 2010: Retailers and Their Suppliers--Smarter, Leaner, Cautiously Optimistic," the report is the company's second annual retail outlook. In the study, Jon Lucas, chief sales officer for CIT Trade Finance, said, "Suppliers that have gotten through the tough times are looking for new ways to operate profitably. Not just selling a lot, but getting more efficiency and flexibility in their operations."
Nearly three-fourths of the vendors that participated in the report said they anticipate revenue growth over the next 12 months, and 55 percent said investment in product development will be the number one strategy they will pursue to create growth. Lucas added that both retailers and vendors are seeking innovation in product development. "It's got to be different to sell," he said.
Prepared in association with Forbes Insights, the report examines how middle-market retailers (those with annual revenues of $25 million to $1 billion) and vendors with annual revenues of from $2 million to $1 billion have weathered the recession, and gauges their outlook for the future.