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ShopperTrak: Retail sales to rise 3.2% in quarter

BY Jason Owen

Chicago — National retail sales will increase 3.2% and retail foot traffic will increase 3.5% for the first quarter of 2013 when compared to the same period last year, according to ShopperTrak, a leading counter of retail foot traffic.

Shopper activity will continue to improve intermittently through the first half of 2013, according to ShopperTrak. The company estimates that during the second quarter of 2013, national retail sales will increase 2.9%, though foot traffic will remain flat with a 0% change, when compared to the same period in 2012.

"This year is starting strong," said ShopperTrak founder Bill Martin. "Indeed, the first quarter will not only include the usual sales events for Valentine’s Day and Presidents Day, but also grab Easter sales as the holiday falls earlier in the calendar this year. This activity will cause a spike in the first quarter and a lull in the second, for which retailers need to prepare."

Retailers pushed to extend the high levels of holiday season shopping activity into the first quarter of the year. The Martin Luther King, Jr. holiday fell on Jan. 21, several days later than it has been the past few years. This gave retailers extra time to promote their post-holiday sales. Many of them seized the opportunity and were able to drive elevated levels of retail sales and foot traffic.

This surge in shopper activity calmed in late January. The shopping lull between Martin Luther King Jr. Day and Valentine’s Day generally is brief because consumers soon begin to shop for their valentines. ShopperTrak forecasts that winter storm Nemo will negatively impact retail traffic and sales for this Valentine’s Day.

"Winter Storm Nemo pounded the Northeast during the final weekend before the holiday, impeding foot traffic to stores," said Martin. "Traffic could be impacted further based on how long the region requires to recover. However, many shoppers will head back to stores the following weekend for Presidents Day sales."

ShopperTrak forecasts that retail sales and foot traffic will continue to steadily increase through Easter, which falls on March 31 this year. The early date places the holiday and its shopper activity within the first quarter, sapping sales and traffic from April and the second quarter.

"Easter generally drives a flurry of shopping for spring clothes, shoes and gifts," said Martin. "While the holiday’s traffic and sales usually boost the second quarter, this year Easter activity will be attributed to March. After planning their marketing and operations against the first quarter holidays, retailers will need to carefully manage and optimize their operations to the shopper activity throughout the second quarter."

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BDO Survey: Retail CFOs project 3.2% increase in sales in 2013

BY Marianne Wilson

Chicago — Extended store hours Thanksgiving weekend promotions were the least successful holiday marketing tactics, according to a survey of retail CFOs by BDO USA. The also report found that, following uneven sales results in December and January, the executives are moderating their expectations for 2013, projecting a 3.2% increase in total store sales, down from last year’s expected 4.5% increase.

Similarly, the CFOs anticipate a 2.3% increase in same-store sales this year, down from last year’s projected 4.1% growth. While concerns over consumer confidence are likely driving these more conservative projections, the increase comes on top of 2012’s strong 4.2% growth. Moreover, only 7% of CFOs say they expect their total sales to decrease this year, a sign that retailers see the industry stabilizing.

“The mixed results of the past few months have retailers looking ahead with caution,” said Doug Hart, partner in the Retail and Consumer Products practice at BDO. “But they no longer fear the worst-case scenario. As housing markets and other influencers of consumer confidence improve, the possibility of a decline in sales grows less likely.”

With economic concerns lessening, retailers are focusing on adapting to the new normal in consumer behavior: online shopping. Two-thirds (66%) of CFOs say they include online sales in their comparable store sales reports, and e-commerce is also occupying a larger piece of the sales pie. Nearly three-in-four CFOs (74%) expect their e-commerce sales to increase this year, and on average, retailers anticipate a 6.9% increase in online sales in 2013.

These findings are from the seventh-annual BDO Retail Compass Survey of CFOs, which examined the opinions of 100 CFOs at leading retailers located throughout the country. The retailers in the study were among the largest in the country. The survey was conducted in January and February of 2013.

Other major findings of the BDO survey include:

Consumer confidence remains unstable as tax concerns persist: Consumer confidence fluctuated substantially over the course of 2012, and started 2013 at a one-year low. With consumers watching the ongoing deficit and debt conversation unfold in Washington and seeing little substantial job growth, they are feeling the fragility of economic recovery.

Retail executives are all too aware of the tenuous economic situation and are carefully watching the leading influencers of consumer confidence: 40% cite unemployment levels as the top factor influencing consumer confidence, while 24% and 18% cite tax increases and personal credit availability, respectively.

When asked which tax changes concern them most in the coming year, 23% of CFOs cite individual income taxes, second only to corporate taxes (30%).

Mobile engagement is here to stay amid push to omni-channel retailing: If the 2012 holiday season is any indication, mobile engagement has become a cornerstone of retail operations. Consumers can expect to see ongoing engagement via these channels, with 60% of retailers planning to maintain their investment in mobile for 2013 and 38% planning to increase it.

-Holiday post-mortem reveals that digital promotions are overtaking old-fashioned advertising. As the New Year begins, retail executives are analyzing holiday strategies to determine what worked best. In 2012, some of the most successful campaigns like Gap’s “Pin to Win” promotion engaged customers via online channels.

One-third of CFOs cite email and social media promotions as a top strategy in 2012 and 16% cite free shipping. And with consumers still very focused on deals, promotional discounting remains a stalwart of holiday strategy, with 29% of CFOs indicating that it was their most successful strategy last year.

When asked about the least successful tactics, on the other hand, 41% cite extended store hours and 22% cite Thanksgiving weekend promotions.

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CCA mourns unexpected death of CEO

BY CSA STAFF

EAST RUTHERFORD, N.J. — Health and beauty aid manufacturer, CCAindustries announced that its president and CEO Dunnan Edell has died unexpectedly.

The board of directors has asked David Edell , the former CEO and founder of the company, who retired at the end of 2011, to accept the position of CEO at this time. The board also has appointed Stephen Heit as president of the company in addition to his responsibilities as CFOr. Heit had previously served as president of AM Cosmetics, a consumer products company, and had experience calling on the same customers of CCA. Drew Edell has been appointed COO of the company. Drew Edell has also been appointed by the board of directors as a director of the company until the next annual meeting of the shareholders.

"I am very grateful that David Edell has agreed to accept the position of chief executive officer. This is a terrible time for David and his family, and I think it is admirable that despite his overwhelming grief over the sudden loss of his son he has agreed to help the company out, always keeping in mind the best interests of the shareholders," said Stanley Kreitman, chairman of the board. "We are also grateful that Stephen Heit has accepted the position of president. Steve’s previous experience will provide important continuity with our customers and employees. We have a strong core of staff that will enable CCA to continue during this difficult time. Our thoughts and prayers are with Dunnan’s family, his father David, his brother Drew and their families," continued Kreitman.

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