Results from Reader Survey: What risks do you think retailers are most concerned about?

Earlier this month we asked our readers and @BDOConsumer Twitter followers to weigh in on what risks they think are keeping retailers up at night ahead of the release of the 2016 Retail RiskFactor Report. So, what’s the verdict from the survey?

Continue reading

Leave a comment

Read the Full Report: 2016 BDO Retail RiskFactor Report

Our tenth annual Retail RiskFactor Report examined the risk factors listed in the most recent 10-K filings of the 100 largest U.S. retailers. For the first time in the report’s 10-year history, risks associated with data privacy and security breaches were cited by all retailers, claiming the top spot this year. Other concerns that are top of mind for retailers in 2016 include the regulatory environment, e-commerce competition and general economic conditions.

Continue reading

Leave a comment

Reader Survey: What risks do you think retailers are most concerned about?

Next week, we’ll be releasing our 10th annual Retail RiskFactor report, which analyzes the risks that are top of mind for retailers based on an analysis of the top 100 U.S. retailers’ annual 10-K reports. Before we reveal this year’s results, we would love to hear from you about what risks you think are keeping retailers up at night in 2016. Take our quick reader survey below to let us know your thoughts, and we’ll share the results in a follow-up post!

Continue reading

Leave a comment

Consumption Taxes Challenge Retailers

Historically, the U.S. has relied far less on consumption taxes than its peers, with just 15 percent of tax receipts coming from consumption taxes, compared with an average of 33.6 percent in other developed countries, according to research from The Wall Street Journal. But in the last few years, the tax-consumption idea has gained traction with lawmakers considering an overhaul of the current income-based tax system.

Continue reading

Leave a comment

EMV Challenges Remain for Retailers

Announced a few years ago, the October 1, 2015 Europay, Mastercard and Visa (EMV) conversion date for retailers to avoid the liability shift for card fraud has still not been met by many storefront merchants. Continue reading

Leave a comment

Navigating the Gift Card Breakage Standards

Around two-thirds of American consumers have purchased at least one gift card, and with the surge in e-commerce, online gift card sales are growing at approximately 29% per year. However, about 40% of gift card recipients do not use the total value of their cards. As gift card purchases continue to grow, unredeemed gift card liability balances have been increasing year over year, and retailers are evaluating the best way to treat their unredeemed gift cards.

Continue reading

Leave a comment

Join Us for Our Upcoming Webinar: Retail CFOs’ 2016 Forecast

Register now for our CPE-qualified webinar “Retail CFOs’ 2016 Forecast: Market Pressures and Changing Conditions Ignite Industry Metamorphosis” on April 6 at 1pm ET.

Continue reading

Leave a comment

Read the Full Report: 2016 BDO Retail Compass Survey of CFOs

Our tenth annual Retail Compass Survey of CFOs surveyed 100 CFOs at leading US retailers about their outlook for the retail industry in 2016. Influenced by market volatility, disappointing 2015 sales figures and wavering consumer confidence, retail CFOs were modest in their outlook, predicting a decrease in consumer confidence this year and total sales growth consistent with last year’s.  However, CFOs were more bullish when it comes to deal activity: More than half of retailers expect M&A activity in the retail sector to increase in 2016. And with competition and consolidation being their top concern for 2016, retailers are looking to reinvest in their brick-and-mortar stores. But that’s not to say that CFOs aren’t investing in digital infrastructure, as well; more than half of CFOs have increased spending on cybersecurity in the past year.

For additional insights around regulatory and tax concerns, brick-and-mortar investments and e-commerce predictions, be sure to read the full report online here.

Leave a comment

Retail CFOs Expect 2016 to Bring a Rise in E-Commerce

As the digital retail landscape continues to grow and evolve, retailers are evaluating the best way to balance investments among their online and brick-and-mortar operations. But one thing remains clear: We have not yet reached e-commerce’s zenith. According to our tenth annual Retail Compass Survey of CFOs, all of the 100 retail CFOs we polled anticipate their online sales will increase or stay about the same in 2016, while none believe that their online sales will suffer. On average, CFOs expect their online sales to grow nearly 10 percent in the year ahead. Their sentiments are unsurprising; in 2015, e-commerce sales accounted for over half of all retail sales, totaling $341.7 billion for the year—a 14.6 percent increase from 2014, according to non-adjusted estimates from the U.S. Department of Commerce.

Continue reading

Leave a comment

New Lease Accounting Standard Causes Concern for Retailers

Even before the FASB issued its new lease accounting standard, ASU 2016-02, Leases (Topic 842), on February 25, 2016, it had long been top of mind for CFOs who were worried about its far-reaching implications. While the standard is designed to bring greater transparency on companies’ lease assets and liabilities, it’s estimated that up to $3 trillion of leasing commitments will have to be added to balance sheets. Continue reading

Leave a comment