However, just as we witnessed in 2010, we believe that 2011 will pose challenges as well as opportunities for the retail industry. We expect that both the U.S. and global economy will continue to recover from the recession. The strong growth we saw in 2010 has retailers cautiously optimistic that the economic recovery is finally taking hold. Consumers have accumulated some spending power and their market confidence is starting to return. Although unemployment remains stubbornly high, retail sales are finally showing real signs of momentum. NRF is forecasting 2011 retail sales to increase 4.0 percent. Retailers will continue to be cautious as they proceed in 2011, paying extremely close attention to economic indicators such as employment, housing and commodity prices throughout the year.
Many retailers were able to make adjustments last year to remain competitive. Some were even able to make themselves stronger in the process. The anticipated uncertainty in 2011 will once again challenge retailer’s supply chains. We fully expect capacity and pricing issues to impact operations in the coming year for all modes of transportation. The hope is that it won’t be as severe as we saw last year. Retailers learned a lot about who their real supply chain partners were as a result.
|