Small and Middle Market Outlook
Retailers and Suppliers Take Stock of Economic Downturn

The current recession has hit the retail industry hard. Reduced consumer spending has not just affected retailers, but also on the myriad companies that manufacture and distribute the apparel, home furnishings, housewares, and other goods that retailers sell. With retailers working hard to conserve their cash and deal with declining demand, they are purchasing less from their suppliers and may be paying those suppliers more slowly, straining their suppliers’ cash flow.

This September 2009 report, which was compiled by Forbes Insights in association with CIT, gained a clearer picture of the retail industry by surveying 110 executives and financial decision makers at U.S. middle market retailers and 104 executives and financial decision makers at small and middle-market manufacturers and suppliers that sell through retail.

The study explores the guarded outlook of retailers, and further delves into the impact the slowdown on retail has had on smaller manufacturers that supply these stores. It also looks at what they have done to control their inventory, manage their stressed cash flow, and deal with their suppliers, customers, landlords, and business partners. Finally, it takes retailers’ pulse regarding their plans for the coming holiday shopping season and a possible turnaround in 2010 and beyond.