BDO

BDO 2011 BDO RETAIL COMPASS SURVEY OF CFOS In our fifth annual survey, we asked 100 CFOS at leading retailers across the U.S. how they saw business in the next year. Here's what we discovered. 11% L0% 5% 36% UPON WHAT WILL ECONOMIC RECOVERY BE MOST DEPENDENT? LOWER ENERGY COSTS REBOUND IN THE HOUSING MARKET IMPROVING U.S. AND GLOBAL FINANCIAL MARKETS LOWER UNEMPLOYMENT 38% IMPROVING CONSUMER CONFIDENCE AND SPENDING WILL DRIVE ECONOMIC RECOVERY THE MOST IMPROVING CONSUMER CONFIDENCE AND SPENDING FOR THE REMAINDER OF 2011, WHAT WILL BE THE GREATEST THREAT TO MAINTAINING OPERATING MARGINS? 43% THE COST OF PRODUCTS AND SOURCING ARE THE GREATEST THREATS TO MAINTAINING OPERATING MARGINS 38% IN 2010 38% SAID STORE OPERATING AND ADMIN COSTS WERE THE GREATEST THREAT TO OPERATING MARGINS 20% 18% 13% Salel 7% Cost of products and sourcing Store operating and administrative Inventory levels and markdowns Logistics and transportation Foreign Exchange costs IS MOBILE COMMERCE, INCLUDING COMPARISON SHOPPING, A THREAT OR AN OPPORTUNITY? NEXT YEAR, DO YOU PLAN TO INCREASE, DECREASE OR MAINTAIN YOUR INVESTMENT IN MOBILE COMMERCE? 54% ...AND INVESTMENT IN MOBILE COMMERCE WILL BE INCREASED 86% OPPORTUNITY MOBILE COMMERCE IS AN OPPORTUNITY IN 2011... 12% 1% 19% WHICH ASPECT OF A POTENTIAL TAX REFORM BILL ARE YOU MOST CONCERNED ABOUT? STATE INCOME TAX 58% INTERNET SALES TAX A POTENTIAL FEDERAL INCOME TAX IS THE TOP TAX REFORM CONCERN EMPLOYEE RELATED TAX FEDERAL INCOME TAX IN THE COMING YEAR WHERE WILL MERGERS AND ACQUISITIONS MAINLY TAKE PLACE? 16% MERGERS AND ACQUISITIONS WILL TAKE PLACE PRIMARILY IN THE U.S. MARKET Europe Market 66% 18% Asia-Pacific Market HOW MUCH WILL ONLINE SALES GROW IN 2011 COMPARED TO 2010? 11.9% ONLINE SALES WILL GROW BY AN AVERAGE OF 11.9% THIS YEAR HOW MUCH WILL SALES INCREASE OR DECREASE COMPARED TO 2010? CFOS PROJECT TOTAL COMPARABLE STORE SALES FOR THE SECOND HALF OF 2011 WILL INCREASE BY 3.49%, COMPARED TO THE SECOND HALF OF 2010. STORE SALES FOR ALL OF 2011 WILL INCREASE BY 3.5% 3.03% COMPARED TO 2010 COMPARABLE STORE SALES 3.0% FOR ALL OF 2011 WILL |2.3% INCREASE BY 2.26%, COMPARED TO 2010. BDO 2011 BDO RETAIL COMPASS OF CFOS SURVEY In our fifth annual survey, we asked 100 CFOS at leading retailers across the U.S. how they saw business in the next year. Here's what we discovered. UPON WHAT WILL ECONOMIC RECOVERY BE MOST DEPENDENT? 11% L0% 5% 36% LOWER ENERGY COSTS REBOUND IN THE HOUSING MARKET IMPROVING U.S. AND GLOBAL FINANCIAL MARKETS LOWER N UNEMPLOYMENT 38% IMPROVING CONSUMER CONFIDENCE AND SPENDING WILL DRIVE ECONOMIC RECOVERY THE MOST IMPROVING CONSUMER CONFIDENCE AND SPENDING FOR THE REMAINDER OF 2011, WHAT WILL BE THE GREATEST THREAT TO MAINTAINING OPERATING MARGINS? 43% THE COST OF PRODUCTS AND SOURCING ARE THE GREATEST THREATS TO MAINTAINING OPERATING MARGINS 38% IN 2010 38% SAID STORE OPERATING AND ADMIN COSTS WERE THE GREATEST THREAT TO OPERATING MARGINS 20% 18% 13% Salel 7% Cost of products and sourcing Store operating and administrative Inventory levels and markdowns Logistics and transportation Foreign Exchange costs IS MOBILE COMMERCE, INCLUDING COMPARISON SHOPPING, A THREAT OR AN OPPORTUNITY? NEXT YEAR, DO YOU PLAN TO INCREASE, DECREASE OR MAINTAIN YOUR INVESTMENT IN MOBILE COMMERCE? 54% ..AND INVESTMENT IN MOBILE COMMERCE WILL BE INCREASED 86% OPPORTUNITY MOBILE COMMERCE IS AN OPPORTUNITY IN 2011... WHICH ASPECT OF A POTENTIAL TAX REFORM BILL ARE YOU MOST CONCERNED ABOUT? 12% 1% 19% STATE INCOME TAX 58% 秋 INTERNET SALES TAX A POTENTIAL FEDERAL INCOME TAX IS THE TOP TAX REFORM CONCERN EMPLOYEE RELATED TAX FEDERAL INCOME TAX IN THE COMING YEAR WHERE WILL MERGERS AND ACQUISITIONS MAINLY TAKE PLACE? 16% MERGERS AND ACQUISITIONS WILL TAKE PLACE PRIMARILY IN THE U.S. MARKET Europe Market 66% 18% Asia-Pacific Market HOW MUCH WILL ONLINE SALES GROW IN 2011 COMPARED TO 2010? I1.9% ONLINE SALES WILL GROW BY AN AVERAGE OF 11.9% THIS YEAR HOW MUCH WILL SALES INCREASE OR DECREASE COMPARED TO 2010? CFOS PROJECT TOTAL COMPARABLE STORE SALES FOR THE SECOND HALF OF 2011 WILL INCREASE BY 3.49%, COMPARED TO THE SECOND HALF OF 2010. STORE SALES FOR ALL OF 2011 WILL INCREASE BY 3.03% COMPARED TO 2010 3.5% COMPARABLE STORE SALES 3.0% FOR ALL OF 2011 WILL INCREASE BY 2.26%, COMPARED TO 2010. 2.3% BDO 2011 BDO RETAIL COMPASS OF CFOS SURVEY In our fifth annual survey, we asked 100 CFOS at leading retailers across the U.S. how they saw business in the next year. Here's what we discovered. UPON WHAT WILL ECONOMIC RECOVERY BE MOST DEPENDENT? 11% L0% 5% 36% LOWER ENERGY COSTS REBOUND IN THE HOUSING MARKET IMPROVING U.S. AND GLOBAL FINANCIAL MARKETS LOWER N UNEMPLOYMENT 38% IMPROVING CONSUMER CONFIDENCE AND SPENDING WILL DRIVE ECONOMIC RECOVERY THE MOST IMPROVING CONSUMER CONFIDENCE AND SPENDING FOR THE REMAINDER OF 2011, WHAT WILL BE THE GREATEST THREAT TO MAINTAINING OPERATING MARGINS? 43% THE COST OF PRODUCTS AND SOURCING ARE THE GREATEST THREATS TO MAINTAINING OPERATING MARGINS 38% IN 2010 38% SAID STORE OPERATING AND ADMIN COSTS WERE THE GREATEST THREAT TO OPERATING MARGINS 20% 18% 13% Salel 7% Cost of products and sourcing Store operating and administrative Inventory levels and markdowns Logistics and transportation Foreign Exchange costs IS MOBILE COMMERCE, INCLUDING COMPARISON SHOPPING, A THREAT OR AN OPPORTUNITY? NEXT YEAR, DO YOU PLAN TO INCREASE, DECREASE OR MAINTAIN YOUR INVESTMENT IN MOBILE COMMERCE? 54% ..AND INVESTMENT IN MOBILE COMMERCE WILL BE INCREASED 86% OPPORTUNITY MOBILE COMMERCE IS AN OPPORTUNITY IN 2011... WHICH ASPECT OF A POTENTIAL TAX REFORM BILL ARE YOU MOST CONCERNED ABOUT? 12% 1% 19% STATE INCOME TAX 58% 秋 INTERNET SALES TAX A POTENTIAL FEDERAL INCOME TAX IS THE TOP TAX REFORM CONCERN EMPLOYEE RELATED TAX FEDERAL INCOME TAX IN THE COMING YEAR WHERE WILL MERGERS AND ACQUISITIONS MAINLY TAKE PLACE? 16% MERGERS AND ACQUISITIONS WILL TAKE PLACE PRIMARILY IN THE U.S. MARKET Europe Market 66% 18% Asia-Pacific Market HOW MUCH WILL ONLINE SALES GROW IN 2011 COMPARED TO 2010? I1.9% ONLINE SALES WILL GROW BY AN AVERAGE OF 11.9% THIS YEAR HOW MUCH WILL SALES INCREASE OR DECREASE COMPARED TO 2010? CFOS PROJECT TOTAL COMPARABLE STORE SALES FOR THE SECOND HALF OF 2011 WILL INCREASE BY 3.49%, COMPARED TO THE SECOND HALF OF 2010. STORE SALES FOR ALL OF 2011 WILL INCREASE BY 3.03% COMPARED TO 2010 3.5% COMPARABLE STORE SALES 3.0% FOR ALL OF 2011 WILL INCREASE BY 2.26%, COMPARED TO 2010. 2.3% BDO 2011 BDO RETAIL COMPASS OF CFOS SURVEY In our fifth annual survey, we asked 100 CFOS at leading retailers across the U.S. how they saw business in the next year. Here's what we discovered. UPON WHAT WILL ECONOMIC RECOVERY BE MOST DEPENDENT? 11% L0% 5% 36% LOWER ENERGY COSTS REBOUND IN THE HOUSING MARKET IMPROVING U.S. AND GLOBAL FINANCIAL MARKETS LOWER N UNEMPLOYMENT 38% IMPROVING CONSUMER CONFIDENCE AND SPENDING WILL DRIVE ECONOMIC RECOVERY THE MOST IMPROVING CONSUMER CONFIDENCE AND SPENDING FOR THE REMAINDER OF 2011, WHAT WILL BE THE GREATEST THREAT TO MAINTAINING OPERATING MARGINS? 43% THE COST OF PRODUCTS AND SOURCING ARE THE GREATEST THREATS TO MAINTAINING OPERATING MARGINS 38% IN 2010 38% SAID STORE OPERATING AND ADMIN COSTS WERE THE GREATEST THREAT TO OPERATING MARGINS 20% 18% 13% Salel 7% Cost of products and sourcing Store operating and administrative Inventory levels and markdowns Logistics and transportation Foreign Exchange costs IS MOBILE COMMERCE, INCLUDING COMPARISON SHOPPING, A THREAT OR AN OPPORTUNITY? NEXT YEAR, DO YOU PLAN TO INCREASE, DECREASE OR MAINTAIN YOUR INVESTMENT IN MOBILE COMMERCE? 54% ..AND INVESTMENT IN MOBILE COMMERCE WILL BE INCREASED 86% OPPORTUNITY MOBILE COMMERCE IS AN OPPORTUNITY IN 2011... WHICH ASPECT OF A POTENTIAL TAX REFORM BILL ARE YOU MOST CONCERNED ABOUT? 12% 1% 19% STATE INCOME TAX 58% 秋 INTERNET SALES TAX A POTENTIAL FEDERAL INCOME TAX IS THE TOP TAX REFORM CONCERN EMPLOYEE RELATED TAX FEDERAL INCOME TAX IN THE COMING YEAR WHERE WILL MERGERS AND ACQUISITIONS MAINLY TAKE PLACE? 16% MERGERS AND ACQUISITIONS WILL TAKE PLACE PRIMARILY IN THE U.S. MARKET Europe Market 66% 18% Asia-Pacific Market HOW MUCH WILL ONLINE SALES GROW IN 2011 COMPARED TO 2010? I1.9% ONLINE SALES WILL GROW BY AN AVERAGE OF 11.9% THIS YEAR HOW MUCH WILL SALES INCREASE OR DECREASE COMPARED TO 2010? CFOS PROJECT TOTAL COMPARABLE STORE SALES FOR THE SECOND HALF OF 2011 WILL INCREASE BY 3.49%, COMPARED TO THE SECOND HALF OF 2010. STORE SALES FOR ALL OF 2011 WILL INCREASE BY 3.03% COMPARED TO 2010 3.5% COMPARABLE STORE SALES 3.0% FOR ALL OF 2011 WILL INCREASE BY 2.26%, COMPARED TO 2010. 2.3% BDO 2011 BDO RETAIL COMPASS OF CFOS SURVEY In our fifth annual survey, we asked 100 CFOS at leading retailers across the U.S. how they saw business in the next year. Here's what we discovered. UPON WHAT WILL ECONOMIC RECOVERY BE MOST DEPENDENT? 11% L0% 5% 36% LOWER ENERGY COSTS REBOUND IN THE HOUSING MARKET IMPROVING U.S. AND GLOBAL FINANCIAL MARKETS LOWER N UNEMPLOYMENT 38% IMPROVING CONSUMER CONFIDENCE AND SPENDING WILL DRIVE ECONOMIC RECOVERY THE MOST IMPROVING CONSUMER CONFIDENCE AND SPENDING FOR THE REMAINDER OF 2011, WHAT WILL BE THE GREATEST THREAT TO MAINTAINING OPERATING MARGINS? 43% THE COST OF PRODUCTS AND SOURCING ARE THE GREATEST THREATS TO MAINTAINING OPERATING MARGINS 38% IN 2010 38% SAID STORE OPERATING AND ADMIN COSTS WERE THE GREATEST THREAT TO OPERATING MARGINS 20% 18% 13% Salel 7% Cost of products and sourcing Store operating and administrative Inventory levels and markdowns Logistics and transportation Foreign Exchange costs IS MOBILE COMMERCE, INCLUDING COMPARISON SHOPPING, A THREAT OR AN OPPORTUNITY? NEXT YEAR, DO YOU PLAN TO INCREASE, DECREASE OR MAINTAIN YOUR INVESTMENT IN MOBILE COMMERCE? 54% ..AND INVESTMENT IN MOBILE COMMERCE WILL BE INCREASED 86% OPPORTUNITY MOBILE COMMERCE IS AN OPPORTUNITY IN 2011... WHICH ASPECT OF A POTENTIAL TAX REFORM BILL ARE YOU MOST CONCERNED ABOUT? 12% 1% 19% STATE INCOME TAX 58% 秋 INTERNET SALES TAX A POTENTIAL FEDERAL INCOME TAX IS THE TOP TAX REFORM CONCERN EMPLOYEE RELATED TAX FEDERAL INCOME TAX IN THE COMING YEAR WHERE WILL MERGERS AND ACQUISITIONS MAINLY TAKE PLACE? 16% MERGERS AND ACQUISITIONS WILL TAKE PLACE PRIMARILY IN THE U.S. MARKET Europe Market 66% 18% Asia-Pacific Market HOW MUCH WILL ONLINE SALES GROW IN 2011 COMPARED TO 2010? I1.9% ONLINE SALES WILL GROW BY AN AVERAGE OF 11.9% THIS YEAR HOW MUCH WILL SALES INCREASE OR DECREASE COMPARED TO 2010? CFOS PROJECT TOTAL COMPARABLE STORE SALES FOR THE SECOND HALF OF 2011 WILL INCREASE BY 3.49%, COMPARED TO THE SECOND HALF OF 2010. STORE SALES FOR ALL OF 2011 WILL INCREASE BY 3.03% COMPARED TO 2010 3.5% COMPARABLE STORE SALES 3.0% FOR ALL OF 2011 WILL INCREASE BY 2.26%, COMPARED TO 2010. 2.3% BDO 2011 BDO RETAIL COMPASS OF CFOS SURVEY In our fifth annual survey, we asked 100 CFOS at leading retailers across the U.S. how they saw business in the next year. Here's what we discovered. UPON WHAT WILL ECONOMIC RECOVERY BE MOST DEPENDENT? 11% L0% 5% 36% LOWER ENERGY COSTS REBOUND IN THE HOUSING MARKET IMPROVING U.S. AND GLOBAL FINANCIAL MARKETS LOWER N UNEMPLOYMENT 38% IMPROVING CONSUMER CONFIDENCE AND SPENDING WILL DRIVE ECONOMIC RECOVERY THE MOST IMPROVING CONSUMER CONFIDENCE AND SPENDING FOR THE REMAINDER OF 2011, WHAT WILL BE THE GREATEST THREAT TO MAINTAINING OPERATING MARGINS? 43% THE COST OF PRODUCTS AND SOURCING ARE THE GREATEST THREATS TO MAINTAINING OPERATING MARGINS 38% IN 2010 38% SAID STORE OPERATING AND ADMIN COSTS WERE THE GREATEST THREAT TO OPERATING MARGINS 20% 18% 13% Salel 7% Cost of products and sourcing Store operating and administrative Inventory levels and markdowns Logistics and transportation Foreign Exchange costs IS MOBILE COMMERCE, INCLUDING COMPARISON SHOPPING, A THREAT OR AN OPPORTUNITY? NEXT YEAR, DO YOU PLAN TO INCREASE, DECREASE OR MAINTAIN YOUR INVESTMENT IN MOBILE COMMERCE? 54% ..AND INVESTMENT IN MOBILE COMMERCE WILL BE INCREASED 86% OPPORTUNITY MOBILE COMMERCE IS AN OPPORTUNITY IN 2011... WHICH ASPECT OF A POTENTIAL TAX REFORM BILL ARE YOU MOST CONCERNED ABOUT? 12% 1% 19% STATE INCOME TAX 58% 秋 INTERNET SALES TAX A POTENTIAL FEDERAL INCOME TAX IS THE TOP TAX REFORM CONCERN EMPLOYEE RELATED TAX FEDERAL INCOME TAX IN THE COMING YEAR WHERE WILL MERGERS AND ACQUISITIONS MAINLY TAKE PLACE? 16% MERGERS AND ACQUISITIONS WILL TAKE PLACE PRIMARILY IN THE U.S. MARKET Europe Market 66% 18% Asia-Pacific Market HOW MUCH WILL ONLINE SALES GROW IN 2011 COMPARED TO 2010? I1.9% ONLINE SALES WILL GROW BY AN AVERAGE OF 11.9% THIS YEAR HOW MUCH WILL SALES INCREASE OR DECREASE COMPARED TO 2010? CFOS PROJECT TOTAL COMPARABLE STORE SALES FOR THE SECOND HALF OF 2011 WILL INCREASE BY 3.49%, COMPARED TO THE SECOND HALF OF 2010. STORE SALES FOR ALL OF 2011 WILL INCREASE BY 3.03% COMPARED TO 2010 3.5% COMPARABLE STORE SALES 3.0% FOR ALL OF 2011 WILL INCREASE BY 2.26%, COMPARED TO 2010. 2.3%