In-store consumer traffic may be declining, but U.S. suppliers are hopeful about the upcoming fall season.
According to a recent Capital Business Credit (CBC) survey, 81 percent of importers and suppliers believe the 2016 fall season will be stronger, or flat to last year.
“Given the economic rollercoaster ride that has been the first half of 2016, we were pleased to see such optimism from wholesalers that sell to the country’s major retailers,” Capital Business Credit executive chairman Andrew Tananbaum said.
Although suppliers are optimistic about the fall shopping season, they don’t expect consumers to be turning out early to buy coats or sweaters. Nineteen percent of suppliers said the fall season would begin immediately and an additional 25 percent of suppliers said it would at least start earlier than in previous years.
Suppliers’ positivity stems from the current summer season, which has been positive for at least some retailers. Roughly 40 percnet of suppliers said they experienced more orders from retailers and about 60 percent of suppliers also said retailer orders are up by at least 10 percent.
“From everything our customers are reporting it seems like the consumer is back. Spending is up and retailers are optimistic about the second half of 2016,” Tananbaum said. “In fact, three quarters (75 percent) of importers and suppliers are experiencing merchandise reorders for the summer shopping season. This paints a positive picture for the upcoming months for the overall retail sector, as well as the economy.”