California Apparel News

Retailers are feeling optimistic for the upcoming holiday season, said a CIT Group Inc. survey released recently.

The survey found that an increasing sense of optimism would result in better business for the holidays. Of the retailers surveyed, 68 percent said that they would plan to hire more seasonal workers than in 2009, 57 percent said they expect to stock more inventory and 69 percent said they plan to spend more on advertising. However, discounts, which can eat into profits, will be an issue. Still, 72 percent of retailers said they would offer more discounts this year than last, according to the survey, titled U.S. Small Business and Middle Market Outlook 2010: Retailers and their Suppliers-Smarter. Leaner. Cautiously Optimistic from CIT and Forbes Insight.

Forbes Insight is the research division of Forbes Media. CIT is a bank holding company and a provider of financing to many apparel companies.

Retailers’ cautious optimism will continue through next year. Two-thirds of the retailers surveyed said they expect their revenues to grow in the upcoming year. However, they don’t expect sales to match or increase to levels before the Great Recession.

The credit freeze might be thawing. According to the suppliers and manufacturers polled, 67 percent said their ability to secure financing has improved compared to the previous year. The survey found two-thirds of suppliers and manufacturers expect their financing needs to grow over the next year.

Another report from Deloitte LLP forecast a good holiday season. The recently released report predicts total holiday sales will reach $852 billion, or a 2 percent increase in sales compared to the 2009 holiday season.—Andrew Asch