KPMG Survey Finds Most Retailers Expect Recovery by 2014 (or Later)

In April, KPMG surveyed roughly 100 retailers about when they expect the U.S. economy to significantly improve.  A majority responded by saying they do not expect that to happen until 2014 — at the earliest.  As a result, they expect to continue to hold on to cash reserves, rather than move forward with expansion.  Approximately 77% of those responding said that their companies maintain significant cash reserves on the balance sheet (up from last year’s numbers) and over 50% say they’re holding on to even MORE cash than they did last year.

Interestingly, over 60% claim that revenues are up (year over year) and 50% say they’ve added to their work force.  Only 22% report that their employee numbers are back at pre-recession levels.  In fact, while 50% of those surveyed expect to add workers over the next year, fully 20% of those who responded acknowledged they don’t expect to EVER have as many employees again, as they did pre-recession!

Review the entire report at kpmg.com.