Retail CFOs See 5.6% Growth in 2007

Chicago, IL, September 18, 2007--Chief financial officers at leading U.S. retailers are predicting 5.6% growth for 2007, according to a new study by BDO Seidman, LLP.

Close to half (47%) of the CFOs cited high fuels costs as the issue having the greatest impact on consumer confidence in the first half of 2007. However, for the rest of the year, there was less agreement among the CFOs on the main issue that will affect consumer confidence. High fuel costs (29%) and the weak housing market (25%) were cited by at least one-quarter of these executives, while interest rates (19%) and the sub-prime lending crisis (15%) were also mentioned by a number of CFOs.

“When you consider that high fuel prices have been with us for some time now, the shift in concern towards issues such as interest rates and the sub-prime lending crisis seems to indicate a growing anxiety about a potential credit crunch for consumers,” said Al Ferrara, a partner in the Retail and Consumer Products Practice at BDO Seidman.

“Given the existing concern with the weak housing market – remember many consumers borrow based on the value of their homes - and the recent volatility in the stock market, discretionary income may dry up and that could have a negative impact on the retail sector as we move into the critical holiday shopping season.”

These findings are from the most recent edition of the BDO Seidman Retail Compass Survey, which examined the opinions of 140 chief financial officers at leading retailers located throughout the country. The retailers in the study were among the largest in the country, with revenues of more than $100 million, including 23% of the top 100 based on annual sales revenue. The survey was conducted in August.