Seventy-eight percent of retail chief financial officers anticipate their online sales to grow this year, according to a recent survey from BDO USA, a business advisor to consumer business companies. Overall, CFOs forecast an impressive 9.9% boost to ecommerce sales this year. This projected increase comes after the Commerce Department’s estimate of a record-breaking $304.9 billion in U.S. online sales in 2014.
To capture more of consumers’ dollars across digital platforms, 37% of CFOs say their primary growth tactic for 2015 is expanding their ecommerce and mobile offerings. At the same time, when asked where CFOs plan to spend the most capital this year, 22% point to ecommerce and mobile channels.
Meanwhile, mobile commerce is growing at nearly three times the rate of overall ecommerce, according to PayPal and Ipsos, and retailers are steadily realizing the need to enhance each touch point on their customers’ path to purchase.
To keep up with the surge in mobile shopping, 68% of CFOs plan to increase their investment in mobile technologies in 2015, a leap from the 40% who planned to do so last year.
Twenty eight percent of CFOs anticipate investing the most capital into their IT systems and technology this year. Following the wave of high profile breaches at major retailers in 2014, including Michaels, Supervalu and Home Depot, it comes as little surprise that 56% of CFOs have increased their spending on cybersecurity in the last 12 months.
Among these retailers, 89% have begun using new software security tools, and 81% have created a security breach response plan. At the same time, 40% have hired an external security consultant, and 11% have brought in a chief security officer.
“Consumers crave speed, selection and the convenience of shopping anywhere and anytime at the touch of a button,” said Natalie Kotlyar, partner in the Consumer Business practice at BDO USA. “But investing in online and mobile systems is a difficult balancing act. Staying competitive requires retailers to deliver a seamless, engaging experience across channels, while at the same time investing to protect their consumers from the growing threat of cyber attacks.”
These findings are from the ninth annual BDO Retail Compass Survey of CFOs, which examined the opinions of 100 CFOs at leading retailers located throughout the country. The survey was conducted in January 2015.
Other major findings of the 2015 BDO Retail Compass Survey of CFOs:
34% of CFOs are most concerned about corporate federal income tax, directly in line with last year’s numbers
25% of CFO's said payroll-related tax ranks second among their top tax challenges this year; particularly as retailers continue to implement Affordable Care Act provisions
12% cite Internet sales tax as their top tax worry this year, down from 17% in 2014
69% say they expect minimal impact on their business from the Marketplace Fairness Act, after the potential legislation was shelved in the House during December
15% cite an increase in the cost of systems to track and report sales, and 4% anticipate a decline in ecommerce sale--if the Marketplace Fairness Act were to be enacted
59% of retail finance chiefs have not yet familiarized themselves with the new revenue recognition standard that takes place in 2017, as announced by the Financial Accounting Standards Board and the International Accounting Standards Board May 28, 2014
[Image: Getty Images / LDProd]