"There are a number of factors that are weighing on retailers, but the compounding affect of reduced consumer spending and a restricted credit environment has been especially challenging. We have read the headlines about the bankruptcies and government takeovers of financial institutions, but this shows the knock-on effect; retailers are now suffering from a drain on liquidity,” said Doug Hart, a partner in the Retail and Consumer Product Practice at BDO Seidman. 

"For some retailers, negative sales trends and credit concerns have led to a reduction in their inventory purchases, which does not bode well for foreign economic growth, as sourcing from U.S. retailers comes largely from developing countries," said Hart.

These findings are from the most recent edition of the second annual BDO Seidman Retail Compass Survey which examined the opinions of 100 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 24 percent of the top 100 based on annual sales revenue.

Some of the major findings of BDO Seidman Retail Compass Survey of CFOs:

• Layoffs Become a Reality.
  One-in-four (24 percent) of the retail CFOs cite that they have had, or plan to have, significant staff reductions in 2008. When looking at the top 100 retailers specifically, 32 percent of those CFOs are experiencing layoffs this year.
  
• Store Closings.
  Unfortunately, 36 percent of the retail CFOs say that they have, or will, close stores in 2008, with 27 percent citing that they will close more stores this year than they did in 2007. Consistent with other survey finds, the top 100 retailers are experiencing a more difficult climate than the other respondents. They are twice as likely to close stores, with 57 percent reporting that they have already or will close stores in 2008 and 33 percent of those retailers saying that they will close more stores this year as compared to 2007.
  
• Delayed Openings.
  On a more positive note, three quarters (77 percent) of CFOs have not or do not plan to delay store opening plans in 2008. One-third (33 percent) of the CFOs at the top 100 retailers report reduced or delayed store openings in 2008, which is10 percent higher than the other respondents.
  
• International Accounting Standards Grow More Popular.
  When asked about the increasing acceptance of international accounting standards, nearly a third (28 percent) of the retail CFOs stated that they are evaluating, or considering changing from U.S. accounting standards to IFRS. More than half (54 percent) of the CFOs at the top 100 retailers are considering or already adopting IFRS. The SEC recently mandated a switch to IFRS, so the majority of retailers (72 percent) who cite that they have not considered a switch to IFRS may now be feeling pressure to learn the new regulations.
  
• Retailers Remain Positive about Takeover Provisions.
  The majority (91 percent) of retail CFOs reported that the weak U.S. dollar has not increased their concern of being acquired by an international entity.