With persistent high unemployment and slow growth, retailers will need to find ways to build upon their success. So retailers will remain cautious in managing inventory levels and will pay close attention to economic indicators throughout the year.
With a presidential election in 2012, the focus of Congress and the administration will be on job creation and economic growth. As the largest private sector employer, supporting one in four U.S. jobs, the retail industry needs to be at the center of that focus. Congress will have the opportunity to pass a long-term highway reauthorization bill with a focus on freight movement and proper funding. This could significantly jumpstart the recovery, helping retailers and all transportation-related industries.
Unfortunately, any job creation may be threatened by the economic losses being felt by transportation providers. If the ocean carriers continue to see the losses they experienced in 2011, will it lead to the removal of capacity and increase in rates similar to 2010? Will this lead to consolidation? In addition, the administration is prepared to finally issue significant changes to truck driver hours of service rules that would harm the trucking industry and efficiencies retailers have built within their supply chains.
Even with these challenges, retailers will use the lessons they’ve learned throughout the economic recovery to remain a driver of the economy and creator of jobs.