Retailers Take Stock of Economic Downturn Featured on CIT’s “5 Minute Capital” Podcast Series
NEW YORK-(Business Wire)-September 23, 2009 - CIT Group Inc. (NYSE:CIT), a leading provider of financing to small businesses and middle market companies, today released another edition of “5 Minute Capital” (www.5minutecapital.com), its award-winning series of 5-minute podcasts featuring senior CIT executives commenting on current market conditions and trends in the middle market.
Burt Feinberg, Group Head of CIT Retail Finance, provides his perspective on the new study, “U.S. Small and Middle Market Outlook 2009: Retailers and Suppliers Take Stock of Economic Downturn,” which was recently released by CIT and Forbes Insights. In this installment, he provides his perspective on how retailers are responding to the recession and planning for the recovery.
He comments, “Retailers are keeping their inventories low. A lot of retailers have stopped or temporarily stopped some growth plans. They’re focused on operations, using technology to track their inventories and creating less SKU’s. They are really trying to streamline their businesses to maintain good levels of cash flow during this recessionary environment.”
In discussing some of the upside retailers have encountered as a result of the current market, Feinberg adds, “This has been a great opportunity for retailers to go back to their landlords. Because of all the bankruptcies of retailers there is a lot of vacant space. There are leases that relate to whether anchor tenants exist in malls and similar types of provisions that enable retailers to renegotiate leases. As a result, real estate has been an area where retailers can achieve some cost reductions in this recession."
Middle market companies, a key component of the U.S. economy, account for more than $6 trillion in sales and employ almost 32 million Americans. U.S. small businesses employ nearly 59 million Americans (approximately half of all private-sector jobs), constitute approximately 97% of all identified exporters, and produce approximately 29% of the known export value.
EDITOR’S NOTE: Complimentary copies of the report are available for download at http://middlemarket.cit.com.
Individuals interested in receiving future updates on CIT via e-mail can register at http://newsalerts.cit.com.
About the Report
The information in the U.S. Small and Middle Market Outlook 2009: Retailers and Suppliers Take Stock of Economic Downturn is based on the results of two surveys and a series of one-on-one interviews conducted by Forbes Insights in July and August 2009.
The first survey questioned 110 executives and financial decision makers at middle market retailers. All companies had revenues of $25 million to $1 billion. Respondents represented a broad range of retail segments, including specialty apparel, consumer electronics, appliances, sporting goods, convenience stores, housewares, and discount chains. All respondents held senior-level titles (including CEO, COO, CFO, and VP) and had functional responsibility for finance, strategy and business development, or general management.
The second survey queried 104 executives and financial decision makers at suppliers to the middle market retailer sector. All companies had revenues of $2 million to $1 billion; slightly under half weighed in at less than $50 million. These suppliers represented a broad range of market segments, including apparel and accessories, consumer electronics, housewares, footwear, home furnishings, and other retail. All respondents held senior-level titles (including CEO, COO, CFO, and VP) and/or held functional responsibility for a business unit or department. Over half were either a CEO or owner. The interviewees were not clients of CIT.
About CIT
CIT (NYSE:CIT) is a bank holding company with more than $60 billion in finance and leasing assets that provides financial products and advisory services to small and middle market businesses. Operating in more than 50 countries across 30 industries, CIT provides an unparalleled combination of relationship, intellectual, and financial capital to its customers worldwide. CIT maintains leadership positions in small business and middle market lending, retail finance, aerospace, equipment and rail leasing, and vendor finance. Founded in 1908 and headquartered in New York City, CIT is a member of the Fortune 500. www.cit.com
About Forbes Insights
Forbes Insights is the custom research practice of Forbes Media, publisher of Forbes magazine and Forbes.com, whose combined media properties reach nearly 50 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights’ research covers a wide range of vital business issues, including talent management, corporate social responsibility, financial benchmarking, risk and regulation, and doing business in emerging markets. www.forbes.com/forbesinsights
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