NEW YORK — Chief executives at retail companies say business conditions are the strongest they've seen in 12 months, and many are upbeat about the fall and holiday shopping season, according to a survey by the National Retail Federation.
The back-to-school season has shown signs of life in August, and retail CEOs feel that shoppers, on average, have been spending even more per transaction than they did during July's sales revival, according to the survey of about 20 CEOs from retailers that include a few of the largest in the United States.
"The back-to-school shopping season appears to have given the retail industry a much-needed sales boost," National Retail Federation President Tracy Mullin said Wednesday. "We are hopeful this is a sign of good things to come as retailers prepare for the holiday season."
The survey, which was conducted from Aug. 15 to Aug. 25 in conjunction with Bank of Tokyo-Mitsubishi Ltd., found that 40 percent of respondents felt that August sales have been even brisker than they were in July, when many chains posted surprising gains in the wake of new federal tax cuts.
A third reported increases in customer traffic versus July's already-encouraging levels, while more than half said traffic was steady compared with July.
Still, none of the executives surveyed said their pricing power has improved from a year ago, when the industry saw one of its most disappointing back-to-school seasons in years. While a third reported "normal" pricing, another third have engaged in "moderate discounting," with the final third resorting to "considerable discounting," according to the survey.
Despite the positive signs, retailers also appear to be approaching the season conservatively from an operational standpoint. A third of respondents are entering the fall with fewer employees, and none said they were beefing up their ranks.