NAVIGATION

December 15, 2017

Industry Outlook 2005

Retail

Gina Edwards | 1/1/2005
CONSUMER: Slower Growth

Many homeowners hit by any of the four hurricanes that struck this summer, damaging more than 50,000 homes, have had to pay deductibles in the thousands of dollars, and that's putting a crimp in retailers' bottom lines.

"Insurance doesn't really cover all your costs, so people are feeling a little poorer" in hard-hit areas, says Erik Gordon, a marketing professor at the University of Florida.

Another factor likely to put a damper on growth in the year ahead: Voter approval of a minimum wage increase to $6.15 an hour.

Although most retailers pay more than the minimum wage, Florida voters' approval of a minimum wage hike to $6.15 an hour will hurt the industry. Retailers fear raising the minimum wage will lift the entire wage floor. "Stores are going to be very careful about how many people they can hire," says Gordon.

"For the first time in several years, we may see slower growth in Florida," says Gordon.

Watch for Florida to continue to lose some of its retail uniqueness as consolidations take hold, Gordon says. (Burdines-Macy's will look even more like Macy's, for example.)Takeover Targets
With the launch of its new Soma lingerie line and completion of the integration of its White House Black Market stores, Fort Myers-based Chico's just keeps growing. That growth makes it a prime target for acquisition, says University of Florida marketing professor Erik Gordon. "Their growth isn't done," he says. At some point the offers may just get too good to pass up, Gordon believes. Another successful Florida retailer ripe for acquisition: Tamarac-based City Furniture.Rick McAllister, CEO of the Florida Retail Federation, says small retailers will feel the effects of a minimum wage increase a lot more than large ones. "They're having a hard time competing now," McAllister says.

2005 Forecast: Rick McAllister, CEO of the Florida Retail Federation, expects a substantial expansion of large chain stores in Florida and a continuation of the trend toward more luxury centers. "International retailers believe Florida is their No. 1 growth market," McAllister says.

Tags: Around Florida

Digital Access

DIRECT DIGITAL ACCESS
Add digital to your current subscription, purchase a single digital issue, or start a new subscription to Florida Trend.

TABLE OF CONTENTS
An overview of the features and articles in this month's issue of Florida Trend.

ACCESS THIS ISSUE »

Florida Business News

Florida Trend Video Pick

Shop with a Cop
Shop with a Cop

Members of the West Melbourne PD, Palm Bay PD and Brevard County Fire Rescue give 140 kids in south Brevard a chance to "Shop with a Cop."

Earlier Videos | Viewpoints@FloridaTrend

Ballot Box

Do you agree with Florida Sen. Marco Rubio, who says he won't vote for the GOP tax bill unless the child tax credit is increased?

  • Yes
  • No
  • Unsure, need to understand issue better

See Results

Ballot Box
Subscribe