• May 12, 2011

Just in time for chains like Kohl's and Macy's to turn in banner first-quarter earnings-and even raise their forecasts for the year ahead-a new study from KPMG details what retail companies will have to do to keep cash registers ringing in the months ahead.

"Companies are optimistic and are starting to see an uptick in demand," Mark Larson, KPMG's global head of retail, tells Marketing Daily. "They also feel like they've made significant progress operationally and are keeping expenses flat."

But they're making big changes, too, he says, shifting marketing dollars out of advertising and into direct mail and loyalty programs.

And since it is more difficult to grow by simply opening new stores, he says retail executives are well aware that they have to change their tactics. "When they look into the future, they see a sustained period of limited growth, so the game becomes capturing market share, wallet share, and solidifying their relationship with existing customers."