Independent retailers are still struggling with credit issues

Retailers can't survive without access to credit, according to several leading independent retailers gathered at a special Retailer to Retailer Breakfast Seminar on July 17, during the Atlanta International Gift and Home Furnishings Market.

The event, hosted by the Gift and Home Trade Association (GHTA, www.giftandhome.org), gave leading independent retailers the opportunity to discuss key market trends, professional development, and industry best practices.

"Due to a variety of economic factors, vendors are requiring retailers to pay for merchandise up front with credit cards, as an alternative to offering extended credit terms," said Carl Sallese, owner of Baltimore-based Ann Marie's Hallmark. "But we can't finance our business with credit cards. It's impossible. Many retailers have spent years establishing their businesses and earning good credit."

Traditionally, vendors have allowed retailers to order products without extending payment up front. This process allowed retailers to increase product offerings within their stores and better serve consumers. Over the past few years, however, it has become common practice for vendors to require payment upon purchase, as vendors have no opportunity to collect payment from retailers who might go out of business.

According to many retailers, credit card security is also an issue of concern. As a result of this discussion, the GHTA plans to include a breakout session on credit issues during its annual conference later in the year.

Read the full recap of the GHTA event here.