Overall, insurance premium rates for retail firms stabilized in 2009, with a slight downward trend. Property rates are stable heading into 2010, although retail locations near coastlines will receive increased scrutiny by underwriters. Reduced inventory levels at stores and distribution centers - a result of the economic downturn - have improved most retailers' property risk profiles. Casualty insurance rates are stable for retail risks with minimal exposure changes.

Looking Ahead

Retailers had planned for a soft 2009 holiday season, with sales mostly flat compared to 2008- which was itself an off year. Most companies are expecting modest sales increases by mid-2010. Many retailers are carefully analyzing sales trends and will continue to close underperforming locations.