“U.S. Retailer and Supplier Outlook 2010” Featured on CIT’s “5 Minute Capital” Podcast Series

Following the Great Recession, there has been a recalibration of the retail industry – one in which retailers and their suppliers are finding more efficient ways to manage cash flow, inventory levels and sales, according to Jon Lucas, Chief Sales Officer for CIT Trade Finance, at CIT Group Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies. This is just one of the findings Lucas shares while discussing CIT’s second annual retail outlook, “U.S. Small Business and Middle Market Outlook 2010: Retailers and Their Suppliers – Smarter. Leaner. Cautiously Optimistic.”

The interview is part of the latest installment of CIT’s award-winning “5 Minute Capital” (www.5minutecapital.com) podcast series, featuring senior CIT executive commentary on current market conditions and industry trends.

In commenting on the lessons suppliers have learned since the economic downturn, Lucas says: “Suppliers that have gotten through the tough times are looking for new ways to operate profitably. Not just selling a lot, but getting more efficiency and flexibility in their operations. I think they have learned to manage their overhead and their inventory even better.”

Suppliers are cautiously optimistic about their future, with 74% indicating that they anticipate revenue growth over the next 12 months and 55% saying investment in product development is the top strategy they will use to achieve this growth. Lucas comments: “Suppliers today are spending a lot of time and a lot of money on product innovation and product design. Product innovation is what the retailers are looking for today. It’s got to be different to sell. The whole industry has recalibrated and that’s one area that has seen a tremendous amount of focus, product innovation, and a continuing importance of that price value equation.”

The report, which was prepared in association with Forbes Insights, examines how middle market retailers (those with annual revenues of $25 million to $1 billion), as well as suppliers and manufacturers (those with annual revenues from $2 million to $1 billion), have weathered the recession and gauges their outlook of the future.

EDITOR’S NOTE: Complimentary copies of the 2010 and 2009 reports and related podcasts are available for download at http://retailoutlook2010.cit.com.

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About CIT

Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $40 billion in finance and leasing assets. It provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance. www.cit.com