A number of retailers have reported increased cash flow, revenues and workforces, but they still believe they could be doing better if the economy was recovering more quickly. As a result, many are being more guarded in their long-term decisions, at least until 2014, when they believe the economy will begin recovering.

More than three-quarters of retail executives polled by KPMG said they have significant cash on the balance sheet, up 5 percent from 2011. Additionally, 56 percent say their companies have better cash positions and 64 percent indicated revenues are up. Still, 65 percent believe the economy still has room to improve in the future and 61 percent don't see that happening until 2014 or 2015.

"The retail sector has experienced some positive momentum in the past year, but executive leaders aren't about to throw caution to the wind," said Mark Larson, KPMG global retail leader. "In this year's survey, executives have pushed back their estimated timeline for economic recovery to 2014 or later, with concerns that decreased consumer confidence and continued high national unemployment are hindering … recovery."

Many businesses are scaling back their brick-and-mortar presence as a result, focusing on lower cost ecommerce.