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The NPD Group Chief Industry Analyst Marshal Cohen on the state of retail for the holiday season.
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Well for retailers right now is the year the holiday season and for some consumers are Friday.
The latest holiday sales forecast -- getting the -- dropping from 3.3 percent increase to just two and a half percent.
And -- despite the fact most consumers haven't even finished their holiday shopping with just five days to go until Christmas.
So what gives let's -- Marshal Cohen chief an industry analyst for the NPD group a market research company we're so pleased to have you here day -- you are probably one of the most knowledgeable people in the country on retail.
You know I was mentioning that in the break that -- seems to me there's so much discounting going on I can't believe anybody is making a profit out there what do you say.
They released.
-- or making money retailers make money even when they mark product down to a close to 50%.
Again it depends on the category.
But when they start to have to go beyond that that's when they start eroding in the margin and -- -- really right now we're just looking to drive volume into the store.
Because even if they have some markdowns they can still sell some other items where they can make money.
It there -- lying -- you walking through the entire story in picking up stuff along the way aside about Wal-Mart which is doing this right now.
They're offering I found live -- 127.
Box.
And their eating that 63 dollar discount with a two year contract -- make of that is that a Smart business move.
This is all about driving traffic into the story of the iPhone 5 one of the hottest items this year for holiday.
There really are not a lot of hot items this year so -- what they're doing is they're jumping on the opportunity -- be able to drive traffic into the store.
Consumers don't usually just by one item -- run out it's all about getting that imposed.
Purchase -- it's interesting you say there isn't that you know that -- you have to go and get there's nothing out there that are really drawn consumers like magnets.
Well great question and it's really retail and -- -- responsibility to kind of this is a wake up call.
-- been trying to do this through price discounting.
That's not the only answer consumers have really basically shown us they're gonna wait -- the holiday.
Because they know they're gonna get better prices but without new and exciting merchandise to drive that consumer to say.
I'm willing to go and spend my own money and and really do all these things to try to get.
The excitement back into the mix retailers have really not been doing -- good job of that.
-- -- change the topic here for a second to.
What's going on in the after mount map of the Newtown school shootings Dick's Sporting Goods stopping the sale of guns in the aftermath of that.
Were you surprised by that announcement they're not the only ones or other retailers who are saying the same thing.
It's hard to comment.
On any management's decision but when some butt when when a company recognizes that there has been a catastrophic event.
It's really good for them to remove themselves.
And any of the products that can contribute to that from the equation.
We've certainly seen other companies mismanaged those things and it's really hurt the reputation and even the management themselves.
This is a good move.
They'll they'll they'll regroup and figure out what's the right thing to do and maybe even government get involved in creating some lost.
But this is really about making sure that everyone is aware that -- doing what they feel is the responsible thing -- please come back.
Be my pleasure excellent thank you for your time today.
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