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Happy Holiday for Retailers?

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  • Description

    Tesley Advisors Managing Director Joe Feldman on the state of the retail sector.

  • Duration 3:36
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And welcome back everybody we've been talking to Joseph Feldman managing director -- intensely advises show us thanks for sticking around -- -- so good holiday season not great so far.

But that's not what about the impact of super storms sandy you know -- that the -- -- mid Atlantic makes up like 24% of national.

Retail sales to how much does that factor in.

Well it definitely had a big drag effect on the month in November and the start -- the holiday season we've we clearly saw that when the retailers that do report their monthly sales.

I had talked a lot about that in sales were below expectations for November and then it just has this overall.

Negative impact anyway just from a sentiment standpoint people kind of feel lousy.

That -- the tragedy and in Newton Connecticut was it was just awful and you know that puts everybody in in a negative spirit in some respects.

To the point.

About the psyche of the -- with regard to.

You know consumer confidence in December -- Six month low.

-- economy still struggling unemployment still high.

I mean we hit a lot of people who walking around the stools but maybe not buying as much is that a factor.

Well.

You do see some of that I mean what we've always found written between confident consumer confidence and actual consumer spending.

It actually breaks down.

Consumers may say one thing and do another.

Most people tend to be like that and yes I think that.

You know we found that spending levels have held up okay.

And that we still think that people are spending in the stores there will be a holiday season there will be presents under the tree tomorrow morning for a lot of kids.

And I think that yeah it may be won't wouldn't be as robust as it was last year last year was a pretty decent holiday season better than expected in this year.

You know probably a little more tepid especially given the environment that weren't.

When it comes -- the week off to up.

Christmas how important is that to the overall picture.

Well it's a very big week according to The National Retail Federation -- can account for almost 10% of a holiday season sales come in the week after.

If you think about it people come in and do returns or exchanges and then often convert -- into another purchase.

Is oftentimes spending a little bit more sometimes they see it has value towards another purchase that they actually wanted to also gift cards you know 1012% of total sales this holiday season will be on gift cards.

That comes in and oftentimes is one and a half to two birds two times the value of the -- -- spent when people come back to the store.

And with the sales that start on on Wednesday the day after Christmas you will see some of that.

Joseph.

Who do you think -- some of the winners -- this holiday season with regard to the retailers.

Well we we think companies like Macy's.

Have done very well TJ acts.

Do you know how it Costco in my world Wal-Mart it Wal-Mart sells everything right you can feed the family put the meal on the table at the same time is buy -- so.

I think that they always tend to -- Michael course was a winner this holiday season there's -- some winners out there.

What about JC Penney is -- JCP I should say has tried so hard to rebrand itself is up working.

The re branding it looks better I don't think it's quite resonated with customers say you are studies indicate that they may have lost some of their core customers.

-- as a result of this but they are trying they're actually going to put some products on sale this holiday season and you know -- they -- they said they weren't going to do that today they're trying a lot of different things to get that customer traffic in and people back in the stores -- political numbers offered to see how successful they've been Joseph Feldman.

Thank you so much for sticking with -- managing director with -- advises just thank you so much.

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