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PMG Venture Group Executive Director Kristin Bentz on the outlook for retail sales.
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And -- retail sales coming off the worst holiday season in four years we'll heavy discounts this weekend helped retailers closed 2012 lot of better -- Nothing has got to talk all about this is out Kristen -- -- call you -- misspent yes CNN executive director at P&G venture group it's a pleasure to have you here I was actually reporting some of these.
Lower than expected holiday sales outlooks why would this weekend then be crucial anything gonna make people spend money that they didn't spend before Christmas.
Retailers really want to think that but unfortunately the cat's out of the -- now with such a -- holiday performance you will see them slashed prices and you'll see extreme deep discounts just so they can break even.
It'll be an important weekend but it's just not enough to move the needle unfortunately.
So how bad is it going to be I know that the NRF is still National Retail Federation is holding with white knuckles to their prediction of four point 1% year over year growth.
Doesn't seem realistic when you have by -- shopper track and spending falls all revising their outlook.
Yet they just don't want to give up the -- unfortunately and you know numbers don't lie and they're all out there are so I was kind of laugh.
-- lone wolf out there saying how bad it was gonna be before anybody else dead and I'm not afraid to say it now.
So they really should be revising their numbers down unfortunately it's just devastated the American consumer think they're afraid they're scared and they don't have the money to spend.
And you also you know if you've made mention too that this weekend people will be taking the gifts they guard are the things that they purchase saying I want the discount price sure are now selling days for apple stores actually do that if you already bought it before Christmas.
They really don't have a choice no other -- -- term for that is price adjustment.
So you bought something before Christmas now -- go back to the store and it's for the the prices been slashed you wanna get the adjustment between the -- selling price.
And what you paid for it that's just economy tell -- -- I'm retailers really have no choice but in addition to that it is gonna see -- lot of returns I think there's a lot of buyers remorse out there.
You when -- sitting on the floor of the Christmas tree with all of your boxes and and you realize that.
Your income tax with holdings are gonna skyrocket -- into the new year you're really gonna make a quick choice about know what to do about that.
But who's gonna take a bigger hit brick and mortar or online because they every year -- -- still continues to grow but -- -- the growth wasn't as big as they thought.
Right not a stellar it's funny I was talking about that this morning I in my estimation I always think that brick and mortar retail always get hurt the hardest.
It costs more to staff the stores with people it's just a more expensive per excess then you know returning something an Amazon.
So -- brick and -- is gonna get hurt the most any predictions on which of the major retail chains are going to see this reflected.
I mean we're gonna have earnings reports in the beginning of the year.
And it's not looking like it's gonna be pretty any names you wanna talk about.
Why not yeah.
I thank you.
I should pick anywhere is right out and write a you know -- I definitely would sea -- by taking a hit.
You know there's a phenomenon we talk about in retail called showroom in view where people go into the store now that we have our our hand held -- our ipads to comparison shop.
CD actual item in person measure it for instance -- it's a big screen TV is it gonna fit look at all the -- of -- talked all the staff for an hour.
Then leave an order it online via Amazon or another retailer and unfortunately that's really -- falling Best Buy it's an example -- technology really hurts retail.
Instead of helping yet so I definitely would see some some softness there.
Alright -- events unfortunately we're out of time but we appreciate your being with us on the Fox Business Network lets hope you're wrong I know that you probably -- People let's hope that -- -- -- advent.
But I know they well -- have a wonderful new year and I know that you back on FBN.
Thank you coming up.
