You're watching...
Staples co-founder Tom Stemberg, Fastsigns CEO Catherine Monson and Greenleaf Books CEO Clint Greenleaf on the impact of tax hikes and rising gas pric...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- gonna start tonight with a warning from Bellwether Wal-Mart it says.
Their facing a sluggish start to the year because.
Higher payroll taxes and higher gas prices are weighing on sales here's what one Wal-Mart executive said in an email to his colleagues.
In case you haven't seen a sales report these days February month to date sales are a total disaster.
The worst start to a month I have seen in my roughly seven years -- the company.
Now we all know that when Wal-Mart gets hammered it's not good for everyone else out today we have.
To get to the real stories bottom of all this time -- Is the co-founder and former CEO of Staples.
-- months and is CEO of fast signs and Clint Greenleaf is founder and CEO of Greenleaf book group.
And -- -- looking -- all too.
Money let's talk about the payroll tax increase and let me start with Tom first I mean clearly that is having an impact they said it was just a small increase but.
Even that small increases.
Hurting average American.
Well remember it's not just.
The payroll tax increase overall tax rates are going up on a good portion of the middle class who worked for small business.
Who gets the text of the sub S rate.
-- you've got the Obama tax taxes obamacare taxes kicking in and you got worries about a obamacare overalls to affect your health care costs.
And what's your pours into view and when you create that kind of worry and uncertainty.
People each and every time in my long years in retailing cut back.
Well let let me go to -- Your employees are they are you seeing them pull back are they complaining about the less money they take -- their paycheck.
Because of these tax increases.
We'll certainly taking 2% off of anybody's paycheck is gonna have some -- on them and there's no doubt that rising gas prices are having an effect as well but.
At fast signs were not gonna pull back as what we'd do is we help local businesses generate new customers and sell more to existing customers.
So our franchisees around the country are getting ready to help their local business owners.
Drive new traffic and get new business.
Are you seeing though those local business owners who you do business -- are they very -- the -- wal -- concern I mean.
The word that executive used was disaster.
Well I'll tell you aren't January sales at fast signs were up eleven point 4% over a strong January last year so -- not actually seeing that affect yet.
And -- look at our preliminary February numbers and their strong as well.
But as any good CEO I'm concerned about the macro economic situation and am.
You know watching in and seeing what we can do to support our franchisees if we do get into that horrible double dip thing that we're trying to avoid.
Well -- -- let me go do you at this point yeah further quote from that email that was leaked several emails actually from Wal-Mart.
It the end of one of them actually say where are all the customers and where's their money.
I mean this is a valid question are you seeing this among your clients and among your customers.
Thank god we haven't seen -- yet but I can tell you -- if wal -- gonna feel it.
We're all gonna feel -- -- there's a great Bellwether force that they're starting to see this on the horizon we should all be very frightened about that bullet.
