GO
Loading...

CCTV Script 22/07/14

— This is the script of CNBC's news report for China's CCTV on July 22, Tuesday.

Welcome to the CNBC Business Daily, I'm Qian Chen.

Let's take a look at U.S. retail stocks.

They're closing lower for the year as they battle what some are calling, a retail funk.

But as CNBC's Courtney Reagan reports, retailers are pulling out all the stops to get customers back in their stores.

It hasn't been an easy year for retailers and the stakes only get higher. The all important back to school and holiday shopping seasons have stores pulling out all the stops to get consumers buying. Economic data shows consumers have been spending on big purchases like homes and cars but when it comes to smaller items like closet organizers and clothing, retail CEOs are scratching their heads. Kip Tindell, CEO of the container store thinks there is a "retail funk" going on, causing sluggish sales at his company as well as others. Demos Parneros, Staples president of North American stores online agrees, saying weather is no longer the foremost barometer retailers can rely on to predict traffic.

[Demos Parneros, President of North American Stores & Online] "We're seeing a different behaviour pattern from customers because they do have so many choice online stores or the combination. It's hard to put a finger on exactly what's going on."

Consumer funk or not, retailers can't afford to sit back and wait for the tide to turn. Social media buying options, agressive pricing and more convenient pop up shops are just some of the strategies retailers are using to get shoppers buying in their stores or on their websites.

[Jeremy Rosenberg, Allison & Partners Sr. VP Digital Media] "The facebook buy button was just recently introduced. Twitter has now started to work with credit card purchasing companies and have bought a new company as well to intigrate that into their offer and the amazon phone which is really built around the idea that people can go in and use that as a showrooming device is also going to help them in terms of building out a better retail experience."

Staaples is offering a 110% money back guarantee that its prices are the lowest to keep shoppers buying school supplies in stores or on its websites. Even fendi is employing a less traditional strategy in order to lure consumers in - opening up pop up shops in New York's SOHO neighbourhood. While many retailers certainly have lost sales to online players like amazon, more than 90% of all retail sales are still made in stores but those in-store purchases are falling short. A major worry going into the 2nd most important retail season of the year, back to school. For CNBC, i'm Courtney Reagan.

That wraps up this edition of the Business Daily.

I'm Qian Chen, reporting from CNBC's Asian headquarters.

Follow us on Twitter: @CNBCWorld