Analysts: Retailers Need Rich Shoppers, Discounts
By: Black Friday and Cyber Monday are behind us; the madness of the final shopping countdown lies ahead. Where does U.S. retail stand today?
Richard Hastings, senior retail analyst at Bernard Sands, and Standard & Poor's Retail Analyst Jason Asaeda weighed in on “Morning Call.”
Hastings told CNBC’s Michelle Cabrera-Caruso that Wal-Mart’s lackluster results could be a “barometer” indicating that lower-income consumers are being slammed by the “dip in residential construction.”
Asaeda, on the other hand, opined that the discount giant’s figures may be “isolated,” noting that Federated Department Stores “had strong numbers.” He said that people of all income groups are willing to spend more on “aspirational luxury goods” – and believes this explains whyJ.C. Penny’s sales had been “disappointing.”
Both analysts agree that the key for retail success in December will be “promotional” – that is, price cuts.