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For Retail Stocks, 'It's All About Creating Excitement': Analysts

Wednesday, 14 Sep 2011 | 12:30 PM ET

Retail sales fell for the second straight monthin August, and that means retailers must work harder to regain market share, two analysts told CNBC Wednesday.

Retailers are responding to this challenge of trying to draw more customers, said Chris Christopher, IHS Global Insight's U.S. principle economist. "They’re either going to the low end or the high end. If you don’t make that adjustment you might fizzle away," he said.

Christopher likes high-end retailers, such as Neiman-Marcus. So does SW Retail Advisors analyst and CNBC consultant Stacey Widlitz, whose stock picks include Abercrombie & Fitch , Saks and Nordstrom.

Retail Reflecting the Economy
Discussing the outlook for the shopping season and how it may impact the economy, with Stacey Widlitz, SW Retail Advisors Inc. president and Chris Christopher, IHS Global Insight senior principal economist.

She said Target, with its new Missoni line, is "a great example of a retailer that's in the mid-end" that is refurbishing stores and introducing exciting products. In turn, she said, they are able to pass costs along to consumers.

"If you want to play the discounters space, that's certainly the name right now," she said. "It's all about creating excitement."

Other mid-priced retailers, such as Gap , are "in a really tough position" and need to do more to create the excitement that will bring shoppers into their stories, Widletz said.

Another exciting retailer is Lululemon Athletica, Widlitz said Tuesday.

WATCH: Widletz Discusses Hurricane Irene's Potential Impact on Retail Sales.

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CNBC Data Pages:

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Disclosures:

Disclosure information was not available for Stacey Widlitz, Chris Christopher or their companies.

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