Retail Doing 'Very Well': Martha Stewart

Retail Doing 'Very Well': Martha Stewart
AP Martha Stewart

Retail sales are picking up, but politicians need to act so the "fiscal cliff" does not derail consumer confidence, lifestyle maven Martha Stewart told CNBC's "Power Lunch" on Wednesday.

"Retail seems to be going really well, " the founder of Martha Stewart Living Omnimedia said. "People are spending on themselves, their children and their homes."

While Stewart noted that things are "not that great yet, " she added, "We can only be optimistic and that jobs will come and people will be able to enjoy life a little bit better in the next four or five years."

The looming fiscal cliff — when automatic tax increases and spending cuts go into effect at the beginning of the year — could "derail our confidence, " she warned.

Stewart called on politicians to act on the country's fiscal problems. "We have to encourage our political leaders to take this extremely seriously, " otherwise the consequences would be "dire, " she said.

Despite the uncertainty, Stewart, who was honoring small-business owners and entrepreneurs with her American Made awards, said it remains a good time to start a business. (Read More: Small Businesses 'Planting the Seeds' for a Recovery .)

"It's never the wrong time to start a good idea, " she said.

-By Justin Menza, CNBC News Writer

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