Britt Beemer
Britt Beemer
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This summer, the consumer was cautious, with all the uncertainty going on in the country. But almost all of those worries are gone, and that is good news at the start of the holiday season.
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The really good ones have developed some sort of product niche, whether they are the place to go to get the latest and greatest cook or travel books. They've developed a niche that makes them really unique.
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J.C. Penney will probably be the most promotional store this year, similar to last year, and they'll probably have a good Christmas because of it.
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Overall, the moderate-priced stores such as J.C. Penney, Sears and Wal-Mart had good traffic levels. We think luxury sales were probably flat this past weekend because more people said they decided to go away on vacation before Christmas this year than last year. So this could have impacted spending on other high-end items.
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The luxury stores are the ones hitting the home runs and the discount stores are going to end up doing some pretty good numbers, ... I'm very worried that the middle part of the market is not here.
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There are a number of consumers I've talked to who have given money to hurricane funds in lieu of gifts. Last year luxury retail was the grand slam .... If this shopper cuts back, it will send Wall Street into a spin.
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There are a lot of wealthy income consumers that have given a lot of money to hurricane funds, and they're saying they're doing that in lieu of Christmas gifts,
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When clothing styles went flat for a few years, people no longer had a reason to shop at department stores.
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To a great extent, the brand has become a non-brand. It has not been nurtured or built upon for the last few years. They won't necessarily save money, but they'll consolidate their advertising dollars to a limited number of brands and do it better.
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At this point in the buying season, parents have only spent $71.96 so far, so there is time for stores to get aggressive and drive more sales,
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What's happens is retailers become known for certain things. You want to be known for some product category. You want to be known for a return policy.
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One in five people are being impacted by all these advertising lawyers on television, telling Americans it's not a problem.
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Only a month ago, I felt we could see the first negative selling season in over 20 years, but the drop in gas prices has given consumers a newfound shopping spirit that should sustain them throughout the month of December.
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One thing that shocked me was that the number of consumers planning to buy gift cards this Christmas is not as big as last year.