Fox Business News - August 19, 2011
Your World With Neil Cavuto: Back-to-School Sales
Neil Cavuto: Before hitting the books, back to school shoppers hit with hikes. Retailers are facing rising costs. A lot of them are hiking their prices 10 percent across the board, we're told. But real estate analyst extraordinaire Faith Hope Consolo is reading the writing on the chalk board. She says that inflation is going to put a big dent on retailers, beyond just this back-to-school season. She has been predicting a lot of the problems they're having. Faith, what are these guys going to do?
Faith Hope Consolo, Retail Analyst: Well, they had to slash prices. The promotions are going to be incredible. And they're depending on some of the new products. But I think what is going to save the retailers is that the inventories are very lean.
Cavuto: They're not going to be caught with a lot of stuff?
Consolo: No, no. This is not going to be like three years ago. That market taught them very well. They are depending on some electronic sales, because there is always a new product.