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CNN Live Today

Sales Signs

Aired November 14, 2002 - 11:34   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


LEON HARRIS, CNN ANCHOR: The nation's retailers are wondering whether it's going to be ho-ho-ho or just ho-hum this holiday season. Retail sales just out this morning show retail sales for October were flat, that means they were unchanged. Well, let's go out now and take a look at how various stores around the country are faring now in this struggling economy.
CNN's Mary Snow is standing by at Bloomingdale's in New York for a look at department stores. Ceci Rodgers is in Schaumburg, Illinois. She'll talk about electronics stores and specialty retailers. That's what I want to hear. And Jen Rogers is in Rodeo Drive in Beverly Hills. Daryn cares about that one, I think. Let's find out how the high-end retailers are doing this morning.

All right, let's start now with Mary Snow.

Good morning, Mary.

MARY SNOW, CNN CORRESPONDENT: Good morning, Leon.

Yes, we're here in front of Bloomingdale's, one of the largest department stores in New York. And this department store, like so many others across the country, facing uncertainty as we head into the holiday season, about the economy. But also these stores are facing extra hurdles, because they're facing increasing competition from specialty retailers, and also from discounters, like Wal-Mart and Target.

I talked to one retail trend analyst, who says he's finding across the country a push to have a distinction among department stores to set themselves apart from discounters, and certainly that's the case here at Bloomingdale's, where they're making a push for personal shopping services, also home decorating services. But having said all that, the big question remains, with unemployment on the rise, the economy shaky, and uncertainty about a possible war with Iraq, will consumers spend the cash? And we caught up with some shoppers and asked them how they plan to spend this holiday season.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I had a great job last year. I don't have it now. So any gifts that I give this year will be things that I make, poetry I write.

UNIDENTIFIED MALE: People are, you know, they're still spending. It doesn't matter if the economy is good or bad. UNIDENTIFIED MALE: The economy, in my opinion, hasn't changed. I think that, you know, the money's still there. Everyone's still spending.

(END VIDEO CLIP)

SNOW: Certainly, the retailers are hoping that last woman's comments will ring true, and today's commerce department figures are showing that, so far, the consumers have been able to hold up -- Leon.

HARRIS: Thanks, Mary. Mary Snow there.

Let's leave New York and go now to Schaumburg, Illinois, just outside of Chicago. Ceci Rodgers is there. Let's check and see what things look like there in the Sharper Image store -- Ceci.

CECI RODGERS, CNN CORRESPONDENT: Hey, Leon, the sharper image is a bit of an anomaly, because they've seen same-store sales last month in October go up by 23 percent. So they're doing well in a very difficult retail environment. And here to talk with us about why that might be is Chris Johnston. He is the manager of this Sharper Image store.

Chris, people associate Sharper Image with high tech, kind of innovative products. But there is one that you're still considering a hot seller, even after years on the market?

CHRIS JOHNSTON, MANAGER, SHARPER IMAGE: Years on the market, is our turbo groomer. This is a great product to trim away unwanted nose and ear hair, battery operated unit. This year, to maybe make it a little more subtle gift giving idea, we've coupled that with the big screen travel clock. For $79.95, you get both items, and give that gift to the person who needs a little trim and not hurt their feelings.

RODGERS: Like many of the aging Baby Boomers, probably?

JOHNSTON: Potentially, yes.

RODGERS: All right, and here's another one that, of course, our cameramen have been really interested in.

JOHNSTON: Yes, I think you're going to have to get those for those guys for the holidays. This is our rhythm stick, $19.95 for a set of two. Great way to play the drums anywhere you want to go, plus you've got a built-in background soundtrack. This is "Rick's Theme" we call that.

RODGERS: Rick the cameraman's theme?

JOHNSTON: Rick the cameraman's there, and $19.95 for a set of two, very popular item right now.

RODGERS: Wow.

Now one of the things that's really concerning analysts concerning specialty retailers, is that with cost-conscious consumers this holiday season, they may see something like the rhythm sticks here at Sharper Image and say maybe I can get it cheaper at target or Wal-Mart and go for the knock-offs at the big box stores.

JOHNSTON: That's always a potential. I think we're usually ahead to market on some of these items. We have a pretty aggressive merchandising staff, and usually when those get into the big boxes, we get out of it, and you know, we try to be unique, and I think we do a good job at staying unique in this marketplace. That's why we're successful.

RODGERS: OK, thanks, Chris Johnston for joining us.

And, Leon, I don't imagine you need a nose hair trimmer.

HARRIS: I don't know.

DARYN KAGAN, CNN ANCHOR: Stand by. I will on behalf of America take a look.

HARRIS: I've got a head trimmer that takes care of that. A guy comes by my house, gas blower and all of that stuff, and we take care of that at home.

KAGAN: His ears look good too.

RODGERS: Ceci Rogers, thanks so much.

KAGAN: How can you give that to somebody and say it wouldn't hurt your feelings. That's the biggest hint-hint in the world.

HARRIS; The thing is, if they accept it, they must really love you.

KAGAN: Just what I've been hoping for, the nose and the ear hair trimmer.

HARRIS: Leave a nose trimmer. Let's go to the land of the nose job. Let's go to Beverly Hills.

OK, Jen Rogers is standing by out there on Rodeo Drive this morning.

Hey, Jen.

JEN ROGERS, CNN CORRESPONDENT: Hi there, Leon.

Very good. Not too much plastic walking up and down the streets here, the shopping day not quite getting started in Beverly Hills yet. Rodeo Drive itself, the storied shopping street, is just about three blocks long, and you can easily spend three days here. The question is, are people still spending money here? Tax revenues for the last quarter and for the surrounding shopping area in Beverly Hills were flat from the year before. And that's a sign that things could be stalled, but they aren't really slumping. For more on how luxury sales in Beverly hills are doing, we thought we'd go to a man who was an expert in high-end retail men's apparel with Carol and Company here. They cater to old Hollywood and entertainment executive.

John Carroll is the president of the company.

Good morning. How are sales doing? Are people still dropping $1,500 for a suit?

JOHN CARROLL, CARROLL & CO.: I think you're seeing, at least in our business, you know, in the men's wear business, a return to dress up. So I think you're seeing a lot of people going to their closets, men who see old suits in their closets, and I think it's time to spruce up their wardrobe. And at least we're seeing a beginning of a return to dress-up, and people coming in and buying suits again, yes.

ROGERS: So that helps you guys, specifically. In terms of holiday sales, they make up a big chunk retailers' sales. For you guys, it's about 20 to 25 percent. How is the holiday looking, and what are doing to prepare?

CARROLL: Well, i think we're all optimistic about the holiday season, the retail business in general, and certainly in Beverly Hills. I think you see bigger inventories, I think you see more staff. That's certainly the way that we've been going. I just think that people are, you know, reeling over the last couple of years. I think there's still money out there to spend, and I think they're going to spend it this year on their Christmas gifts.

ROGERS: You were born here, you have worked here for a long time. Just try and put your finger on the pulse of the consumer that shops here a little bit. How have things changed maybe since the Nasdaq was at 5,000? How have people been affected, and how is that affecting their spending patterns here?

CARROLL: I think a lot of people haven't spent money for the last, you know, 18 months or so. I think 9/11 certainly, you know put a halt to a lot of things. But I think people want to feel a little bit better about themselves. I think people want to feel a little bit better about, you know, their colleagues, their employees, their employers, family and friends especially. I think, you know, we're looking forward to them, you know, spending at this holiday season.

ROGERS: We talked to one jeweler on the street who said people aren't buying million-dollar diamonds at the same pace they used to, but they're still buying jewelry.

HARRIS: Jen Rogers on Rodeo Drive this morning. Have a good one.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired November 14, 2002 - 11:34   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: The nation's retailers are wondering whether it's going to be ho-ho-ho or just ho-hum this holiday season. Retail sales just out this morning show retail sales for October were flat, that means they were unchanged. Well, let's go out now and take a look at how various stores around the country are faring now in this struggling economy.
CNN's Mary Snow is standing by at Bloomingdale's in New York for a look at department stores. Ceci Rodgers is in Schaumburg, Illinois. She'll talk about electronics stores and specialty retailers. That's what I want to hear. And Jen Rogers is in Rodeo Drive in Beverly Hills. Daryn cares about that one, I think. Let's find out how the high-end retailers are doing this morning.

All right, let's start now with Mary Snow.

Good morning, Mary.

MARY SNOW, CNN CORRESPONDENT: Good morning, Leon.

Yes, we're here in front of Bloomingdale's, one of the largest department stores in New York. And this department store, like so many others across the country, facing uncertainty as we head into the holiday season, about the economy. But also these stores are facing extra hurdles, because they're facing increasing competition from specialty retailers, and also from discounters, like Wal-Mart and Target.

I talked to one retail trend analyst, who says he's finding across the country a push to have a distinction among department stores to set themselves apart from discounters, and certainly that's the case here at Bloomingdale's, where they're making a push for personal shopping services, also home decorating services. But having said all that, the big question remains, with unemployment on the rise, the economy shaky, and uncertainty about a possible war with Iraq, will consumers spend the cash? And we caught up with some shoppers and asked them how they plan to spend this holiday season.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I had a great job last year. I don't have it now. So any gifts that I give this year will be things that I make, poetry I write.

UNIDENTIFIED MALE: People are, you know, they're still spending. It doesn't matter if the economy is good or bad. UNIDENTIFIED MALE: The economy, in my opinion, hasn't changed. I think that, you know, the money's still there. Everyone's still spending.

(END VIDEO CLIP)

SNOW: Certainly, the retailers are hoping that last woman's comments will ring true, and today's commerce department figures are showing that, so far, the consumers have been able to hold up -- Leon.

HARRIS: Thanks, Mary. Mary Snow there.

Let's leave New York and go now to Schaumburg, Illinois, just outside of Chicago. Ceci Rodgers is there. Let's check and see what things look like there in the Sharper Image store -- Ceci.

CECI RODGERS, CNN CORRESPONDENT: Hey, Leon, the sharper image is a bit of an anomaly, because they've seen same-store sales last month in October go up by 23 percent. So they're doing well in a very difficult retail environment. And here to talk with us about why that might be is Chris Johnston. He is the manager of this Sharper Image store.

Chris, people associate Sharper Image with high tech, kind of innovative products. But there is one that you're still considering a hot seller, even after years on the market?

CHRIS JOHNSTON, MANAGER, SHARPER IMAGE: Years on the market, is our turbo groomer. This is a great product to trim away unwanted nose and ear hair, battery operated unit. This year, to maybe make it a little more subtle gift giving idea, we've coupled that with the big screen travel clock. For $79.95, you get both items, and give that gift to the person who needs a little trim and not hurt their feelings.

RODGERS: Like many of the aging Baby Boomers, probably?

JOHNSTON: Potentially, yes.

RODGERS: All right, and here's another one that, of course, our cameramen have been really interested in.

JOHNSTON: Yes, I think you're going to have to get those for those guys for the holidays. This is our rhythm stick, $19.95 for a set of two. Great way to play the drums anywhere you want to go, plus you've got a built-in background soundtrack. This is "Rick's Theme" we call that.

RODGERS: Rick the cameraman's theme?

JOHNSTON: Rick the cameraman's there, and $19.95 for a set of two, very popular item right now.

RODGERS: Wow.

Now one of the things that's really concerning analysts concerning specialty retailers, is that with cost-conscious consumers this holiday season, they may see something like the rhythm sticks here at Sharper Image and say maybe I can get it cheaper at target or Wal-Mart and go for the knock-offs at the big box stores.

JOHNSTON: That's always a potential. I think we're usually ahead to market on some of these items. We have a pretty aggressive merchandising staff, and usually when those get into the big boxes, we get out of it, and you know, we try to be unique, and I think we do a good job at staying unique in this marketplace. That's why we're successful.

RODGERS: OK, thanks, Chris Johnston for joining us.

And, Leon, I don't imagine you need a nose hair trimmer.

HARRIS: I don't know.

DARYN KAGAN, CNN ANCHOR: Stand by. I will on behalf of America take a look.

HARRIS: I've got a head trimmer that takes care of that. A guy comes by my house, gas blower and all of that stuff, and we take care of that at home.

KAGAN: His ears look good too.

RODGERS: Ceci Rogers, thanks so much.

KAGAN: How can you give that to somebody and say it wouldn't hurt your feelings. That's the biggest hint-hint in the world.

HARRIS; The thing is, if they accept it, they must really love you.

KAGAN: Just what I've been hoping for, the nose and the ear hair trimmer.

HARRIS: Leave a nose trimmer. Let's go to the land of the nose job. Let's go to Beverly Hills.

OK, Jen Rogers is standing by out there on Rodeo Drive this morning.

Hey, Jen.

JEN ROGERS, CNN CORRESPONDENT: Hi there, Leon.

Very good. Not too much plastic walking up and down the streets here, the shopping day not quite getting started in Beverly Hills yet. Rodeo Drive itself, the storied shopping street, is just about three blocks long, and you can easily spend three days here. The question is, are people still spending money here? Tax revenues for the last quarter and for the surrounding shopping area in Beverly Hills were flat from the year before. And that's a sign that things could be stalled, but they aren't really slumping. For more on how luxury sales in Beverly hills are doing, we thought we'd go to a man who was an expert in high-end retail men's apparel with Carol and Company here. They cater to old Hollywood and entertainment executive.

John Carroll is the president of the company.

Good morning. How are sales doing? Are people still dropping $1,500 for a suit?

JOHN CARROLL, CARROLL & CO.: I think you're seeing, at least in our business, you know, in the men's wear business, a return to dress up. So I think you're seeing a lot of people going to their closets, men who see old suits in their closets, and I think it's time to spruce up their wardrobe. And at least we're seeing a beginning of a return to dress-up, and people coming in and buying suits again, yes.

ROGERS: So that helps you guys, specifically. In terms of holiday sales, they make up a big chunk retailers' sales. For you guys, it's about 20 to 25 percent. How is the holiday looking, and what are doing to prepare?

CARROLL: Well, i think we're all optimistic about the holiday season, the retail business in general, and certainly in Beverly Hills. I think you see bigger inventories, I think you see more staff. That's certainly the way that we've been going. I just think that people are, you know, reeling over the last couple of years. I think there's still money out there to spend, and I think they're going to spend it this year on their Christmas gifts.

ROGERS: You were born here, you have worked here for a long time. Just try and put your finger on the pulse of the consumer that shops here a little bit. How have things changed maybe since the Nasdaq was at 5,000? How have people been affected, and how is that affecting their spending patterns here?

CARROLL: I think a lot of people haven't spent money for the last, you know, 18 months or so. I think 9/11 certainly, you know put a halt to a lot of things. But I think people want to feel a little bit better about themselves. I think people want to feel a little bit better about, you know, their colleagues, their employees, their employers, family and friends especially. I think, you know, we're looking forward to them, you know, spending at this holiday season.

ROGERS: We talked to one jeweler on the street who said people aren't buying million-dollar diamonds at the same pace they used to, but they're still buying jewelry.

HARRIS: Jen Rogers on Rodeo Drive this morning. Have a good one.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com