IF YOU DON'T WANT YOUR
THERE CAN A RETURN ABOUT
$90 BILLION WORTH OF GOODS
THIS HOLIDAY SEASON.
ACCORDING TO ESTIMATES OF
TORAH.
THEY ARE SHIFTING TO ONLINE.
THE FORMER CEO OF TOYS "R" US
JERRY THAT MORNING.
IT'S INTERESTING THE RETAIL
SECTOR ESPECIALLY THIS YEAR.
THEY WANT FREE SHIPPING.
DO YOU THINK THAT COMPANIES
ARE EATING THE COSTS OF ALL OF
THIS.
AND DO YOU THINK IT WILL HURT
RETAILERS LONG-TERM THE BOOM
IN ONLINE SHOPPING.
IT IS GENERALLY IS GENERALLY
UNPROFITABLE FOR MOST
RETAILERS.
ONE OF THE REASONS IS THE
INCREDIBLY TOUGH LOGISTICS.
IT HAS BEEN COMPOUNDED BY THE
ARE THEY DIDN'T KNOW WHAT THEY
MULTIPLE ITEMS JUST AS HE WAS
WHEN THEY LIKE.
IT'S GOTTEN VERY EXPENSIVE FOR
RETAILERS.
THE OTHER DAY WE ARE SITTING
THERE IN THE FINANCIAL
WAS LOOKING TO BUY LOGISTICS.
IT WAS TO ADDRESS SOME OF THE
ISSUES THAT WE JUST STARTED
DISCUSSING AND ALSO IT WAS
THAT AND SHUTTING A COMPETITOR
LIKE HOME DEPOT OUT.
WILL THERE BE MORE OF A VIKING
TATIAN.
THE BILL BIGGER RETAILERS ARE
GOING TO NEED TO INVEST IN IT
RETAILS.
WHATEVER YOU'RE DOING IT'S NOT
ENOUGH.
AND IT'S NOT FAST ENOUGH.
SUPPLY CHAIN IS CHANGING SO
REVOLUTIONARY THAT YOU HAVE TO
MOVE WITH SPEED.
NOW YOU SEE THE RUMORS HERE AT
LEAST ABOUT HOME DEPOT AND I
WOULD HAVE NO REASON TO KNOW
WHETHER THEY ARE TRUE OR NOT.
THEY ARE BECOMING THOSE
COMPANIES.
UNLESS YOU'RE TELLING --
SELLING DIGITIZE LOW
PRODUCTS.
YOU NEED TO BE FIRST-CLASS IF
UNDERSTANDING THERE IS THAT
BRUTAL RETAIL ENVIRONMENT THAT
YOU HAD BEEN DISCUSSING BUT
SALES AND GIVEN THAT RETAILERS
PAID SOME OF THE HIGHEST
EFFECTIVE TAX RATES IN THE
WORLD.
THEY ARE NOW GETTING A BIGGER
BREAK RELATIVELY THAN A LOT OF
OTHER INDUSTRIES.
DOES IT GIVE THEM A LITTLE BIT
MORE OPTIMISM LATELY.
I SAID FOR SOME TIME THAT THIS
NOTION OF A RETAIL APOCALYPSE
IS OVERBLOWN.
MANY OF THEM GO THROUGH A
REVOLUTIONARY TIME.
WHEN IT GOT DEREGULATED AND
BECAME VERY DIFFERENT 20 YEARS
AGO.
A LOT OF CHANGE.
THE NEED TO ADAPT VERY
RAPIDLY.
AS OPPOSED TO A MODEL THAT
COMBINED STORES WITH BRICKS
AND MORTAR.
IT SHOULD NOT BE A TIME TO
REST.
IN THE TAX BILL IS SURE AS
HECK CAN HELP RETAILERS.
AND IN MAKING THE STORES
BETTER.
IT HAS BEEN A REALLY TOUGH
YEAR FOR RETAILERS.
THE CLOSINGS OF MORE THAN
TRIPLED JUST THIS YEAR.
7,000.
YOU HAVE DO YOU THINK THAT IS
KIND OF THE TREND IN THE URBAN
CITIES WITH RETAIL.
IF YOU DIDN'T TAKE INTO
ACCOUNT THE E-COMMERCE AREA
WORLD.
IT'S ALMOST TEN TIMES AS DENSE
OVER IN EUROPE.
SQUARE FOOTAGE.
AND THERE ARE A LOT OF SMALLER
STORES OPENING.
IT DOESN'T MEAN THAT THERE
WON'T BE A SIGNIFICANT SHIP
TERMS OF EMPLOYMENT OR RETAIL
SALES OR ANYTHING ELSE.
REVOLUTION HAS A LONG WAY TO
GO.