ONLINE ONLY RETAILERS SAY
CONGRESS SHOULD WORK OUT THE
DETAILS.
NEIL?
NEIL: HILLARY, THANK YOU VERY
MUCH.
GET THE READOUT FROM FORMER
J.C. PENNEY CHAIRMAN ALAN QUEST
ROM, WHATEVER YOU MAKE OF THE
MACROEFFECTS OF BRICK AND
MORTAR GUYS LIKE HIS OLD
COMPANY, COULD THIS BE VERY
GOOD.
HE JOINS US ON THE PHONE.
ALAN, GOOD TO HAVE YOU ON THE
PHONE.
EXPLAIN.
>> GOOD TO BE WITH YOU.
NOT JUST GOOD FOR BRICKS AND
MORTAR, GOOD FOR CITIES AND
STATES AND CUSTOMERS IN THE
LONG RUN BECAUSE I DO BELIEVE
THIS IS SOMETHING THAT WAS PUT
IN I THINK 26 YEARS AGO, AND IT
WAS SUPPOSED TO ONLY BE FOR A
FEW YEARS AND NOW 26 OR SO
YEARS LATER, WHEN THEY PUT IT
IN, NEIL, LIKE A $200 MILLION
BUSINESS, THE INTERNET, AND NOW
HALF A TRILLION DOLLARS.
IT'S A BIG BUSINESS DOES, 10%
OF OUR BUSINESS.
IT WOULD BE VERY UNFAIR TO
CONTINUE IT, AND I THINK WHAT
HAPPENS IS NOW IT'S GOOD FOR
BRICKS AND MORTAR, GOOD FOR
SMALL STORES IN THE TOWN AND
GOOD FOR CUSTOMERS BECAUSE NOW
EVERYBODY PAYS THE SAME FAIR
SHARE, AND I THINK IF THEY
HADN'T DONE, THAT YOU WOULD BE
SEEING STATES RAISING SALES
TAXES AND THAT WOULD BE GOOD
FOR -- NOT GOOD FOR THE 90% OF
PURCHASES AND PUTS EVERYTHING
IN A COMPETITIVE FIELD.
I'M IN THE FURNITURE STORE
BUSINESS AND LIVE IN ONE STATE.
YOU SHIPPED ME FROM ANOTHER
STATE BECAUSE YOU ARE WAYFAIR
OR WHATEVER IT IS, YOU DON'T
CHARGE ME A TAX BUT LOCAL STORE
HAS TO.
THAT'S NOT A FAIR PROCESS.
SO I THINK IT'S VERY GOOD FOR
RETAILERS AND FOR THE MOST
PART, IT WILL BE EVENED OUT, SO
IT'S NOT GOING TO BE REAL
NEGATIVE, I DON'T BELIEVE, FOR
THE INTERNET COMMERCE.
AND REMEMBER, NEIL, MOST EVERY
RETAILER TODAY THAT'S BRICKS
AND MORTAR --
NEIL: I WAS GOING TO RAISE THAT
WITH YOU.
THEY BUILT UP ELABORATE WEB
OPERATIONS AND SUCCESSFUL ONES.
>> NEIMAN MARCUS, 35% OF
BUSINESS IS NOW THAT.
NEIL: IS THAT RIGHT?
WOW.
>> YEAH, YEAH.
NEIL: THAT BEGS THE QUESTION
HOW LONG?
WHETHER IT'S ONLINE OR
TRADITIONAL BRICK AND MORTAR,
YOU GO TO A MALL.
PEOPLE TALK ABOUT THE DEATH OF
MALLS AND MIAMI BUILD THE
WORLD'S LARGEST MALL, DIFFERENT
FEATURES, PLAYGROUND, MORE
MOVIE THEATERS AND RESTAURANTS.
THEY HAVEN'T GIVEN UP ON THE
CONCEPT HERE.
WHAT DO YOU MAKE OF THAT, THE
WAY WE LOOK AT SHOPPING, THE
WAY WE LOOK WHERE PEOPLE
CONGREGATE TO DO THAT AND MORE
IS CHANGING, BUT NOT
NECESSARILY THE END OF THE
WORLD?
>> FOR SURE IS NOT THE END OF
THE WORLD.
THOSE WHO PREDICTS THE BRICKS
AND MORTAR ARE GONE ARE LIVING
IN MAKE-BELIEVE WORLD.
PEOPLE STILL LIKE TO SOCIALIZE.
THEY DO FIND CONVENIENCE BY
GOING ON THE INTERNET.
WHEN YOU WANT TO BUY APPAREL OR
THINGS THAT HAVE SIZING AND
COLORS THAT YOU CAN'T
NECESSARILY VISUALIZE ON YOUR
SCREEN, IT MAKES A BIG
DIFFERENCE WHEN YOU GO TO THE
STORE, YOU SEE IT, PARTICULARLY
IF YOU HAVE GOOD SALES
ASSOCIATES, WHICH I THINK IS
BECOMING A STRANGE PART OF OUR
BUSINESS TODAY, BUT I THINK THE
REASON MALLS HAVE NOT DONE WELL
IS WE BUILT TOO MANY OF THEM,
DISTRACTED FROM ONE ANOTHER AND
I THINK MANY OF THE MALLS WE'RE
NOT KEEPING UP TO DATE, AND
MANY OF THE STORES INCLUDING
MINE WE'RE NOT KEEPING THEM UP
TO DATE, MAKING THEM EXCITING
AND PLACES PEOPLE WANTED TO GO
THOMP THE CHALLENGE FOR ALL
RETAILERS, JUST LIKE ANYTHING
IN THE CAPITALISTIC TUNE, IF
YOU DON'T KEEP MOVING FORWARD,
YOU ARE GOING TO GO OUT OF
BUSINESS.
A LOT OF THE STORES HAVE
RESPONDED WITH THE NEGATIVES IN
2016 AND 17 AND MAKE THE STORE
LOOK BETTER.
THEY HAVE A WAY TO GO.
A STORE NEEDS TO BE A PLACE OF
EXCITEMENT THAT CUSTOMERS WANT
TO GO.
NEIL: I AGREE WITH YOU, I AGREE
WITH THE OLD SAW RISING
ECONOMIC TIDE WOULD LIFT ALL
BOATS AND WONDERING WHAT YOU
MAKE OF THIS COMEBACK IN
CONSUMER SPENDING?
LOT OF IT BUOYED BY LOWER
TAXES, OPTIMISM, VERY LOW
UNEMPLOYMENT RATE.
MORE JOBS THAN THERE ARE
WORKERS TO FILL THEM.
THAT'S AN ENVIABLE POSITION TO
BE IN.
DO YOU SEE THAT CONTINUE?
>> PEOPLE THINK IT'S NOT GOING
TO GO PAST A YEAR OR TWO, I
THINK A LOT FURTHER THAN THAT.
I THINK THE CURRENT
ADMINISTRATION IS MUCH MORE
PRO-CAPITALISM.
WHEN PEOPLE FEEL THE GOVERNMENT
IS ON THEIR SIDE INSTEAD OF
AGAINST THEM, THEY HAVE A LOT
MORE OPTIMISM, AND I WOULD NOT
BE SURPRISED BECAUSE ALSO THAT
THE WAY YOU CAN DEPRECIATE
CAPITAL INVESTMENTS TODAY IS
GOING TO MAKE PEOPLE MORE
WILLING TO INVEST, AND WHEN
PEOPLE FEEL SECURE ABOUT THE
FUTURE OR MORE SECURE, THEY'RE
WILLING TO TAKE CHANCES ON THE
LONG RUN.
NEIL: WHAT ABOUT TARIFFS AND
LOT OF ITEMS THEY GET,
INCLUDING IN STORES LIKE J.C.
PENNEY, COULD JUMP IN PRICE?
>> I'M OF THE BELIEFS THAT THE
TARIFFS WILL NOT BE ALONG.
I THINK YOU WILL SEE A
CORRECTION IN TERMS OF WAY
PEOPLE IMPORT AND TARIFFS ON
GOODS COMING IN.
THAT WILL BE GOOD FOR AMERICANS
COMING.
I DO NOT BELIEVE MOST OF THE
TARIFFS STICK UNLESS A COUNTRY
OR COMPANY IS TAKING ADVANTAGE
BY THE GOVERNMENT GIVING
SPECIAL DEALS TO KEEP PRICES
LOW.
AND I THINK, TARIFFS SHOULD BE
DONE ON AN INDIVIDUAL BASIS,
NOT ON A COUNTRYWIDE BASIS, AND
WHERE AN INDUSTRY FEELS THAT
ARE TAKEN ADVANTAGE BY A
FOREIGN GOVERNMENT, THEY SHOULD
DO IT BY PRODUCT.
SO I DON'T REALLY THINK THEY'RE
GOING TO BE LONG LASTING, AND
THEY WON'T BE LONG LASTING
WHERE COUNTRIES HAVE TAKEN
ADVANTAGE AND I THINK CHINA HAS
TAKEN ADVANTAGE AND
PARTICULARLY LESS SO CANADA AND
MEXICO AND MANY OF THE EURO
COUNTRIES.
NEIL: ALL OF THOSE COUNTRIES
ARE INVOLVED.
>> THEY ARE INVOLVED IN IT, I
THINK HE'S BEEN BROAD-BASED AND
I THINK THEY DO HAVE ISSUES
WHERE THEY HAVE BEEN UNFAIR,
ONCE YOU GET FAIR PRACTICE, AND
I AGREE WITH MR. TRUMP, THERE
SHOULD BE NO TARIFFS.
NEIL: IT SHOULD BE THE GOAL?
>> THAT SHOULD BE THE GOAL.
NEIL: HAVE A NICE WEEKEND,