DAVID: ONE THING THAT HAS BEEN
HOLDING MARKET UP IS CONSUMER
CONFIDENCE, THAT TRANSLATE TO
RETAIL SALE, THIS WEEK HOME
DEPOT, MACY'S, J.C. PENNEY AND
CAME TO RELEASE EARNINGS, WHAT
CAN WE EXPECT.
WITH US FORMER WALMART CEO BILL
SIMON.
A LOT OF QUESTIONS PARTICULAR
AFTER BAD DAY LIKE TODAY IN THE
MARKET, BUT, I STILL SEE
CONSUMER CONFIDENCE HIGH, DOES
THAT TRANSLATE TO GOOD RETAIL
NUMBERS?
>> I THINK SO, I THINK CONSUME
SER -- CONSUMER IS STRONG RIGHT
NOW.
AND MORE MONEY IN PAYCHECK,
STRONG EMPLOYMENT NUMBERS,
HAVING AHEAD THAT WALMART LAST
MONTH AT INVESTOR DAY, DROP BACK
AND PUNTED AND LOWERED EARNINGS,
I EXPECT THEM TO DELIVER THAT IS
A SHARE REDECKTION, THEIR SALES
WILL BE STRONG.
STRONG.
>> JACK FROM BARON'S, WALMART
OVER PAST TWO YEARS, A 50
PERCENT STOCK RETURN.
IT SEEMS TO HAVE A NEW MOJO, I
AM LOOKING FOR SOMETHING THAT
DID THAT, I SEE JET.COM, THAT
HAS UNFUSED COMPANY WITH
ENTREPRENEURIAL SPIRIT ON,
ON-LINE SIDE WOULD YOU AGREE?
>> I DO, YOU KNOW THEY STATED A
COUPLE YEARS AGO THEY WOULD GO
AFTER DIGITAL, THEY HAVE DONE IT
WELL, THEY BOUGHT JET AND
INVESTED IN FLIP CARD, AND THAT
PUTS THEM JUICE IN, ON OTHER
HAND, 3 YEARS AGO THEY DELIVERED
29 BILLION IN OPERATING INCOME,
LAST YEAR 20, THEY VA
LAST YEAR 20, THEY HAVE WARNED
THEY WILL BE, BELOW THAT, IT HAS
COME AT A STEEP PRICE, BUT THEY
DID WHAT THEY SAID.
>> WALMART STOCK FOR QUITE A
LONG TIME, THANK YOU FOR YOUR
TENURE, YOU HELPED MY RETIREMENT
COMING TO EARLIER ABLE FOR THAT
STOCK.
>> ALL ABOUT MONEY.
>> TO ME, WALMART A STRENGTH IS
HOW THEY BUY THING, ACQUISITION
TEAM, AND RETAIL PRODUCTS, YOU
SEE CHINA IS DOING AS FAR AS
FIGHTING AGAINST UNITED STATES,
BUYING SOYBEANS FROM BRAZIL AND
OIL FROM RUSSIA, IS WALMART, TO
GET AROUNDTARYIVES
GET AROUNDTARY TES
GET AROUNDTARY TARIFFS FINDING
OTHER SUPPLIERS, WITHOUT RAISING
PRICES ON CONSUMERS?
>> WELL, I THINK THAT FIRST MOVE
FOR ALMOST ANY RETAILER, THEY
ARE TRYING TO REJIGGER THEIR
SUPPLY CHAIN SHORT-TERM, IF THEY
BELIEVE THAT TARIFFING THE BE IN
PLACE FOR LONG RUN, THEY WOULD
HAVE TO MAKE CHANGES TO CAPITAL
STRATEGY.
>> WHAT ABOUT AMAZON, HAVE YOU
BEEN IN PAST, PRETTY TOUGH TALKS
FROM YOU ABOUT BREAKING UP
AMAZON, DOING UP COMPETITIVE
BEHAVIOR, NOW A PRESIDENT TAKING
SAME TALK, DO YOU THINK THERE
WILL BE CHANGE FROM EXECUTIVE
LEVEL TO DO SOMETHING?
>> I DON'T KNOW, I'M NOT AN
ADVOCATE OF BREAKING THEM UP,
BUT REALLY LOOKING AT THEM HARD
AND HAVING HEM REPORT MORE
DETAIL IN SEGMENT REPORTING,
THEY SHORT OF SMUSH IT TO ONE
NUMBER.
AND REPORT.
AND I DON'T THINK THAT GIVES
CLARITY TO THE INVESTOR, IF YOU
THINK ABOUT IT, YOU KNOW THEIR
BEHAVIOR HAS BEEN PREDATORY
ALMOST BY DEFINITION, 2014, THEY
TOOK PRICE OF PRIME AFTER RIGHT
CIRCUIT CITY AND EXAMY ON
CIRCUIT CITY AND CXAMY ON
CIRCUIT CITY AND COMMY ON
CIRCUIT CITY AND COMPE ON
CIRCUIT CITY AND COMPETIN
CIRCUIT CITY AND COMPETITORS OUT
OF,.
DAVID: AND CONSUMER STILL LOVE
THEM.
>> THEY LOVE IT IT AWESOME, YOU
USE THEM ALL OF THE TIME, BUT
YOU KNOW, YOU SEE THEM, PUTTING
PEOPLE OUT OF BUSINESS AND
RAISING PRICES, AND PUTTING
PEOPLE OUT OF BUSINESS AND
RAISING PRICE, THAT IS NOTE
RIGHT.
>> ARE IN SIMON --
>> THIS IS GARY.
>> BILL?
>> WALMART DID IT FOR YEARS AND
YEARS, A GOOD RETAILER NOT
SELLING BELOW-COST.
SUBSIDIZING SUBSIDIZING
WITH INCOME AND CROWD AND
ADVERTISING, WALMART BOUGHT
WELL, MOVED WELL, SHIPPED WELL.
SOLE WELL.
AND DID IT BETTER, A DIFFERENT
PLAY THAN LIKE, YOU KNOW, IF
EXXON DECIDED TO GET IN
RESTAURANT, ICE
RESTAURANT, UCE
RESTAURANT, USE OIL REVENUE TO
DRIVE RESTAURANT COMPANIES OUT
OF BUSINESS.
>> THIS IS MORGAN, SO, QUESTION
FOR YOU, IT RELATES TO ALLEY
BABA.
I DON'T KNOW IN U.S. PEOPLE
REALIZE WHAT A HUGE DAY THAT IS
IN CHINA.
WHAT ARE YOUR THOUGHTS RELATING
TOALI BABA AND RECORD BREAKING
DAY ON SINGLES DAY.
>> I LOVE A ALIBABA, I HAVE BEEN
IN THEIR STOCK FOR A WHILE, THEY
HAVE A DIFFERENT BUSINESS MODEL
THAN AMAZON, THEY HAVE MORE
POPULATION DENSITY ACROSS THE
KEY MARKETS THAN AMAZON, OTHER
THAN MAIN METRO.
I THINK THEY HAVE A BETTER
OPPORTUNITY TO MOVE THE PRODUCT
TO ONE DAY MAKE MONEY, I DON'T
THINK AMAZON HAS THAT.
>> MR. SIMON GARY.
BASICALLY THE WORRY WART HERE,
THEY DID A POLL IN AMERICA 57%
OF DPULTS
OF APULTS
OF ADULTS HAVE LESS THAN A
THOUSAND DOLLARS, DURING A MAJOR
ECONOMIC GROWTH, DOES THAT WORRY
YOU WITH FACT THAT INTEREST
RATES ARE MOVING UP.
>> I'M -- YOU KNOW I WORRY A
LITTLE BIT TOOK MY THOUGHTS ARE,
YOU LOOK AT ROBUST GDP GROWTH
THAT WE'VE HAD IN LAST 12 MONTHS
AND WE'RE BELOW WHAT ECONOMISTS
CALL FULL.
, WE HAVE GROWTH AND NOT ENOUGH
PEOPLE TO KEEP THE GROWTH
FUELED.
YOU KNOW, WE HAVE NOT SOLVED
IMMIGRATION YET, THERE REALLY
BIG ISSUES TO ME IF WE WANT TO
KNOW IT GROW WE HAVE TO GET OFF
THE SNIDE AND GET SERIOUS
IMMIGRATION REFORM TO KEEP THE
THING FUELED AND GROWTH GOING,
THERE IS A LOT OF ISSUES TO BE
DELL WITH, RIGHT NOW -- DEALT
WITH, RIGHT NOW SEEM THAT THE
POLITICIAN WOULD RATHER THAT
ISSUES TO ARGUE ABOUT THAN SOLVE
THAT IS TROUBLING.
DAVID: WHAT DO YOU THINK WILL
COME OUT OF THE MIDTERM
ELECTIONS WE HAVE A DEMOCRAT
HOUSE, AND A REPUBLICAN SENATE.
REPUBLICAN EXECUTIVE?
DO YOU THINK THERE WILL BE ANY
CHANGE OR MOVEMENT THAT WOULD
AFFECT BUSINESS?
>> I REALLY DON'T.
I THINK YOU KNOW THIS OUTCOME,
IF -- IT IS GRIDLOCK AND
BUSINESS TEND TO LIKE GRIDLOCK,
I THINK WHAT COULD BE BAD IS YOU
KNOW, NOISE THAT KEEPS COMING
OUT OF WASHINGTON I HAVE THE --
INCREASE HEARINGS NOW, IT COULD
ERODE SOME CONSUMER CONFIDENT,
WE WERE TALKING ABOUT YOU KNOW
NEGOTIATIONS IN ARGENTINA THAT
ARE UPCOMING AND CHINA.
ADVERSETARYS OR NEGOTIATING
PARTNERS THINK THAT
ADMINISTRATION IS WEAK AND DOES
NOT HAVE SUPPORT, IT WILL WEAKEN
THE NEGOTIATING POSITIONS THEY
COULD PUT US IN A TAILSPIN.
>> LET ME ASK GO GROCERY, AMAZON
WAS SUPPOSED TO TAKE OVER
GROCERY WORLD, I SEE NO SIGNS
THAT WALMART IS SLOWING DOWN
THERE PEOPLE DON'T WANT THEIR
GROCERIES DELIVERED TO THEIR
DOORSTEP AS MUCH AS THAT I WANT
TO CLICK AND COLLECT LIKE
WALMART.
>> I AGREE, GROCERY IS HARD.
IT TOOK WALMART PROBABLY 25
YEARS TO GET AVERAGE AT IT.
NEVER MIND GOOD, AND YOU KNOW
AMAZON, BOUGHT WHOLE FOODS, THEY
NOT ONLY BOUGHT A GROCER BUT A
PREMIUM GROCER, A FRESH GROCER
THAT IS REALLY HARD TO DELIVER,
I THINK THEY ARE FINDING THAT
OUT, I THINK PART OF THE PROBLEM
IS WHAT YOU DESCRIBED, PEOPLE
DON'T YOU KNOW' TO HAVE THEIR
GROCERIES DELIVERED, WE LIVE,
OUR CITIES OTHER THAN NEW YORK
AND SPHRANTS
AND SANRANTS
AND SAN FNTS
AND SAN FRAS
AND SAN FRANCISCO AND OLDER
CITIES BUILD WITH INTERSTATE
HIGHWAY SYSTEM, PEOPLE IN DALLAS
COMMUTE TO, FROM WORK THEY PASS
20 GROCERY STORES, THEY DON'T
NEED IT DELIVERED BUT IT WOULD
BE NIGHT IF THEY COULD PICK IT