I THINK ALL POSITIVE TO GET IN
FRONT OF HOW SUMMER IS
SPENDING.
>> IMPACTING THINGS FOR SURE
WHAT IS YOUR TAKE ON THE
TARIFF STORY THE TRADE ISSUES
THESE ARE UNCERTAINTIES THERE
THAT WE ARE NOT SURE HOW GOING
TO IMPACT RETAIL MAY VERY WELL
MEAN CUSTOMERS HAVE TO PAY
MORE FOR THINGS.
>> FIRST OF ALL, YOU KNOW, I
CERTAINLY INTO ARE THE IDEA
THAT WE NEED TO BE ON A FAIR
TRADING WAY WITH OUR
COMPETITOR WITH OUR -- WITH
THE -- CHINA AND EUROPE AND
WITH NAFTA, THE LIKE SO
GETTING A BETTER DEAL FOR
AMERICA IS A IN ITSELF A GOOD
>> HAVING SAID THAT YOU KNOW
CULMINATIO
PRICES CUSTOMERS JUST WON'T BE
ABLE TO PAY FOR PRODUCTS BASIC
PRODUCTS WHETHER APPAREL OR
WHETHER IT BE OTHER PRODUCTS
THAT THEY NEED EVERY DAY.
MARIA DO I WORRY ABOUT THAT SO
WHAT I AM HOPEFUL IS THAT THIS
NAFTA AGREEMENT GETS DONE, IN
A FAVORABLE WAY WHAT I AM HOPE
IS THAT YOU KNOW THE RHETORIC
THAT GETS LOWERED DOWN THEY
SIT DOWN BETWEEN CHINA AND
AMERICA, ON A FAIR AND
IMPROVED TRADE AGREEMENT THAT
DON'T THINK YOU ARE GOING TO
SEE IMPACTING PRICES, AT LEAST
IN THE APPAREL WORLD IN 2018
MANY RETAILERS ARE MOVING
QUICKLY TO SPEED UP ORDERS
JUST TO TAKE THAT OUT OF THE
EQUATION, BUT DO I THINK IF WE
DON'T DO SOMETHING, SOON ABOUT
THIS THAT IT COULD IMPACT
PRICES, STARTING AT IN 2019.
MARIA: FEELS LIKE THIS IS IN
NEGOTIATION.
THINK, SO THAT IS WHY MARKETS
HAVE STAYED WHERE THEY ARE A.
>> YEAH.
MARIA: YOU ARE NO THE SEEING
A MAJOR SELL-OFF OVER TRADE
WAR.
>> EXACTLY WHAT I SEE AS
NEGOTIATIONS OBVIOUSLY LOUDER
THAN WE HAVE SEEN IN THE PAST
I AM HOPEFUL THAT IS GOING TO
BE WILL GET INCLUDED
RELATIVELY SOON THAT WE WILL
END UP WITH A SLIGHTLY BETTER
POSITION FOR AMERICA, THAN
WE'VE HAD IN THE PAST.
>> TOTALLY AGREE.
ALMOST -- ?EE A GOOD THING.
>> RIGHT.
>> WE HAVE LONG-AWAITED FOR
THIS WE WITH LOW UNEMPLOYMENT
YOU THINK WAGES ARE GOING UP
THAT DIDN'T HAPPEN NOW
HAPPENING THAT IS THAT IS A
GOOD THING.
MARIA: LAB THE LABOR SHORTAGE
WITH YOU DEALING IT?
DO YOU SEE THAT ON A DAILY
BASE IN TERMS OF YOU DON'T
HAVE THE PEOPLE TO PUT IN THE
JOBS YOU MAY ACTUALLY HAVE
AVAILABLE.
>> YEAH, IT IS IT IS GOING TO
BE AN ISSUE, AND HASN'T BEEN
AN ISSUE AT THIS POINT IN TIME
BUT GOING TO BE AN ISSUE FOR
SURE, YOU KNOW, COMPANIES LIKE
MACY'S DIFFERENT THAN WALMART
BECAUSE WE HAVE A MASSIVE
SPIKE UP INTO THE FOURTH
QUARTER HIGHER, A HUGE AMOUNT
OF EMPLOYEES JUST FOR
NOVEMBER-DECEMBER SELLING
PERIOD ALONE, THOSE
INDIVIDUALS ARE A LOT OF THEM
COME BACK FROM PRIOR YEARS
THEY ARE COLLEGE STUDENTS,
THEY ARE PEOPLE WHO ARE
STAY-AT-HOME YOU KNOW ADULTS
OPPORTUNITY BECAUSE NOW THEY
HOLIDAYS SO I THINK THAT
WORKFORCE FOR COMPANIES LIKE
MACY'S IS STILL INTACT BUT
GETTING HARDESH FOR SURE.
>> DOES BACK-TO-SCHOOL SELLING
HOLIDAY SEASON.
>> IT IS LESS SO THAN IT WAS
BEFORE BUT STILL INDICATIVE,
SO WE LIKE TO SEE YOU KNOW,
THAT CONSUMERS ARE FEELING
GOOD ABOUT SHOPPING FOR THEIR
KIDS FOR THE BACK-TO-SCHOOL
PERIOD IT IS A GOOD
INDICATION, ABOUT WHEN A THEY
WOULD I SAY VERY BOOED SIGNS
BACK TO SCHOOL LOOKS GOOD.
>> DO YOU THINK THIS IS PARTLY
DUE TO POLICY, LEGISLATOR
TAXES THE CONSUMERS FEELING
THEY HAVE MORE MONEY IN
POCKETS SO FEELING MORE
CONFIDENT.
>> DEFINITELY, I THINK THE TAX
I THINK THE TAX REFORM HAS
BEEN LONG OVERDUE ONE OF THE
STARTING TO SEE THIS
REFLECTING THE IN EARNINGS
THAT PEOPLE ARE REPORTING
RETAIL, THERE FOR O O POSITIVE
FOR CONSUMER.
>> YOU MENTIONED A COUPLE
CONVICTIONS MACY'S HAS GONE
THROUGH DUE SEE MORE
CONSOLIDATION IN REAL WHERE
ARE WE IN THAT DO YOU THINK WE
SEE MORE COMPANIES GETTING
TOGETHER, AS A RESULT OF THE
THINK WINNERS AND LOSERS, THAT
IS WHAT I THINK IS BEGINNING
TO SHAKE OUT NOW.
THE QUESTION IS ARE THE
WINNERS INTERESTED IN
ACQUIRING THOSE COMPANIES THAT
ARE NOT DOING QUITE AS WELL.
DO THEY REALLY NEED MORE
PHYSICAL REAL ESTATE?
I SAY NO.
I THINK A LOT HAS TO BE -- A
SHRINKAGE OF REAL DEVOTED TO
RETAIL, AMERICA HAS 23.5
SQUARE FEET PER HUMAN BEING,
DEVOTED TO RETAIL THAT IS TOO
AUSTRALIA.
16 AND I THINK UK IS LIKE 5
FEET, SO -- WE ARE WAY OVER WE
SHOULD BE OVER STORED COMPARED
TO MOST COUNTRIES BECAUSE WE
SPEND MORE NOT TO DEGREE THAT
THIS IS OCCURRED OVER THE LAST
10 YEARS, SO START WITH THE
FACT THAT AMERICA IS
OVERSTORED NEEDS TO SHRINK
RETAIL SPACE WITH THAT RETAIL
SPACE INVENTORY SHRINK SUPPLY
WHEN THAT HAPPENS IT IS
POINT OUT MACY'S OTHERS DOING
THIS AS WELL SUPPLY AND DEMAND
GETS BACK IN LINE AGAIN, THAT
ALLOWS FOR A PLATFORM FOR
TAKEOFF ON COMP STORE SALES
GROWTH TO CONTINUE.
>> SOUNDS LIKE WE ARE IN
MIDDLE OF RESTRUCTURING IN
TERMS OF REAL ESTATE, ET
CETERA, YOU HAD THE OPTIMISTIC
IN TERMS OF SPENDING.
>> REAL ESTATE, I AM, THERE IS
VALUE IN REAL ESTATE AS WELL
REPURPOSE REAL ESTATE SELL --
OF PRODUCTIVE REAL ESTATE
BECAUSE IT IS MORE VALUABLE TO
SOMETHING ELSE OTHER THAN
RETAIL STORE SO THAT IS
PLAYING ITSELF OUT AS WELL.
SO THERE IS LOTS OF POSITIVES
IN NEWS HERE.