>> MARIA: WELCOME BACK.
THE SUPREME COURT HANDING A BIG
WIN TO BRICK AND MORTAR RETAIL
YESTERDAY.
THE RULED STATES CAN FORCE
ONLINE RETAILERS LIKE AMAZON TO
COLLECT SALES TAX.
JOINING US RIGHT NOW IS TOM
McGEE.
TOM, GOOD TO SEE YOU.
>> THANK YOU FOR HAVING ME.
>> MARIA: THE IMPACT OF THIS,
HOW DO YOU SEE IT.
>> FIRST OF ALL, WE'RE THRILLED
WITH THE DECISION.
WE THINK IT'S A REAL VICTORY FOR
MARKET PRINCIPLES.
THE COURT IDENTIFIED THERE WAS
AN UNLEVEL PLAYING FIELD FOR
BRICK AND MORTAR RETAILERS.
THIS IS SOMETHING WE ADVOCATED
FOR YEARS AROUND.
I THINK WHAT YOU'LL SEE NOW IS
MANY STATES FOLLOWING THE LEAD
OF SOUTH DAKOTA AND IMPLEMENTING
SIMILAR PIECES OF LEGISLATION.
>> MARIA: INITIALLY ONLINE
SHOPPING WASN'T AS ROBUST AS IT
IS TODAY.
IT'S HARD TO MAKE THE ARGUMENT
THAT THEY SHOULDN'T PAY TAXES
TODAY.
>> THEY HAVE A VIRTUAL PRESENCE
IN EVERY STATE.
SO I THINK IT'S A DIFFERENT
WORLD THAN THE DECISION WAS BACK
IN 1992 WHICH WAS MADE IN AN ERA
OF MAIL ORDER, WELL BEFORE
ONLINE SHOPPING BECAME A
REALITY.
>> ONE OF THE BIGGEST THINGS IS
E-COMMERCE GROWTH HAS BEEN 162%.
ONE OF THE FASCINATING THINGS
CAME OUT OF RECON, IT WAS
FASCINATING TO ME BECAUSE HOME
DOUGH
HOUGH
HOMEH
HOMEDEPOT SAID WE'VE GOT 55 MILL
HOMEDEPOT SAID WE'VE GOT 55 MILO
HOMEDEPOT SAID WE'VE GOT 55 MILN
SQUARE FEET OF DISTRIBUTION
SPACE.
IT'S TAKEN US 40 YEARS TO GET
THERE.
WE'RE GENERAL TO DOUBLE IT IN
THE NEXT -- WE'RE GOING TO
DOUBLE IT IN THE NEXT FIVE
YEARS.
WHERE DO YOU SEE BRICK AND
MORTAR RETAILERS GOING?
WILL THEY USE THEIR OWN STORES
AS THEIR OWN WAREHOUSES TO DO
SHIPPING AROUND THE COUNTRY.
INDUSTRIAL REAL ESTATE RENT IS
UP 9% SO FAR.
>> I THINK YOU'LL SEE SOME OF
THAT.
THE PHYSICAL STORE IS THE
ABILITY TO SOLVE THE NEXT MILE.
WHAT YOU'RE SEEING RETAILERS DO
IS INVEST IN PHYSICAL STORE
NETWORKS, CREATING THAT KIND OF
EXPERIENCE WE'RE TALKING ABOUT.
WHETHER YOU'RE A LARGE
ESTABLISHED RETAILER LIKE LARGE
DEPARTMENT STORES, THEY'RE NOW
INVESTING AND REINVIGORATING AND
DIGITALLY NATIVE RETAILERS ARE
INVESTING IN STORES.
THE MOST RECENT ROUND OF VC
FUNDING FOR A YOUNG, DIGITALLY
NATIVE RETAILER, 70% OF THAT
FUNDING WENT TO BUILD OUT A
STORE NETWORK.
RETAILERS ARE STARTING TO
UNDERSTAND THE STORE IS THE HUB
OF THEIR ABILITY TO SERVE THEIR
CUSTOMERS.
IT NOT ONLY GROWS IN-STORE SALES
BUT IT GROWS ONLINE SALES AS
WELL.
>>
.>
>> MARIA: HOW IS THE ENVIRONMENT
RIGHT NOW, WHAT IS THE BACKDROP
IN TERMS OF RETAIL AND CONSUMER
SPENDING.
>> WE HAVE A STRONG ECONOMY,
STRONG CONSUMER SENTIMENT,
STRONG JOB MARKET.
THERE'S THE FUNDAMENTALS FOR
STRONG RETAIL SALES.
RETAIL SALES HAVE BEEN DROPPING
THIS YEAR.
THERE'S A GREATER LEVEL OF
OPTIMISM THAN THE PRIOR YEAR OR
TWO YEARS.
I THINK YOU'RE SEEING AN
INDUSTRY THAT REALLY IS RECREE
RECREATING ITSELF, BUILDING FROM
A POSITION OF STRENGTH.
THE TERM RETAIL APOCK LIP
THE TERM RETAIL APOCA LIP
THE TERM RETAIL APOCALYIP
THE TERM RETAIL APOCALYPSE IS
NOT THE CORRECT TERM.
WE'RE SEEING A RETAIL
RENAISSANCE.
>> MARRIOTT HAS A EXTRA TEA
GENTLEMEN
STNTLEMEN
STRALEMEN
STRATEMEN
STRATEGIN
STRATEGICPARTNERSHIP WITH SIMONP
STRATEGICPARTNERSHIP WITH SIMONO
STRATEGICPARTNERSHIP WITH SIMONE
STRATEGICPARTNERSHIP WITH SIMONT
STRATEGICPARTNERSHIP WITH SIMONY
GROUPS WHERE THEY'RE BUILDING
HOTELS AT THE MALL LOCATIONS.
YOU'RE SEEING THIS RENAISSANCE
HAPPEN THROUGHOUT AND
REJUVENATION INTO THE REAL
ESTATE REALM WHERE NOW THE STORE
FRONT IS NO LONGER FOUR WALLS
ANYMORE.
IT'S ENDLESS.
IN THE COURTYARDS, CAN YOU TALK
ABOUT THAT.
>> THIS WHOLE CONCEPT OF MIXED
USE IS A HOT TREND RIGHT NOW.
I THINK IT PLAYS A LOT TO WHAT
CONSUMERS WANT.
YOU HAVE BABY BOOMERS THAT TEND
TO BE EMPTY NESTERS, THEY LIKE
TO LIVE, WORK AND PLAY IN ONE
PLACE.
YOU HAVE MILLENNIALS THAT ARE
PRE-KIDS, PRE-MARRIAGE OFTEN.
THEY WANT TO LIVE, WORK AND PLAY
AND THIS MIXED USE CONCEPT OF
APARTMENT BUILDINGS, TOWNHOUSES,
RETAIL, OFFICE COMPLEXES, ALL IN
ONE PLACE IS WHAT THE CONSUMER
WANTS AND SO I THINK THE
INDUSTRY'S ADAPTING TO THAT
WHICH IS WHAT RETAIL HAS ALWAYS
DONE.
RETAIL BY ITS NATURE IS THE
ULTIMATE CONSUMER-FACING
INDUSTRY.
IT HAS TO ADAPT TO WHAT
CONSUMERS WANT.
THAT'S WHAT'S HAPPENING RIGHT