LIZ: BY THE WAY, NASDAQ IS
HITTING SESSION LOWS AT THE
MOMENT, DOWN 176 POINTS, ABOUT
1.6.
WE SHOULD LOOK AT AMAZON SHARES.
THEY’RE ON YOUR SCREEN RIGHT
NOW, DOWN ABOUT 1.7% AS
E-COMMERCE GIANT KICKS OFF ITS
FIRST EVER PRIME EARLY ACCESS
SALE.
YES, VERY EARLY FOR THE
HOLIDAYS.
AMAZON’S OFFERING MEGA-DISCOUNTS
ON BIG TICKET ITEMS FROM PELOTON
WEICHS TO 23 AND -- BIKES TO 23
AND ME DNA TEST KITS AND EVEN
DISCOUNTS, YES, ON APPLE PRICES.
IMAGINE THAT.
BUT WHO’S DOING WHOM THE FAVOR
HERE?
IT’S NOT EXACTLY A STRETCH FOR
AMAZON TO GIVE THESE BIG
DISCOUNT CANS CONSIDERING IT IS
ONE OF THE MANY RETAIL GIANTS
LITERALLY DROWNING IN A GLUT OF
INVENTORY.
AS OF JULY, U.S. RETAILERS HAVE
BEEN SHOULDERING A RECORD 732
BILLION IN INVENTORY.
THAT’S A 21 IS % INCREASE YEAR
YEAR-OVER-YEAR.
WILL AMAZON’S EFFORT HELP THE
COMPANY GET RID OF ITS
OVERSTOCK, AND WHAT CAN
INVESTORS DEDEUCE FROM SALES
TODAY AND TOMORROW ABOUT HAS
HOLIDAY TRENDS AND THE COMPANIES
AND STOCKS BEHIND THE TRENDS?
KLOVER IS LIVE TRACKING THE
TWO-DAY SALE THROUGH ITS
CUSTOMERS WHO AGREE TO GIVE
KLOVER ACCESS TO ANALYZE THEIR
PURCHASING AND SPENDING DAY DATA
IN EXCHANGE FOR MONEY MANAGEMENT
SERVICES.
THE CEO, BRIAN MANDEL BAM, WE’VE
TORN YOU AWAY FROM YOUR
COMPUTERS, HE’S JOINING ME RIGHT
NOW MANY A FOX BUSINESS
EXCLUSIVE.
AS I UNDERSTAND, YOU’VE GOT
REALTIME DATA COMING IN SECOND
BY SECOND, IS THAT TRUE?
>> OVER 3.5 MILLION CONSUMERS
ARE SHARING REALTIME DATA SECOND
BY SECOND, MINUTE BY MINUTE,
WE’RE REFRESHING IT REALTIME
WITH OUR TEAM EARLIER THIS
AFTERNOON, AND THE DATA IS
REALLY CLEAR.
CONSUMERS ARE CAUTIOUS AS THEY
HEAD INTO THE HOLIDAY SEASON.
IT’S ACTUALLY REALLY REMARKABLE.
WE’RE LOOKING AT DATA, AND WHAT
WE’RE SEEING -- WE’RE ABOUT 15
HOURS INTO A 2-DAY PRIME EVENT.
WE’RE SEEING TRANSACTION VOLUME
AND FREQUENCY AND SPEND DOWN
30-40%.
THAT IS A STUNNING NUMBER.
LIZ: DOWN FROM WHAT, REGULAR
PRIME DAY?
CAN WE MAKE A COMPARISON?
>> YEAH.
FROM THE JULY PRIME DAY WE JUST
HAD TWO MONTHS AGO.
THE TRANSACTION SIZE AND
FREQUENCY IS DOWN 30-40%.
TRANSACTIONS ARE DOWN FROM FROM
A FREQUENCY PERSPECTIVE 30%.
THE SPEND, THE TICKET, WHAT THEY
ARE SPENDING ON, IS DOWN 40%.
THESE ARE ASTONISHING NUMBERS.
LIZ: AGAIN, YOU ARE COMING FROM
A POOL, YOU’RE CULLING THIS FROM
A POOL OF 3-4 MILLION OF YOUR
CUSTOMERS RIGHT NOW WHO HAVE
ENABLED YOU TO PEER IN AND SEE
NOT ONLY WHAT THEY’RE BUYING,
BUT HOW MUCH THEY ARE SPENDING.
THIS ALMOST FEELS, TO ME, BRIAN,
LIKE A CANARY IN A COAL MINE FOR
THE HEALTH OF CONSUMER.
IF YOU COULD WRITE A HEADLINE
FROM WHAT YOU’RE SEEING RIGHT
NOW ON THIS SECOND-BY-SECOND
DATA TOUT THE EARLY PRIME DAY,
WHAT WOULD THAT IF -- THAT BE?
>> THE THE BIG HEADLINE FOR YOU
IS THIS NEW PRIME DAY THAT
AMAZON IS ESTABLISHING IS NOT
MOVING THE NEEDLE WHEN IT COMES
TO DRIVING INCREMENTAL SALES FOR
AMAZON.
AS IT STANDS.
THAT IS THE EARLY READ, AND WE
ARE CALLING IT NOW, THAT’S WHAT
WE’RE SEEING.
TOMORROW MAY BE A DIFFERENT
STORY AS MOMENTUM PICKS UP.
LIZ: OKAY.
>> BUT THE REALITY IS, IT IS NOT
MOVING THE NEEDLE.
LIZ: OKAY.
WHAT ARE PEOPLE BUYING RIGHT
NOW?
CAN YOU GIVE US BRANDS?
CAN YOU GIVE US AREAS OF
PURCHASES?
>> YEAH.
SO IT DEPENDS ON THE DEMOGRAPHY,
BUT THE THINGS THAT ARE MOVING
ARE THE TYPICAL AMAZON-BRANDED
PRODUCTS, THE RING CAMERAS, RING
DOORBELLS.
WE’RE SEEING A HUGE VOLUME OF
AMAZON ECHO AND DOTS MOVING OFF
THE SHELVES.
BUT THAT’S REALLY THE BULK OF
IT.
WHEN YOU MENTIONED EARLIER
AROUND PELL TO ON THE OR 23 AND
ME -- PELOTON, WE’RE NOT SEEING
A HUGE UPTICK WHEN IT COMES TO
THAT A RIGHT NOW.
LIZ: SO THE RING, THE NEST, WHAT
ABOUT THINGS LIKE CLOTHING,
APPAREL, OR DOES THAT SEND A
MESSAGE TO YOU WHAT YOU ARE
SEEING AT THE MOMENT SECOND BY
SECOND IN YOUR DATA THAT
INFLATION IS REALLY FORCING
PEOPLE TO THINK TWICE, THREE
TIMES ABOUT SPENDING EVEN A
COUPLE OF BUCKS ON AMAZON WHERE
THINGS ARE SO MUCH CHEAPER?
>> OH, HERE’S THE STUNNING STAT.
WE POLLED OUR CONSUMERS IN
REALTIME TODAY AS WE SAW NUMBERS
COMING IN, AND 50% OF CONSUMERS
SAID THAT THEY ARE RELUCTANT TO
SPEND ANY MONEY COMING INTO THE
HOLIDAY SEASON.
THEY ARE EITHER DOING TWO
THINGS; ONE, THEY ARE WAITING
FOR MORE SALES AS IT ENTERS
CYBER MONDAY OR BLACK FRIDAY, OR
THEY ARE PLANNING ON SPENDING
LESS.
AND THE REASONS THEY’RE GIVING
US IS BECAUSE THEY HAVE LESS TO
SPEND.
THINK ABOUT HOW STRETCHED THE
CONSUMER HAS BEEN OVER THE PAST
FEW MONTHS OR ALMOST A YEAR.
THEY ARE -- INFLATION IS RISING,
THEY ARE SPENDING MORE MONEY ON
GAS AND UTILITIES, AND WHAT THEY
ARE NORTHEAST NOTICING IS THAT
THEY DON’T HAVE AS MUCH
DISCRETIONARY IF SPENDING AS
THEY ONCE DID.
ESPECIALLY THE CONSUMERS THAT
ARE ON A BUDGET.
LIZ: BRIAN, AMAZON’S NOT THE
ONLY ONE.
WALMART IS ALSO HAVING A BUNCH
OF SPECIALS, TARGET HAS A
ALREADY DONE IT, BEST BUY HAS
TVs, APPLE LAPTOPS ON SALE FOR
THE NEXT TWO DAYS.
SO IT’S ALMOST, I DON’T KNOW,
CAN I SAY IT SMELLS OF
DESPERATION FOR THESE COMPANIES
THAT ARE REALLY TRYING TO MOVE
INVENTORY BECAUSE THEY’RE
DROWNING IN A GLUT OF IT?
IF.
>> THEY ARE DROWNING IN A GLUT,
AND MORE IMPORTANTLY, THEY ARE
NOT CHANGING CONSUMER BEHAVIOR.
THIS WHOLE NOTION OF CAN WE MOVE
THE BLACK FRIDAY OR CYBER MONDAY
INITIATIVE MUCH EARLIER PRIOR TO
HALLOWEEN, WE HAVEN’T EVEN
GOTTEN OVER THE HUMP OF
HALLOWEEN AND ALL OF THOSE
SALES.
TO THINK THAT A THIS RETAILERS
ARE DOING TO DRIVE THAT
INCREMENTAL VALUE AHEAD OF WHEN
CONSUMERS ARE IN THE MINDSET
ISN’T REALLY GOING TO PRODUCE
THE REVENUE THAT THEY THOUGHT
THEY WERE.
MORE IMPORTANTLY, WE ARE SEEING
THAT CONSUMERS ARE, HAVE ALREADY
STARTED TO SPEND ON HOLIDAY
ANYWAY IF THEY WERE GOING TO.
SO SPENDING IS RESILIENT.
NO QUESTION.
THE CONSUMERS ARE SPENDING.
BUT THEY’RE NOT GOING TO BE THE,
THEY’RE NOT BUYING THE WHOLE
WE’RE GOING TO GET A DEAL AND A
SALE TO MOVE INVENTORY COMING
INTO THE HOLIDAY SEASON.
LIZ: WELL, THAT IS THE HOT
HOLIDAY HABIT WHICH SOUNDS TO ME
LIKE PEOPLE ARE KEEPING THEIR
HAND OFF THE CREDIT CARD AT THE
MOMENT.
[LAUGHTER]
BUT WE’LL CONTINUE TO WATCH IT.
KEEP US POSTED ON YOUR
SECOND-BY-SECOND DATA THAT’S
COMING THROUGH ON KLOVER WITH A