LIZ: TAKE A LOOK AT THIS ONE OF
THE A’S AND THE THINGS FIRMLY
AND BEAR MARKET TERRITORY DOWN
MORE THAN 23 AND HALF PERCENT
SINCE JULY 1352 WEEK HIGH AND IT
AIN’T APPLE.
AMAZON STROP IS NOT STOPPING THE
E-COMMERCE GIANT FROM A GRAND
PLAN TODAY TO BRING THE NO CASH
OR AMAZON GO STORES TO THE
SUBURBS.
THE GRAB AND GO GROCERY STORE WILL OPEN A SECOND LOCATION WITH
WILL OPEN A SECOND LOCATION WITH
ALL THE LAND AND A WALKOUT STORE
STORE, THE CALL JUST WALK OUT
BECAUSE YOU DON’T TALK TO A
CASHIER THE OPEN WOULD LATER
THIS YEAR IN MILLCREEK
WASHINGTON 20 MILES NORTHEAST OF
SEATTLE.
WHERE THERE IS A STORE THERE’S
GOTTA BE A WAREHOUSE, AMAZON’S
LANDLORD IS THE HEAD HONCHO OF
WAREHOUSE LOGISTICS, 1 BILLION
SQUARE-FOOT PORTFOLIO ON FOUR
DIFFERENT IN 19 COUNTRIES AROUND
THE WORLD, HAS 2 TRILLION WORTH
OF GOODS FLOWING TO THE
WAREHOUSES.
IT IS ALSO A BIG LINK IN THE
SUPPLY CHAIN.
IN A FOX BUSINESS EXCLUSIVE WE
WANT TO BRING IN COFOUNDER AND
CHAIRMAN CEO.
I WILL WRITE WITH THIS
ASSESSMENT WERE THIS A STORE
THERE’S A WAREHOUSE, AND WHAT
MIGHT THIS MEAN.
>> ABSOLUTELY THERE’S ALWAYS A
WAREHOUSE SOMEWHERE FOR
EVERYTHING.
ULTIMATELY WHERE THE GOODS ARE
PLACED WHETHER COMES DIRECTLY TO
YOUR HOME OR A STORE THERE IS
ALWAYS A WAREHOUSE SUPPORTING UP
AND DOWN THE SUPPLY CHAIN.
I SEE INCREASINGLY RETAILERS THE
OMNI-CHANNEL THE BRICKS AND
MORTARS KNOW HOW TO DO
E-COMMERCE AND E-COMMERCE
PLAYERS ARE GOING TO DO
BRICK-AND-MORTAR.
I THINK THERE WILL BE A BLENDING
OF THE SYSTEMS.
LIZ: I THINK YOU’RE RIGHT, WE
ARE SEEING THAT IN AMAZON TAKES
THE LEAD INTO ORIGINAL
E-COMMERCE SITE AND NOW IT
REALIZES WE CAN DISRUPT THE
STOREFRONT OPPORTUNITIES IT
EXPERIENCE.
WHAT I FIND FASCINATING, YOUR
BUSINESS IN PARTICULAR YOUR
STOCK IS UP TODAY YOU’RE NOT
CORRECTION ALTHOUGH LAST I
CHECKED YEAR-OVER-YEAR, AS YOU
LOOK AT EXACTLY WHAT’S GOING ON
ON THE LANDSCAPE YOU GUYS SAID
THAT YOU BASICALLY SOLD OUT YOUR
WAREHOUSE INVENTORY IN THE
FOURTH QUARTER AND YOU SAID 98%
OF YOUR PROPERTIES HAD BEEN
LEASED BY DECEMBER OF LAST YEAR,
THAT IS INCREDIBLE WHAT SHOULD
THAT TELL OUR VIEWERS ABOUT THE
ECONOMY RIGHT NOW?
>> FIRST OF ALL THE ECONOMY AS
BEST AS WE CAN TELL IS VERY
STRONG AND CERTAINLY THE GOOD OF
ECONOMY THAT IS STRONG I
WOULDN’T WANT TO BE IN THE
EXPERIENCED ECONOMY ALTHOUGH I
THINK THAT WILL END UP BEING
PRETTY STRONG ONCE WE COME OUT
OF OMICRON.
EVERY SIGN THAT WE SEE POINTS TO
THE STRENGTH OF THE ECONOMY.
ON TOP OF THAT THERE IS A REAL
SHORTAGE OF SPACE BECAUSE THE
SUPPLY-CHAIN ARE GROWING BECAUSE
OF E-COMMERCE BECAUSE THERE’S
MUCH MORE WAREHOUSE THAN
BRICK-AND-MORTAR RETAIL BECAUSE
YOU ARE SHIPPING PARCELS YOU ARE
NOT SHIPPING PALLETS INTO
STORES.
EACH UNIT OF SALES TAKES A LOT
MORE WAREHOUSE SPACE AND
E-COMMERCE THAT PERCENTAGE HAS
GONE UP AND UP OVER THE YEARS.
THEN YOU HAVE TO ADD INVENTORY
TO BUILD RESILIENCE OF THE
SUPPLY-CHAIN.
THE COMBINATION OF THOSE TWO
FACTORS HAS TAKEN THE GOOD
BUSINESS AND MADE IT A GREAT
BUSINESS AND OF COURSE ON THE
SUPPLY SIDE IT’S VERY DIFFICULT
TO BUILD WAREHOUSES AND MARKETS
WHERE PEOPLE LIVE AND CONSUMED.
SO THE COMBINATION OF A STRONG
DEMAND AND HIGH SUPPLIES LEADING
TO PRICE AND POWER AND GOOD
EARNINGS GROWTH.
YOU STARTED OUT BY TALKING ABOUT
THE STOCK PRICE, I DON’T REALLY
CONTROL THE STOCK PRICE BUT THE
EARNINGS HAVE BEEN GROWING
RAPIDLY IN THE LAST DECADE I
WOULD SAY AND EVEN STRONGER
GROWTH GOING FORWARD. LIZ: HOW DOES THE SUPPLY-CHAIN
LIZ: HOW DOES THE SUPPLY-CHAIN
AND THE TINGLES WITHIN IT SEE TO
WHAT WE ARE SEEING RIGHT NOW.
YOU ALSO HAVE BIG NAMES LIKE
HOME DEPOT, FEDEX, UPS, CISCO,
THE FOOD COMPANY CISCO AS YOUR
BIGGEST CUSTOMER CERTAINLY SOME
OF THEM AND THEY ARE PACKAGE
INTENSIVE, HOW ARE YOU SEEING
THE SUPPLY-CHAIN THROUGH THE
WINDOW OF JANUARY 2022.
IS IT LOOSENING UP A LITTLE BIT
IS A LOGJAM VERY TIGHTLY IN
PLACE.
>> WHEN YOU PUT ASIDE THE
PRESSURE OF THE SHOPPING SEASON
AND COMPARE IT TO LAST SEPTEMBER
OR OCTOBER I THINK WE ARE
ESSENTIAL IN THE SAME PLACE
MAYBE A TINY BIT BETTER BUT THE
PRESSURE OF THE CHRISTMAS SEASON
REALLY MADE A BAD AND THE SHIPS
PARKED OUTSIDE OF THE BOARD OF
L.A. AND IT WAS A GREAT STORY.
BUT THOSE SHIPS ARE STILL THERE
THERE JUST PARKED FURTHER OUT
INTO THE PACIFIC.
AND THAT IS NOT THE ONLY PLACE
IN THE SUPPLY-CHAIN THAT IS
CLOGGED UP.
THERE IS A TRUCKER SHORTAGE AND
THE STUFF THAT IS PILING UP
IMPORTS.
IN PILING UP AND WAREHOUSES.
WHENEVER YOU HAVE A SHOCK TO THE
SYSTEM THE SUPPLY CHAINS THAT
HAVE BEEN OPTIMIZED BY ENGINEERS
TO SOME DEGREE ARE BUILT TO
DEALING IN A CERTAIN
ENVIRONMENT.
AND UNCERTAINTY JUST THROWS THE
WHOLE THING OUT OF WHACK.
THAT’S WHAT WERE DEALING WITH
IT’S GOING TO TAKE A WHILE FOR
THIS TO STRAIGHTEN OUT FOR SURE
IS.
LIZ: OUR MEETING AS WE SPEAK AND
THIS HOUR TOMORROW WE WILL FIND
OUT HOW AGGRESSIVE OR NOT THEY
MIGHT BE ABOUT RAISING RATES.
AS A BUSINESSMAN WHO DEALS WITH
REAL ESTATE SUPPLY-CHAIN AND
PRODUCT MOVING ALL OVER THE
PLACE, WHAT WOULD YOU SAY TO THE
FEDERAL RESERVE?
>> I THINK IT IS PRUDENT TO
REIGN IN SOME OF THE QE THAT
WE’VE BEEN HAVING.
THIS BUSINESS OF EXPANDING THE
FEDS BALANCE SHEET FOREVER AND
KEEP THE RATES AS NEGATIVE RATES
IN THE REAL TERMS, WERE GONNA
HAVE TO PAY AND I THINK DEALING WITH IT SOONER THAN LATER IS THE
WITH IT SOONER THAN LATER IS THE
WAY TO GO.
THE MARKET DOESN’T NEED TO BE TO
FREAK OUT WITH INFLATION, THE
TEN YEAR BOND IS STILL 2%, WHICH
IS A LITTLE BIT HIGHER THAN WHAT
IT WAS A YEAR AGO OR YEAR END A
HALF AGO AND IF YOU LOOK AT THE
40 YEARS OF MY CAREER IS
PROBABLY THE WAS TO SUBURBAN BY
QUITE A BIT.
THE ACADEMY CAN HANDLE IT THERE
IS ENOUGH STRENGTH THERE A
LITTLE BIT OF HEADWIND FROM
INTEREST RATES.
LIZ: THANK YOU FOR BEING A
BUSINESSMAN WHO THINK ABOUT THE
COUNTRY FIRST AND THEN YOUR
BUSINESS.
I THINK THAT’S REALLY
INTERESTING IT’S QUITE TRUE WE
NEED TO TAMP DOWN INFLATION THAT
MIGHT MEAN HIGHER RAKES AND