DAVID: MAJOR RETAILER SLUMPING
BIG-TIME AFTER SAME-STORE SALES
DISAPPOINTED THE STREET TARGET,
KOHL'S, T.J. MAXX AMONG THE
STOCKS GETTING HAMMERED TODAY.
BLACK FRIDAY JUST AROUND THE
CORNER, DOES THIS SIGNAL A LOUSY
HOLIDAY SEASON AHEAD?
FORMER WAL-MART CEO BILL SIMON.
WHAT IS HAPPENING TO THESE
RETAILERS?
>> FIRST, HOW ARE YOU ALL DOING?
HAPPY THANKSGIVING.
IT'S TIME TO GO.
I THINK THE SALES REPORTS ARE
ACTUALLY QUITE GOOD TODAY.
TARGET HAD THEIR BEST SEEMS OUR
SALES AND A LONG TIME.
A LITTLE SCHIZOPHRENIA GOING ON
IN THE MARKETPLACE BECAUSE THEY
DELIVERED US ON SALES GROWTH
WITH INVESTMENT IN E-COMMERCE
AND HAD SOME OPERATING PROFIT
IMPACT.
AMAZON DOES THAT AND THEY GET
REWARDED IN THE MARKET JUST
NEEDS TIME TO FLESH ITSELF OUT.
THEY'RE DOING A GOOD JOB AT
TARGET AND EVENTUALLY THE STOCK
WILL BOUNCE BACK.
I EXPECT A VERY, VERY GOOD BLACK
FRIDAY.
>> THOUGH, QUICK QUESTION.
WE ARE USING RETAIL AS TOO BROAD
AN UMBRELLA.
IT SEEMS TO ME SO MANY DIFFERENT
NICHES.
IT'S LIKE SAYING TAKIFF AMAZON
AND FACEBOOK WHEN THEY'RE JUST
TWO ENTIRELY DIFFERENT
COMPANIES.
THAT BRINGS ME TO THE POLLS AND
T.J. MAXX.
THEY JUST SEEM SO DIFFERENT
RIGHT NOW.
DO THEY NEED TO BE MORE
SEGREGATED IF YOU WILL WHEN WE
TALK ABOUT RETAIL?
>> YEAH, PROBABLY SO.
THEY OPERATE IN DIFFERENT
SEGMENTS A DIFFERENT MARKET AND
DIFFERENT TIMES.
SOME OTHER THINGS GOING ON.
IF YOU TAKE THE GROWTH COMING
OUT OF AMAZON.
WAL-MART PUTTING ON TOPLINE
NUMBERS.
THOSE THREE BIG RETAILERS, THEY
UP A LOT OF OXYGEN.
THERE'S NOT A LOT OF ROOM.
YOU CAN HAVE A ROBUST CONSUMER
WITH THOSE THREE GUYS GROWING
THERE'S NOT A LOT OF ROOM FOR
OTHER PEOPLE TO GROW, TOO.
YOU'VE GOT A LOOK AT IT AND PULL
APART AS HE WAS GOING ON.
>> HEY, BILL.
TRISH REGAN.
VERY GOOD TO SEE YOU.
IN THIS SORT OF TRUMP THE
ECONOMY IF YOU WOULD, WE'VE
GOTTEN INDICATIONS OUT THERE
THAT THE CONSUMER, YOUR AVERAGE
AMERICAN CONSUMER IS FEELING
MORE CONFIDENT, FEELING A LITTLE
BIT BETTER.
DOES THAT CONTINUE?
YOU LOOK BACK TO MAYBE THIS TIME
LAST YEAR WHERE PEOPLE WERE
GETTING DONNA SAYS, THE LETTER
READ IN PART BECAUSE OF THE TAX
PLAN.
IS THAT MOMENTUM GOING TO
CONTINUE OR ARE YOU WORRIED
ABOUT THE COMING START TO THE
YEAR?
>> THANKS, TRISH.
I THINK IT CONTINUES.
THE CONSUMER IS REALLY BUOYANT
RIGHT NOW.
THE TAX CHANGES GAVE THEM SOME
SORT OF A JUMPSTART.
INCOMES ARE GOING UP.
I HEARD YOU TALK ABOUT THAT IN
YOUR LAST SEGMENT.
I THINK THE CONSUMER STAYS
STRONG.
THERE'S A CAVEAT TO THAT.
THE CRAZY STUFF THAT HAPPENS IN
THE POLITICAL WORLD, THE
GEOPOLITICAL IMPLICATIONS OF
THEM CAN SOMETIMES CHANGE
THINGS.
I DON'T BELIEVE THE UPS AND
DOWNS IN THE MARKET IMPACT THE
CONSUMER VERY DIRECTLY.
I THINK THEY SORT OF LOOK AT
THAT AND GOAT EASY COME COME
EASY GO, LET'S PRESS ON.
I EXPECT THE CONSUMER TO REMAIN
BUOYANT.
>> HI, BILL.
STEVE MOORE HERE.
BERNIE SANDERS DOESN'T LIKE
WAL-MART TOO MUCH.
YOU'VE SEEN THE BILL HE HAS TO
REIN IN WAL-MART.
SO, AND WHAT YOU MAKE OF THAT?
IS THIS HOLDING BACK THE STOCK
VALUE?
EITHER WAY, WAL-MART JUST
RECENTLY RAISED THE MINIMUM
WAGE.
NOT SURE WHAT HE SO ANGRY ABOUT.
>> I THINK THIS IS BERNIE TRYING
TO GET PRESS.
HE FEELS LIKE IT WORKED FOR HIM
WITH AMAZON ALTHOUGH I'M NOT
SURE HE DIRECTLY IMPACTED JUST
DECISION EITHER.
GETTING SOME HEADLINES.
WAL-MART'S NOT PAY MUCH
ATTENTION TO IT.
THEY STATED THEIR PLAN AND
THEY'RE EXECUTING THEIR PLAN AND
BERNIE IS GRABBING HEADLINES.
>> YOU ARE NOT TOO WORRIED THIS
WILL BECOME A MOVEMENT WERE THE
RETAILERS HAVE TO RAISE THEIR
MINIMUM WAGE TO SAVE $15.
THAT WOULD PUT A HUGE DENT, WITH
NET ON THE PROFITABILITY OF
THESE COMPANIES?
>> I DON'T THINK IT'S A
MOVEMENT.
THE BIGGER IMPLICATIONS ARE FOR
MAY WHICH PERSPECTIVE IS THEY'VE
GOT TO COMPETE IN A MARKETPLACE
WHERE WAGES ARE GOING UP.
YOU SEE COMPANIES MOVE THEIR
MINIMUM WAGE UP NOT IN RESPONSE
TO POLITICAL PRESSURE, BUT
MARKET PRESSURE AND THAT'S
ACTUALLY REALLY GOOD THING.
I USED TO TELL PEOPLE ALL THE
TIME I'D LOVE TO PAY $15 AN HOUR
IF THAT'S WHAT IT TOOK TO FILL
MY STORES.
THAT WOULD MEAN WE HAD A BUOYANT
ECONOMY AND 4% GDP GROWTH.
WE HAVE TO BE HAPPY ABOUT IT.
>> I'M GOING TO CONTINUE ON
STEVE'S LINE OF QUESTIONING
BECAUSE RECENTLY AMAZON
ANNOUNCED THEIR SECOND
HEADQUARTERS WILL BE BETWEEN
NORTH VIRGINIA AND ALSO HERE IN
NEW YORK AND LONG ISLAND TODAY.
NEW YORK MAYOR BILL DEBLASIO WAS
QUESTION WIDE OPEN ARMS FOR
AMAZON AND THEN CRITICIZE
WAL-MART FOR BEING ANTIUNION,
JOB KILLER OF PAYING UNFAIR
WAGES.
>> YEAH, IMAGINE NOT.
YOU KNOW, WAL-MART IN NEW YORK
HAS HAD SORT OF A CHALLENGING
RELATIONSHIP FOR A LONG TIME.
YOU KNOW, IT IS SURPRISING TO ME
THAT, YOU KNOW, THEY DID FALL
FOR THE AMAZON HEADQUARTERS SCAM
THAT EVERYBODY ELSE SEEMED TO
FALL FOR HER.
THE MOST PREDICTABLE OUTCOME
THAT YOU COULD'VE IMAGINED.
WERE GOING TO WALK AT
HEADQUARTERS AND HAVE A BEAUTY
CONTEST AND IT COMES DOWN TO
WHO'S GOING TO PAY THE MOST
MONEY AND WE END UP IN THE TWO
MOST LIKELY PLACES ANYWAY.
>> BILL, ARE THESE PEOPLE THAT
ARE RUNNING THE CITIES BY JUST
RAISING TAXES AND RAISING
REGULATIONS EXCEPT WHEN IT COMES
TO INDIVIDUAL COMPANIES LIKE
AMAZON, ARE THEY EVER GOING TO
GET IT?
THEY KEEP GETTING VOTED IN.
I CAN'T STAND MY MAYOR DEBLASIO.
I FEEL LIKE HE'S DOING JUST THE
WRONG THINGS.
ON THE OTHER HAND, WHEN ARE
VOTERS GOING TO CATCH UP WITH
THE REALITY THAT THE HIGHER YOU
RAISE YOUR TAXES AND MORE
REGULATIONS YOU HAVE COME IN THE
FEWER COMPANIES STILL HAVE
WORKING THERE.
>> WELL, IF I COULD ANSWER THAT
QUESTION, MAYBE I WOULD RUN FOR
SOMETHING.
I HAVEN'T FIGURED THAT OUT YET
EITHER.
THE REALITY IS YOU SORT OF SEE
IT WITH ALL THE REGULATION THEY
PUT PARTICULARLY ON JOB CREATORS
IN SEATTLE, AND THEY MOVED OUT.
WHILE THE VOTERS WHO LIVE THERE
MIGHT KEEP VOTING, THEY ARE ALSO
VOTING WITH THEIR WALLET AND
MOVING OUT AND WITHOUT REAL
SUBSTANTIAL INCENTIVES FROM THE