WEBVTT - Apple Unveils iPhone 15, With Heftier Price 0:00:01.360 --> 0:00:05.680 This is Bloomberg Business. Wait inside from the reporters and 0:00:05.880 --> 0:00:09.440 editors who bring you America's most trusted business magazine, plus 0:00:09.520 --> 0:00:13.680 global business finance and tech news. The Bloomberg Business Week 0:00:13.720 --> 0:00:19.000 podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. 0:00:20.680 --> 0:00:22.919 Well, today is the day the data world sees in 0:00:23.040 --> 0:00:23.640 your iPhone. 0:00:23.680 --> 0:00:24.000 I don't know. 0:00:24.040 --> 0:00:25.360 It's not like it used to be. 0:00:25.920 --> 0:00:27.280 Maybe it is, I don't know. We'll talk about that 0:00:27.320 --> 0:00:28.120 with our next guests. 0:00:28.200 --> 0:00:30.880 Apple adveiling its iPhone fifteen, along with a hefty year 0:00:30.920 --> 0:00:33.120 price for the top model. The Pro Version's going to 0:00:33.200 --> 0:00:34.960 remain at nine hundred and ninety nine bucks, but the 0:00:34.960 --> 0:00:38.200 Pro Max will now start at one and ninety nine dollars. 0:00:38.240 --> 0:00:41.159 That's up one hundred dollars from last year's version. We 0:00:41.200 --> 0:00:44.760 also saw some new Apple watches with eco friendly materials 0:00:44.960 --> 0:00:47.360 and more Apple shares by the way down two point 0:00:47.440 --> 0:00:51.120 three percent. Mark German is chief Technology correspondent at Bloomberg News. 0:00:51.159 --> 0:00:53.320 He joins us on Zoom from our Los Angeles bureau, 0:00:53.520 --> 0:00:55.600 and we got Ed Ludlow, the co host of Bloomberg 0:00:55.640 --> 0:00:58.800 Technology on Bloomberg Television. He joins us from Cooper Tino 0:00:59.160 --> 0:01:00.480 and I want to start with if you I've been 0:01:00.480 --> 0:01:03.720 to a few of these iPhone unveilings back in my day, 0:01:04.120 --> 0:01:06.720 place three or four of them, and you know they're always, 0:01:06.840 --> 0:01:08.600 you know, exciting events. There's a lot of pop and 0:01:08.680 --> 0:01:12.160 circumstance around them. What's the vibe there today? 0:01:14.520 --> 0:01:17.000 I don't know, Man, the vibe is strong. 0:01:17.080 --> 0:01:17.480 I don't know. 0:01:17.520 --> 0:01:20.920 I think this says all of the energy and allures 0:01:21.000 --> 0:01:24.160 every generation event has gone before it. It was packed 0:01:24.200 --> 0:01:26.720 down there, and I'm going to let Mark talk about 0:01:26.760 --> 0:01:30.319 how substantive or not these hardware upgrades are. But the 0:01:30.360 --> 0:01:33.920 intense interest in the Pro and Pro Max was phenomenal. German, 0:01:33.959 --> 0:01:35.959 if you're listening, I had just held both of them 0:01:35.959 --> 0:01:39.160 in my hand, and you were absolutely right on every 0:01:39.200 --> 0:01:43.000 single detail. The titanium sides really jump out at you. 0:01:43.360 --> 0:01:46.559 It's definitely a lighter weight product, right. You can feel 0:01:46.560 --> 0:01:49.880 its durability. And everyone down there in the Steve Jobs 0:01:49.880 --> 0:01:53.080 theater is talking about this a seventeen processor three nanometer tech. 0:01:53.480 --> 0:01:56.120 Everything that you reported basically you were spot on with. 0:01:56.440 --> 0:01:59.520 But I would say, Tim, you know the energy here. 0:01:59.680 --> 0:02:03.040 Tim was taking selfies with all of the attendees. It 0:02:03.080 --> 0:02:04.680 has matched prior events I've been. 0:02:04.520 --> 0:02:06.680 To Okay, that's good to know. Hey Mark Kerman, come 0:02:06.720 --> 0:02:09.120 on in here and just follow up on that. Ed says, 0:02:09.120 --> 0:02:12.720 everything you've reported about these phones was right. No surprises 0:02:12.840 --> 0:02:14.480 for us, any surprises for you. 0:02:15.480 --> 0:02:17.120 Thanks for having me. I mean, the important thing is 0:02:17.120 --> 0:02:19.160 now that the news is out and people get digested 0:02:19.200 --> 0:02:21.440 and people are excited about what these new phones mean, 0:02:22.080 --> 0:02:24.560 both consumers who just want to get the new iPhone 0:02:24.560 --> 0:02:27.839 in their pocket and shareholders who are trying to see 0:02:27.840 --> 0:02:29.640 how these new devices will have an impact on the 0:02:29.639 --> 0:02:32.280 company's stock. I think Apple did what they needed to 0:02:32.280 --> 0:02:34.840 do today. Certainly they drummed up a few things with 0:02:34.919 --> 0:02:38.359 their marketing. Might they put that new fancy A seventeen 0:02:38.400 --> 0:02:41.360 pro name on the A seventeen chip. They talked about 0:02:41.400 --> 0:02:43.640 some of the advancements there, but if you really take 0:02:43.639 --> 0:02:47.160 a step step back, ten percent CPU leap, twenty percent 0:02:47.240 --> 0:02:51.880 GPU leap not entirely significant compared to overhauls to the 0:02:51.960 --> 0:02:55.800 chip in prior years. The titanium is basically the biggest 0:02:56.160 --> 0:02:59.520 introduction they had today. One pretty nifty feature that I 0:02:59.560 --> 0:03:03.440 think wasn't expected ahead of the announcement today is certainly 0:03:03.480 --> 0:03:06.840 the use of a spatial video camera on the back 0:03:06.880 --> 0:03:08.639 of the iPhone fifteen, Pro and Pro Max. I mean 0:03:08.680 --> 0:03:11.519 you can take three D video watch it on the 0:03:11.560 --> 0:03:13.960 Apple Vision Pro next year. Now, this is not going 0:03:13.960 --> 0:03:16.720 to impact most consumers, but it's a niftyqual feature that 0:03:16.800 --> 0:03:20.480 shows the power of these new cameras. You know, if 0:03:20.600 --> 0:03:22.960 Ed is still there, I'm curious on the new colors 0:03:22.960 --> 0:03:24.840 for the Pro versions. What stood out to him? 0:03:25.120 --> 0:03:26.560 Yeah, Ed, let's bring you back in here. 0:03:26.600 --> 0:03:31.240 What's your take colors? Yeah, of the Pro models, there's colors. 0:03:31.960 --> 0:03:32.320 Colors. 0:03:32.400 --> 0:03:35.280 Yes, I am curious. Blue blue, You're exactly right. 0:03:35.520 --> 0:03:40.280 No, No, this was my other main takeaway because if 0:03:40.320 --> 0:03:42.640 you put side by side the fifteen, Pro and Pro 0:03:42.760 --> 0:03:46.040 Max with the base version fifteen and fifteen Plus, the 0:03:46.120 --> 0:03:51.640 fifteen and fifteen plus come in these beautiful, vibrant pastel colors, yellows, greens, 0:03:51.760 --> 0:03:53.880 nice if you're into that. I always get a blue 0:03:53.880 --> 0:03:56.920 iPhone for the Celse of Chelsea Football Club. That's just 0:03:57.040 --> 0:03:58.400 I've always been honest about that. 0:03:58.480 --> 0:03:58.839 On air. 0:03:59.520 --> 0:04:02.560 I also use a Samsung. By the way, I'm technology agnostic, 0:04:02.880 --> 0:04:05.320 but the Pro lines come in a much more limited 0:04:05.400 --> 0:04:09.200 color range, and that is very clear mark, especially when 0:04:09.480 --> 0:04:11.960 you're inside the Steve Jobs Theater display room and they're 0:04:12.000 --> 0:04:15.000 all on display side by side. You know, I don't 0:04:15.000 --> 0:04:15.960 know why they went that way. 0:04:17.640 --> 0:04:21.159 Yeah, certainly it's an interesting dynamic with that new titanium frame. 0:04:21.480 --> 0:04:24.240 But I think that happened here is the titanium allows 0:04:24.240 --> 0:04:26.240 them to try some new things. One of those things 0:04:26.320 --> 0:04:30.000 is not polishing with the color the material, which is 0:04:30.040 --> 0:04:31.960 something you need to do with stainless steel, so they're 0:04:31.960 --> 0:04:34.560 able to have that raw, natural color for one of 0:04:34.600 --> 0:04:36.919 the models. I think the blue personally looks interesting. I 0:04:36.960 --> 0:04:38.920 have the black fourteen Promax right now, so don't think 0:04:38.920 --> 0:04:41.880 I'm gonna get the black again. No gold, which could 0:04:41.920 --> 0:04:44.799 be interesting for some markets in China in particular, gold 0:04:44.920 --> 0:04:49.560 is a very powerful and popular color. Red would have 0:04:49.560 --> 0:04:51.880 been a very popular and powerful color in China, but 0:04:52.480 --> 0:04:55.120 those two colors are elusive for this generation. Maybe they'll 0:04:55.120 --> 0:04:57.039 figure out a way to get next year red and 0:04:57.080 --> 0:04:59.320 gold out there, but certainly color is a big part 0:05:00.080 --> 0:05:02.800 of this iPhone launched the overall appearance. I think the 0:05:02.839 --> 0:05:06.600 periscope camera, the new lens system on the fifteen Promax 0:05:06.680 --> 0:05:10.680 is going to be quite impressive and quite useful. But 0:05:10.800 --> 0:05:14.240 I certainly think that this is they've done enough to 0:05:14.240 --> 0:05:15.479 make this a hot cellar of this fall. 0:05:15.600 --> 0:05:17.640 I've always been a fan of the gold or the 0:05:17.720 --> 0:05:18.320 rose gold. 0:05:18.400 --> 0:05:22.039 But ed Mark was just mentioning earlier to about Apple 0:05:22.120 --> 0:05:24.440 stock price down more than two percent as we had 0:05:24.480 --> 0:05:27.440 closer into the closing bell here. But historically the product 0:05:27.440 --> 0:05:30.480 releases initially just haven't always pushed shares higher. What's your 0:05:30.520 --> 0:05:31.960 sort of view on this for today? 0:05:33.200 --> 0:05:36.600 Yeah, let's regroup in twenty four hours and look at 0:05:36.640 --> 0:05:39.200 the cell side and invest in notes. But you know, 0:05:39.400 --> 0:05:43.040 go back to twenty eleven, there have been thirteen iPhone events, 0:05:43.080 --> 0:05:46.200 including today's. The stock has fallen on ten out of 0:05:46.279 --> 0:05:49.960 thirteen occasions. In the session on the day that Apple's 0:05:49.960 --> 0:05:52.040 had an iPhone event, the bar is kind of high. 0:05:52.279 --> 0:05:52.520 You know. 0:05:53.000 --> 0:05:55.839 The story with Apple and Apple has dominated newsflow recently. 0:05:56.120 --> 0:05:59.840 Is three quarters of overall sales declined guidance that indicated 0:06:00.080 --> 0:06:04.040 are heading towards a fourth consecutive quarter of overall sales decline. 0:06:04.120 --> 0:06:06.480 And in the June quarter, China was a bright spot. 0:06:06.520 --> 0:06:10.400 Greater China grew top line eight percent, with a heavy 0:06:10.400 --> 0:06:13.680 emphasis on switchers consumers switching to iPhone, either for the 0:06:13.720 --> 0:06:17.440 first time or from another brand. The news flow and 0:06:17.520 --> 0:06:20.720 the stories and reporting about China's central government clamping down 0:06:20.760 --> 0:06:24.159 on iPhone use in the public sector changes the narrative 0:06:24.240 --> 0:06:26.560 potentially for the rest of the year, but the market 0:06:26.640 --> 0:06:29.640 doesn't agree to what extent. What we wanted to know 0:06:29.720 --> 0:06:32.120 was the hardware upgrades and the tech upgrades here and 0:06:32.200 --> 0:06:35.120 Marx really walked us through them. Do they resonate with 0:06:35.160 --> 0:06:37.680 the Chinese consumer? That's a big question going forward. 0:06:38.400 --> 0:06:42.280 Mark Apple is also said to sell made in India 0:06:42.320 --> 0:06:44.400 iPhones on its launch day for the first time. 0:06:44.480 --> 0:06:45.560 What's behind this move? 0:06:47.680 --> 0:06:50.440 So, yeah, they've been producing iPhones in India for a 0:06:50.440 --> 0:06:52.880 couple of years now, they've really ramped it up in 0:06:52.920 --> 0:06:55.960 recent quarters, and so the goals to get in India 0:06:56.000 --> 0:06:58.560 the maide in India models on launch day for the 0:06:58.560 --> 0:07:02.160 first time. They've actually sold iPhones in their India stores 0:07:02.200 --> 0:07:04.400 and in the India online store from launch day in 0:07:04.440 --> 0:07:07.280 prior years. But according to my colleagues reporting usill with 0:07:07.320 --> 0:07:09.640 the first time that the first models will be the 0:07:09.640 --> 0:07:10.880 made in India models. 0:07:11.240 --> 0:07:14.040 Hey, ed, what should we make of the sustainability initiatives 0:07:14.200 --> 0:07:16.680 that we heard from from Apple today? They're making the 0:07:16.680 --> 0:07:20.680 new aluminum watches first carbon neutral devices. They're dropping leather 0:07:20.760 --> 0:07:22.840 from all iPhone and Apple Watch accessories. 0:07:23.240 --> 0:07:23.960 What do you make of it? 0:07:24.680 --> 0:07:28.440 Yes, yeah, I'm glad that you noticed it, because what 0:07:28.480 --> 0:07:30.280 was interesting in the lead up to this and indeed 0:07:30.360 --> 0:07:34.960 during the event is almost every analyst, market analyst, research analysts, 0:07:34.960 --> 0:07:38.600 and investor that I've spoken to was actually interested in that. 0:07:38.960 --> 0:07:41.120 You know, they buy into the idea of Apple's net 0:07:41.240 --> 0:07:46.080 zero goal for twenty thirty. But the reason that we 0:07:46.160 --> 0:07:48.440 focus on it from kind of markets perspective well is 0:07:48.480 --> 0:07:51.200 supply chain. You know, Apple seems to be able to 0:07:51.240 --> 0:07:54.600 move quite nimbly and swiftly on its supply chain, and 0:07:54.640 --> 0:07:58.880 they confirmed the number of products today are going to 0:07:58.960 --> 0:08:01.600 be either at zero from this point on or in 0:08:01.640 --> 0:08:04.080 the very near term. You know, one of the things 0:08:04.120 --> 0:08:06.400 I'm going to review on my social media piece that's 0:08:06.400 --> 0:08:09.080 coming shortly is you know, they scrap leaver from the 0:08:09.120 --> 0:08:15.280 accessories offering and using more sustainable materials on that side 0:08:15.320 --> 0:08:17.800 as well. It kind of fits with the brand of 0:08:17.840 --> 0:08:20.480 this company, and as we know for investors from an 0:08:20.640 --> 0:08:24.240 SG perspective, that can count. You know, you see many 0:08:24.280 --> 0:08:27.600 of the megatap cap tech names, you know, think about 0:08:27.640 --> 0:08:30.720 their impact on the world, and you know, Mark reported 0:08:30.800 --> 0:08:32.800 in the top Life blog on all of those that 0:08:32.840 --> 0:08:33.600 you can recap. 0:08:34.240 --> 0:08:36.400 Mark, we only have about fifteen seconds left. 0:08:36.440 --> 0:08:38.880 But our producer, one of our producers, wants to know 0:08:38.920 --> 0:08:41.000 are their plans for Apple to lower the cost of 0:08:41.040 --> 0:08:42.320 the iPhone fourteenth. 0:08:42.520 --> 0:08:46.400 Now, I believe the iPhone fourteen is sticking around on 0:08:46.400 --> 0:08:48.120 saying you'll be able to get them at a cheaper price. 0:08:48.760 --> 0:08:50.280 We don't know how much cheaper though, right. 0:08:51.400 --> 0:08:52.640 Not yet, probably one hundred dollars. 0:08:52.679 --> 0:08:54.000 Okay, but Mark, you're still upgrading. 0:08:54.960 --> 0:08:55.720 I'm still upgrading. 0:08:55.840 --> 0:08:57.880 You have do you do every year? You do every year? 0:08:57.960 --> 0:08:58.360 Yes? 0:08:58.400 --> 0:08:58.760 All right? 0:08:58.800 --> 0:09:01.719 Mark im in chief Technology correspondent at Bloomberg News. He 0:09:01.800 --> 0:09:04.240 joins us on zoom from our Los Angeles bureau. Also 0:09:04.240 --> 0:09:06.720 had Lovelow, the co host of Bloomberg Technology on Bloomberg TV, 0:09:06.840 --> 0:09:08.559 joining us live from Cooper Tino. 0:09:09.000 --> 0:09:12.560 You're listening to the Bloomberg Business Week podcast. Catch us 0:09:12.600 --> 0:09:15.960 live weekday afternoons from three to six Eastern Listen on 0:09:16.000 --> 0:09:20.040 Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business App, 0:09:20.320 --> 0:09:37.880 or watch us live on YouTube. 0:09:38.400 --> 0:09:41.360 It's Tim Centeveek and Jess Bennen relyve from the Bloomberg Interactive. 0:09:41.400 --> 0:09:44.280 A broker's studio here in New York. It is Bloomberg 0:09:44.320 --> 0:09:46.360 Business Week, having a fun chat with our friends over 0:09:46.400 --> 0:09:50.280 at Bloomberg TV, Romain Bostick and Scarlett feu. Our next guest, though, 0:09:50.320 --> 0:09:52.360 a veteran of Walmart and Levi Strauss. If you were 0:09:52.360 --> 0:09:54.160 listening to us just now, you heard me introduce him. 0:09:54.160 --> 0:09:57.200 Already he perhaps faces his toughest challenge yet reviving the 0:09:57.280 --> 0:09:59.920 storied brand of j C. Penny, the department store chain 0:10:00.080 --> 0:10:02.280 out for bankruptcy shortly after the start of the pandemic. 0:10:02.320 --> 0:10:04.960 That was back in twenty twenty. Then in November of 0:10:05.000 --> 0:10:08.400 twenty twenty one, Mark Rosen became the CEO. Just last month, 0:10:08.440 --> 0:10:10.959 the company announced a one billion dollar reinvestment plan that 0:10:11.040 --> 0:10:14.440 focuses on digital and in store experiences. Very pleased to 0:10:14.440 --> 0:10:17.080 have with us, Mark Rosen, CEO at jcpenny, joining us 0:10:17.080 --> 0:10:20.040 on Zoom from jcpenny headquarters in Plano, Texas. 0:10:20.400 --> 0:10:22.880 Mark, how are you. I'm good. 0:10:22.920 --> 0:10:24.400 Thank you very much for having me today. 0:10:24.480 --> 0:10:26.280 Yeah, it's good to have you with us. Hey, give 0:10:26.360 --> 0:10:26.880 us an update. 0:10:26.920 --> 0:10:29.520 It's a privately held company, so we don't get any 0:10:29.520 --> 0:10:32.320 insight into the finances. We know that the company's planning 0:10:32.320 --> 0:10:34.840 to hire twenty thousand employees ahead of the holiday season. 0:10:35.400 --> 0:10:37.040 But give us some more numbers we can work with. 0:10:38.640 --> 0:10:40.560 Yeah, so Lake, you said, we are a private company, 0:10:40.559 --> 0:10:43.000 but what I can share is we now have sales 0:10:43.040 --> 0:10:46.880 that are over eight billion dollars. We have just over 0:10:46.960 --> 0:10:50.800 six hundred and fifty stores across the country, and we 0:10:50.840 --> 0:10:54.720 also operate JCP dot com, So we're serving customers everywhere 0:10:54.840 --> 0:11:00.480 right now. And the business is really You mentioned that 0:11:00.520 --> 0:11:03.400 we emerge from bankruptcy, and we emerged with a very 0:11:03.480 --> 0:11:06.959 very clean balance sheet, in a strong, strong financial position 0:11:07.559 --> 0:11:11.520 with less than half a billion dollars with less than 0:11:11.520 --> 0:11:15.079 five hundred million dollars of debt on the balance sheet, 0:11:15.360 --> 0:11:19.079 so really financially positioned to drive forward and really reinvigorate 0:11:19.120 --> 0:11:21.920 this brand and re establish our relationship and our relevance 0:11:21.960 --> 0:11:24.920 with our consumers, which is really the core of America. 0:11:24.960 --> 0:11:27.640 You might have heard Romayne just a little earlier talking 0:11:27.640 --> 0:11:30.200 about over the weekend visiting a mall, seeing a JC 0:11:30.280 --> 0:11:33.120 Penny that was no longer operating, and even having the 0:11:33.160 --> 0:11:36.319 conversation with his family about whether or not the store 0:11:36.320 --> 0:11:39.040 still exists. How do you change that narrative and let 0:11:39.120 --> 0:11:42.520 people know that yes, JC Penny is here, and we've 0:11:42.559 --> 0:11:44.360 got six hundred and fifty stores across the country. 0:11:44.360 --> 0:11:44.920 How do you do it? 0:11:46.120 --> 0:11:48.120 Well, that's actually part of so you mentioned that we 0:11:48.280 --> 0:11:52.080 just announced an over a billion dollar investment back into 0:11:52.080 --> 0:11:56.720 the business, and that that investment is focused on remodeling 0:11:56.760 --> 0:12:01.600 our stores and reinvesting in the store platform, putting new technology, 0:12:01.640 --> 0:12:06.720 a new point of sale, in in revitalizing our online 0:12:06.760 --> 0:12:10.839 shopping experience and really improving THEJCP dot com shopping experience, 0:12:11.240 --> 0:12:13.800 and then also our supply chain. But I would say 0:12:13.840 --> 0:12:16.320 we're a retailer, and so it all really starts out 0:12:16.320 --> 0:12:18.880 with product. And over the last couple of years, what 0:12:18.920 --> 0:12:23.840 we've done is reintroduce over twenty five of our brands, 0:12:23.920 --> 0:12:27.320 brands like Stafford that every customer knows and loves and 0:12:27.360 --> 0:12:30.120 a lot of customers grew up with brands like Liz 0:12:30.160 --> 0:12:34.280 Claiborne and brands like Cooks in our homes, in our 0:12:34.320 --> 0:12:37.600 home area, and so we've reintroduced that product. And now 0:12:37.600 --> 0:12:39.920 what we're investing in also along with that a billion 0:12:39.960 --> 0:12:44.120 dollars is a what we're calling a brand reinvigoration that 0:12:44.240 --> 0:12:47.040 is centered around really helping our customers make it count. 0:12:47.360 --> 0:12:49.120 And when we look at our customer. I set our 0:12:49.160 --> 0:12:51.960 customers the core of America. It's the school teachers that 0:12:52.040 --> 0:12:54.520 teach our children. It's the construction workers that build our 0:12:54.520 --> 0:12:57.760 homes in the buildings we work in. It's medical workers 0:12:57.800 --> 0:13:00.440 who take care of our families. And that customer is 0:13:00.480 --> 0:13:03.560 looking for a sense of belonging there, looking for a 0:13:03.600 --> 0:13:07.320 place where they can find accessible fashion that they can 0:13:07.360 --> 0:13:10.320 still get at a great value, because that customer is 0:13:10.320 --> 0:13:12.360 making trade offs every day in their life. And so 0:13:12.840 --> 0:13:16.839 what we're introducing also is a campaign to reinvigorate the brand, 0:13:16.880 --> 0:13:19.920 centering around how we help our customers make every moment 0:13:19.920 --> 0:13:21.760 in their lives, whether it's a big moment like their 0:13:21.800 --> 0:13:24.720 daughter's wedding, or whether it's a smaller moment like getting 0:13:24.720 --> 0:13:26.640 their kids ready for school in the morning. But how 0:13:26.640 --> 0:13:29.680 do they use the products that we have at jcpenny 0:13:29.720 --> 0:13:31.920 to make that count but be able to make a count, 0:13:31.960 --> 0:13:34.240 but still have money left to put breakfast on the 0:13:34.240 --> 0:13:35.040 table for the kids. 0:13:35.280 --> 0:13:38.200 Hey, Mark, whenever you're talking about middle income shoppers, and 0:13:38.280 --> 0:13:42.160 especially with this inflation dynamic, how do you sort of 0:13:42.240 --> 0:13:45.480 view that as far as how to get shoppers back 0:13:45.520 --> 0:13:48.360 in when they are trying to figure out where to 0:13:48.800 --> 0:13:52.600 sort of shift their spending at this point. 0:13:52.679 --> 0:13:54.920 Right inflation is an issue for our customer. We look 0:13:55.000 --> 0:13:58.199 right now, we see that our customer is spending over 0:13:58.240 --> 0:14:02.880 seven hundred dollars a month more us for rent or mortgage, 0:14:03.080 --> 0:14:06.480 for groceries, for gas, and that means that every dollar 0:14:06.600 --> 0:14:08.880 is even more important to them, and it's more important 0:14:08.920 --> 0:14:11.360 that they make every dollar count. And that's really what 0:14:11.400 --> 0:14:13.160 we're here for is to help them do that. And 0:14:13.160 --> 0:14:14.880 I think the unique thing that we can bring to 0:14:14.920 --> 0:14:19.560 the table is we can bring great fashion and great 0:14:19.640 --> 0:14:23.520 product at a really accessible price to our customers. And 0:14:23.560 --> 0:14:25.720 that's what that's what they need, that's what they're looking 0:14:25.720 --> 0:14:26.960 for right now in their lives. 0:14:27.320 --> 0:14:30.400 When you talk about technology upgrades to some of these stores, 0:14:30.640 --> 0:14:33.520 kind of build on that. What more specifically are you doing. 0:14:34.800 --> 0:14:38.000 Within the stores. It's a lot of it's mobile and 0:14:38.040 --> 0:14:41.320 it's point of sale or checkout technology. So we'll be 0:14:42.000 --> 0:14:44.680 within the stores centralizing the checkout, but we'll also be 0:14:44.680 --> 0:14:46.480 putting in the hand of hands of all of our 0:14:46.520 --> 0:14:49.480 associates in the stores mobile devices that will help them 0:14:49.480 --> 0:14:52.640 manage inventory better. It'll help them ship and fulfill online orders, 0:14:52.680 --> 0:14:55.040 it'll help them check inventory and order online for a 0:14:55.080 --> 0:14:58.520 customer or I've talked about centralized checkout. What it really 0:14:58.560 --> 0:15:00.520 will do is move check out anywhere so that they 0:15:00.520 --> 0:15:03.040 can mobile check out a customer anywhere in the store. 0:15:03.560 --> 0:15:05.720 Hey, Mark, God, I got so many questions for you. 0:15:05.720 --> 0:15:07.160 We got three minutes left, So we're going to do 0:15:07.240 --> 0:15:09.120 sort of a you know, try to do some rapid 0:15:09.200 --> 0:15:12.960 fire questions. Sales of over eight billion dollars, Where do 0:15:13.080 --> 0:15:14.800 more sales happen right now at the six hundred and 0:15:14.800 --> 0:15:17.920 fifty stores across the country or jcpenny dot com. 0:15:18.240 --> 0:15:21.200 So it's about a seventy thirty split with stores the 0:15:21.240 --> 0:15:24.040 seventy percent and with the online business about thirty And 0:15:24.160 --> 0:15:28.520 where are you more bullish? So both are actually growing, 0:15:29.240 --> 0:15:32.120 and we're focused on growing both. But I do believe 0:15:32.160 --> 0:15:36.600 that right now, we've done a significant amount of reimagining 0:15:36.640 --> 0:15:40.040 our online experience and investing in JCP dot com, and 0:15:40.040 --> 0:15:41.560 we think there's significant growth there. 0:15:41.640 --> 0:15:43.360 So do you think that it'll is it growing at 0:15:43.400 --> 0:15:46.760 a faster rate? In like yelly clips store sales with 0:15:46.920 --> 0:15:48.400 JCP dot com in a number. 0:15:48.160 --> 0:15:52.120 Of years, the JCP dot com business is growing faster 0:15:52.760 --> 0:15:56.320 than the store business. I don't believe that it's ever 0:15:56.400 --> 0:15:58.560 going to eat clips. I think you could reach, like, 0:15:58.720 --> 0:16:00.880 you know, a forty sixty or something like that. But 0:16:00.920 --> 0:16:02.800 the reality is what we're seeing is that customers still 0:16:02.800 --> 0:16:04.520 want to shop in stores. They still want to come in, 0:16:04.560 --> 0:16:06.400 they want to have that try and experience, They want 0:16:06.440 --> 0:16:09.160 to get help from an associate to put together an outfit, 0:16:09.600 --> 0:16:13.160 and in important areas like we reintroduce beauty, a customer 0:16:13.200 --> 0:16:15.360 is looking to come in and get help and try product. 0:16:15.960 --> 0:16:19.280 When you look at this portfolio, whether it's fashion, apparel, home, 0:16:19.360 --> 0:16:23.040 beauty as well as jewelry, where are you seeing spending 0:16:23.480 --> 0:16:26.360 the strongest and where do you see people pulling. 0:16:26.040 --> 0:16:26.800 Back the most. 0:16:28.480 --> 0:16:31.040 It's interesting because if we look across the business, we're 0:16:31.080 --> 0:16:33.560 really pleased with the growth that we've seen in our 0:16:33.600 --> 0:16:36.800 home business and in our men's and women's apparel business, 0:16:36.840 --> 0:16:40.240 and we believe we've gained share in all of those 0:16:40.280 --> 0:16:43.760 areas because customers are spending there. Our jewelry business is 0:16:43.800 --> 0:16:46.520 another one that continues to be really strong right now. 0:16:46.720 --> 0:16:50.960 I think rather than seeing people reduce spending in particular areas, 0:16:51.320 --> 0:16:53.720 we're actually seeing that within an area, they're being a 0:16:53.720 --> 0:16:57.320 little bit more selective about what they're choosing, and we 0:16:57.360 --> 0:17:00.240 are seeing some more growth come from some of our 0:17:00.280 --> 0:17:04.080 private label brands. For example, in home, we're seeing products 0:17:04.080 --> 0:17:06.680 like Cooks, which is a private label opening price point, 0:17:07.600 --> 0:17:11.440 small small appliance think like blenders and toasters and things 0:17:11.480 --> 0:17:14.439 like that, and cookwear. We're seeing customers choose that product 0:17:14.520 --> 0:17:17.679 in some cases because they realize it's great value and 0:17:17.720 --> 0:17:20.000 they can save money by going for that product. 0:17:20.160 --> 0:17:22.160 So are you going to stay a private company forever? 0:17:22.280 --> 0:17:23.560 Is there an IPO on the horizon? 0:17:24.960 --> 0:17:28.640 So right now, we're really actually focused on just driving sustainable, 0:17:28.680 --> 0:17:32.159 profitable customer growth within the business, and we're very fortunate 0:17:32.240 --> 0:17:34.399 that we have an ownership group that is aligned with 0:17:34.480 --> 0:17:36.720 doing that and focused on the long term. 0:17:36.800 --> 0:17:38.920 And right now the. 0:17:38.920 --> 0:17:43.600 Focus is building that relationship with customers, driving customers back 0:17:43.640 --> 0:17:45.240 to the brand, and then we'll see where it goes 0:17:45.240 --> 0:17:45.640 from there. 0:17:46.040 --> 0:17:49.199 Mark Rosen, CEO at jcpenny, joining us on Zoom from 0:17:49.400 --> 0:17:52.359 jcpenny headquarters in Plano, Texas. Hey, Mark, really appreciate you 0:17:52.359 --> 0:17:54.280 taking the time. Come visit us next time you're in 0:17:54.280 --> 0:17:54.720 New York. 0:17:55.960 --> 0:17:59.520 You're listening to the Bloomberg Business Week podcast. Catch us 0:17:59.520 --> 0:18:02.520 live week day afternoons from three to six Easter on 0:18:02.640 --> 0:18:06.400 Bloomberg Radio, the Bloomberg Business App, and YouTube. You can 0:18:06.440 --> 0:18:09.679 also listen live on Amazon Alexa from our flagship New 0:18:09.720 --> 0:18:13.480 York station. Just say Alexa play Bloomberg eleven thirty. 0:18:15.760 --> 0:18:19.920 Oh you need to store on a new Steve Beava. 0:18:22.520 --> 0:18:28.240 Bevag Well. For the last several years, people visiting Las 0:18:28.320 --> 0:18:31.920 Vegas might have been as puzzled as they gaze westward 0:18:31.960 --> 0:18:34.520 from the strip. Looming in the distance was a three 0:18:34.560 --> 0:18:37.840 hundred and sixty six foot tall sphere. The dark orb 0:18:37.960 --> 0:18:40.800 bore a familial resemblance to the Death Star, but lacked 0:18:40.840 --> 0:18:44.040 any signage offering a clue to its purpose. It was 0:18:44.119 --> 0:18:47.800 obviously an attraction, but what kind. Well to understand what 0:18:47.840 --> 0:18:49.960 it is and how it got there, you have to 0:18:49.960 --> 0:18:51.720 go all the way back to twenty sixteen and to 0:18:51.840 --> 0:18:55.159 a sketch on a notepad. Devin Leonard is out with 0:18:55.200 --> 0:18:57.720 a new feature that delves into the convoluted history and 0:18:57.760 --> 0:19:00.320 promise of what's known as the Sphere. Devin's story is 0:19:00.320 --> 0:19:02.840 going to be featured in the forthcoming issue of BusinessWeek magazine. 0:19:02.840 --> 0:19:04.200 You can read it now though on the Bloomberg and 0:19:04.240 --> 0:19:07.119 at Bloomberg dot com slash BusinessWeek. Also here is the 0:19:07.200 --> 0:19:09.880 editor of Bloomberg BusinessWeek, Joel Webber, he's with us along 0:19:09.880 --> 0:19:12.560 with Devin in our Bloomberg Interactive Broker's studio. 0:19:13.040 --> 0:19:14.080 So, Joel, are you a fan. 0:19:13.960 --> 0:19:14.560 Of the Knicks? 0:19:15.600 --> 0:19:15.719 Uh? 0:19:17.160 --> 0:19:18.840 I kind of this is hard to say. 0:19:20.720 --> 0:19:21.600 You did not know that was? 0:19:22.680 --> 0:19:26.760 You know? I I love basketball. I grew up playing basketball. 0:19:28.480 --> 0:19:34.920 The for the Mets, the Nets and the Jets last 0:19:35.000 --> 0:19:35.800 night was heartbreaking. 0:19:35.840 --> 0:19:36.439 Sorry about that. 0:19:36.680 --> 0:19:39.360 I mean got the wind, but you know, that's just nuts. 0:19:39.840 --> 0:19:42.359 It kind of locks you into the rhyme like the 0:19:42.480 --> 0:19:49.880 Nick doesn't. But look, the Knicks h have a very 0:19:49.920 --> 0:19:55.440