WEBVTT - Surveillance: Macy's Needs To Amaze Again, Telsey Says 0:00:09.840 --> 0:00:13.800 Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane Jay Ley. 0:00:13.960 --> 0:00:17.560 We bring you insight from the best in economics, finance, investment, 0:00:18.000 --> 0:00:23.480 and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud, 0:00:23.600 --> 0:00:27.600 Bloomberg dot Com, and of course on the Bloomberg John 0:00:27.760 --> 0:00:30.960 Every Thanksgiving I try to feature one person out of 0:00:30.960 --> 0:00:33.519 our nanking cousin employees, and this year it was a 0:00:33.640 --> 0:00:36.960 lay up. John Authors has been on fire. You know, 0:00:36.960 --> 0:00:39.879 he's publishing like every three or four days and you 0:00:39.880 --> 0:00:44.440 can cherry pick any given for it's an official award. 0:00:44.479 --> 0:00:52.600 It's a Turkey award, which turkey sandwich. Yeah, but he's 0:00:52.640 --> 0:00:55.520 just been on fire, whether it's on the earnings, idiocy 0:00:55.600 --> 0:00:57.040 or that. John, Why don't you bring him in his 0:00:57.160 --> 0:00:59.800 new essay here on the whole E. S G. Vote. 0:00:59.800 --> 0:01:02.560 We're very E s G this morning. Can we start 0:01:02.560 --> 0:01:04.800 with the Reasons we Should be Thankful? Which is his 0:01:04.840 --> 0:01:08.040 most recent piece, which might be more interesting Jonathan's Bloomberg 0:01:08.080 --> 0:01:11.520 opinion columnist. Investors have plenty of reasons to give thanks. 0:01:11.880 --> 0:01:15.479 Let's go to the edition of Reasons to be Thankful? John. 0:01:15.480 --> 0:01:19.200 Where do we begin? Well, the main reason to be 0:01:19.240 --> 0:01:21.640 thankful this this year. But for my reason to be 0:01:21.640 --> 0:01:25.360 thankful that everybody is being so nice to me to Broomberg, 0:01:25.480 --> 0:01:27.120 the main reason do you thankful, obvious is that the 0:01:27.160 --> 0:01:29.240 market has gone up an awful lot. So if you're 0:01:29.240 --> 0:01:32.080 in stocks, you did very well. And a lot of 0:01:32.160 --> 0:01:35.280 that is through factors that we're not going to see 0:01:35.680 --> 0:01:40.479 repeated very easily. You've seen populist politicians misplay their hands 0:01:40.560 --> 0:01:43.760 quite badly around the world. I think that's an important one. 0:01:43.800 --> 0:01:48.080 Inflation stays within the box that you've seen, American consumer 0:01:48.120 --> 0:01:53.800 confidence stay remarkably are given. However, many other things are happening. 0:01:54.760 --> 0:01:59.800 And yes, well no, but John Jonathan Farall was talking 0:01:59.880 --> 0:02:03.480 up out this earlier, how we've seen people get the 0:02:03.680 --> 0:02:06.440 call for the economy right, they got markets wrong. They 0:02:06.440 --> 0:02:10.280 were not expecting the rally that delivered. If you just 0:02:10.320 --> 0:02:12.320 stuck your money and an index and put your feet up, 0:02:12.320 --> 0:02:14.880 as you put it, is this all due to central 0:02:14.880 --> 0:02:20.160 bank easy? It's mostly used central bank easy. Yes, people 0:02:20.200 --> 0:02:22.640 were not expecting that. The reason we had that, the 0:02:22.639 --> 0:02:24.680 main reason we had the big sell off going into 0:02:24.760 --> 0:02:28.880 Christmas Eve last year was the belief that j Powell 0:02:28.960 --> 0:02:32.919 was going to go through with being you know, um 0:02:32.919 --> 0:02:36.120 reducing the balance seat is the FED balance seats on 0:02:36.200 --> 0:02:39.040 also pilots to use his own term and keep raising rates. 0:02:39.080 --> 0:02:42.920 The fact that he stopped doing that and then actually 0:02:42.919 --> 0:02:45.280 went into a very major U turn is the main 0:02:45.840 --> 0:02:49.040 reason we've seen the recovery that we've we've seen, and 0:02:49.080 --> 0:02:52.160 the fact that there was this sell off obviously mixed 0:02:52.320 --> 0:02:55.880 makes the markets look much better than they would do 0:02:55.919 --> 0:03:02.080 if bass other than the years date basis that we're 0:03:02.160 --> 0:03:05.480 so used to thinking in terms of a calendar that 0:03:06.080 --> 0:03:10.720 you know, the stock monket is not performed, not rallying 0:03:10.880 --> 0:03:15.600 in the way that you would normally think of rise. 0:03:15.680 --> 0:03:18.919 It's because of this rather arbitrary timing ever sell off 0:03:19.040 --> 0:03:20.760 last year. One of the things we have to be 0:03:20.840 --> 0:03:23.160 thankful for is you wrote an essay on the earnings 0:03:23.160 --> 0:03:25.440 what I call the earnings idiot. See how we're complete 0:03:25.520 --> 0:03:30.280 drugs fixated on every ninety days. How did the earnings 0:03:30.320 --> 0:03:33.280 madness do this year? Did we get revenue growth right? 0:03:33.360 --> 0:03:36.680 Did we get earnings growth right? Just as an industry 0:03:38.160 --> 0:03:43.840 broadly speaking? Yes, but it doesn't again, it doesn't. It 0:03:43.840 --> 0:03:47.840 doesn't seem to matter very very greatly. That's what what 0:03:47.880 --> 0:03:51.040 we've had in this year so far. Has been a 0:03:51.120 --> 0:03:56.280 succession of really very unimpressive earnings data, but that hasn't 0:03:56.280 --> 0:04:00.640 stopped the stock monket from doing what it's doing. Uh. 0:04:00.960 --> 0:04:03.000 If you want to play the game of have we 0:04:03.200 --> 0:04:09.160 beaten expectations or not? Um, I've made the argument that 0:04:09.240 --> 0:04:13.160 we should be junking both there. Certain we should certainly 0:04:13.160 --> 0:04:17.840 be junking earnings guidance by companies completely because this becomes 0:04:17.920 --> 0:04:20.840 part of the distraction of we all know about this, 0:04:21.360 --> 0:04:25.120 setting barrious to yourself so you can beat them. Um. 0:04:25.160 --> 0:04:29.040 But the in broad terms, no, we're not seeing anything 0:04:29.160 --> 0:04:33.080 like the kind of the kind of strength in earnings 0:04:33.080 --> 0:04:36.880 that you normally expected to have to have results going 0:04:36.920 --> 0:04:41.080 like this. Earnings earnings momens is very weak globally, and 0:04:41.200 --> 0:04:44.200 it's pretty flat within the States. John, Thank you so much. 0:04:44.240 --> 0:05:01.799 John Arthur's Plumberg opinion. Lisa bramwods some time, King, thank 0:05:01.839 --> 0:05:05.240 you for being with us. Uh. This morning, at least 0:05:05.360 --> 0:05:07.479 the men got to get dressed up, don't they. Yeah? 0:05:07.520 --> 0:05:10.240 I love this title trying to get boys to dress 0:05:10.320 --> 0:05:14.280 like men. Uh. That Our next guest helped to author 0:05:15.440 --> 0:05:18.960 Joseph Aboud joining us here, And I gotta say this 0:05:19.040 --> 0:05:21.400 is really an interesting question which is what do people 0:05:21.440 --> 0:05:23.960 wear to work? And Tom Keene, I know you're going 0:05:24.000 --> 0:05:27.840 to mention what I wear to our Uh, well, there's 0:05:27.920 --> 0:05:30.159 you know, Lisa's like a lot of people, there's different 0:05:30.200 --> 0:05:31.919 looks depending on the day as well. But what's a 0:05:31.960 --> 0:05:34.080 trend right now? Are we getting all fancy or we 0:05:34.120 --> 0:05:38.479 still get It's interesting, you know, Lisa, Guys are getting 0:05:38.560 --> 0:05:41.760 dressed again, And it depends on where you work, and 0:05:41.880 --> 0:05:44.840 you know what your occupation is. If you're dressing for radio, 0:05:44.920 --> 0:05:48.400 it's one thing. If you're dressing for tvOS, right, But 0:05:48.480 --> 0:05:51.039 I love to see that Tom is is sporting is 0:05:51.080 --> 0:05:53.560 double breasted sport code and it's nice to see that 0:05:53.560 --> 0:05:56.000 people do that. Joseph Bood, fashion designer and chief creative 0:05:56.000 --> 0:05:59.080 director of Tailored Brands. You make your products in the 0:05:59.160 --> 0:06:03.000 United States tailored suits. Yet, and you do make tailored suits, 0:06:03.440 --> 0:06:06.680 How is that industry changing where you actually have a 0:06:06.800 --> 0:06:10.880 custom made product? Are people gravitating more to that? Yeah, 0:06:10.920 --> 0:06:14.120 it's the whole customization thing is really interesting because it's 0:06:14.160 --> 0:06:17.159 more about your own personality. So it used to be 0:06:17.200 --> 0:06:21.320 that custom suits were only for the elite, and now 0:06:21.360 --> 0:06:24.800 it's much more democratic. So we uh, we produce a 0:06:24.839 --> 0:06:28.200 great number of suits in our Massachusetts factory where we 0:06:28.279 --> 0:06:30.680 have over eight hundred employees, and we've been doing that 0:06:30.720 --> 0:06:33.120 for over thirty years. Say good morning to Boston one 0:06:33.200 --> 0:06:36.440 or six one of them with Boston as well. You've 0:06:36.480 --> 0:06:39.400 got a sport code up here, Lisa says, time you 0:06:39.440 --> 0:06:43.640 gotta squeeze into this one, and it is one Cashmere, 0:06:44.480 --> 0:06:49.480 the fabric woven in Italy. It is four dollars for 0:06:49.560 --> 0:06:52.120 a sport code, which gets you, you know, into it. 0:06:52.240 --> 0:06:54.320 But it looks like it's out of Louise. I mean, 0:06:54.400 --> 0:06:57.279 how do you pull off that price point out of 0:06:57.320 --> 0:06:59.560 the Louise that you and I knew on news right 0:06:59.680 --> 0:07:02.440 and goes such an iconic store, Lisa, It was a great, 0:07:02.520 --> 0:07:05.400 great men's wear store that carried the best of the product. 0:07:05.800 --> 0:07:09.160 But because we're vertical, Tom, the fact that we buy 0:07:09.160 --> 0:07:12.200 our own fabrics and we don't have the traditional wholesale 0:07:12.240 --> 0:07:15.840 retail margin, we're able to bring a much better value 0:07:15.880 --> 0:07:20.280 to the customer. And what's what's simple here is is 0:07:20.400 --> 0:07:23.440 I'm seeing on your website, Joseph, a boot. I'm seeing 0:07:23.920 --> 0:07:27.120 a more upscale look. Is that what the audience wants 0:07:27.200 --> 0:07:30.720 right now? Yeah? I think individuality, I think style, as 0:07:30.760 --> 0:07:34.920 I said to you before, men are the new women. Um, 0:07:35.120 --> 0:07:38.480 they really want to get dressed. They want to I 0:07:38.520 --> 0:07:41.560 will say, I met, are the new women. Does Black 0:07:41.600 --> 0:07:46.000 Friday matter in your line of work? I think it does. Yeah. 0:07:46.040 --> 0:07:49.400 I think not necessarily for custom suits perhaps, but for 0:07:49.440 --> 0:07:51.880 all the accessories. For example, the great gift is a 0:07:51.960 --> 0:07:55.320 cashmere sweater. To me, that's a great piece of uh 0:07:55.920 --> 0:07:58.360 of a man's wardrobe and that's something that you know 0:07:58.400 --> 0:08:00.760 you can get as a gift, or a great cashmere scarf. 0:08:01.160 --> 0:08:04.960 So Black Friday matters probably more with the accessories and sports. 0:08:05.000 --> 0:08:07.680 Where men are the new women, I'm thinking in the 0:08:07.760 --> 0:08:13.640 female area, Instagram, uh influencers really have become the hot thing, 0:08:13.760 --> 0:08:17.040 and I'm wondering for men, if it is the same thing. 0:08:17.640 --> 0:08:21.520 Who what type of individuals are the main influencers here 0:08:21.600 --> 0:08:24.679 driving this. I think they're fashion guys. I think there's 0:08:24.720 --> 0:08:27.320 a lot of them are have been editors in the past, 0:08:27.400 --> 0:08:30.240 and now they're talking style and they're talking to the millennial. 0:08:30.960 --> 0:08:34.679 The millennial really understands where fashion is going. And I 0:08:34.720 --> 0:08:37.199 love the fact that that's a new buying group for us. 0:08:37.280 --> 0:08:40.600 That young consumer is getting dressed and the young guy 0:08:40.679 --> 0:08:43.440 is wearing suits because he wants to, not because he 0:08:43.480 --> 0:08:45.920 has Okay, but what about the younger I'm gonna call 0:08:45.960 --> 0:08:49.600 it broadly conservative guy. They don't want cutting a Gucci, 0:08:49.640 --> 0:08:52.760 they don't want they don't want that somebody that says, look, 0:08:52.800 --> 0:08:54.880 I really don't want to spend money on this, and 0:08:54.920 --> 0:08:56.880 they're going to go into Joseph A Bood for a 0:08:56.880 --> 0:09:00.160 reasonable going to get a lot better. Look. How's out 0:09:00.200 --> 0:09:02.560 with a millennial? Well, I think that's true. If you 0:09:02.559 --> 0:09:04.440 think a lot of the younger guys who have stepped 0:09:04.440 --> 0:09:07.960 into the financial world, they want style, but they don't 0:09:08.000 --> 0:09:11.240 want aggressive fashion. That's a really great point because they 0:09:11.280 --> 0:09:14.680 still will we will wear something conservative. Yet at the 0:09:14.720 --> 0:09:17.520 same time they were like their cuts to be slimmer 0:09:17.559 --> 0:09:21.120 and trimmer and more to their generations. So we have 0:09:21.200 --> 0:09:23.440 to speak to them on their terms. Lisa, do you 0:09:23.480 --> 0:09:26.760 see me in a black turtleneck? Definitely? I think I 0:09:27.040 --> 0:09:31.319 think that off. Yeah. I woke up today and I said, 0:09:31.360 --> 0:09:33.240 oh my god, boots with us, so I got a 0:09:33.320 --> 0:09:35.800 style so well, this is a gift from the dun 0:09:35.920 --> 0:09:38.200 Hill people of London. They do a great job they 0:09:38.240 --> 0:09:40.800 do and I wore this for you today because it's 0:09:40.800 --> 0:09:43.760 the flair thing that well. I love the black watch Tart. 0:09:45.000 --> 0:09:47.520 John has a style, I mean Tom has at doesn't 0:09:47.640 --> 0:09:51.560 have jo are English moment. You know when we say 0:09:51.760 --> 0:09:54.559 men are the new women. With the women, you're seeing 0:09:54.559 --> 0:09:58.080 an increasing move towards the yoga pants and away from 0:09:58.120 --> 0:10:01.920 where I mean, I just want much in the men's where. 0:10:01.960 --> 0:10:04.640 But are we seeing a reversal here? It could be 0:10:04.880 --> 0:10:08.840 It really could be pretty here first bloom, that could be. 0:10:09.040 --> 0:10:12.080 I think we see women changing their style, but we 0:10:12.160 --> 0:10:15.760 also see that happening with men. Can I talk about 0:10:15.800 --> 0:10:19.800 something sensitive? Of course? Why in God's name are people 0:10:19.880 --> 0:10:22.280 like you and others? And you've provided leadership on this. 0:10:22.400 --> 0:10:29.600 I'm setting you up for tall clothes, big and tall big, 0:10:29.840 --> 0:10:32.720 not so much big and tall, but just there's a 0:10:32.840 --> 0:10:36.880 huge body of men out there. Nothing fits a lot 0:10:36.880 --> 0:10:40.400 of American men, that's correct. That's why custom, you know, Tom, 0:10:40.480 --> 0:10:43.360 Custom is so important for those guys. And now that 0:10:43.400 --> 0:10:46.760 it's more affordable, we can fit all body types. So 0:10:46.880 --> 0:10:51.400 and you did just have a partnership with the NFL. Yes, yes, yes, 0:10:51.440 --> 0:10:53.679 And does this sort of play to that a little bit? Well, 0:10:53.720 --> 0:10:57.320 it does. We've done these great stylized linings and individual 0:10:57.360 --> 0:10:59.720 linings that you could put into your custom clothing. But 0:11:00.280 --> 0:11:03.760 what some of my best customers are not forty regular 0:11:03.840 --> 0:11:07.959 so they're bigger guys. And I've always have I've always 0:11:07.960 --> 0:11:10.880 had the good fortune of understanding how American men are 0:11:10.960 --> 0:11:13.520 built and how to dress them because, as I said, 0:11:13.559 --> 0:11:16.240 not every guy is a runway model. Yeah, what fabrics 0:11:16.280 --> 0:11:21.840 are hot? Uh? Well, for the fall season, Kashmere has 0:11:21.880 --> 0:11:25.920 become more affordable, I think, Tawn to your point, you know, 0:11:25.960 --> 0:11:29.680 a great kashmere jacket kashmere because the natural fibers still 0:11:29.760 --> 0:11:33.120 are important, Kashmir camel here, but we are seeing a 0:11:33.120 --> 0:11:37.720 lot of performance fabrics now, so that within suits there's 0:11:37.800 --> 0:11:41.120 stretch and there's uh yeah, but but it's there's still 0:11:41.160 --> 0:11:44.440 nothing more beautiful than all wool or great cashmere. You're 0:11:44.480 --> 0:11:50.680 moving the burgundy floral modern fit vest for a vest back. Yeah, 0:11:51.000 --> 0:11:54.160 you know, think about men have so few options really 0:11:54.200 --> 0:11:57.679 in the wardrobe. Vests are a great category. They can 0:11:57.720 --> 0:12:00.600 wear them with without their jackets, and it just gives 0:12:00.640 --> 0:12:05.080 again another level of individuality. So yeah, that makes those 0:12:05.160 --> 0:12:08.600 tall and help me here, we could certainly you got 0:12:08.640 --> 0:12:11.959 the size thing going, but the I'm fascinating had to 0:12:12.000 --> 0:12:14.000 Steve Sadov was in the Giant of Sex with the 0:12:14.040 --> 0:12:16.480 Avenue of the Other. Yes, said us, And I said 0:12:16.480 --> 0:12:19.560 to Steve, I said, it's like women in zero and 0:12:19.640 --> 0:12:22.720 double zero in that going the other way with men. Well, 0:12:22.800 --> 0:12:25.840 you know, the vanity sizing thing is always an interesting thing. 0:12:25.880 --> 0:12:28.160 Guys kind of fall into that trap a little bit. 0:12:28.320 --> 0:12:30.720 But when you do get into custom, you don't have 0:12:30.760 --> 0:12:32.920 to worry about that. Who is your biggest competitor at 0:12:32.920 --> 0:12:36.199 this point? You know, I think when we talk about competition, 0:12:36.320 --> 0:12:39.680 we look at everyone. Really, I think everybody is fighting 0:12:39.800 --> 0:12:42.439 for the same guy. Yeah, but increasingly if you talk 0:12:42.520 --> 0:12:46.920 to Macy's, you'll hear that Target and Walmart have actually 0:12:46.960 --> 0:12:49.719 emerged as competitors in a way that they hadn't. It's 0:12:49.760 --> 0:12:51.840 so interesting that you said that. I mean, we really 0:12:51.880 --> 0:12:54.800 look at the sort of the psychographics of the guy 0:12:54.880 --> 0:12:58.600 and the price veto graphics of the guy. The band 0:12:58.640 --> 0:13:01.960 in high school called sex No, so really to understand 0:13:02.000 --> 0:13:04.080 what a guy really wants, not so much about what 0:13:04.120 --> 0:13:06.600 do they really want? What I think that what guys 0:13:06.640 --> 0:13:09.560 really want is their own personal style. And I love 0:13:09.640 --> 0:13:11.679 that about them, and it's all, you know, it's not 0:13:11.800 --> 0:13:15.280 I think the greatest myth is that men shot price. 0:13:15.720 --> 0:13:19.560 They don't. They shot product for the best price, and 0:13:19.600 --> 0:13:22.800 that's the price value proposition. So to me, it isn't 0:13:22.800 --> 0:13:24.839 so much of what a guy can spend, it's what 0:13:24.880 --> 0:13:27.800 he thinks he should pay for something of value. So 0:13:27.960 --> 0:13:30.760 value is really the game, not price, but value. You're 0:13:30.840 --> 0:13:32.680 killing it today with the look. We'll get that out 0:13:32.679 --> 0:13:35.320 on the radio. Black turtle. I got to consider the 0:13:35.320 --> 0:13:39.120 black turtle. You know you could carry it off. Yeah, 0:13:39.160 --> 0:13:43.040 it's slimming. And I did have a good I did 0:13:43.040 --> 0:13:45.680 have the good fortune of visiting the building, uh, the 0:13:45.679 --> 0:13:50.480 Bloomburn building in London Victoria Street. From a design point 0:13:50.480 --> 0:13:53.280 of view, an amazing feat. You know, I just learned 0:13:53.280 --> 0:13:57.679 what a guy wants here. I mean, this is this 0:13:57.720 --> 0:14:00.920 is hard for wisos. You women can help us guys. 0:14:01.040 --> 0:14:07.960 Let's real. Yeah, women play sun, you know. Joseph of Bood, 0:14:08.040 --> 0:14:13.200 thank you so much. Greatly appreciated. Employing in New Bedford, Massachusetts. 0:14:13.240 --> 0:14:15.920 American made Joseph of Bood and you go to their 0:14:15.920 --> 0:14:19.000 website and check it out. It's a it's a really 0:14:19.360 --> 0:14:35.560 different website from so much of retail today. Joining us 0:14:35.600 --> 0:14:38.480 now and we're thrilled that she could find time with us. 0:14:38.520 --> 0:14:40.200 This is one of our busiest days of the year. 0:14:40.280 --> 0:14:43.160 Joe Feldman with us earlier, and now Dana Telsey joins. 0:14:43.520 --> 0:14:46.400 I'm a Telsee Advisory Group. She built a franchise at 0:14:46.400 --> 0:14:49.800 bear Stearns a few years ago and his uh moved 0:14:49.800 --> 0:14:52.600 it over to her own Telsee Advisory Group, which is 0:14:52.600 --> 0:14:55.960 a required read on Wall Street. Dana, I got about 0:14:56.000 --> 0:14:58.240 eight topics to go through and no time, so let 0:14:58.240 --> 0:15:00.600 me go through this quickly. I love what you're saying 0:15:00.680 --> 0:15:03.880 your note Nordstrom, O, MG, Target, Wow. And then you 0:15:03.960 --> 0:15:09.600 go and under Macy's you have, Huh. What does Macy's 0:15:09.640 --> 0:15:14.400 need to do to begin to staunch the damage? I 0:15:14.400 --> 0:15:16.720 think overall, one of the things that all of these 0:15:16.720 --> 0:15:19.720 department stores need to do is they're focused on reinventing 0:15:19.760 --> 0:15:24.000 to maintain relevancy. I think whether it is address the 0:15:24.040 --> 0:15:28.440 fact that when you think about managing experiences into the 0:15:28.480 --> 0:15:32.000 purchases of buying, what used to be amazing is now 0:15:32.040 --> 0:15:34.960 the new expected. So they have to figure out ways 0:15:35.040 --> 0:15:38.320 to amaze the consumer again. And I think service becomes 0:15:38.320 --> 0:15:40.480 a much more important part of it. And look what 0:15:40.520 --> 0:15:43.240 you're saying, I mean, Macy's is all of a sudden 0:15:43.280 --> 0:15:47.400 now having options within the store where that's the destination 0:15:47.520 --> 0:15:50.720 businesses that they're focused on story, You've got a surprise, 0:15:51.040 --> 0:15:54.040 and I think Macy's needs to surprise the customer again, 0:15:54.280 --> 0:15:57.359 and I think it's a work in progress. Your heritage 0:15:57.680 --> 0:16:02.040 is the heritage of fifty seven and fifth Avenue, literally, folks, 0:16:02.040 --> 0:16:04.800 and I say this was a great respect to Robert 0:16:04.800 --> 0:16:08.520 Burke and berg door. If you lived at Dana Telsey 0:16:08.520 --> 0:16:13.520 with your family at that storied corners, what should LVMH 0:16:13.720 --> 0:16:16.920 do with Tiffany's. They've got Bulgary, they've got Louis Vuton, 0:16:17.320 --> 0:16:20.120 than Clief is over there with somebody else. What's the 0:16:20.240 --> 0:16:26.000 Dana Telsey prescription for Tiffany's at fifty seven and fifth. 0:16:26.680 --> 0:16:29.040 When you think about jewelry and you think about Tiffany's, 0:16:29.080 --> 0:16:31.760 you think about engagement jewelry. When you think about people 0:16:31.800 --> 0:16:35.560 who get engaged and get married, typically they're in their twenties, thirties, 0:16:35.640 --> 0:16:38.560 couldn't even be forties. You think about the experience in 0:16:38.600 --> 0:16:41.520 Tiffany's and it's older than that. You need to match 0:16:41.600 --> 0:16:44.280 the experience of what the store is to the age 0:16:44.280 --> 0:16:47.160 of the customers who are coming in for that special occasion. 0:16:47.680 --> 0:16:49.560 And I think when you think about l V m 0:16:49.720 --> 0:16:52.920 H five years ago, ten years ago, the word pop 0:16:53.000 --> 0:16:55.800 up would never even be a part of their vocabulary 0:16:55.880 --> 0:16:59.800 because they thought longevity, heritage, and authenticity meant being there 0:16:59.800 --> 0:17:03.160 for ever. And it does mean in that location, certainly forever. 0:17:03.520 --> 0:17:06.160 But what has to be the experience inside the store 0:17:06.600 --> 0:17:08.840 has to be a magic wow, and I think they're 0:17:08.840 --> 0:17:10.840 going to create that. Look at the what you have 0:17:10.960 --> 0:17:14.080 on the LV store now, whether it's the symbolic LV 0:17:14.200 --> 0:17:16.160 and the different colors that are going down the side 0:17:16.160 --> 0:17:19.000 of the building, or every time you walk by their windows, 0:17:19.000 --> 0:17:21.960 that's wait, what's different now? And I think that what's 0:17:22.000 --> 0:17:25.440 different equation is what needs to be recreated at Tiffany's. 0:17:25.480 --> 0:17:28.800 And they talk about good better best. Steve Sayto was 0:17:28.800 --> 0:17:33.040 talking about that at LVMH and at Louis Vuton. How 0:17:33.040 --> 0:17:36.440 do they do good better best at your Bergdorf? I mean, 0:17:36.520 --> 0:17:40.240 what what does Bergdorf do to defend the franchise? Well, 0:17:40.280 --> 0:17:43.840 think about the opportunities that Bergdorf's has with Barney's now 0:17:43.880 --> 0:17:46.679 basically closing its stores just two or three doors away. 0:17:47.160 --> 0:17:50.040 A lot of the people who want designer brand clothing. 0:17:50.480 --> 0:17:53.600 While they used to shop both Bergdorf's and Barney's before 0:17:53.880 --> 0:17:57.200 Now you're can have Burgdorf's and so some of those brands, 0:17:57.200 --> 0:18:00.280 and whether it's the exclusive collaborations where it's design, miner, 0:18:00.359 --> 0:18:03.119 meat and grads, whether it's continuing to invest in the 0:18:03.200 --> 0:18:05.520 store and make it a difference in a while along 0:18:05.520 --> 0:18:09.440 with the service aspects. There's a personal connection there. Internet 0:18:09.480 --> 0:18:12.000 is certainly important, but you've got to marry it with 0:18:12.040 --> 0:18:14.159 the pictures and going in the store and saying I 0:18:14.200 --> 0:18:16.199 want to be in there. You got to create the 0:18:16.240 --> 0:18:20.400 want again. How how do you fill the empty retail 0:18:20.760 --> 0:18:24.600 of upskill shopping? And whether it's Barney's or Bond or whatever, 0:18:25.119 --> 0:18:27.440 do you just lower the You just have to lower 0:18:27.480 --> 0:18:30.320 the rent. Is it just that simple? What's the new 0:18:30.359 --> 0:18:32.480 concepts that are gonna go in there? What's the new 0:18:32.520 --> 0:18:35.720 exciting wows? Look at what they're doing on Fifth Avenue now, 0:18:36.000 --> 0:18:38.879 where they have a designer who put in basically different 0:18:38.880 --> 0:18:41.960 pictures based on some of the empty storefronts in order 0:18:42.040 --> 0:18:44.720 not to have a fifth Avenue that you walk down 0:18:45.000 --> 0:18:47.800 where you count they can see vacancy, vacancy, and it 0:18:47.840 --> 0:18:50.679 just feels like there's more and more. So my sense 0:18:50.880 --> 0:18:55.840 is that we need not only just new stores selling goods, 0:18:55.880 --> 0:18:59.080 but who else is going to sell experiences? And those 0:18:59.160 --> 0:19:03.440 experiences can be activities, It could be services like spot 0:19:03.600 --> 0:19:06.960 services or beauty. Over the next ten years, we're gonna 0:19:07.000 --> 0:19:10.000 have a reiteration of what fifth Avenue is. What's the 0:19:10.080 --> 0:19:12.520 middle market look like? Did we go up and low 0:19:12.600 --> 0:19:14.880 and nothing in between? Or is there an in between 0:19:14.960 --> 0:19:18.879 up there? For American retail I think overall, value and 0:19:18.960 --> 0:19:21.800 convenience matters, and that's why you're seeing the off prices 0:19:21.840 --> 0:19:24.439 do so well, and that's why you're seeing the discounts 0:19:24.480 --> 0:19:27.320 do so well too. But you bet mid market matters, 0:19:27.359 --> 0:19:28.879 and what are we going to see? I think we're 0:19:28.880 --> 0:19:32.000 gonna see some of these online only retailers get into 0:19:32.040 --> 0:19:35.120 physical also, so is it a new generation of brands. 0:19:35.200 --> 0:19:38.040 And also when you think about those services, look at rental, 0:19:38.200 --> 0:19:41.840 rent the runway head story, look at subscription like stitch Fix, 0:19:42.000 --> 0:19:45.040 or look at consignment like Real Real opening on seventy 0:19:45.080 --> 0:19:49.240 one in Madison. Rental, consignment and subscription over the next 0:19:49.720 --> 0:19:51.800 years are going to become more important. H and M 0:19:52.000 --> 0:19:54.600 is looking at rent the runway equivalency as well. Does 0:19:54.720 --> 0:19:57.159 luxury have to go to or rent the runway mode 0:19:58.119 --> 0:20:01.159 isn't I think some of the luxury good of companies themselves, 0:20:01.200 --> 0:20:02.920 whether they do it or not, but they're going to 0:20:03.000 --> 0:20:05.920 have offshoots do it like the real reels out there. 0:20:06.200 --> 0:20:08.960 When you think of thread up and and Posh Mark 0:20:09.160 --> 0:20:12.879 or Vesti are collective. There's a lot of opportunities because 0:20:13.560 --> 0:20:17.920 millennials or even Gen zs, the permanency of ownership may 0:20:17.960 --> 0:20:20.840 not be as realistic for them as it was for 0:20:20.880 --> 0:20:22.800 their parents. For you, and this is a critical question. 0:20:22.800 --> 0:20:25.000 It's really come up not only at the things giving table, 0:20:25.080 --> 0:20:29.520 but with team surveillance. Do you find the value point 0:20:29.640 --> 0:20:32.720 of rent the runway attractive for women and that you 0:20:32.760 --> 0:20:34.560 know they look at whatever it is per three months 0:20:34.600 --> 0:20:37.800 or whatever is an attractive point versus by and own. 0:20:38.720 --> 0:20:41.040 I think for some it all depends. Now all of 0:20:41.080 --> 0:20:43.840 a sudden, renting is not just for special occasion, it's 0:20:43.840 --> 0:20:47.280 for every day and the ability to have new items 0:20:47.280 --> 0:20:50.000 all the time makes it appealing to them. But there's 0:20:50.040 --> 0:20:53.040 another thing that we're going to be talking about, sustainability 0:20:53.320 --> 0:20:56.040 and what does it mean to understand what your garments 0:20:56.040 --> 0:20:58.560 are made of and where they're made of the story 0:20:58.640 --> 0:21:01.520 behind the garment is going to be come front and center. 0:21:02.560 --> 0:21:05.960 Give us the item this holiday season. Dana Telsey, what's 0:21:05.960 --> 0:21:10.080 the thing that every woman needs? I think boots are back. 0:21:10.560 --> 0:21:14.520 I think, come on, this is just you're killing me, Dana. 0:21:15.680 --> 0:21:19.160 You like boots every year? Oh no, last year boots 0:21:19.160 --> 0:21:21.880 weren't back. I think fashion sneakers are swelling. I think 0:21:21.880 --> 0:21:24.239 boots are back. And you know what, we're still going 0:21:24.240 --> 0:21:28.600 to see the strength in outerwear. This is this is 0:21:28.680 --> 0:21:31.480 always callin make a note, this is always too short 0:21:31.520 --> 0:21:34.359 with Dana Telsey. And of course we know that what 0:21:34.440 --> 0:21:37.000 she's zeroing in on is a Jimmy Choo one d 0:21:37.160 --> 0:21:41.720 millimeter mirror and booty, no doubt named after the acclaimed actress, 0:21:41.720 --> 0:21:45.800 the mirror booty that's priced in a one thousand dollars. 0:21:46.520 --> 0:21:49.200 Dana Telsey, thank you so much. Telse the advisory group 0:21:49.440 --> 0:22:07.439 there is well from London to Paris, and maybe we 0:22:07.480 --> 0:22:09.800 can start there with the recovery of the violence in 0:22:09.840 --> 0:22:12.520 Paris that we saw a few years ago. There are 0:22:12.560 --> 0:22:15.119 we getting hundreds of books, as you can imagine, every 0:22:15.200 --> 0:22:18.520 day and a couple of times a year a book 0:22:18.640 --> 0:22:21.879 just simply stops you in its tracks. That was the 0:22:21.960 --> 0:22:25.439 case with the Sin se I any the river that 0:22:25.560 --> 0:22:29.360 made Paris because Elaine Sheiolino went to the art director 0:22:29.400 --> 0:22:34.800 and they went through fifteen cover ideas before they absolutely 0:22:35.320 --> 0:22:40.200 nailed the image of how we see this river through Paris. 0:22:40.320 --> 0:22:44.280 She is of course beyond uh claimed with their decades 0:22:44.400 --> 0:22:47.200 of work at the New York Times and any number 0:22:47.240 --> 0:22:50.320 of books before the Sin. How did the book cover 0:22:50.440 --> 0:22:53.119 come out? I mean the book cover captures everything we believe, 0:22:53.240 --> 0:22:56.520 doesn't it. Well, it's a it's always a work in progress, 0:22:56.560 --> 0:22:58.679 and you don't know. And then as you said, you know, 0:22:58.800 --> 0:23:02.840 somehow it all comes together like a big minestrone soup 0:23:03.440 --> 0:23:06.320 and it rises to the occasion. And it's a great 0:23:06.320 --> 0:23:09.880 cover because it's a great photograph from photographer Peter Turnley 0:23:10.200 --> 0:23:15.680 that captures the mood, the romance, the ethos and culture 0:23:15.760 --> 0:23:19.200 of this great river in my childhood and the immense 0:23:19.240 --> 0:23:21.520 privilege of going to France. And I remember they took 0:23:21.600 --> 0:23:23.400