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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Intelligence podcast. Catch US Live weekdays at ten am

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Speaker 1: easterne on Apple Cocklay and Android Auto with the Bloomberg

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Speaker 1: Business App. Listen on demand wherever you get your podcasts,

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Speaker 1: or watch US live on YouTube.

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Speaker 2: Big news in a text bak Big news for Google

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Speaker 2: and Apple on others. The US government proposal to break

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Speaker 2: up Google did not get the support of the courts. Here,

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Speaker 2: let's talk to an expert on this stuff. Jennifer Reed

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Speaker 2: joins US here Senior Litigation. Now she covers all the

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Speaker 2: antitrust stuff for Bloomberg Intelligence.

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Speaker 3: It looks like this. Well, first of all, Jen, what

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Speaker 3: did the court's rule?

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Speaker 4: You know, really, the court aligned much more so with

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Speaker 4: what Google proposed than what the Department of Justice proposed.

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Speaker 4: No divestiture of Chrome or contingent divesture of Android because

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Speaker 4: that was in there. Some data sharing, no exclusive agreements,

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Speaker 4: some search syndication meaning search engine can basically provide results

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Speaker 4: that just come straight from Google. Right, They're mimicking Google.

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Speaker 4: The surprising thing though, here, and what was great for Apple,

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Speaker 4: is that the judge said Google can could continue to

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Speaker 4: pay for search default positions.

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Speaker 3: That's with Apple.

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Speaker 4: With Mozilla, it pays some OEMs to pre install Google

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Speaker 4: Search on the Android phones that they group that they manufacture,

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Speaker 4: and that I think was a really big surprise.

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Speaker 5: How is this remedy consistent with the original ruling, with

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Speaker 5: the original finding of the court.

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Speaker 3: You know, I actually have a.

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Speaker 4: Really big problem with aligning those two things because I

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Speaker 4: don't think that it is. In terms of no chrome divestiture.

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Speaker 4: I think it's very consistent. And Paul, you know, I've

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Speaker 4: been on this show before and I've been saying for

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Speaker 4: two years that there would not be a chrome divestiture

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Speaker 4: ordered here. But where it's inconsistent is with this default position.

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Speaker 4: Because having a monopoly is not illegal, but it's the

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Speaker 4: conduct that maintains the monopoly that's exclusionary that is illegal.

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Speaker 4: And what the judge found in that liability decision that

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Speaker 4: the conduct that was illegal were the default agreements. Right,

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Speaker 4: This was exclusionary. This kept other search engines from being

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Speaker 4: able to grow and scale and get better. He's allowing

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Speaker 4: those default positions to stay in place. Now it's a

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Speaker 4: shorter term. It's only for one year. Theoretically, in one

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Speaker 4: year or one year after that, other search engines that

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Speaker 4: have improved can compete for that contract. But it's still

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Speaker 4: odd to me that what is found to be legal

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Speaker 4: is allowed to continue.

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Speaker 3: Well, the stock market likes it.

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Speaker 2: This is a company, it's got two point eight trillion

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Speaker 2: dollars in market capital, it's up nine percent today. You

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Speaker 2: just don't see that very often here. So what does

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Speaker 2: this mean for just Silicon Valley in general? Can I

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Speaker 2: sit back if I'm a CEO in Silicon Valiant saying, Hm,

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Speaker 2: the courts are maybe a little bit more aligned with

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Speaker 2: our industry how we think about the world than maybe

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Speaker 2: the government.

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Speaker 4: I would say that the way Silicon Valley can think

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Speaker 4: about it is that this judge was cautious. And this

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Speaker 4: judge did talk about needing to apply caution when you're

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Speaker 4: dealing with tech markets and Silicon Valley companies because judges

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Speaker 4: don't understand it want to impact the route, the innovation

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Speaker 4: and the natural course of the industry, right, they don't

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Speaker 4: want to distort that. And so it does suggest that

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Speaker 4: it's more likely a judge is going to be cautious

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Speaker 4: in future remedies for other cases. But what I think

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Speaker 4: everybody has to keep in mind, because I've seen people

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Speaker 4: talking about the fact that there's read through for some

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Speaker 4: of these other monopolization cases. I don't really think that

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Speaker 4: there is, because the facts are entirely different case by case,

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Speaker 4: the markets are entirely different, and what made a divestitor

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Speaker 4: remedy inappropriate here doesn't necessarily exist as a fact pattern.

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Speaker 4: Let's say an FTCV Meta or usdojb Apple or the

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Speaker 4: other DOJ case against Google in the ad tech space.

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Speaker 4: Those are different cases with different facts, and I don't

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Speaker 4: think that there's necessarily a read through that companies are

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Speaker 4: safe from divestiture orders because of this one.

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Speaker 5: Do we think that AI, the quickness and how it's

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Speaker 5: developing played any kind of role in the judge's decision here?

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Speaker 6: Oh?

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Speaker 4: Absolutely. The judge even observed that in the liability hearing,

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Speaker 4: which was now a year and a half or so ago,

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Speaker 4: that AI barely came up at all other than by Google,

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Speaker 4: it barely came up. But in the remedies hearing it

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Speaker 4: was all about AI, and the witnesses were all AI,

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Speaker 4: and he says it just shows in a year a

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Speaker 4: year and a half how much things have changed, and

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Speaker 4: the fact that you now have real competition to general

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Speaker 4: search other than other general search engines, and I think

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Speaker 4: that impacted him a lot.

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Speaker 3: Stay with us.

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Speaker 2: More from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Apple, Corplay and Android

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Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 2: So in Bloomberg News, Scarlett, I think if you get

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Speaker 2: a b a green Bee nextra story, that means it's

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Speaker 2: like an exclusive or breaking news.

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Speaker 5: Yeah, great, a scoop.

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Speaker 3: Okay, so that's a good thing, right that.

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Speaker 2: It's a very good thing, you know, Yeah, reporter, you

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Speaker 2: know who gets a lot of those green Bee things.

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Speaker 3: He's walking to the Sucio Stuve.

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Speaker 2: Mark Germy and it's usually about like textuff Apple particular stuff.

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Speaker 3: And he's got another one today. I don't know.

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Speaker 2: Apple's lead artificial intelligence researcher for robotics has departed the

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Speaker 2: company to join the meta platforms. I feel like I've

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Speaker 2: read this kind of piece from Mark almost on a

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Speaker 2: weekly basis.

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Speaker 5: Over you mean Apple losing on AI.

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Speaker 2: Yeah, I mean people kind of walking out the door.

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Speaker 3: At some point, it's got to be a problem even

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Speaker 3: for the apples of the word.

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Speaker 2: Mark Irmont juines is he's a managing editor for Global

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Speaker 2: Consumer Technology Bloomberg News. He's usually out there in LA.

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Speaker 2: But something's going on there because Mark Herman's here in

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Speaker 2: New York. Who was the other dude we had on

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Speaker 2: the entertainment Dude Shaw he was. He's in New York.

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Speaker 2: So I don't know what's going on out there in LA.

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Speaker 2: Maybe they're cleaning offices or something.

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Speaker 7: No, we both have both have colleagues here, are all right?

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Speaker 3: All right? Mark talked to us about Apple.

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Speaker 2: Is it a problem that they're losing some of their

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Speaker 2: AI folks, the robotics folks, that kind of thing.

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Speaker 3: You don't typically see that too often.

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Speaker 7: It's only a problem if it impacts the consumer. And

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Speaker 7: right now, Apple's AI efforts are impacting the consumer because

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Speaker 7: Apple Intelligence and Siri lag very much in comparison to

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Speaker 7: competing products on other platforms. Now, this can all be

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Speaker 7: turned around, right You've got the ability for Apple to

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Speaker 7: do partnerships. I predict there'll be some sort of big

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Speaker 7: AI partnership for Apple. I've reported that they're in talks

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Speaker 7: with Google and an AI partnership I've reported they've been in

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Speaker 7: talks with Anthropic and Open Ai on potential AI partnerships.

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Speaker 7: They get one of those done, it's a different ballgame.

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Speaker 7: They buy a company I reported first reported over the

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Speaker 7: summer that they've talked to Mistral reported that they talk

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Speaker 7: to Perplexity. I don't expect either of those deals to

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Speaker 7: get done, but that certainly shows you where.

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Speaker 3: Their head's at.

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Speaker 7: Okay, if this all gets turned around with a major

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Speaker 7: new version of Siri next year, if they get the

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Speaker 7: Apple Intelligence pipeline heading in the right direction, if they

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Speaker 7: buy and hire the right LLLM people, they could be

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Speaker 7: in pretty good shape. Don't forget. Apple has the best

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Speaker 7: ECO system, they have the best hardware, and they're able

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Speaker 7: to deploy new features and operating system upgrades faster than

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Speaker 7: any other company. And so at the end of the day,

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Speaker 7: this is still their game to lose because there are

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Speaker 7: so many levers they can pull, especially with their cash balance,

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Speaker 7: to turn this thing around.

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Speaker 5: So why haven't they done any of those things so far?

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Speaker 5: Why are they waiting? What's the hold up?

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Speaker 7: Well, you know Apple, Unfortunately for them, they're very tied

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Speaker 7: to a couple cycles, right. They have their spring cycle,

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Speaker 7: and then they have their fall cycle. The fall cycle

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Speaker 7: has been set for some time. There's really no changing that.

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Speaker 7: That's locked and loaded. You'll see the introduction of those

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Speaker 7: products and those software features next Tuesday at the iPhone

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Speaker 7: seventeen launch event. The spring is really the next opportunity

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Speaker 7: for there to be major new features, right, that's when

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Speaker 7: they're going to roll out pretty big update to iOS

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Speaker 7: twenty six called iOS twenty six point four. At that time,

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Speaker 7: I expect them to release an overhauled version of Siri

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Speaker 7: that are going to fix a lot of these issues.

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Speaker 7: That's a lot total now though it is a long time. Yeah,

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Speaker 7: it is a long time. And the truth of the

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Speaker 7: matter is is that the AI space runs far more

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Speaker 7: quickly than even the mobile space. You saw a lot

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Speaker 7: of innovation in the smartphone space in the last two decades.

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Speaker 7: AI is moving ten times as fast as.

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Speaker 2: That, and they're aware of that. They're smart people. I

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Speaker 2: guess they've made the decision that they're comfortable with their timing.

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Speaker 2: Did they run the risk of making a fun fundamental

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Speaker 2: error in their judgment of that timing.

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Speaker 7: I don't think they're comfortable with the timing. I think

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Speaker 7: that the timing was actually even further out. I wasn't

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Speaker 7: expecting a major new version of SERI with incredible enhancements

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Speaker 7: for consumers, probably not until the end of twenty six

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Speaker 7: or sometime even at the tail end of twenty twenty seven.

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Speaker 7: So this is going to be happening at least six

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Speaker 7: to twelve months sooner than Apple had originally planned. They

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Speaker 7: are probably one or two years away if they did

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Speaker 7: nothing of starting to bleed share to competing smartphones with

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Speaker 7: major AI features right now. Let to tell you the truth.

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Speaker 7: We talk about AI all day every day. It's very

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Speaker 7: important to the market. It's very important for the current

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Speaker 7: technology age. Nobody's buying phones because of AI or not

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Speaker 7: because of AI, but we are moving towards that, and

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Speaker 7: that is going to happen. It's one or two years away,

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Speaker 7: and so if they're not in good shape by then,

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Speaker 7: they're going to start being impacted not only in terms

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Speaker 7: of what we talk about, not only on Wall Street

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Speaker 7: in the stock market, but in actual purchasing decisions by consumers,

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Speaker 7: because right now, consumers only care about a few things

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Speaker 7: when they buy new phones. They want to fix their

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Speaker 7: broken screen, they want a better.

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Speaker 5: Camera, and they don't want to pay too much for

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Speaker 5: it either. That's the other thing. I mean, we'll incorporating

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Speaker 5: all these AI g wiz factors bring up the price

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Speaker 5: to fifteen hundred dollars for your standard phone. That's something

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Speaker 5: that consumers may not stand for.

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Speaker 7: Well, to your point, it's a very good point. You

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Speaker 7: may see AI cost drivers increase because in many cases

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Speaker 7: it requires, especially on Apple's side, improve chips, more processing power,

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Speaker 7: improve battery life, improve cameras to take advantage of these things.

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Speaker 7: So you may see the core technologies in these devices

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Speaker 7: actually go up in price in order to enable these

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Speaker 7: next set of AI features. Because unlike Google and Open AI,

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Speaker 7: Apple's less reliant on the cloud. It's really a hybrid model.

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Speaker 7: So to your point that the core hard is very

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Speaker 7: important here too.

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Speaker 2: The Google legal announcement here the ruling obviously very positive

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Speaker 2: for Google, but also positive for Apple to stocks up.

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Speaker 7: Yeah, it's a big deal for Apple, and some people

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Speaker 7: have said this is a bigger deal for Apple than Google.

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Speaker 7: Is complete nonsense. To be honest with you, Google had

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Speaker 7: hundreds of billions of dollars at stake here.

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Speaker 3: They could have lost.

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Speaker 7: Their ability to strike search agreements at all, default search agreements.

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Speaker 7: They're basically giving up some data and pretty much nothing else.

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Speaker 7: So massive win for Google, big win for Apple, gigantic

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Speaker 7: win for the technology industry.

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Speaker 3: Because you ask you that, yeah, you have precedent.

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Speaker 7: Here is set now, so you know, Meta is probably

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Speaker 7: in better shape than they would have been otherwise. You know,

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Speaker 7: Apple has this DOJ trial too. You know that we've

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Speaker 7: Google just had its moment. Apple's going to have its

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Speaker 7: moment in a couple of years, and this sets a

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Speaker 7: lot of the precedent for that. So at this point

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Speaker 7: it's anyone's guess, but I would assume that Apple's going

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Speaker 7: to get off scott free.

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Speaker 2: Also, I mean so, I mean again in Silicon Valley,

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Speaker 2: I got to think that this feels like a little

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Speaker 2: bit of a little bit of a reset on the

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Speaker 2: regulatory front, which was front and center.

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Speaker 3: A little bit of a reset.

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Speaker 7: You know, the European Union is still you know, going

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Speaker 7: fast and furious. But if you're a technology consumer, this

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Speaker 7: is amazing news. If you work at a technology company,

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Speaker 7: if you invest in a technology company, if you're into technology,

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Speaker 7: this is great news. These companies are going to be

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Speaker 7: able to innovate at the pace that they want to

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Speaker 7: and you know, move fast. And break things.

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Speaker 2: I guess stay with us. More from Bloomberg Intelligence coming

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Speaker 2: up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android

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Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 5: Macy's on earnings, the department store chain lifted its outlook,

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Speaker 5: but did take care to point out that the consumer

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Speaker 5: is still feeling pretty cautious. So for more, let's bring

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Speaker 5: in Emily Cohne. Emily is Bloomberg's consumer team leader, also

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Speaker 5: a Big Red alum, graduated from Cornell University and was

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Speaker 5: an editor at the Cornell Deli Sun to discuss Macy's

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Speaker 5: latest results. So it sounds like a good news bad

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Speaker 5: news kind of story, but investors are taking the good news.

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Speaker 6: Here, Thanks Carlett. Yeah, maybe I would say cautiously optimistic.

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Speaker 5: That's a favorite term of ou CEOs.

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Speaker 3: I think this falls in.

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Speaker 6: Line with what we've heard from other retailers. Shoppers are

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Speaker 6: still shopping. Tony Spring told us on a caller earlier

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Speaker 6: this morning. He used the word surgical, So they're being

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Speaker 6: precise about what they're spending on being choosy. They called

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Speaker 6: out home furnishings and apparel as strong sellers, also citing

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Speaker 6: high demand for fine watches, jewelry, mattresses, so they are shopping.

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Speaker 6: I think the main question I have is how long

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Speaker 6: will this last?

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Speaker 3: How promotional are some of these retailers. How promotions do

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Speaker 3: they have to be? Because I know that goes right to

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Speaker 3: the margin.

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Speaker 6: Yeah, I mean, that's an interesting segue into Dollar Tree.

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Speaker 6: I think Dollar Tree raised prices so far this year

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Speaker 6: to offset the cost of tariffs, and shoppers felt that

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Speaker 6: and that doesn't have that has a limit. There's only

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Speaker 6: so far you can raise prices, and I think that

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Speaker 6: is starting to eat away at their bottom line. They

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Speaker 6: can't really raise prices that much anymore. I think these

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Speaker 6: retailers are in a difficult spot. They want to keep

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Speaker 6: let prices low because of how the consumer is feeling,

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Speaker 6: but also their costs are up on account of tariffs.

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Speaker 5: I would imagine Dollar Tree has a lot less cushion,

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Speaker 5: as you say, to raise prices, given who they're targeting,

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Speaker 5: and given how they're seeing a lot of higher end

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Speaker 5: consumers trade down to Dollar Tree than a Macy's. Macy's

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Speaker 5: did say explicitly that price increases are on the way, didn't.

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Speaker 6: They Yes, they said that they've already started and that

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Speaker 6: they're coming. But their sales are strong, and I think

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Speaker 6: you know they're in the midst of a turnaround. There

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Speaker 6: were signs that Tony Springs strategy is taking hold.

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Speaker 3: Comp sales rose more at.

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Speaker 6: His reimagined stores than they did overall. So I think

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Speaker 6: that that's a good reason behind the stock jump this morning.

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Speaker 3: What is a what's different about a quote unquote reimagine?

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Speaker 5: Good question?

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Speaker 6: I think that is a really good question. I think

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Speaker 6: these are the stores where they believe that they can

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Speaker 6: have the greatest edge. So they're they're doing a lot

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Speaker 6: to reinvigorate sales. They're redesigning the stores, they're rethinking their assortment,

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Speaker 6: and these are the stores that they say we should

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Speaker 6: really watch. This is the future of Macy's.

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Speaker 2: And Tony spring is also Cornell guy.

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Speaker 5: Oh there you go, not big red gathering here.

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Speaker 6: I didn't even know that.

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Speaker 5: Let's put this into context. What we heard from Macy's,

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Speaker 5: what we heard from Dollar Train, of course Dollar General

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Speaker 5: earlier in the month, or was it this month or

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Speaker 5: last last? In any case, what are we hearing from

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Speaker 5: retailers overall, because investors are punishing some and rewarding others.

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Speaker 5: Even though the message, I would say is fairly consistent

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Speaker 5: that consumers are spending, they're just being really, really weary

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Speaker 5: and careful. I think you nailed it.

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Speaker 6: I think retailers continue to point to strong sales momentum.

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Speaker 6: People are shopping even in the face of tariffs and

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Speaker 6: threats of inflation. I think the question I have is

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Speaker 6: knowing that retailers stock up months ahead of time, They

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Speaker 6: had their inventory that they sold through now months ago,

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Speaker 6: perhaps even before tariffs. I don't think we've really seen

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Speaker 6: the full paths through of the costs of tariffs yet,

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Speaker 6: and I think we'll continue to see that in the

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Speaker 6: coming months, and especially during the all important holiday shopping season.

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Speaker 3: Let's go there.

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Speaker 2: What's Is there a consensus building to how the holiday

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Speaker 2: season may shape up?

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Speaker 6: It's still early. I think the outlook isn't great so far.

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Speaker 6: Although Tony Spring did say that the back to school

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Speaker 6: shopping season was he used the word good, and he

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Speaker 6: said that back to school is generally a good bell

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Speaker 6: weather for the holiday shopping season, So there was a

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Speaker 6: slight note of optimism there, But not totally bullish.

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Speaker 5: Emi you cover the consumer team or the team leader

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Speaker 5: for this group, which company is most interesting is most

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Speaker 5: exciting right now? Like who is leading the way in

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Speaker 5: terms of being innovative and coming up with novel solutions

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Speaker 5: to the persistent challenges that this industry faces.

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Speaker 3: Yeah, for sure.

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Speaker 6: I mean I think that discount retailers are really the

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Speaker 6: ones to watch right now. So I'm really interested in

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Speaker 6: TJ Max, Marshals. These are the companies that people really

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Speaker 6: look to for deals. They have an interesting buying model

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Speaker 6: where they're buying like the extra inventory that other retailers

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Speaker 6: didn't sell, so they're a little bit isolated from the tariffs,

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Speaker 6: and they also are benefiting from the fact that a

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Speaker 6: lot of retailers bought a lot of stuff ahead of tariffs.

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Speaker 6: I'm also really interested in the dollar stores. Dollar stores,

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Speaker 6: you know, have a huge footprint there in these rural

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Speaker 6: parts of the country that traditionally the big retailers don't reach.

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Speaker 6: That has given them a big advantage. Now Amazon and

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Speaker 6: Walmart are coming for those dollars from e commerce in

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Speaker 6: a really big way. So I'm really interested in how

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Speaker 6: these value retailers do.

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Speaker 5: Any of those companies have a large online presence.

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Speaker 6: While they are doing things like partnering with Uber Eats

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Speaker 6: and delivery delivery services like that. But I think the

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Speaker 6: main draw is like, if you're living in a rural

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Speaker 6: part of the country, like the place that you go

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Speaker 6: to buy a gallon of milk at the end of

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Speaker 6: the day is your Dollar General, Like that's the store

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Speaker 6: that you have. But increasingly Walmart and Amazon are looking

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Speaker 6: to these rural areas as their last frontier.

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Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto

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Speaker 1: with the Bloomberg Business app. Listen on demand wherever you

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Speaker 1: get your podcasts, or watch us live on YouTube.

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Speaker 2: Dollar Tree profit outlook disappoints investors. Here let's go to

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Speaker 2: Jen Bartash's Bloomberg Intelligence senior al. She covers a lot

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Speaker 2: of the retail names for Bloomberg Intelligence. Jen, what did

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Speaker 2: you learn from Dollar Tree?

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Speaker 8: Yeah, it's an interesting It's an interesting takeaway from Dollar

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Speaker 8: Tree because a lot of what they talked about was

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Speaker 8: bringing in hire income households. That's an echoing of what

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Speaker 8: we've heard from a couple of the retailers, most notably Walmart.

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Speaker 8: But at the same time, they're staying super conservative and so,

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Speaker 8: you know, although they had a much stronger than expected quarter,

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Speaker 8: I think there's a lot of anticipation that the second

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Speaker 8: half of the year might be a lot harder for them.

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Speaker 5: Right The outlook for this quarter on its own kind

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Speaker 5: of underwhelmed investor, and a lot of that, the company

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Speaker 5: says is tied to terror related costs.

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Speaker 8: Exactly Scarlett and what they're talking about, and this is

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Speaker 8: something that we're seeing across the retail sector broadly, is

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Speaker 8: that the costs of tariffs have started to come in,

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Speaker 8: but they really haven't fully hit yet. A lot of

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Speaker 8: retailers are selling through inventory they bought when tariffs were

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Speaker 8: at a different rate were not there, and as they're

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Speaker 8: replenishing that inventory, it's becoming more expensive. It's getting harder

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Speaker 8: to mitigate those costs, and they're starting to see some

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Speaker 8: targeted price increases being passed through to consumers. We think

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Speaker 8: that's only going to accelerate as we get into the

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Speaker 8: second half of the year.

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Speaker 2: So have you is there any consensus building at jenas

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Speaker 2: to how much retailers are going to pass through terror

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Speaker 2: related cost increases to consumers are kind of a rule

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Speaker 2: of thumb being created.

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Speaker 8: You know, I think for the most part, we're looking at,

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Speaker 8: you know, between eighty and ninety percent can be mitigated

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Speaker 8: by retailers at this point in time. Now, that does

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Speaker 8: change whenever the tariff landscape changes. So when tariffs for

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Speaker 8: China are you know, or for India, we're at ten percent,

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Speaker 8: that was easy to forecast. When they jump to fifty percent,

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Speaker 8: that gets a lot harder. And we still don't have

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Speaker 8: a final number for China, and so there's still some

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Speaker 8: uncertainty out there, but there's there's pretty good confidence that

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Speaker 8: between negotiating with suppliers, diversifying sources and things like that,

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Speaker 8: that they can mitigate a large portion of the cost.

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Speaker 8: But it's just a question of how long they consistain

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Speaker 8: that mitigation before inevitably they start having to pass a

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Speaker 8: little bit of price through.

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Speaker 5: And a lot of that is kind of unanswerable right

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Speaker 5: now until they go through the whole process. Jen remind

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Speaker 5: us of where Dollar Tree is at with the divestitu

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Speaker 5: or the shedding of the family dollar chain that did

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Speaker 5: not work out as planned, is that completely off its books?

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Speaker 3: Now it is.

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Speaker 8: They completed the transaction on July fifth, so it's completely

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Speaker 8: off the books. It gives them a lot of liberty

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Speaker 8: to really focus on the business and really drive growth

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Speaker 8: and what's always been the bigger part of their business.

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Speaker 8: And there's a lot of opportunity out there. You know,

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Speaker 8: they talk about gaining share and there there have been

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Speaker 8: some retailers that have gone under in the last you know,

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Speaker 8: year and a half that that makes it a great

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Speaker 8: opportunity for them, as a more focused organization to take

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Speaker 8: advantage of that. And that would be Party City to

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Speaker 8: a lesser extent, Joan Fabrics. You know, these these create

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Speaker 8: present opportunities for Dollar Tree to really execute on their

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Speaker 8: strategy and hopefully continue driving some top line growth.

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Speaker 2: So what's the what's kind of the expectation here for

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Speaker 2: for just kind of the holiday season broadly defined?

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Speaker 8: Jen, Yeah, for for the holidays, I think, you know,

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Speaker 8: the retailers all say that they're pretty well prepared. You know,

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Speaker 8: consumers I think will be ready to spend, but they'll

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Speaker 8: be selective. We're we're expecting that once inventory is sold out,

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Speaker 8: there won't be a lot of reordering. So this is

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Speaker 8: a holiday season where if there's something special if you

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Speaker 8: want to get you might want to get it because

439
00:22:02,920 --> 00:22:06,240
Speaker 8: once it's gone, it might not get replenished or replenished

440
00:22:06,320 --> 00:22:11,080
Speaker 8: quickly or at the same price. So sorry you seeking

441
00:22:11,359 --> 00:22:12,240
Speaker 8: that sort of behavior.

442
00:22:13,240 --> 00:22:16,240
Speaker 5: So the takeaway for this holiday season is you see it,

443
00:22:16,280 --> 00:22:18,400
Speaker 5: you snap it up because it may not come back.

444
00:22:18,600 --> 00:22:20,840
Speaker 5: Will it ever come back? I mean, you have the

445
00:22:21,000 --> 00:22:25,960
Speaker 5: removal of the Deminimus exemption, So consumers are losing a

446
00:22:25,960 --> 00:22:28,920
Speaker 5: lot of their DTC access that they once counted on,

447
00:22:29,359 --> 00:22:32,479
Speaker 5: and these retailers need to think very carefully about how

448
00:22:32,480 --> 00:22:36,760
Speaker 5: they're going to restock and rebuild their inventory. That's that's

449
00:22:36,880 --> 00:22:39,000
Speaker 5: again I hate to use the word sobering again, but

450
00:22:39,160 --> 00:22:41,679
Speaker 5: it's a whole new mindset for consumers.

451
00:22:42,160 --> 00:22:44,760
Speaker 8: It is. It's a new mindset for retailers as well,

452
00:22:44,800 --> 00:22:47,040
Speaker 8: where we've already seen them kind of scale back on

453
00:22:47,080 --> 00:22:49,000
Speaker 8: some of their ordering. They had a lot of orders

454
00:22:49,000 --> 00:22:51,760
Speaker 8: that were canceled waiting on tariffs. Now they've kind of

455
00:22:51,880 --> 00:22:54,920
Speaker 8: put some through. But what we're hearing is that they're

456
00:22:55,000 --> 00:22:57,960
Speaker 8: very closely managing their inventory. And so you know, if

457
00:22:57,960 --> 00:23:01,680
Speaker 8: a hot new toy sells out, you know, like early November,

458
00:23:02,600 --> 00:23:04,760
Speaker 8: you know they may or may not be getting more

459
00:23:04,800 --> 00:23:07,560
Speaker 8: in It's gonna be an interesting holiday season this year,

460
00:23:07,600 --> 00:23:08,000
Speaker 8: for sure.

461
00:23:08,520 --> 00:23:13,240
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