WEBVTT - Businessweek Talks with Erik Nordstrom 0:00:00.560 --> 0:00:03.080 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:03.160 --> 0:00:05.640 Jason Kelly. We're here every day bringing you the latest 0:00:05.640 --> 0:00:09.920 news from the worlds of business and finance, plus technology, politics, economics, 0:00:10.000 --> 0:00:13.600 all harnessing the power of Bloomberg Business Week recorders and editors, 0:00:13.640 --> 0:00:16.880 not to mention our hundred journalists analysts more than a 0:00:16.960 --> 0:00:19.640 hundred and twenty countries. You can download Bloomberg Business Week 0:00:19.680 --> 0:00:22.600 on iTunes, SoundCloud, or Bloomberg dot Com. You can also 0:00:22.600 --> 0:00:25.000 listen to our radio show weekdays at two pm Eastern 0:00:25.120 --> 0:00:28.200 only on Bloomberg Radio. The luxury department store chain Nordstrom. 0:00:28.200 --> 0:00:29.800 It has been around for more than a hundred years, 0:00:29.800 --> 0:00:32.120 a hundred and eighteen to be exact, expanding through the 0:00:32.240 --> 0:00:35.400 US UH and throughout North America, and until this week, 0:00:35.400 --> 0:00:38.320 did not have a store in what is really the 0:00:38.320 --> 0:00:40.320 department store capital of the world. We're talking about New 0:00:40.400 --> 0:00:42.560 York City, so joining us to talk about that and more. 0:00:43.040 --> 0:00:46.040 Eric Nordstrom, he's co president of Nordstrom. Thank you so 0:00:46.080 --> 0:00:47.760 much for doing this with us and really appreciate it. 0:00:47.800 --> 0:00:49.599 We'll talk to us about the opening. I mean, New 0:00:49.640 --> 0:00:51.239 York has been here for a long time. Why did 0:00:51.280 --> 0:00:54.280 it take so long to open such a presence or 0:00:54.320 --> 0:00:58.440 big presence here. Well, it wasn't from a lack of effort. Really, 0:00:58.480 --> 0:01:00.680 It's the only subject I can think of that has 0:01:00.720 --> 0:01:05.400 spanned literally generations for our company, my dad's Uh we 0:01:05.440 --> 0:01:08.600 opened our men's store last year. I asked him, was 0:01:08.640 --> 0:01:10.920 the first time he came New York about about having 0:01:10.920 --> 0:01:14.240 a store. He paused, and he said, it's right when 0:01:14.280 --> 0:01:17.720 I first became president company. It's thirty five. Well he's 0:01:17.720 --> 0:01:22.160 eighty six now, so it's a long time. The biggest challenge, 0:01:22.480 --> 0:01:26.480 I mean, certainly location obviously to have a retail store locations. 0:01:26.760 --> 0:01:28.520 He said to me that you guys even looked at 0:01:28.680 --> 0:01:32.200 the location that is our building headquarters. Yes, you know 0:01:32.240 --> 0:01:35.080 Alexanders used to be here, and uh, I know my 0:01:35.120 --> 0:01:38.080 dad and my uncle's made a run at it and 0:01:38.080 --> 0:01:41.200 then but Bloomberg outbid us. So if we didn't get 0:01:41.200 --> 0:01:44.600 this one had a couple others actually signed deals that 0:01:45.440 --> 0:01:48.000 you know, there's a complexity to doing a big open project, 0:01:48.040 --> 0:01:51.920 and they fell through. Um. But the big challenge, even 0:01:52.000 --> 0:01:55.600 more so than location, was the right space, uh, you 0:01:55.640 --> 0:01:58.760 know for what we do. Uh, and and knowing if 0:01:58.800 --> 0:02:00.840 we were to come here we had to be our 0:02:00.960 --> 0:02:03.960 very very best. Uh. And so that the space is 0:02:04.320 --> 0:02:07.559 super important for us to have high ceilings, big open 0:02:07.600 --> 0:02:12.800 space where customers can easily navigate and and uh find 0:02:12.800 --> 0:02:16.480 what they're looking for, discover new fashion. Um. And most 0:02:16.520 --> 0:02:19.360 buildings are office buildings, there are low ceilings and elevators 0:02:19.400 --> 0:02:22.880 in the middle. So it this area and not only 0:02:22.919 --> 0:02:25.480 came up that we really like being a little oriented 0:02:25.520 --> 0:02:28.000 towards the west side, but being able to start from 0:02:28.000 --> 0:02:31.840 the from the ground and build the building that we want. Uh. 0:02:32.400 --> 0:02:34.880 Really what tipped us over and certainly accessible from both 0:02:34.919 --> 0:02:37.080 the east and west side uptown downtown. In terms of 0:02:37.160 --> 0:02:40.280 kind of a central location. Sure, yeah, I look for things. 0:02:40.280 --> 0:02:45.120 You know, there's three constituencies. Uh. Certainly started and really 0:02:45.200 --> 0:02:47.200 end with locals people who live here. How how are 0:02:47.240 --> 0:02:50.320 we a part of the city, a part of the neighborhood, 0:02:50.800 --> 0:02:53.880 uh says location thing we think does that? Uh? There's 0:02:53.880 --> 0:02:57.920 obviously how people commuted intto work, and so the subway stops. 0:02:57.960 --> 0:03:00.880 The transportation is important. Uh. Then there's visitors. You know, 0:03:01.360 --> 0:03:04.360 New York such a great international destination, and to be 0:03:05.040 --> 0:03:08.280 close to the biggest tourist attraction in New York, Central 0:03:08.280 --> 0:03:11.280 Park and Columbus Circle there we felt really good about. 0:03:11.720 --> 0:03:13.480 I gotta talk to you about the environment. Eric. I 0:03:13.480 --> 0:03:15.720 know you read the headlines. You fall obviously your space, 0:03:15.800 --> 0:03:17.799 But I mean I think about Lord and Taylor closing, 0:03:18.160 --> 0:03:22.720 Sacks closing a downtown location, Bendel's closing, Barney's going into bankruptcy. 0:03:22.760 --> 0:03:24.880 I mean, I think some people would say, wait, why 0:03:24.919 --> 0:03:27.839 are you doing this? Why you know, how does that 0:03:28.040 --> 0:03:30.200 or how has that factored in in terms of some 0:03:30.240 --> 0:03:33.040 of the closings and what you folks wanted to do. Well, Yeah, 0:03:33.080 --> 0:03:35.840 there's certainly our industry, like a lot of industries, going 0:03:35.840 --> 0:03:40.640 through tremendous change, and uh, but it's actually not that 0:03:40.760 --> 0:03:43.600 much change. It's it's you know, people's shops as they 0:03:43.600 --> 0:03:47.720 want to shop. I certainly believe that customers are more 0:03:47.720 --> 0:03:52.520 empowered than ever before, less only to compromise any of 0:03:52.520 --> 0:03:56.120 their experience with shopping, including in that and uh, you know, 0:03:56.160 --> 0:03:59.200 in our industry, we talked about things like omni channel 0:03:59.400 --> 0:04:02.240 and you guys hate that from what I've read. Yeah, 0:04:02.280 --> 0:04:07.040 I talked to customers every day. Uh, and I've never 0:04:07.080 --> 0:04:08.880 had a customer used to work channel with me. It's 0:04:09.120 --> 0:04:13.280 not that they think they just want great experiences, and uh, 0:04:13.440 --> 0:04:17.680 the reality is, if you are to force a definition channel, 0:04:18.360 --> 0:04:21.880 the vast majority of the categories we sell are bought 0:04:21.960 --> 0:04:26.640 in stores, but much more accurately is uh, people are 0:04:26.720 --> 0:04:30.480 on their phones and they're in physical locations, and they 0:04:30.520 --> 0:04:32.839 want it. Wouldn't they want it? They want it on 0:04:32.880 --> 0:04:36.520 their terms. And uh, certainly New York is uh, you know, 0:04:36.560 --> 0:04:40.320 the greatest retail center, certainly in our country and maybe 0:04:40.360 --> 0:04:42.719 in the world. And uh, you know, for us to 0:04:42.760 --> 0:04:45.480 be a leader in our industry, and we've been at 0:04:45.480 --> 0:04:47.680 this a long time, and we've been a national company 0:04:47.680 --> 0:04:50.440 for a long time. But but to really be the 0:04:50.520 --> 0:04:54.080 leader that we think we can be, we have to 0:04:54.120 --> 0:04:56.080 have our best presence in New York. But I do 0:04:56.160 --> 0:04:59.320 think people think, Okay, so how will nord Strem be different? 0:05:00.040 --> 0:05:02.880 Then maybe some of the troubles that a Lord and 0:05:02.880 --> 0:05:04.760 Taylor fell into or I'm not saying you guys are 0:05:04.760 --> 0:05:08.440 apples to apples, or you know, sex closing downtown or Bindl's, like, 0:05:08.800 --> 0:05:12.560 how will it be different for you? Well, there's all 0:05:12.720 --> 0:05:15.159 there's a lot of success stories out there. If you've 0:05:15.360 --> 0:05:18.920 expand the definition of retail, a lot of categories which 0:05:18.960 --> 0:05:21.480 we can get into. But there's a lot of UH 0:05:21.680 --> 0:05:26.320 stores and retailers that I would admire. Uh, but again, 0:05:27.120 --> 0:05:29.719 we've always been will served focused on focusing on the customer. 0:05:29.760 --> 0:05:32.000 You know, we've we started as a shoe store over 0:05:32.000 --> 0:05:36.520 a hundred years ago. I grew up selling shoes and 0:05:36.640 --> 0:05:38.880 one of the things about selling shoes is you are 0:05:38.960 --> 0:05:40.760 literally on your hands and knees in front of the 0:05:40.800 --> 0:05:45.760 customer trying to take care of them. Uh. And that Uh, 0:05:45.800 --> 0:05:48.120 it's a good metafit for for for how we try 0:05:48.160 --> 0:05:50.320 to continue to run the business and if we focus 0:05:50.400 --> 0:05:53.560 on the customer and and certainly the customer wants things 0:05:53.600 --> 0:05:58.160 that are different and building a new physical store today 0:05:58.560 --> 0:06:03.080 gives us some advantages. We have technology built into the store, WiFi, 0:06:03.240 --> 0:06:08.120 cell service, connect that connectivity so customers can be on 0:06:08.200 --> 0:06:11.680 their phone, and a lot of product discovery for what 0:06:11.720 --> 0:06:18.080 we sell fashion begins online and we know that over 0:06:18.120 --> 0:06:22.279 half of our store sales involved a visit to our website, 0:06:22.760 --> 0:06:25.719 usually on someone's phone. So Uh, there's a lot of 0:06:25.720 --> 0:06:29.760 features we can build there and the architecture of the place. 0:06:30.760 --> 0:06:34.200 It's very different historically, and we've we have fallen this 0:06:34.320 --> 0:06:39.560 over the years. Historically, retail, especially mall based retail has 0:06:39.600 --> 0:06:43.520 been very inwardly focused, almost like a fortress. You enter 0:06:43.560 --> 0:06:45.920 a different environment and it's cut off from the rest, 0:06:46.120 --> 0:06:48.800 shield off from the rest. Uh. We want to do 0:06:48.880 --> 0:06:51.120 just the opposite. And keeping with that, I mean, you 0:06:51.120 --> 0:06:54.200 guys are incorporating food and I'm curious, right, you can 0:06:54.240 --> 0:06:56.520 be shopping, you can order some food. It's delivered to 0:06:56.520 --> 0:07:00.760 you on a nice plate. Yeah, food or drenk Yes. Uh. 0:07:01.279 --> 0:07:04.120 Is that going to become kind of a significant separate 0:07:04.160 --> 0:07:07.080 revenue line for you guys, But it's not so much 0:07:07.160 --> 0:07:10.120 about a revenue line, it is. Uh. One of things 0:07:10.200 --> 0:07:14.000 we've really learned as we continue to get better information 0:07:15.120 --> 0:07:20.560 is the importance of engagement, just experiences. Whether there's a 0:07:20.600 --> 0:07:24.520 sale made explicitly in that engagement or not, isn't so 0:07:24.600 --> 0:07:26.680 much at the point. The point is the more we 0:07:26.680 --> 0:07:30.400 can engage customers, and food and drink is part of 0:07:30.400 --> 0:07:33.200 that essentially. Well, No, we keep in there even if 0:07:33.240 --> 0:07:35.400 they don't spend that time. I love it because I 0:07:35.560 --> 0:07:37.200 think about what I'm shopping in and get hungry and 0:07:37.200 --> 0:07:39.160 then I leave and then I don't go back. Yeah, 0:07:39.160 --> 0:07:41.400 we don't like that. That's but there is there is 0:07:41.440 --> 0:07:44.440 that part, But there's also you know, even if people 0:07:44.440 --> 0:07:46.080 don't spend in that time, the more we can engage 0:07:46.120 --> 0:07:48.480 somewhere where it's just it's a it's an under piece 0:07:48.480 --> 0:07:52.720 of engagement. People come back more often digitally in physical locations, 0:07:52.760 --> 0:07:56.800 the more we can engage them. And food is such ah, 0:07:57.840 --> 0:08:01.200 you know, it's such a century experience, often more so 0:08:01.320 --> 0:08:04.160 than a lot of other other experiences. It really is 0:08:04.200 --> 0:08:06.600 important tell us about how important this store in New 0:08:06.640 --> 0:08:09.160 York will be to North term overall in terms of 0:08:09.160 --> 0:08:11.120 sale because typically are a lot of times you see 0:08:11.120 --> 0:08:13.920 with these big chains or department store and the high 0:08:14.000 --> 0:08:16.720 end that the flagship in New York is typically a 0:08:16.760 --> 0:08:19.400 big driver in terms of revenues. Will this be your 0:08:19.480 --> 0:08:24.000 number one driver of revenues? Will certainly be our biggest store, absolutely, 0:08:24.000 --> 0:08:27.640 they will be our biggest volume store by a healthy march, 0:08:27.680 --> 0:08:30.440 And it won't be as big a percentage of our 0:08:30.440 --> 0:08:33.760 revenue as it is mostly other competitors we have there. 0:08:33.600 --> 0:08:37.400 We're a bigger company that way, So um, it's not 0:08:38.200 --> 0:08:40.200 it's not gonna be the biggest driver in terms of revenues. 0:08:40.200 --> 0:08:44.240 We would be the biggest single revenue store we have, Yes, 0:08:44.400 --> 0:08:47.600 but we have stores, so it's you know, It's not 0:08:49.040 --> 0:08:54.480 company's revenue by any means. It's a but as important 0:08:54.920 --> 0:08:57.559 it is the most important thing we've done, the visibility 0:08:57.920 --> 0:09:01.000 of being in New York and certainly that was our goal. 0:09:01.040 --> 0:09:04.840 We we didn't aim to open another Nordstrom store. We 0:09:04.880 --> 0:09:08.800 aim to build really a world class flakeship store. Our 0:09:08.880 --> 0:09:13.720 team spent several years scouring the world and really trying 0:09:13.760 --> 0:09:16.280 to pull out those elements through and drinks one of them. 0:09:16.600 --> 0:09:19.840 Uh that you know what makes these these world class 0:09:19.880 --> 0:09:24.480 flameship stores that are really become, uh, these these integral 0:09:24.559 --> 0:09:28.120 parts of the city of urban life. And that's that's 0:09:28.120 --> 0:09:32.120 been our goal, a destination for locals. And um, I 0:09:32.120 --> 0:09:34.000 am curious to about the holidays, have you guys? I mean, 0:09:34.040 --> 0:09:37.160 your timing is impeccable. As we're all gearing up for 0:09:37.200 --> 0:09:42.120 the holidays, what are your expectations for fourth quarter? What 0:09:42.200 --> 0:09:46.360 about what? Well, I would say it's you know, it's 0:09:46.920 --> 0:09:49.320 a challenging environment out there. I think there's some some 0:09:49.400 --> 0:09:53.839 reasons to be optimistic for holiday and I've seen some 0:09:53.960 --> 0:09:55.960 numbers that that we expected to be maybe a little 0:09:55.960 --> 0:09:59.600 bit higher than what we've seen in I've seen that too. 0:10:00.040 --> 0:10:03.760 US retailers. We tend to be optimistic, but uh, yeah, 0:10:03.760 --> 0:10:06.560 I think there's reasons for the optimistic for holiday. Tell 0:10:06.640 --> 0:10:08.800 me about the consumer overall, because I love talking to 0:10:08.800 --> 0:10:11.400 folks like you, because I think we're at this time 0:10:11.440 --> 0:10:14.760 where we're trying to figure out is the expansion getting old? 0:10:15.720 --> 0:10:18.400 The big macro stories continue to bother us, whether it's trade, 0:10:18.400 --> 0:10:21.280 whether it's Brexit and so and so forth. Um, how 0:10:21.280 --> 0:10:23.960 do you see the qus consumer right now? And I 0:10:24.040 --> 0:10:27.000 know your higher end, but still, oh sure we are 0:10:27.000 --> 0:10:31.280 pretty broad range. It's uh, we really know. We talked 0:10:31.320 --> 0:10:34.160 about carrying from Vans to Valentino. I mean that that 0:10:34.320 --> 0:10:37.079 is a key part of what we do is having 0:10:37.720 --> 0:10:41.120 a breadth of merchandise. And really I think that's how 0:10:41.160 --> 0:10:44.200 a modern customer shops stay. That customers doesn't buy one 0:10:44.240 --> 0:10:46.560 brand and stick to it or even one price point. 0:10:46.559 --> 0:10:50.079 There's a mix and matching that people put together. That's 0:10:50.160 --> 0:10:52.520 that's part of fashion, that's part of the interest of 0:10:52.559 --> 0:10:56.760 expressing who you are. Uh. That the health of the 0:10:56.840 --> 0:11:00.920 customer is is good. Uh, but what we focus on 0:11:01.440 --> 0:11:03.040 it's much more about what we do or you were 0:11:03.080 --> 0:11:06.079 not an industry where you know there's this massive market 0:11:06.160 --> 0:11:08.880 share and really any movement has to be at a 0:11:09.000 --> 0:11:12.000 market level. Uh, there's plenty of places to buy shoes 0:11:12.040 --> 0:11:15.640 and clothes. Our success is much more on what we do. Well. 0:11:15.760 --> 0:11:17.400 That's interesting that you say that, because when you look 0:11:17.400 --> 0:11:19.920 at some of the retailers that have had problems, I mean, 0:11:19.920 --> 0:11:21.439 I really do feel like if you shop at North 0:11:21.520 --> 0:11:23.640 Tom you know exactly what you're getting. The brand is 0:11:23.720 --> 0:11:27.280 very clear, the identity in terms of the store and 0:11:27.360 --> 0:11:30.280 the stores and those that don't do it. Yeah, well, 0:11:31.040 --> 0:11:33.319 well listen, I got all the fall out that we've 0:11:33.320 --> 0:11:38.760 seen in retail. Are we overstored? Yeah, sure we're overstored. 0:11:38.800 --> 0:11:42.040 There's uh, that's not big news flash that America has 0:11:42.160 --> 0:11:45.319 two many malls to many stores. Um and and when 0:11:45.360 --> 0:11:48.920 you have a shift to go online, people are online more. Now. 0:11:50.640 --> 0:11:52.320 Are there gonna be no stores? Well, of course not. 0:11:52.679 --> 0:11:56.720 There's there's there's times where especially we sell people like 0:11:56.800 --> 0:12:02.360 to touch feels, the sizes. You're saying that our our 0:12:02.440 --> 0:12:06.120 online returns, the vast, vast majority customers choose to come 0:12:06.120 --> 0:12:08.680 in a store. Do it. We have free shipping around 0:12:08.880 --> 0:12:11.520 our online returns, but they'd rather come a store. It's 0:12:11.559 --> 0:12:13.880 just easier than putting it in a box. So customers 0:12:13.920 --> 0:12:15.640 are going to do what they want to do. Our 0:12:15.760 --> 0:12:17.880 job is not to try to course them into a 0:12:18.000 --> 0:12:22.400 channel or a certain experience. That what we prefer. Our options, 0:12:22.720 --> 0:12:24.440 our challenges to give them options and let them do 0:12:24.440 --> 0:12:26.040 what they want to do. You guys definitely do give 0:12:26.040 --> 0:12:27.680 them options. And I want to talk a little about 0:12:27.679 --> 0:12:31.880 nords to local, which I find is a fascinating concept. Um. 0:12:32.000 --> 0:12:34.560 And I think we reported this past fall that you 0:12:34.559 --> 0:12:37.440 guys are also going to accept merchandise returns from rivals. 0:12:38.160 --> 0:12:41.120 Is that right? Yeah, yeah, we do. It's why it's 0:12:41.160 --> 0:12:44.920 not that big deal. It doesn't call that no, it's 0:12:45.000 --> 0:12:47.920 basically we're a hub for ups. We can if that 0:12:48.040 --> 0:12:52.360 helps a customer, for us to take it and get 0:12:52.400 --> 0:12:55.120 sales out of that as well. We get also traffic. 0:12:55.160 --> 0:13:00.359 Traffic is good, interactions good by any measure. And um, 0:13:00.559 --> 0:13:04.679 these local service hubs have really been a real interesting 0:13:04.760 --> 0:13:09.560 and we think an important part of our future. It's uh, 0:13:09.840 --> 0:13:13.000 and it really is looking at what are the assets 0:13:13.000 --> 0:13:16.440 that we can bring where customers live to serve them better. Uh. 0:13:16.600 --> 0:13:22.360 Certainly we have stores, but uh sometimes you know, getting 0:13:22.360 --> 0:13:24.719 in the car and go into the mall, is it's 0:13:24.760 --> 0:13:26.640 not the most convenient. I think one of the interesting 0:13:26.679 --> 0:13:31.439 things we've we've learned from these service hubs, like tailoring. 0:13:31.559 --> 0:13:34.480 It's yeah, so we are we don't Yeah, we don't 0:13:34.520 --> 0:13:37.560 stock Marshy Center. But it's uh, it's services. So it's 0:13:38.240 --> 0:13:41.440 being able to do returns, merchandise pick up by online, 0:13:41.440 --> 0:13:46.240 pick up in the store, alterations, Uh, styling help our 0:13:46.240 --> 0:13:50.440 stylists can meet their customers. They're they're doing well, really well. 0:13:50.520 --> 0:13:53.080 And one of interesting things there's all source things and 0:13:53.120 --> 0:13:56.520 you know, customers they're spending this more than doubles when 0:13:56.520 --> 0:13:58.320 they when they interact with us in one of the 0:13:58.360 --> 0:14:01.800 local stores. Uh. I think one of the interesting little 0:14:01.800 --> 0:14:05.120 effects there is is, uh we get returns back faster. 0:14:05.440 --> 0:14:07.080 And now that may not seem like a big deal, 0:14:07.320 --> 0:14:11.640 but part of selling fashion, especially online, returns our our 0:14:11.679 --> 0:14:15.959 effect of life and what we sell. Uh, it's not wine. 0:14:16.000 --> 0:14:19.400 It doesn't get better with age. There is a pershability 0:14:19.440 --> 0:14:23.240 to it. So getting it back faster is good for us, 0:14:23.440 --> 0:14:27.120 certainly for our model. Uh, but it reflects that when 0:14:27.160 --> 0:14:29.320 we're here from customers is yeah, I've had this return 0:14:29.360 --> 0:14:31.080 to my trunk and I'm waiting to go to the 0:14:31.080 --> 0:14:35.160 mall and if I can do it more more conveniently. Uh. 0:14:35.480 --> 0:14:38.040 So it is serving customers in our terms. And we 0:14:38.160 --> 0:14:41.080 piloted these stores in Los Angeles and we opened to 0:14:41.400 --> 0:14:44.040 here in New York last month and it's been a 0:14:44.040 --> 0:14:47.680 bit of a were in we're in Los Angeles. Communicating 0:14:47.680 --> 0:14:50.560 to customers what it was took a little bit. Uh 0:14:51.040 --> 0:14:54.080 here rap the boat. People get it, and I think 0:14:54.080 --> 0:14:56.680 it's understandable. And if you live in Manhattan, you know 0:14:56.760 --> 0:14:59.640 blocks matter. You're not you don't have your suv pullm 0:14:59.720 --> 0:15:02.320 up to a big parking lot. So but to be 0:15:02.360 --> 0:15:04.720 able to do and alterations or a return or in 0:15:04.800 --> 0:15:09.600 order pick up in your neighborhood on your terms, uh, 0:15:10.080 --> 0:15:11.880 is appealing and we're able to do it. Not all 0:15:11.880 --> 0:15:16.200 these these local service ubs are rack stores. We can 0:15:16.200 --> 0:15:18.240 do a lot of these services in our rack stores. 0:15:18.800 --> 0:15:20.960 We have a trunk club clubhouse here in Manhattan. So 0:15:21.480 --> 0:15:23.400 we really look at not just opening a store here 0:15:23.400 --> 0:15:26.160 this week. We can it's how can we leverage these assets. 0:15:26.200 --> 0:15:28.680 We have physical assets to serve customers better. Well, what 0:15:28.760 --> 0:15:30.640 I do think, And it's funny. We were talking about 0:15:30.640 --> 0:15:33.040 actually in our makeup room this morning, about that there's 0:15:33.040 --> 0:15:35.160 not a lot of service out there when you go 0:15:35.240 --> 0:15:37.320 to retail. So I think, you know, you guys are 0:15:37.320 --> 0:15:40.360 certainly um, really honing in on it. But so what 0:15:40.400 --> 0:15:42.680 I want to know is you've got the big North 0:15:42.920 --> 0:15:46.400 department stores, You've got Nords to local, you've got discount right, 0:15:46.800 --> 0:15:50.600 You've got um, you know, various ways of interacting with 0:15:50.640 --> 0:15:54.040 the consumer online of course e commerce. What's the makeup 0:15:54.240 --> 0:15:56.520 I don't know in three years from now in terms 0:15:56.520 --> 0:15:58.640 of what's the biggest driver. I mean, e commerce has 0:15:58.640 --> 0:16:01.120 been growing, that's for you. Are e conmerces about three 0:16:01.160 --> 0:16:05.320 percent of our business, which was bigger chunk than uh 0:16:05.720 --> 0:16:07.600 some of our more direct competitors. We've been at it 0:16:07.600 --> 0:16:09.640 for a long time. We've been an e commerce over 0:16:09.720 --> 0:16:14.760 twenty years. Uh. You know, I kind of cringe. You 0:16:14.760 --> 0:16:16.160 get these questions out what are you see in three 0:16:16.200 --> 0:16:19.040 to five years? Um, no one knows. I mean, someone 0:16:19.080 --> 0:16:20.520 to come on here and say they know what's going 0:16:20.560 --> 0:16:23.360 to happen three years I would challenge them on that. 0:16:23.640 --> 0:16:25.680 So all of that then going to continue to be 0:16:25.720 --> 0:16:28.720 an important Yeah. I think the point is, uh, the 0:16:28.800 --> 0:16:31.040 challenges to be nimble is to be actual and how 0:16:31.040 --> 0:16:35.640 do you have a platform uh capabilities that you can 0:16:35.800 --> 0:16:38.520 pivot to go where the customers going so to have 0:16:39.000 --> 0:16:41.680 for us, there really is a synergy to having a 0:16:41.720 --> 0:16:44.600 full price business and off price business e commerce and 0:16:44.640 --> 0:16:48.520 physical stores. UH. And to your point, physical stores have 0:16:48.640 --> 0:16:51.960 some some different elements to them. What's the right NIX 0:16:52.480 --> 0:16:55.400 the right makes those ingredients to to take care of customers. 0:16:56.000 --> 0:16:58.720 I think that will different different store by store, but 0:16:59.320 --> 0:17:02.000 a couple of UH general area is that I do 0:17:02.120 --> 0:17:05.120 believe it's heading in. You know, I've talked about engagements important. 0:17:05.160 --> 0:17:09.359 How can we engage with customers across channels and services, 0:17:09.760 --> 0:17:13.600 uh to make their lives easier and better. UH. The 0:17:13.640 --> 0:17:18.200 other is inventory. It's what we sell. It's not commodities. 0:17:18.280 --> 0:17:21.440 We don't have hundreds deep in the exact same thing. UH. 0:17:21.680 --> 0:17:24.920 There's a broad breadth and it can be pretty shallow, 0:17:24.960 --> 0:17:27.159 especially when you get down to size and color and 0:17:27.240 --> 0:17:30.280 our inventory, a lot of it sits in stores which 0:17:30.320 --> 0:17:32.679 is close to our customers and being able to connect 0:17:32.720 --> 0:17:35.160 the customer with the exact size and color they want. 0:17:36.600 --> 0:17:39.679 By moving the mergation around in the market, which we 0:17:39.720 --> 0:17:42.560 continue to add capabilities to and the locals are those 0:17:42.600 --> 0:17:46.280 stores are part of it, UH, we can bring a 0:17:46.359 --> 0:17:49.800 much bigger selection to customers that can be available even 0:17:49.920 --> 0:17:54.560 same day and next day. Uh. Really more than anyone 0:17:54.560 --> 0:17:56.439 else can do it, because we have this inventory in 0:17:56.440 --> 0:17:59.199 our stores right right, and so customers can get it 0:17:59.200 --> 0:18:00.600 when they want it. I want to ask you a 0:18:00.640 --> 0:18:04.199 couple of questions if I may, um, the toughest long 0:18:04.280 --> 0:18:07.800 term strategy decision that you're working on right now. I 0:18:07.840 --> 0:18:11.080 know you hate long term. I don't hate locked term, 0:18:11.160 --> 0:18:15.320 but it is to be more prepared for the long term. UM. Well, 0:18:15.400 --> 0:18:17.880 I think we have. You know, so much of our 0:18:17.920 --> 0:18:21.640 our focus uh has been on and big investment has 0:18:21.640 --> 0:18:26.040 been in opening New York. Uh, And so what what 0:18:26.160 --> 0:18:29.800 comes after that? Uh? You know, for us, most most 0:18:29.800 --> 0:18:32.719 of our investments after we get New York open is 0:18:32.920 --> 0:18:36.800 in technology and supply chain. Uh. There's a lot of 0:18:36.840 --> 0:18:39.080 technology and supply change, and that the supply chain cap 0:18:39.160 --> 0:18:45.760 abilities to unlock uh that inventory to be productive and 0:18:45.800 --> 0:18:48.800 get customers really what they want in uh in a 0:18:48.840 --> 0:18:52.840 lot of speed. UH. Take some continued investment there. And 0:18:52.840 --> 0:18:55.320 that's probably the biggest challenge. Trade war is impacting you 0:18:55.560 --> 0:19:01.400 that much? Yeah, all right, what's um the biggest existential 0:19:01.440 --> 0:19:07.679 threat to your company or industry of Well, I don't know, 0:19:07.680 --> 0:19:09.080 I mean, I don't think these things will happen. But 0:19:09.080 --> 0:19:12.440 I think I think if if if people all of 0:19:12.440 --> 0:19:17.040 a sudden, Yeah, I just looked at that clothing and 0:19:17.080 --> 0:19:20.119 shoes and accessories as commodities. It's just body covering and 0:19:20.119 --> 0:19:24.760 they didn't care what the brand is. And it's uh, yeah, 0:19:24.800 --> 0:19:28.479 that we wouldn't survive that. That's not our deal. We 0:19:28.560 --> 0:19:30.720 have to be a place that where people are just 0:19:30.800 --> 0:19:34.800 in finding something new that's interesting to them. Shoes will 0:19:34.800 --> 0:19:36.840 never be a commodity and don't laying it. I don't 0:19:36.880 --> 0:19:40.800 think so. Um. What competitive do you most admire and 0:19:40.880 --> 0:19:46.399 why there's a lot of retailers that admire. Uh. I 0:19:46.400 --> 0:19:52.240 think Target is a trific job home depot Um. I 0:19:52.240 --> 0:19:56.639 think Walmart for a big, incredibly big retailer for some 0:19:56.680 --> 0:20:00.119 of the big bets they made and the things they 0:20:00.119 --> 0:20:03.919 have changed. Best Buy is something they've done and a 0:20:03.920 --> 0:20:07.439 lot of them. There's there's some common threads there of 0:20:08.160 --> 0:20:11.480 connecting the digital and physical experiences, leveraging the inventory that's 0:20:11.520 --> 0:20:16.679 in their stores. Um, and uh on top of that, 0:20:18.000 --> 0:20:21.200 for us, we'd layer again that the importance of people 0:20:21.400 --> 0:20:25.399 and kind of genuine human interaction and an authenticity there. 0:20:25.440 --> 0:20:28.320 But those are something people I think do a great job. 0:20:28.440 --> 0:20:30.080 I got to ask you this because I can't imagine 0:20:30.080 --> 0:20:33.520 you because of your last name and your family and multigenerational. Um. 0:20:33.560 --> 0:20:35.679 But if you weren't doing what you're doing, I know 0:20:35.680 --> 0:20:37.119 you've been doing it for a long time. He started 0:20:37.160 --> 0:20:41.200 when you were younger and Star Wars twelve. What else 0:20:41.240 --> 0:20:47.480 might you be doing? Uh? Well, it certainly wasn't as 0:20:47.520 --> 0:20:50.760 a teenage boy, it wasn't my dream too. Uh Yeah, 0:20:50.960 --> 0:20:53.600 I grew up in women shoes, selling stocking and selling 0:20:53.600 --> 0:20:55.679 women shoes. It wasn't that I had a passion for 0:20:55.680 --> 0:20:57.399 a woman's foot where I would have rather been a 0:20:57.400 --> 0:21:00.680 basketball player. But I certainly have a high I had, 0:21:00.800 --> 0:21:03.520 but I don't have the jumping for that. So when 0:21:03.560 --> 0:21:07.760 that ended, UM, I don't know. I mean really uh, 0:21:08.520 --> 0:21:14.120 in all genuine as it's uh. I've always enjoyed uh 0:21:14.840 --> 0:21:18.520 work with my family and my brothers were been very 0:21:18.520 --> 0:21:22.159 close are all our lives and uh um. But mostly 0:21:22.200 --> 0:21:26.040 what I've I've liked is, uh, it's a team. Uh. 0:21:26.080 --> 0:21:29.000 You know. It was part of the shoe team. And 0:21:29.359 --> 0:21:31.000 part of shoes is you got the stock room in 0:21:31.040 --> 0:21:33.000 the back room that you have to get the merchandise 0:21:33.080 --> 0:21:35.359 for the customers just wondered what goes on behind there. 0:21:35.480 --> 0:21:38.439 It's it's fascinating, but there's a camaraderie there and and 0:21:38.480 --> 0:21:41.400 always like being a part of a team. Uh and 0:21:41.400 --> 0:21:43.280 and that's all we have in our company. I mean, 0:21:43.320 --> 0:21:47.440 it's a big team, but it is, it is, it's 0:21:48.040 --> 0:21:49.840 you know, it's just that you know, our store this 0:21:49.880 --> 0:21:52.679 morning and uh, you know, our teams all fired up 0:21:52.680 --> 0:21:56.280 to open tomorrow. And and it's just feel very fortunate 0:21:56.320 --> 0:21:59.400 to have these people who are so passionate and their 0:21:59.480 --> 0:22:03.120