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Guess is the founder of one and -- hottest names in -- a hit with celebrities and regular women.
Thank you thank he has been -- in its signature staff since 1978.
And it's finally about to move its retail operations on.
Line and this is actually very exciting and it's questionable to me why we haven't been online -- So thankfully -- or is that co-founder of -- -- he is here with us right now to explain.
Look at them Chris and I know you going to be embarrassed and I got -- there as -- full screen of the Chris as we talk about the world's greatest -- because that's.
Really what it is.
It is the world's greatest song it is the original song we have been making this.
Gold standard of -- since 1983.
Billion businesses have a 7777.
That you haven't -- It was just it was like early 2000 where you really took off.
Well -- -- was it.
Well -- we've been the quiet company out with a tremendous amount of buzz.
Because our customers through our PR for off shore that I heard about it look at cheek look at downtown.
Would that -- Clark -- huge carrier huge.
I mean loves your stuff she pushed practically handed -- to be reluctant.
Well they're considered in north -- -- considered for the start of song because if you have a fear of songs with a lot of women do.
This one will get you as a starter coming and going and football.
But you're you're available in smaller boutique places in SoHo and also in larger retail that was all right we've got thousands of customers around the country of course the world as well.
And at that includes -- smaller boutiques and the larger department stores.
Now we're going to go online and the direct to the customer instead of having -- middle person.
The middle people are stores and -- where only going to help them with therapists and what was your push back from them what they encourage you -- you -- -- -- -- -- -- -- -- -- -- -- -- work -- them -- there's there's -- push -- that this -- -- very good for the brand new and if it's good for the brand it's good for any sort itself to -- So we're actually getting encouragement.
That might not have been -- ten years ago.
But everybody really does understand that and Chris wouldn't understand is that people now by the number.
It's affording it -- -- eleven I know that amber yeah now the 4911.
Is thank god for that to Chris.
It's slow rise in -- a little lower back that little sister -- Helen and little sister.
-- so like 5150 Van Halen is 21 Smart little cruiser from rush those numbers a bit and just like that just like that.
Explain that -- this really started back in the seventies.
Or your partner now partner -- Epstein need you Brian -- -- set out of literally Hank that's.
That's that was the inspiration for the name of the company but I think -- anxious I think -- my grandfather's way handkerchief that wasn't that these four very beautiful hand embroidered handkerchiefs that -- Epstein.
-- then friend still friend.
And we've been partners end in you may song Madonna.
No no -- -- is that the G quintessential.
Song was not invented and designed by her until 1983.
But it that it really is the song that we now.
Sell -- the same song we just have.
A myriad of of colors and patterns of patterns have different fabrics and that told the signature fit and comfort.
That our customers now and -- why did you take so long to dive into the world -- -- cops well.
You know honestly we're just too busy to do it.
Are you're you're actually right in the early -- 2000 our business really did explode was helped along by yeah.
Front page story in the Wall Street Journal.
About -- -- young the -- of the hanky -- songs you regional thank you thank you song.
And at that time business actually took off me.
And we thought about going online and really didn't have the time and space to do what you didn't have to do it -- -- and we didn't.
Many original just again Chris I'm giving you background on songs the original was one size fits all still at it now -- you have other -- Well we have a plus sized phone because one side.
-- never fits all.
But ours does it feel like it worked for a while you -- selling them like -- they're always extremes though.
I was still selling like it I know that there that one and saying oh yes and 4811 is still the -- -- what -- -- them what 11911.
Really three point 9/11 when they had to hit a mile -- -- think it.
Omelet that is at this money thing is actually did have to Wear a Thong with Melanie -- -- -- that -- lost the bet that was.
Public know -- -- There's another -- I don't know where a lot.
-- -- -- And -- Eckstein and this going yeah all the -- -- set our web site apart wow I really loaded because we are going to might shut it down -- -- you can and personal relation we'll have the letters numbers symbols.
And Tracy you'll go off with viewers and now look at that and be -- and would rather see Tracy and errors and my.
Tell us now where you're going with all this look at -- since fox.
Little brown knows you know feeling on our president in my -- alone yeah OK -- did anybody unclear -- her mother today this is our.
Eternity packaging and it has three.
Organic cotton phones in there at the low rise happened to be extremely comfortable from the Mexican women.
And this is an AB PA free.
That's on maternity package so what's next -- is -- -- -- Well we've got loads of what -- you know this is the signature package saying that Hank the tank he invented and we use it in a lot of different ways here's our Christmas on bond.
A very kind and a half -- -- Serena wielded great to see this is great stuff -- keep hanky dot com check it out you know what we're talking about holiday gifts and house knocking suffers are very very popular.
Maybe some less expensive gifts obviously this seems like it is.
Perfect for what people are looking for good to see you thank you thank you very much Alito is a co-founder of course of hanky.
-- when we come back how important is getting a good deal to you and why -- waited for that I had to go on sale.
My at least some shoppers out in the cold this year.
Look at what they tell today -- We're now into the second holiday season this recession unfortunately so how are retails adapting to the -- your consumer well John US retail practice leader and insulting joins us from Philadelphia.
Delay just released its 24.
Annual holiday survey of retail spending and trends so don't tell us.
What's the big glaring thing that -- daddy out of this year's survey.
Well this year Tracy I think who people -- really worried about whether the new economic realities of the situation in life and what they're gonna do to -- differently.
One of the things we saw.
While half the people are intending to spend more or the same as last year half of them are intending to spend less than a quarter of the people said -- permanently change the way they're gonna spend any amount they're gonna spend the holiday season.
What about them from the retail perspective to -- talking -- Kristen now about.
The fact that you may not get deals this year like you've got last year because the inventory situation correct.
Absolutely correct that retailers have have their inventories currently -- an historic low.
But interestingly enough 50% of the people who plan on buying apparel -- jewelry.
Expect to get a sale of 50% or more off the price of that that that.
And I don't see that happening.
Are you seeing more people go onto the web for that exact reason because then you can search for your deals.
Yet to what we're certainly seeing that increase your every year and it's continued for several years on online shopping this year 40% of the folks.
In our survey said they indicated they will do their shopping online or some portion of -- shopping online.
In fact 20% of folks said they're going to be using their mobile phones to do more shopping.
We only see in the movies.
John those -- cheesy scenes where.
Lot of parents are fighting over that last gift in the toy store because of the inventory situation are we gonna see that in the final week leading up to Christmas so -- should people do their shopping early.
Well yeah I don't know there's going to be a hot -- out there this year there doesn't seem to be a thing -- driving a lot of traffic like there has been in years past but I would say.
It's important get to the stores earlier this year than last year because inventories are low and we expected -- -- there will be.
Retailers are willing to risk stock outs is because -- having too much they have to cut the prices as steeply as it did last year.
You know if I found interesting in your notes this is that -- said a lot of people still plan on purchasing gift cards.
And I was surprised that I think you would be much better to go get that.
Sweater that's you know 40% -- -- actually give the gift card away I have mentioned multiple times on the show that I'm a big fan of gift cards allow me to reiterate that.
But apparently did bush and using them.
You're not you're not the only one -- -- one Tracy for the last six years they've been the number one gift.
And they continued to they continue to do well.
And I think it's the convenience factor people really aren't sure what somebody wants that they really need another sweaters -- in -- earlier guests and something about.
-- many -- can you have but the other thing we're finding the other thing we're finding its interest in his.
Gift giving gift shopping is going down it has been since 2004 it's down 30% since 2004.
People are spending more money on socializing outside of the home entertaining in their room.
And and they're replenishing some of the either their clothing for themselves or home furnishings that they that they may have been putting off in the past so we're seeing more of a trend towards that.
-- the family aspects of the gathering aspects of the holiday season less about giving yes.
-- -- talk with -- -- earlier about how she believes the consumer mindset is changed for good.
It's not gonna come back you're not gonna see the trade up those were shopping and -- -- gonna continue to shuffle Wal-Mart and continue to look for discounts.
Do you agree with that have we seen -- change forever or at least for the unit for the -- and know the immediate future.
-- for the immediate future of our Deloitte holiday survey -- 26% of respondents said -- permanently changed how much they're spending.
Not 6% of the respondents have said that they're gonna shop the different stores and they used to in the past so.
I think got some people may come back to where they -- but a lot of people are finding.
They like the shopping experience as at some of the places that they've quote traded down to.
And some of those retailers are starting to bring in new merchandise and and have a better customer experience and they're and they're gonna stacked.
But we -- as we talked earlier even higher -- -- discount and just to keep their people to keep their core customers.
Again another note that you made was F 54%.
Of the people use -- do you -- -- say the economy will improve so it seems there is a little bit more optimism than last time.
There were were almost seen a tale of two consumers.
We're seeing we're seeing folks who are not worried about losing their job.
Having some pent up demand and getting back out into the market.
But -- it's 44% of the folks in our survey said they still have concerned about job loss or -- or patent.
So it's -- really is becoming.
-- to consumers as I said those who who are okay are getting back in the market very cautiously those who are worried about their -- still.
Are going to probably stay home.
John thanks for the info that was great stuff.
Great thanks for having me on the US -- practice leader at Deloitte consulting -- price was the only factor when companies.
Would all just you know that it would cut price the absolute lowest -- to be able to compete but our next guest says that there's a lot more that goes and -- people choose products.
And stores worked very hard to exploit those habits Matthew neagle is -- partner in the you can -- consumer media and digital practice at Booz and company this is one of my favorite topics.
To discuss because it's so interesting consumer behavior.
And what causes somebody to buy one -- Vs another item body.
First -- -- In your opinion what is the most important the most important thing in terms of can convincing somebody to buy this -- -- that.
The we just did some research on shopper marketing.
With the -- manufacturer association.
And we do a lot of work with clients that look at.
How do you convince them to go beyond price and how do you how do you get them.
To communicate the benefits of brands.
And market to consumers whether it's in the store or online and other ways before they get to the store.
-- find its price is extremely important.
The because everyone's competing on price.
Price is not a significant factor in differentiating often -- and what often becomes a major source of differentiate differentiation.
Is -- -- the marketing messages that you communicate that go above and beyond price and that's where shopper marketing becomes really important.
In the research that we did just recently with the GMA.
-- will be found was that only about 41%.
Of the shoppers base their decisions before they went to the store you.
And 59 for summer in the store.
But that in the store price is not the only factor that's impacting shoppers decisions.
I'm surprised that that there was that Heidi that's the point of sale is that important I want a relationship with the retailers that important to because.
You know people say hey how does Wal-Mart tool wal -- religious schools and everybody and they say you know if you don't give it to us for this price when I'm gonna put you at the end of the -- -- not gonna give you the best.
I assure -- the person in your study because I go to the food store especially with my kids.
The waist up this place the way it looks I buy things and eleven million years.
I thought I knew existed and -- -- a lot of food shopping online these days and I only get with them -- what will be and I don't try new products because they only get.
What's on the list there's a lot of variation across shoppers in terms of how they shop.
And what we find is that actually three quarters to 80% of shoppers actually do up to one -- three hours -- research before they go to the store.
Whether that's clipping coupons are looking in a circular -- going online.
But while they're very interest in price there's a lot of -- and ability and their preference is still.
And so I talked about 41% having their mind made up and being influenced by brand preferences.
About 50% of the shoppers give or take -- guys by category like health and beauty of food and beverage.
Are either prefer brand a better brand -- better -- -- -- about 5050 on the shoppers and there's all these influences that impact them.
And there's really lots of opportunities lots of moments of truth.
Before the store on the go in the stores and markets them when they get in the store and there's that 60% give or take -- up for -- About 20% of them are impulse buyers so there's a chance to really use that and -- display and get them to try the product to be sampling programs in the store.
About 20% are switching competitively between brands where they go into the store now and they want coComment by Pepsi etc.
And that's often influenced more by things like coupons and promotions and then there's another 20% to -- -- that 60%.
That have brand preferences but they're not strong at the end and what they want is a reason to -- the brands they love.
And so the marketing messages in the promotions are really in the coupons.
Our way to close the deal between price and coupons which are clearly on an upswing but also shopper marketing intent to really.
Break through the clutter that's how you close a deal.
That sounds like if I just think it goes -- so for example sounds like to me.
Then we are we overstating brand preference we talk about Colgate-Palmolive.
And Procter & Gamble he's really strong brands and -- grocery store and we say.
Those stocks are going to be great because -- consumer staples and everybody loves those brands it sounds like here.
Your numbers that show yes some people -- like that but the great majority of people can be swayed you once they get into the solar.
-- matter but there's a lot of work to brands have to do to reinforce that preference so there's there's trench warfare going on in the stores.
Between getting the displays doing the promotions getting all that to work.
There's a lot of work that these very strong brands have to do.
To -- advertising the promotions the shopper marketing all the things they're doing to get all that to work well to get people to buy their brands.
The end of the day there's a strong brand loyalty but there's a lot of need to market to them to get them to close the deal.
And -- actually brings me to my point then because in your notes you said that -- spending has actually increase in the midst of all this and we were hearing a lot of people cutting marketing expenses.
Because of what's going on slashing costs left and right to make -- you know pretty profit number did you sing R&D spending has been up.
-- marketing spending for a lot of brand leaders is up to take -- is an example spending on marketing right now.
What we're finding is a shift in marketing.
So there's -- there's certainly been a reset in a lot of brand advertising.
With a lot of reductions are very strong -- recession that's been going on for the last year plus.
There's a lot of emphasis on marketing directly to shoppers to build relationships -- them.
To drive people in the stores in the drive -- into the shopping basket there's a lot of investment and trying new experimental things both.
In digital as well as in the store the store really is a medium currently -- -- great stuff that's fascinating that he would.
Tanya I do is put like some cartoon character on any put on live -- and I want my -- we'll buy I'll buy it now.
It's littered all important that the legal partner in -- in the median did you practice at Booz and company -- euthanasia is an.
It's very interesting ones shot and I'm one of those people that makes a big list of prominent when I go to the store -- -- six suck it kids just one and I wanted to just -- lot of them not nitrogen.
Still ahead it is that must see her -- eleven bargain hunters from all over the world.
-- my -- and what it's expecting from holiday shoppers this year we'll be right back.
-- welcome back.
We are up about -- or down I should say about anyone points so let's take a look at what's moving the markets today is it's been straddling netzero walked down -- is we open -- the market first off.
Couple companies that gave -- earnings last night electronic arts ER TSX ticker symbol.
And FL are -- two totally different companies electronic arts of course on the consumer side Tracy -- video games we just thought we talked about them a lot over the last couple weeks.
Missing and not only missing for this quarter but also their guidance was bad and that's the cardinals seeking -- -- -- No I don't think they got not the firm -- -- -- again come.
Is not the time to have nothing good offers you're heading into the holiday season so -- -- he saw that stock is down 6% on the day floor global engineering company also having some issues right now particularly -- and -- of the -- there other segments were better off.
So floor is a stock that and I think these -- You really need to look at these stocks because of this -- Jacobs engineering where Foster Wheeler all these engineering companies very important it's that that's no footprint in the global footprint it has its outlet floor has been on a care.
-- -- most of them have the floor and say Foster Wheeler and my guess at Jacobs engineering has been much better of course companies -- Flowserve -- company had to deal with.
Engineering and a global scale of done.
Very well since March all right and DIA -- a ticker symbol.
How it's down 20%.
One point in time this morning.
They definitely miss the problem when you get an -- missing it drags almost the other financials all the along for the ride.
And drags him down.
Sprint Nextel announced last night they're gonna lay off between 4500.
Employees around the country that a deal by the end of the year so was sprint was down.
Marginally when compared to some of these others about two and a half percent last time I saw it in Beazer Homes -- this is we have to look at look at it.
Beazer has been was crushed until they started -- comeback this year stock is -- about 200% this year but they were near bankruptcy.
At the end of last year Beazer Homes announced a pretty good quarter.
All things considered so Beazer Homes was up by some I saw about 10%.
I've said this before and I'm sticking with it that because the rates are so good yup he's trying to get people back in the market again -- because rates are so good.
I want to build my dream home.
And I think we're going to see these home builders come back fairly decent because of that exact reason I could afford it now.
Before I got into the -- mansion and I couldn't really afford it.
Now it's very possible -- can.
And the sheer fact that they were a lot of them were near bankruptcy -- -- really bad shape so they're they're climbing out of a hole that basically had them at zero.
And -- have the title market that we've had over the last eight months well it is certainly -- -- be room for you know Priceline to was actually a crazy today to.
Price analyst if I was wildly over on top of the as it -- some of an up.
Even though we have bunch -- got clobbered -- -- Jasper is your present from and there is real capital management down what do you think it what's happening today so far.
In the market -- -- well.
I follow the Israeli stocks -- I'm really here to tell you about stocks said.
That investors can look at regardless of market.
-- let me ask you that -- in relation to -- the market here.
We always talk about how -- sort of follows us -- -- Europe a little bit when you're talking about stocks from Israel how much how closely do they follow what's going on in the United States is it.
You know when he sees of that happening outstanding as its.
Video they -- -- happening in the US we need to pay attention to.
Exactly and perfect example is.
Last following their financial crisis that -- still got hit they were down 50% for the year.
And then investors realized wait a minute is still went into this recession much stronger than here in the US they didn't have a financial crisis they didn't have a real estate bubble yeah.
And then thanks to better capitalize.
So it -- rebounded now back up to if it's over 60% -- to date that it stock market.
And is that is it on its way -- to its own little bubble.
Or is it that to what -- -- rebounding processing you're seeing media foundation are you seeing stabilization.
Stocks keep climbing but.
These stocks were undervalued they were under noticed and they are very conservatively -- they don't carry a lot of debt on the balance sheet.
Very conservative management and their offices they're spread out throughout the world is not just.
Headquarters before we get to your picks -- is is is Israel benefiting from our I mean how is Israel benefiting from our weaker dollar it's gotta be there's got to be huge.
Ramifications and that then -- -- there export oriented feel a lot of their revenues ten dollars -- they can be heard and in that case say they do from hedging to help themselves but they're all over the world.
They don't just export to the US.
The -- when you were here in June you made three recommendations Lewis and they're all up some of them up it's significantly but to me about those three stocks.
Well that the stock that's up the most since L -- electronic 484%.
Year to date have.
Wow guy -- -- 120% since you recommend it out.
You recommend taking a little jealous lover not a lot -- EL LE he says this is -- Ed Cox Communications medical devices company.
-- that's right it's a tech technology incubators -- they had a lot of different companies in the pipeline and as these these companies.
Spin off and they -- mocked Microsoft they just pulled off.
Their 3-D -- systems which is gaming system and investors like -- for the fact that more.
They've got a lot more in the pipeline coming up -- insulin patch.
Four diabetics rather than having to inject themselves with -- you know that there's a pharmaceutical company ready to buy that.
And investors now -- what is coming along and and value and net asset value of the company this -- so you can still see its trading just under.
That's something -- in Toronto -- L Ron Wood about cell com.
This is a Telecom company in Israel -- and -- immediate risk is that Israel is so highly regulated in the Telecom industry.
That's right there.
There are in talks right now to deregulate a little bit to be able to acquire Internet service providers -- there's a lot of noise in that area right now but the great thing about felt -- -- that.
It's got a very solid 10% dividend Milton so if you're looking to make a little bit of money these days to -- in the flow interest rate environment.
Felt come -- -- great stock to look at.
Elbit Systems is -- known by the way he's -- -- and New York Stock Exchange and as they can -- ticker symbols.
On how on the web page right now ELS.
ES LT is Elbit Systems that quickly because there were running at time that you like to others though that you talk about today as well right.
Well all the systems we -- we've got so.
At that -- Teva pharmaceuticals that the largest.
Generic pharmaceutical company in the world that fifth and -- in -- perfectly positioned for this time of health care cost containment and 40% of the generic drugs in the US today -- -- -- -- And they often have their own proprietary development for multiple sclerosis.
Parkinson's and they've got over 200 products in the pipeline to be approved by the FDA yeah.
They're very aggressive in going after expiring patents.
Lot of them out there that I haven't been around for a long time to this is like a big global pharmaceuticals.
And its solid name that's right noble -- -- when you like.
Noble Energy that the US company -- -- business in this -- they hope would be her severed discovery of natural gas off the -- have been -- with Chad.
-- enough to make the country energy independence in the near future and it's a big win and also natural gas.
It's just it's cheap here in the US but over there -- -- -- -- -- -- well positioned to take advantage with -- economic let's.
Some of them should be with the opportunities in Israel I mean thank you so much for me getting kidney cancer from.
There is real capital management and he has caught up on what's going on in the department.
There's a lot actually mean that you have some decent -- take -- risk there's -- -- -- -- -- -- we're gonna take a break we're going to be right back with more retail.
-- -- -- -- -- Why we're back talking about retail last year we saw a slew of big name retailers go out of business things like Circuit City Linens 'n Things so what happens in -- merchandise.
That's when our next guest steps and JJJ's -- -- CEO Hudson capital partners Jim good to see it -- -- -- must've been Nam but -- like -- at Toronto's last year with all this inventory.
But then again I guess you have to sell it to the Soviet too much of it that's -- how wasn't lashed out that we threw it.
We came out of the first the -- actually actually it started in September where it was really Armageddon.
The restructuring people were on the phone lists all the time there was about six or seven big deals were coming down.
At that time you had forced not to file he had Circuit City to file he had Linens -- Things have filed yet Merv and that filed.
So it was there was a lot of activity out there's a little panic -- -- -- -- a little panic on your part of well.
I feel too much stuff when you do with all this stuff you know customers have always responded to going out of business -- they they just do.
That probably hurt the regular retail environment.
It did not have as much if -- get this weird look and try though I'm liquidations narrative it's like this evil gene that comes out and just if they play because they're going to cracks.
What makes this year different there's not much inventory -- we haven't seen -- many bankruptcies.
It got its start -- very quiet in.
In July or June actually and we saw a little bit of a change and I knew it was coming -- -- really is gonna happen quite as quickly.
I think that the big change was Eddie Bauer you cited -- file.
We were all they are as liquidators bidding on it we actually partnered with -- a brand group.
That we were going to buy the they were gonna buy the brand we were gonna -- the inventory in the stores.
And we were gonna liquidate out the the stores in the inventory there won't continue to bring going forward.
But -- was a very active bidder in there with golden gate capital and they came and -- -- so we -- private equity starting to jump back into some of these deals.
And in fact you saw it.
Eddie Bauer he saw.
Where would normally at the same -- have been the same time in September or October of last year they were liquidated this year they actually in them going out to strategic buyers.
From a national perspective I see Circuit City -- -- And then I see a lot of local like PC Richard's here in the -- -- there and then of course Wal-Mart is a big player getting into it but why would Circuit City failed seems to me like.
They and -- best buy would be too that the standalone on a national basis and would be okay.
You know I've been doing this for about twenty years and I've seen you know that's what our business has been pretty consistent and -- last year obviously was like usual -- was -- was Armageddon.
But it's all about execution you know it's just really amazing -- going to retailer.
And I've spent enough time and retailers throughout the United States that I can see very very quickly when there's quite frankly -- certain it's all about execution it's all about.
You know are they able to him to operate their stores efficiently effectively there's some really great retailers out in this country so it was an accident down.
Well you know obviously because I.
-- -- obviously you know -- fantastic -- In this -- Is it you go and down.
You know I Macy's now well I wouldn't say they're so quick to go down -- -- you know first of all.
You know yep -- Macy's had issues -- they have issues -- department store sector had issues yes they have -- -- -- -- issues.
Do they need to probably clean up some of the stores was the integration and Marshall Fields -- -- Macy's perfect no I think they had to do it over again they probably would have done things will be different they'll be fine but what about here.
You know Sears and Kmart is is an interesting issue.
I thought that they would have more serious -- they did they seem to have been able to.
Survive I think they've monetized the brands very very well.
There's some very strong brands and there you got die hard you contrast many that can more very strong brands.
And you know I think that it is.
If I had predicted I would say -- you are gonna make it and but they seem to be still holding on to their own.
What about retail this is the battery itself of a sort of switching gears a little bit yeah.
Can these retailers.
On the real stateside -- they renegotiate their leases in their terms that because we're seeing that in housing.
Can't be done in strip malls as well.
Well you know that's an interesting point because that's quite frankly one of the reasons why some there haven't been the bankruptcy liquidations that you've seen in the fall.
Of last year because there has been a huge.
Amount of renegotiation of leases.
You know for example you take sales who's done a great job of going in and renegotiating leases all over the place.
And they would go to landlords say look we have a choice -- that -- closest base which is sitting right in the center of a mall or we're gonna close the store.
And quite frankly they're able to get make -- also to deals now what's gonna happen to three years that's a good question.
But it's it's filtering down to the landlords now because now they're taking a lot less a lot -- less -- -- -- space what do you do when you -- actually go in and you.
Go to these auctions and try to get this you know the product that they're liquidating how -- -- -- offload it.
We run going out of business -- saying you know you cited Circuit City where we started you know at a discount of ten or fifteen to 20%.
But never of the week and -- liquidation sale on circuit city's -- may -- it never got below lake Whitney.
Who wasn't a True -- 80% off liquidation sale.
It wasn't the wasn't that you will open the doors to -- -- -- -- want it what did it take what.
What I remember when report column in this it was a lame liquidations -- thank you.
Well man's livelihood.
But some of them are good -- isn't things out of the liberty hot hot hot as legendary as far as the nation's you know.
-- experiment how do you determine how you gonna place.
Got to realize that he first of -- -- you.
The cost reacted very well -- 10% off -- 15% off we never discounted computers for example under 10% we didn't have to.
He has yet to realize it's also margin driven you know people understand good deals.
And yes you would say is when you went into Linens 'n Things and we had to -- -- merchandise at 4050 or 60% off.
Or he wanted to Mervyn -- or evens workshops.
Yes you have to have much greater discount electronics with a margins are tighter you don't need to give away goods and.
Today got quite a job that is cool CEO I think capital partners thank you for joining us thank you and I didn't mean -- I was disciplined we'll.
And I'm not as cellular level Linens 'n Things of this -- Sony still here Gene Kelly what -- would -- into the towel over the district Powell is getting -- I want it -- a New York attraction that rivals the statue of liberty especially as a tourist destination.
He come by the busloads to shop at discount department store -- -- -- -- here talk about what they're expecting this to save -- season.
If Heather fine now marketing manager at century 21.
Now talk about this -- in the store the get go through Iraq's and you need it could get bloody.
Because the discounts are so amazing -- -- -- Prices up to 65% to every day I mean I think there's a reason to really.
-- and every day and when you walk and that's you really wowed at that.
Selection and the high quality of that I I'm just saying it has to be lake.
We work on the morning used up its -- to anyone you have to be -- your daily magazine timing this stuff comes in and out so quickly.
-- -- that's -- I think that's what's so exciting about the store you're never disappointed when you walking we see something new something excited.
Exciting and you know when you go in there you're getting the best deal.
And you have sales or anything like that because it's it's a toll sales -- -- the Leo I think that's something that's very consistent about our store and that's like people.
Really loved shopping with us.
I mean I think someone who is from New York who has a very.
Crazy lifestyle doesn't have time to really click -- by and then look around for the best DL.
You know that when you're going in there you're getting the most for your money.
So what expecting expecting just busloads of people this holiday season we're expecting.
-- season since you know hopefully be better than last year.
We think that every -- values have really can -- be consistent again if -- -- You know really gonna drive people into the -- -- hard.
You know manage inventory because you're kind of you never know what you're gonna get on a day to day basis we talk about.
These retailers managing their inventory so tight this year is -- typical for you to manage so tight because you might give it a shipment of great stuff on one day that.
You might not expect we're now on a sudden your inventories a little out of whack.
Well I think that thing is with us better inventories changing so constantly that's it makes it easy for us they're putting new stuff that every single day you don't have to worry as much.
What are you doing as far as -- service and all that if you get all these people come in.
Lots of tourists who how do you prepare for that you -- are you hiring more people for the actually are hang -- Our own -- and yet we're working out all different types the line systems to serve the customer that there.
And our guest services -- will really working and I -- service this year -- really -- the consumer.
And the best news is as you can see 201 of those ugly around sport coats you know and revealed century 21 real estate agents -- round sport -- tonight wipe the sweat off my round thank god that we didn't have one of those sitting here thanks had a good idea.
Don't confuse it with the real estate company -- -- anyone so girl -- -- -- -- that's right locations in New York.
And New Jersey and no brown sport coats hats -- if you're all right.
Toys 'R' Us is still at -- target has done it even the gap -- try to pop up stores why is -- friends so hot this year and doesn't work for.
Be right back to discuss.
-- talk about holiday shopping season and retailers this hour and this is one of the year's biggest trends that pop up store.
-- -- that.
Some big names are getting in on the act this year like Toys 'R' Us and here to talk about this is -- hope -- -- This reconcile -- threatening to -- an -- -- and not look you may fade well in the Sierras that no evidence of this element.
Your guarantees for profit that it could -- Charity and now -- so we see these pop -- -- all the time especially come Halloween.
You see the constant source pop up and then they go away and now we're seeing this with things like Toys -- Us British -- with a bigger stores.
The make up stores are doing it to pitch a product that's true this is well we'll continue.
This is the how opportunity.
For this opportunity.
-- -- retail landscape.
Actually at Tennessee at more permanently now it's not just going to be seasonal.
It's going to be the way a major company -- a new brand.
Tests in new neighborhood goes into a new market.
-- is doing it with there 800 Dallas -- is in SoHo.
The limited who's kind of been off the radar screen going -- to SoHo with a pop up still hoping.
To look back the custom and maybe turn into a permanent store.
They have the traditional like Lionel trains in Rockefeller Center have for this season.
But to have all kinds of use groups -- crash a wonderful winery is -- a pop up store inside the museum.
You're going to see books -- if anything every thing.
And lots of trophy named so from discount to luxury.
This is what's gonna -- there.
The easier the better when it comes to this in terms of limited -- because -- while a lot -- places here in New -- granted its New York so that's the locations are much smaller but sometimes you -- -- you don't even know what's in there is that sort of part of the lore.
Come in and see what's -- will brands Armenia because.
-- I don't find it very hard so.
Merchandise to people -- we talked to somebody earlier in the sense that so money so many decisions are made once you get into the store because you see the way something -- how -- -- this.
Well a lot of these stories now have in previous release previously -- And would bilked out -- that's happening on 57 street next to Bergdorf.
A whole totally new concept.
They're taking the store as is -- -- the -- is to get them inside.
To see what can happen but not all of the -- -- have limited time is a lot of these.
-- that's a very lied to 9000 feet 101000 feet.
Likely so with ties.
Go -- -- is yes boutique stores.
But they given a lot of leverage especially on a short term bases because the -- -- the -- hopes.
Makes the space so attractive that they bring back somebody exciting.
On a permanent thing -- what defines a pop up store how long are they there are they there for three months six months.
It can be almost everything now there are really on no boundaries they could be -- From three weeks to three months to even some that we've done for a two year commitment really just depends on the deal that strike the right -- Malls strip malls and seated across the -- is seeing it from main street to -- was seeing it everywhere we even seen yet.
I'm very small strip centers that have been and captive free users.
So what we're trying to do is filled the space but making it exciting not just -- Halloween Rickey still but something.
-- coaches doing it for their new copy line which says that list that way fabulous and you know -- that you introduce a product.
They get the consumers' attention.
And by the way -- -- expecting.
49 million tourists this year I think that this Christmas I'm gonna stick my neck -- But OK yeah yeah yeah.
I'm predicting that I just ground.
Not only oh yes -- got to be writing us now not only a better Christmas than last year because that's not tied to do.
But the best you've seen in five he -- People -- taking enhanced -- their pockets.
And his shop think that is a bold move that you have a lot of faith in a lot of hope they're not unhappy about and people are just sick of being frugal right -- -- that being frugal.
A lot aren't traveling so they go into the beauty -- They going to a temporary spot we even have something in no lead.
That's more I mean -- a concept that has a wedding chapels you can get married to -- by a wedding dress it.
-- -- well everybody should be married you know she's not going to -- it happened.
But I think this is going to make it exciting anything to get the focus of the consume.
What about -- to talk about this morning I hear a little bit but what about the the products themselves I mean I think selling more.
Of the banana when it you know you can buy high and -- suffers but is it more simplicity as as people try to prevent maybe that he'd get a guy.
-- new coach facts or they gonna buy new site.
Think it's all in the presentation and you have some sophisticated.
Brand people doing that they have this stored now on fifth -- -- new.
Called little miss next they will work night in -- and what it before they have the power of the children.
Focused on accessories but it's not crowded it's not -- its -- -- beautifully so if you want to spend five Dallas fifty dollars 500 Dallas.
It's something different I don't think -- that -- seen anything like this.
The root of this real quick we -- we talk to somebody earlier you know is going from.
The brick and mortar.
C two e-commerce is this the way to go the other way to go as you just have to sell them -- bombers to stick you're you're totally in before jumping head right.
You -- to tell in the -- before you jump in full time.
And we've seen in the past -- -- years that this is really did a good transition.
To see how the products received wants.
The consumer goes in there they touch that they feel -- they may be become quiet of the pearl onion apple stores I mean it's -- Apple Apple's that meeting place for the well what's so exciting.
You know kind of sales apple -- on Fifth Avenue -- that -- the -- of 1936000.
Dollars all that places -- -- -- out -- do.
Places do but it's also the dating game story.
Used to be a whole -- so if you want to meet somebody.
I am happily at midnight on Fifth Avenue that is when -- -- -- I have long been too Smart for me everybody goes shopping.
Good to see it I -- console president of pretty prudential Douglas element I should say join up but as far as I just love that little.
Yeah you it's -- -- that's the part of the -- you like pop ups the lawyers have a -- are -- it is not a permanent it's noncommittal who wants to commit.
Anything side and talk about shopping without talking about budgets had to keep a handle on those credit card bills when we come back I'm going to.
You have a holiday spending plan on my traces it to suspend everything she -- that -- -- talking about debt and bailouts and overspending we should all be smarter shoppers right out of eleven CEO of credit dot com is here.
What we heard about -- awaited -- we've heard about those reduced consumer credit out there today we've we've heard various reports of its gonna be terrible it's going to be grades.
What do you think it's going to be by time January gets it with -- retail seasoning and I have no clue I -- According.
What I want also -- understand we have -- managers here can't get an -- that -- Another Friday story yeah I am -- what's more important -- is how do we each individual consumer look in January after this holiday season.
And you're here to talk about how to get to January and still being that you.
-- very important actually get there yes -- have to get past acquisition Ecstasy and then reality disaster which usually sets in when you get the bill.
First thing -- I think that people especially as we approach Black Friday.
Have to get into their heads the we need a budget.
We need to decide what we want to spend who we want to spend it on and we have to make sure that we don't get too fancy in the sense that.
You waiting for the last minute to precisely time the purchase this you think you're gonna get the best deal and you figure if you hold back the stores will be in panic.
What happens if they're not in panic and what you wanted to get -- -- and then you have to get something you may not have wanted to get but it's gonna.
-- a lot more money we've seen though consumer credit come down we're seeing people -- -- -- off right we're seeing people save more money.
Less credit of course is being extended but those that haven't are not using it as much either so.
What does that what does that mean for the holiday season coming up to sending people truly aren't -- use cash.
I think that you're gonna see a lot -- cast you'll certainly see debit cards which is can.
And we know all the dangers that come with a debit cards if there.
Lost or stolen or if you lose track of where you are -- getting -- with an over limit -- which can be.
Can pretty significant.
But I do think that people are going to be a little bit more cautious in the way they spend but it doesn't mean that they'll be less -- billionth.
We don't know there's some people that will look at this holiday season and say this is an oasis against the disaster that I've now lived there for two years.
I just wanna breathe a little and I wanna do something positive for the holiday season and whether that would be would -- I don't know.
I just don't know I don't know -- -- have a job with him after ten point 2%.
You know obviously every everybody's individual situation is their own but one thing I always wrestle with whether it's the holidays whether it's for a wedding.
How much to spend they just don't know whether.
But I suspend.
More or less this holiday season you know it can you give somebody advice is -- what what the proper amount to spend is sort weren't staying away from -- -- over extending yourself a little bit and I think.
-- the first step is don't spend what you don't have and assume the fact that there could be a disaster lurking out there so keep a safety net.
That's very important the second thing is.
When you going to stores.
Be very careful about store credit cards is that this holiday season everybody I've talked to said every they've they've walked to restore last weekend several people who said.
They were just it was as if the locusts -- -- -- people were flinging store credit cards at them.
And you know again it's it's a thing where it's an impulsive.
Yes I'll take the card you don't realize that they generally have higher interest rates and lower balances.
They're more restrictive than general credits cards pitcher -- gonna be limited to that particular store or chain.
Well because if you sign up today you get 15% off your kids -- more -- and you feel like well I'm saving something.
And so I think that's how they -- Bless the good news -- the bad news is that if you don't pay the balance -- and could now facing 15% more in interest rates.
So it's it's a thing we've got -- you got to control the instinct.
Plus remember that a lot of the salespeople I've heard this a lot of the -- people don't necessarily get commissions from sales.
But they do get commissions from pushing store credit cards so you always have to keep in mind the motivation of the people that are trying to make your day.
You could be making their day.
-- just just keep that in mind.
And and one of the tips that I would give people it's very important is during this holiday season always but during this holiday season take five or ten minutes a day every day.
Go online look at your bank account your credit card accounts make absolutely sure the transaction -- you -- -- -- -- it could be an identity theft issue and look squarely what you're spending.
Where you're spending an -- -- coming to the limit either zero in your bank account.
Or getting close to the limit if your credit card.
And because again we have to keep banks.
This is very tight -- the consumers are walking right now and that -- you have to make sure that the banks are either not scared -- -- or bored to death.
Scared to death that they think you're spending too much and you could be going into -- credit junket phase.
Or bored to death because you're not using your credit card -- -- not making enough money on you and then suddenly you end up on the we're closing your account or -- lowering your credit limit list.
And you don't wanna be an either of those lists what about lay away as -- -- you found that so many more retailers aren't going that route and that consumers are using that round coming up to this holiday season I think we will see them.
I think that a lot of retailers have reintroduced or at least raise the conscious level in the consciousness level above -- consumers do this.
And you know lay away at least is a good thing because it's again helping you get to where you want to get too.
At a pace that you can afford just make sure that if you're laying in a way that you finished paying for it so that it doesn't go away.
If if it.
No question actually.
Spend what you don't don't spend what you don't have so they want to consult for the government as well I'm having -- have a government they haven't recently been asking for my advice.
I promise I'll -- of that.
I think that a lot of people have.
The you know.
Oasis feeling as you're saying that I'm so sick and keeping my hands in my pocket and making around lunch everyday and here comes -- -- that one in Houston getting out there.
And to me that just.
Texas is setting -- -- this we -- setting ourselves up for disaster lurking in 2010 -- use anticipating that at all.
Well I think that you know again as the new credit card rules go into effect and there is the possibility that at least in the initial phase in February when we see stage to.
That there might be further tightening credit by that the credit card companies as they come into compliance with the law.
And they tried to to sort of you know play the odds on this.
That that consumers have to always keep in mind the fact that you know what was there today may not be there tomorrow.
There is a wave of resets that people feel the next wave of mortgage resets are coming -- that a lot of people feel we haven't even begun to feel the effects of what could be happening in in commercial real estate and certain.
So I don't think we're out of the woods yet.
On the other hand it's almost patriotic to span that's what they're telling us however we just have to make sure that we're not creating sort of false patriotism.
In the sense that you spend it you don't have it and then when it comes time to pay the piper.
You have nothing to -- -- The government on the ball on a really quick.
Just quick note that credit dot com can people go to get some type of insight into what's going all of these rules changes that are gonna go into effect in February because it is a lot of confusion.
People already seeing some of them this and that and they go on not -- -- credit dot com.
We have all the information available on the credit card reform act as well as everything you could possibly want to know about credit and some of the things you may not want -- -- and -- anyway Adams the greatest thank you regular on your questions your money on Saturdays at statement and I thank you for being.
Good thank you for having me.
-- -- -- joining us today we -- split shopping for an hour Christy survived you can catch us on foxbusiness.com.
Live streaming and weekdays.
Well -- noon to 1 eastern time and morning edition from six tonight and with comics and generally you can also download our podcast.
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Have a great great day --
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