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Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside my co host Matt Miller.
Every business day we bring you interviews from CEOs, market pros, and Bloomberg experts, along with essential market movin news.
I'm the Bloomberg Markets podcast called Apple Podcasts or wherever you listen to podcasts, and at Bloomberg dot Com slash podcast. Chris Campbell joins us. He's a Chief Strategisticcroll. He joins us here on a Bloomberg Interactive Broker studio. Chris, what
are you telling clients here these days? I mean we've had this you know, rally here in November, and I guess it's in part due to I guess a lot of investors are probably like me, saying, boy, if I'm at peak rates, don't I take on some risks here with my portfolio?
Yeah.
Look, I think that's it's highly likely that we've probably seen that the the top of the rate interest rate raise. But I kind of concerned myself more of a pessimistic optimist right now, which means I think we're going to be some We're going to go some difficult times. But on the other side of this, it's going to be
quite significant. There's you know, trillions of dollars you know, out there in the park and the in the sidelines, with the with the funds and families that we advise, and I think they're looking.
For this correction.
I think that on the opposite of the correction will be just an enormous amount of money flooding the capital market, flooding the markets, and emerging acquisitions and lots of other things that are goodness will happen.
I think probably late next year or earlier the year after.
Remember, Paul, you want to buy low, yes, to sell high?
Right, buy them and hold them.
You like to buy high and hold.
I just buy buy the.
Mo Yeah, mentum, Well, I mean you can catch on the wrong side of that rush so many times, trying to catch the falling knife.
That's a good point. What do you think about that?
Yeah, you know, it's probably a good idea to buy low so high typically it's good. It's good good advice.
I so you could have caught the falling knife with treasuries at five percent. We were like freaking out. Yes, in this studio.
Right's a good point.
I mean, right across the curve, we had fives everywhere at seventy two dollars on a barrel of oil.
We're freaking out.
I had to buy some oil here.
Another thing, but I mean Lisa Browma is sitting with a big barrel of oil in her apartment and you got it for negative forty bucks. Negative forty bucks. All right, so we're in the market. Are you looking these days here? I mean, because it seems like do I stick with the magnificent seven that have worked so well? Do I try to find some of the laggards?
How are you thinking about it?
I think actually you can start diversifying it again, if we're going to see if we're seeing peak or eights, like I do think we're going to be higher for longer. I think that the Fed Reserve is going to try to avoid becoming a rate lowering interest rates next year, and a little bit of a contrarian in this in this regard because I believe that there's you know, it
just becomes really political the Federal Reserve. I think that actually the chairman actually has an enormous and out out sized influence in the twenty four four elections because I think it's mostly it's going to be the economy, and so you know, I can think that he'll just be very careful and be cautious about that, and so I think that we're going to be we're in for a
tight thout, probably not all in next year. Sob Dan, I think like this this is the time to long the market absolutely and diversify.
You were, by the way, a former assistant secretary for the US Treasury Department. You have interacted with Jerome Powell on a wide variety of topics. But I wonder what your thoughts are on the on the Druck and Miller Yellen spat. I mean, could we really have sold much longer maturities at much lower rates. Should we have done that?
Yeah?
I think there's as in every argument, there's two sides of it.
Of course, and also hindsight is twenty twenty. I get that fully.
So like I, I try not to look back at my former colleagues and with you know, and try to second guess what they've did. It's it's very difficult. Those jobs are extremely difficult and they're very hard to you know.
So there's there. You get pressure from everywhere.
All right, So let me ask you this in terms of the FED. For a while, there is this thought that Jerome Powell would do anything not to become another Arthur Burns. That is, he wanted to really crush inflation and stop it in its tracks so that it never reared its ugly head again, or at least you know, during his time. Is that still the case or is he going to start worrying about you know, joblessness and
economic slow down. Is he going to start getting a little bit soft and dubvish when the bad data comes out?
Yeah?
I always compared to me, I think you try to avoid to becoming pulled. I mean, I think it just doesn't want to have, you know, any kind of diflation. I think it's trying to avoid that at all. So I think that tight for longer. Make sure you stamp it out right. I think that there's you know, some FED governors are suggesting, and I think that the FED is looking for us slow down in job job growth,
and that's you know, all of that means. I think this is where I'm a little bit pessimistic, if you will, and I think we're going to get see. A bit of a downside is that, you know, the American consumer is kind of running an esteem. I think that they're they're the largest economic engine of the economy, and you know, they've spent their savings and now they're now they're spending our credit cards at record rates, at a very high eye address.
So you're also former staff director the Senate Finance Committee at the United States Senate.
What did you do there?
The committee is in charge of all Medicare, medicaid, social security, tax policy, international trade. So what oversaw seventy percent of US spending one hundred percent in becoming revenue.
So is it your job to make sure that when senators are on television questioning witnesses and whenever anybody comes in front of their committee that they sound intelligent.
That working very closely with the members and their staff. You know it. It was treading set an agenda that was very difficult. You know.
The difficult things about what we are mandate was that they were just all of them are extremely political. You know, I can't think that you know, good people can have arguments about entitlements, you know, Medicare and medicaiding social Security. But the challenge is trying to change trying to actually have a public debate that actually doesn't become highly political, politicized and really scared Americans is really hard on those issues.
And then tax policy, of course, is that there's always a give and take where one side typically likes slower taxes, one side likes higher taxes, and it's just you know, you try to find some way to get compromised.
But it works between senators. Happens behind the doors.
I mean, did they really walk down to the hall and say, let's debate this issue.
I want to.
Does that happen lately? They just say do you want to fight? Exactly? And I guess the.
Reason I was going because I just you know, we look at these committee here, whether it's technology people coming in from or whatever, and our senators in our congressman, they just sound so uninformed. It's really painful slash embarrassing. But I'm just wondering do they debate the issues amongst themselves?
They do, and staff does a lot of that work for them as well.
But I think it's, you know, like it's it's very difficult, as you know, they're they're they're also pulled everywhere, but the challenges and I don't want to get anyone in trouble because right now in American politics, if you're a Republican talking to a Democrat or Democrat republic and talking
to republic and your voters don't like you. But I will say that there's an enormous amount of that happening behind closed doors, and it has to because honestly, genuinely, nothing would get done, and I think nothing's gonna be done now.
They have people we talk to are always so bright, so well educated, they know the issues, and then when you see these men and women on TV, they're just the worst.
They have to be Like what has to get elected by the American exactly like what happened?
Don't this staff like Spoon feed them what to say, what questions they ask? How did they come across so bad?
I'll say that, you know, I think that the Congress reflects the mood of the American people that at that time.
Yea, I guess that's so.
I think that that's you know, I think that the American people get the House represents they want in the sense they want at the time. And of course we have a little bit of a shorter, a longer fuse on the presidency, right, So, but yeah, I think it's going to be interesting to see how this next election happens. I think there's you know, there's a lot of variables at play, and there's significant issues.
Do you appine on potential election outcomes for your clients?
Everyone wants to know, right, and it matters, I mean, right, the policy under Republican or Democratic administration is going to change, you know, And of course then it matters if it's Trump or Haley or someone else in the Republican side, or if it's Biden another Democrat on the Democratic side. And so yeah, absolutely, I think that there's you know, significant issues. But I believe though that if the economy is such a central component of the election.
In twenty twenty four, and we are in a downturn.
Likely it's it's a bad time to be in a cumbent in DC at that time, and so i'd likely see a wholesale chain. I think the House maker Democrat that House Senate to makeover republicand and perhaps when may see your republic.
Having gone to the Thunderbird School of Global Management, do you have any advice for Duke on how to play basketball.
I have friends, I have friends everywhere, So I'm just gonna set up my hands on the.
You'll talk politics, talk as you more fun or UCSB.
Oh gosh, that's a really good question, Barbara. At least we're underground. I think there's you're not very far from the beach and any anywhere on that campus.
So all right, Chris, thanks so much for joining us.
Chris Camber, he's a chief strategist at Kroll, talks about this market in politics.
You're listening to the team Can's are live program Bloomberg Markets weekdays at ten am Eastern on Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business app, or listen on demand wherever you get your podcasts.
We're joined by Norma Chu.
She is the CEO of Day Day Cook the New York stocker change symbols D is David d C. When public today sold three point nine million shares at eight dollars and fifty cents to share. The stocks traininger around six dollars right now, Norma, thanks so much for joining us on a busy day for you guys. Can you tell our audience kind of what Day Day Cook is? What do you guys do over there? Sure?
Hi, thanks for having me today. You know, I started the business about twelve years ago, and the whole concept was really to create a platform and brand that can encourage a younger generation to enjoy cooking at home. And right now. We are a food innovator and we own a portfolio of brands, and all of our brands basically provide ready to cook and ready to heat product solutions.
We also do a lot of social media marketing, building brands and promoting products and also engaging with our customers.
All right, so I have been cooking a lot this year. What do you have for me? What are the products? Give us some examples?
Sure, you know, since even though I'd started the business out of Hong Kong a long time ago, so last year we started looking into the US market. This year we just completed our very first acquisition of a brand called Nona Limb. So Nona Limb you can find her products right now in Whole Foods, Kroger, Target, and also a wide selection of online e commerce platform. You can probably try some of our noodle starter kits and also
a variety of phone broths. Coming up next, we do have a shelf stable, clean label cup noodle coming to the market, so hopefully you enjoy those as well.
So talk to us about how your business, I guess was impacted during the pandemic because I would think everybody was cooking at home and there's a lot of demand for you know, easier ways to cook at home. How did that impact your business?
Yeah, that is so true. You know, I started about ten years ago, and at that time, I think a lot of people still wonder, you know, will the younger generation enjoy cooking at home? But since the past few years, I think there are a lot of different trends that we're seeing is really driving the growth of our market. The first one is really structural change and consumer behavior. I think a lot of younger consumer now do you want to cook at home? But you know they want
a convenient, delicious meal with minimal effort. Second thing, you know, I think is really the whole work at home social trend. So in general, a lot of families are cooking probably six, seven or eight more meals at home now and that's also really helping you know, our space and really driving the growth that we're seeing.
How have you dealt with food inflation? Are your input costs continuing to rise or have you seen the turnaround?
Well, the good thing is, you know, we are an asset light model, so we work with a number of you know, manufacturers and experienced partners, so that gives us a little bit of flexibility in terms of you know, sourcing and manufacturing. And the beauty is, you know, this year and looking ahead, we do have a very aggressive
plan in terms of growing internationally. And the nice thing is, you know, in markets like the US, Europe and other parts of the world, we are seeing such strong demand for our product which really enable us to price our products with healthier margin. So that's also having a positive impact on our business.
So geographically, where where do you do business these days? And what's kind of your your future look like.
Yeah, so I started in Hong Kong and twenty twelve and then we're expanding into mainland, trying to market did not last year we started looking into the US and this year with the very first acquisition that we just completed. So we all look targeting about ten to fifteen percent of revenue coming out of the US market this year and looking ahead, you know, we're targeting you know, thirty percent in three years time, fifty percent in five years time of international sales.
So I'm just looking at your stock again, six dollars you share? It went public this morning at eight dollars and fifty cents. Any idea what's kind of pushing the stock down here? If you heard from your your bankers or anything.
Well, you know, I used to be a stock research analyst. Night there you go, So I typically don't get to hung up on a day to day you know, performance of the stock. I'm more a fundamental research analyst, So I would believe been focusing on our business plan, continue to execute and the stock will just perform on its own.
And the proceeds, I guess are for acquisitions. That's how you plan to expand.
That's right, a portion, a big portion of this continue to drive business growth, and within our growth strategy really is looking at M and A transactions, amine opportunities to help us establish a more international footprint and also continue to grow our multi brand product portfolio.
So I mean you talk about the younger folks, I actually agree. I mean when I was younger, comingut of college, it never cooked. But the kids today, maybe it's just because of the pandemic.
I mean they're cooking and they're going all in.
I mean, yes, tradience.
I mean it's just I mean, is that kind of kind of the market you're looking at.
Yeah, I mean it's just so exciting that now I think the younger generation do feel cooking with a lot of passion, and it just makes me so happy to see that, because I mean, cooking has always been a part passion for me. But you know, when I look at this space, I think there's a lot of opportunity
in terms of creating clean label products. And there's also one of the criteria that we look for when we look at more growth opportunity because I think, you know, traditionally some consumer might think that Asian food products may be a little bit more processed, maybe a little bit
more heavy on the sodium. But if you look at the product, the brand that we just recently acquired, which is known a Limb once again available at Whole Foods, Target, and Kroger, all of the products are clean label, so we really care about the type of ingredients that we use, you know, into our manufacturing process.
All right, thanks very much for joining us. Norma Cheu, she's the CEO of Day Day Cook symbol d d C is a ticker symbol.
They just went public today.
Going to be ringing the closing bell at the New York Sock Exchange later today, So that's exciting for any new company. We appreciate getting a few minutes of your time.
You're listening to the tape. Cans are live program Bloomberg Markets weekdays at ten am Eastern on Bloomberg Radio, the tune in app, Bloomberg dot Com, and the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station, Just say Alexa play Bloomberg eleven thirty.
Kevin Tiny joins us.
He's a senior autosanalyst with Bloomborg Intelligence, so he can join in on this conversation.
So Matt, I'm pretty are you driving? So first of all, I told you before, I'm driving an affordable suv okay that seems to be fairly solidly built. It's very green, and it's got great tech and the brand is Ascendant Sendent Ascendant. It's a brand that I think, well, this is why I wanted Kevin to join us, because I don't actually know how well they do, but I see more and more of them on the road, and I
know that they have a really cool new logo. Yep, like that, and I'm talking about Akia obviously the new logo Sento. It's been a guys a couple of years since they made that new logo, and I feel like it allows a whole new customer to buy into the story because it just is a way to break is it Korean? To break from the past.
Yeah.
You know when they first came out Kias and Hyundai's, you thought, okay, this is a great at twenty thousand dollars a conobox, I can driver a few years till it breaks. But now I think it's a very different story. Kevin, let me bring you in here and get your take on you know, the quality of these vehicles, the abilities of these vehicles, and for example, the what's the uh oh, the tell You Ride? The Kia Tell You Ride. I feel like that could be cross shopped with a range
drover and it costs like a third the price. So what do you think about Kia?
Yeah, you know, that is an interesting story because it's you know, the the two brands, Hundai and Kia have have moved from the entry and move up market to higher price points and intensified their truck versus car mix. You know, they were forty three percent truck as recent as twenty eighteen. Now they're seventy percent. So just think
about what that's done for their average transaction price. There, margin, profit and revenue contribution has been significantly strong, stronger than it was when it was known as a countobox brand. And what they did that transition was really motivated and helped and advanced by the idea of the ten year, one hundred thousand mile drive train warranty. Right, so they had a wow.
Ten years and one hundred thousand miles on the drive trains. Usually it's like three years and oh on the drive train. So a lot of times those will be five years and sixty thousand or something, right, yeah.
Right, So basically it gave people protection that said, you know, if you have concerns about quality, here's how we're going to deal with that. And it's the best warranty in the industry. And then as they've moved up market, which if you think even about Tesla, right, Tesla comes in at the highest price points and then tries to move down and every automaker tried to do that to gain scale and volume. Think about Mercedes moving down market and
BMW moving down market. Hanikia did at the opposite, right, they started at the bottom of the market, one loyal customers at the entry and move up level. That warranty was a big part of it. Proved their quality had improved then and now there's even the Genesis brand, which is legitimately competing at the higher end of the market with the land rollers.
But Genesis is like, so Honda has what Acura and Toyota has Infinity or Noon has Infinity, Toyota has Lexus, and Genesis is like Hyundai's version of that.
Yeah, because what happened was, you know, there was a period where Hyundai Kiya came out with full Sisiedan's to compete with seven series BMW or S class Mercedes, and people kind of laughed it off, like, there's no way I'm spending seventy five eighty thousand dollars for a K nine hundred Kio or or a Hyundai Equis.
They wouldn't even do it for Volkswagen Phaeton.
Right, So they created this new brand and put all the high end stuff in there, and it's actually worked pretty well. My wife will believe it or not, and she's a kind of strange not car per.
Only your wife's not listening.
Only by she will.
Only really really, so she must be very happy about the progress they've made.
You mentioned Tell your Ride, So she has a palisade calligraphy, and it's almost like you can load that thing up with every piece of technology and the warranty and the whole thing, and you're still at a very very reasonable price point.
And they look awesome. I mean, you must have seen the Kia Tell your Rides. Oh yeah, yeah, such cool looking vehicles. Now the Sorrento doesn't look quite as cool, but it's got great features. For example, since it's a hybrid, there's a button, a physical button you can press to switch from full EV to hybrid EV. Or when I'm turning, when you're turning left and you can't obviously there's a blind spot, but a screen in your dashboard shows you
what's in your blind spot. Same when you're obviously turning right, and it's got a center locking diff like it's got torque vectoring. What you can lock the center diff what's the differential, what's in case you're so that the wheels can move at different speeds, but if you're stuck in a place, you can make them all move the same speed so that you can get better traction. It's got torque vectoring all wheel drive, which is I first heard about torque vectoring when I was a kid, I think
reading roadent Track about a Porsche. So it's pretty impressive that Kia has this technology. I mean, really the price point, Matt, I think it's fifty thousand for the loaded up one for the top top trim, and then.
If you think forty eight thousand is average in the industry these days, So you know right there and you're and that's the point, is that bang for the buck, it's you're getting all the technology now.
They don't correct me if I'm wrong, Kevin, But they don't get a tax credit on the green vehicles like a Ford or a GM would, right, because they're not a union shop, not made in the US, all of them.
So the story rules of right, the rules of origin of the components, and things like that. I don't have to believe it or not list memorized off the top of my head, but I believe that would be currect.
I pretty much do so, Kevin.
Are the Korean and Japanese automakers. Are they as committed to evs as I don't know some of the others. I mean, it just seems give us a sense of where those guys are.
Yeah, they've been slower. Look, Khandaikia have EV five, EV six, Ionic five, so they they sort of rushed into the segment a little bit. But what's interesting with some winners.
I mean, the Ionic five looks cool. The EV six is fast. I made my buddy Mark White throw up by accelerating so quickly in that thing.
But the thing with that is that what's interesting is that when you look at average transaction action price across the brands, it's in the high thirties, right, so below the industry average but then when you look at their evs, they're in the they're above fifty thousand dollars, so it's the it's a way for them to sort of move up more. Mart I don't think they're contented the way say a fifty plus thousand dollars tell your ride or
palisade would be. But people are willing to buy, or at least they were until very recently, willing to pay up for the electric versions of some of the Handaikia stuff. We'll have to see how sustainable that demand is going forward, but it's very interesting that you know, that's an automaker that's known for and that's Look, that's a risk for
the gm and Fords of the world. As they move their average transaction price above fifty thousand dollars, above the industry average, you're really squeezing out the entry and move up buyer, and you're and you're saying like, hey, look, if you're not really ready to spend, we don't have
product for you. And that's where the Asia based manufacturers Handaikea, Toyota, Honda sort of moved down mark and they say, well, we're willing to take you, even if it means losing money on those entry level vehicles because we believe that we'll give you a good enough ownership experience that you'll stay with us up through the portfolio until you are ready to spend some money maybe in the Lexus brand or Infinity or or.
I mean the four f one fifty the most popular vehicle out there in the American roads.
I mean, what is that list for and can the average person.
Get in a one for thirty?
You can get into a Ford f one fifty for thirty.
Yeah, but that's the lowest trim level. You know, Zach drove the E one at nineteen one hundred thousand. My question is this, you can get so the Sorrento. You can get into a BMW X three for a comparable price. But I've seen people put BMW's up on lifts and they're like over engineered. They're so focused on stiffness and
the driving experience. And I guess that has to do like in order to achieve that, you need the longevity, you need the experience in production, right, Kia and Hundai they're just not there yet.
Yeah, I look, I you know, I think there's a you know, as a buyer, you would think about do I want to buy you know, the the lower end models of premium brand or do I want to buy
the completely loaded version of a volume brand. And that's you know, that's kind of the debate, right, So a decontented X three versus a loaded Sorrento or you know, and and people will have different opinions on that, but you know, you feel like even the ownership experience or dealing with the dealerships when you are you know, the big cheese when you roll it into you know, into the dealership or into the service bay, is like, Hey, this is the this is the owner that's spent up
for everything as opposed to being at the bottom of the of the portfolio with a low content vehicle.
Matt's in there with the Kia Sorrento. I got the BMW X three.
You got the overloaded X three.
I'm actually and Kevin, next time I'm done in person, I'll show you the x X three.
It's good stuff. I'm very happy with it.
That's Kevin Tiny and he covers all the autos for Bloomberg Intelligence at Real Gearhead.
You're listening to the tape. Can's are live program Bloomberg Markets weekdays at ten am Eastern on Bloomberg Radio, Bloomberg dot Com, and the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station, Just say Alexa play Bloomberg eleven thirty.
We have Dana Tellsley in studio. She's got her own firm, Dana Telsey. She kind of runs out and I'll tell you what not. Only is she one of the best analysts covering retail on Wall Street, and that's been proven by all the polls and magazines over the years. But what I admire most is she's left a big wall Streem bank set up her own shop when that was pretty rare at the time. So I remember, and that's number one.
It was rare.
At number two, she's been successful at it even more rare because I've seen a lot of folks that are highly ranked leave the big seat.
Go set up a shop and it just doesn't work.
But she makes it work enough with the flattery.
It's good stuff.
By the way, Dana, I heard a stocks reporter on the other side of the office call you a genius today.
Oh, thank you, thank you very much.
So interesting. Yeah, there you go. So I think you can top that. So why, let's first ask the question, because this is the first earning season I've really noticed how many of the retailers are at the back end of the earnings calendar, and is there a reason for that? Is that just traditional tradition?
I mean, typically retailers are on a January fiscal year end, and the reason why is because December is typically one of their busiest months, so you need the month after January in order to put everything together. Plus you got to get rid of the returns in January, so you really know what your inventory looks like at the end of January going into the following fiscal year.
And you just thought they were lazy.
I don't know, They're not lazy, all.
Right, Dannis.
So we've had we're kind of getting through the meat of this most recent quarterly earnings period. What were your takeaways from the quarter itself and more importantly looking forward a little bit.
I think the big picture takeaway overall is that we have a very discerning consumer, that we have a consumer
who's moderated their spend at almost all income levels. And what we're seeing is that retailers the execution has improved everyone's inventory levels are clean, cleaner than what they were At the same time, We're going to have a more promotional holiday season this year is compared to last and when you look at the cadence so far, October sales growth was slower than September by around one hundred bases points or so, and going into November it's remaining the
same as October. Consumers are waiting for big events, and we know that a lot of the discounting because it's more promotional this year than last year, even though still less than twenty nineteen. But what we do know is they wait for the events. We had Prime Day in October, Black Friday isn't going to be what it used to be, and with Christmas falling on a Monday, the procrastinators can wait until Saturday and Sunday.
So more promotional this year than last year. I keep seeing in earnings releases that they're controlling inventory well or you know, if sales fall, at least they're managing their inventory. Why are they going to be discounting couple.
Things you need to discount in order to drive the consumer to get them to convert. Last year, you had too much inventory in many instances given the supply chain issues that you had, and right now some of the price increases from inflation, they're undergoing a little bit of a rollback. But the focus on experiences versus goods. We all know what Taylor Swift did during the summer in terms of boosting span when she was here in the US. You have to give the consumers not only the what
to buy, but the how to buy. And one of the things we're seeing the retail experience, it's a social experience too. So watch the physical stores. They're not going away.
That's kind of where I wanted to go because I had a hard time getting to my subway last night because out in front of Bloomingdale's they had a big stage set up right in the middle of Electionton Avenue and I think there's some Broadway show.
The casters can come and sing a song me.
So that's an event. Holiday windows there was a holiday Well.
Kay, there you go, thank you. I did make it to the subway. So talk to us about the retail store because there was a narrative that I bought into that E commerces is going to replace everything, no more stores, thing of the past.
Where are we today? In that thinking that was.
Pre pandemic, thinking yes, the pre pandemic, thinking of there are too many stores and Amazon's going to take over while pandemic happened, And look, Amazon didn't take over everything. Too many stores, you bet. And we had a ton of closures post the pandemic, so that now many retailers store bases, they're more productive, they're in the right locations, and they've even been resized a lot of them. And the other narrative used to be, oh, there are too many retailers, they need to go bankrupt.
Well they did.
We had ninety six consumer companies go bankrupt really right during a post pandemic. So where you are today, fast forward, we have better stores. You look at four new stores that are opening in Manhattan for Black Friday. Take a look at the Wegmans that just open on Astor Place. Take a look at Creighton Barrel that opened their first new store in Manhattan in thirty years on Broadway, Lululemons
remodeled store on Fifth Avenue and seventeenth Street. And then you also have it's Wegmans, it's Lulu, It's Creighton Barrel.
About one more interest, what's the deal with Brooks Brothers, Because I'm sure like me, Paul grew up going there. When I got my first suit, it was at Brooks Brothers. I remember going to store number one to get fitted for a formal coat when I was like five. It's and it was the best place to shop for men's clothes. I mean, really an experience. My grandfather got his World War Two, you know, his dress blues at Brooks Brothers. Why did they go bust? And what's happened to them? A couple things.
First, it's Target, that's the fourth store that opened on fourteenth Street. Let's go to Brooks Brothers. So look at what everyone's wearing here today? Are you seeing? Are any of the three of you men in a suit?
Not? Really?
Okay?
What did Brooks Brothers sell a lot of suits?
Yeah?
Okay, there you go. So you got a pivot in order to be able to reinvent yourself. Retailers can do that. We've seen retailers reinvent themselves. You look at Coach reinvented itself. You look at Levi's been around one hundred and fifty years, reinvented it So the fact that if you don't reinvent yourself, it's hard to keep such an expensive piece of real estate. Now they have a coffee shop there. I meet a lot of people there. It's my destination for meetings.
Wow, that's cool.
It was a sweet sweet spot Brooks Brothers and the Shrewsbury Mall.
I now go to Paul Stewart, which is you know next door, you know iron Sure it's are like class six.
Well this isn't a Brooks Brothers, but you get the picture.
I love those The place was a classic place. Now the other thing, I typically eschew the word barbell. It's like the most cliche phrase on Bloomberg television. But I've noticed that Macy's, for example, Bloomingdale's did better than all of Macy's, and Macy's has some kind of off brand or lower backstage backstage which did much better. So it seems like the higher end consumer is doing well and then everyone else is going as going downscale. Is that the case?
Well, when you look at the uber wealthy Amez had doubled sales gains, so they're certainly doing George.
Santo's apparently was shopping there with campaign funds allegedly very good.
And when you look at the lower end, take a look what you got this week TJX with same store sales up around six percent. You look at Ross Stores yesterday, their same store sales were up around five percent. Value works, and you see many retailers talking about the fact that their outlet stores are performing. Look at Tanger Factory outlet centers and you've seen newness there with their new Nashville
opening that they have. So there's a little bit of a barbell, but even that luxury consumer, except for the tippy top, is moderating. Look at Berberis results yesterday where they talked about the fact that they've seen a slowing in global luxury demand. So whether it's the macro, whether it's the stock market volatility, or if focused on experience versus goods, and certainly for the mid tier and lower higher interest rates and inflation are an inhibitor to opening your wallet.
Yep, absolutely a right, Dana. Thank you so much for joining us here.
Dan Telsey, CEO and chief research officer at the Tellsley.
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