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Fast Five Shorts | Sephora To Redesign Its Entire North American Store Fleet · Omni Talk Retail

• 0:00
  Sephora
• 0:01
  plans
• 0:01
  to
• 0:01
  redesign
• 0:02
  its
• 0:02
  entire
• 0:02
  North
• 0:02
  American
• 0:03
  store
• 0:03
  fleet
• 0:04
  According
• 0:05
  to
• 0:05
  Retail
• 0:05
  Dive.
• 0:06
  Sephora
• 0:06
  is
• 0:06
  in
• 0:06
  the
• 0:06
  middle
• 0:07
  of
• 0:07
  the
• 0:07
  largest
• 0:08
  capital
• 0:08
  project
• 0:09
  in
• 0:09
  its
• 0:09
  history
• 0:10
  wherein
• 0:11
  it
• 0:11
  is
• 0:12
  redesigning
• 0:12
  every
• 0:13
  store
• 0:13
  in
• 0:13
  its
• 0:13
  North
• 0:14
  American
• 0:14
  fleet,
• 0:15
  Artemis
• 0:15
  Patrick,
• 0:16
  president
• 0:16
  and
• 0:16
  CEO
• 0:17
  of
• 0:17
  North
• 0:17
  America,
• 0:18
  told
• 0:18
  an
• 0:18
  audience
• 0:18
  at
• 0:19
  the
• 0:19
  National
• 0:19
  Retail
• 0:20
  Federation's
• 0:20
  Big
• 0:20
  show
• 0:21
  conference
• 0:21
  on
• 0:22
  Monday
• 0:22
  of
• 0:23
  this
• 0:23
  past
• 0:23
  week.
• 0:24
  Some
• 0:24
  stores
• 0:24
  will,
• 0:25
  quote,
• 0:25
  get
• 0:26
  major
• 0:26
  redesigns
• 0:27
  and
• 0:27
  some
• 0:27
  will
• 0:28
  get
• 0:28
  minor,
• 0:29
  patrick
• 0:29
  said
• 0:29
  of
• 0:29
  the
• 0:30
  project,
• 0:30
  which
• 0:31
  launched
• 0:31
  last
• 0:31
  fall.
• 0:32
  The
• 0:32
  beauty
• 0:32
  retailer
• 0:33
  has
• 0:33
  over
• 0:34
  700
• 0:34
  stores
• 0:35
  in
• 0:35
  North
• 0:35
  America.
• 0:36
  Sephora
• 0:37
  has
• 0:37
  brought
• 0:37
  changes
• 0:38
  like
• 0:38
  modular
• 0:39
  fixturing
• 0:39
  and
• 0:40
  new
• 0:40
  checkout
• 0:40
  pathing
• 0:41
  to
• 0:41
  111
• 0:43
  of
• 0:43
  those
• 0:43
  stores
• 0:44
  over
• 0:44
  the
• 0:44
  past
• 0:44
  few
• 0:44
  months.
• 0:45
  And
• 0:45
  as
• 0:45
  a
• 0:46
  result,
• 0:46
  key
• 0:46
  performance
• 0:47
  indicators
• 0:47
  like
• 0:48
  transactions,
• 0:48
  productivity
• 0:49
  and
• 0:49
  sales
• 0:50
  are
• 0:50
  all
• 0:50
  up
• 0:51
  when
• 0:51
  compared
• 0:51
  to
• 0:52
  the
• 0:52
  control
• 0:52
  group.
• 0:53
  Kelly,
• 0:54
  what
• 0:55
  do
• 0:55
  you
• 0:55
  find
• 0:55
  most
• 0:55
  intriguing
• 0:56
  about
• 0:56
  Sephora's
• 0:57
  plan
• 0:57
  to
• 0:57
  renovate
• 0:58
  its
• 0:58
  stores
• 0:58
  as
• 0:59
  part
• 0:59
  of
• 0:59
  what
• 0:59
  Retail
• 0:59
  Dive
• 1:00
  calls
• 1:00
  its,
• 1:00
  quote,
• 1:01
  largest
• 1:01
  capital
• 1:02
  project
• 1:02
  in
• 1:03
  its
• 1:03
  history?
• 1:04
  Yeah,
• 1:05
  lots
• 1:05
  of
• 1:05
  big
• 1:05
  headlines
• 1:06
  dropping
• 1:06
  at
• 1:07
  NRF
• 1:08
  Big
• 1:08
  show
• 1:08
  last
• 1:09
  week.
• 1:10
  You
• 1:11
  know,
• 1:11
  I
• 1:11
  think
• 1:11
  the
• 1:11
  thing
• 1:11
  that
• 1:11
  was
• 1:12
  most
• 1:12
  interesting
• 1:13
  to
• 1:13
  me
• 1:13
  about
• 1:13
  this,
• 1:14
  you
• 1:15
  mentioned
• 1:15
  it,
• 1:15
  Chris
• 1:16
  and
• 1:16
  Artemis
• 1:17
  Patrick
• 1:17
  talks
• 1:17
  a
• 1:17
  little
• 1:17
  bit
• 1:18
  more
• 1:18
  about
• 1:18
  it
• 1:18
  and
• 1:19
  in
• 1:19
  the
• 1:20
  article,
• 1:20
  but
• 1:21
  she
• 1:22
  cited
• 1:22
  one
• 1:22
  of
• 1:22
  the
• 1:22
  leading
• 1:23
  factors
• 1:24
  of
• 1:24
  the
• 1:24
  redesign
• 1:25
  in
• 1:26
  effectively
• 1:26
  making
• 1:27
  a
• 1:27
  more
• 1:27
  affordable
• 1:29
  fixture
• 1:30
  structure
• 1:30
  for
• 1:31
  their
• 1:31
  brand
• 1:31
  partners.
• 1:32
  That
• 1:33
  was
• 1:33
  kind
• 1:33
  of
• 1:33
  one
• 1:33
  of
• 1:33
  the,
• 1:34
  the
• 1:34
  leading
• 1:34
  things,
• 1:34
  she
• 1:35
  said.
• 1:35
  We're
• 1:36
  not
• 1:36
  a
• 1:36
  cheap
• 1:36
  date
• 1:37
  to
• 1:37
  sell
• 1:37
  in
• 1:38
  Sephora.
• 1:38
  We
• 1:38
  don't
• 1:39
  want
• 1:39
  our
• 1:39
  partners
• 1:39
  building
• 1:40
  these
• 1:40
  expensive
• 1:40
  fixtures
• 1:41
  that,
• 1:42
  you
• 1:42
  know,
• 1:42
  the
• 1:42
  deal
• 1:42
  doesn't
• 1:43
  work
• 1:43
  out
• 1:43
  and,
• 1:44
  and
• 1:44
  they
• 1:44
  don't
• 1:44
  see
• 1:45
  the,
• 1:45
  the
• 1:45
  full
• 1:46
  benefit.
• 1:47
  So
• 1:47
  this
• 1:47
  was
• 1:47
  super
• 1:48
  interesting
• 1:48
  to
• 1:49
  me
• 1:49
  for
• 1:50
  two
• 1:50
  different
• 1:50
  reasons.
• 1:52
  The
• 1:52
  first
• 1:52
  is
• 1:53
  the
• 1:53
  tone
• 1:54
  and
• 1:54
  tenor
• 1:54
  of
• 1:54
  it
• 1:55
  is
• 1:55
  very
• 1:55
  different
• 1:56
  from
• 1:56
  what
• 1:57
  we
• 1:57
  see
• 1:57
  from
• 1:57
  Sephora
• 1:58
  typically.
• 1:59
  So
• 2:00
  internationally
• 2:01
  they
• 2:02
  2023,
• 2:03
  2024
• 2:04
  were
• 2:04
  years
• 2:04
  spent
• 2:05
  doing
• 2:05
  huge
• 2:05
  reinvestment
• 2:06
  on
• 2:06
  their
• 2:06
  flagships.
• 2:07
  You
• 2:07
  know,
• 2:08
  taking
• 2:09
  historical
• 2:10
  buildings,
• 2:10
  renovating
• 2:11
  it
• 2:11
  as
• 2:11
  a
• 2:11
  very
• 2:12
  kind
• 2:12
  of
• 2:12
  luxury
• 2:13
  experience
• 2:13
  and
• 2:14
  leading
• 2:15
  with
• 2:15
  this
• 2:16
  cost
• 2:16
  play
• 2:17
  just
• 2:18
  sounds
• 2:18
  and
• 2:19
  feels
• 2:19
  a
• 2:19
  little
• 2:19
  bit
• 2:19
  different
• 2:20
  from
• 2:20
  what
• 2:20
  we
• 2:20
  see
• 2:20
  in
• 2:21
  the
• 2:21
  international
• 2:21
  markets.
• 2:23
  And
• 2:23
  then
• 2:24
  additionally
• 2:25
  it
• 2:25
  to
• 2:25
  me
• 2:26
  kind
• 2:26
  of
• 2:26
  suggests
• 2:27
  a
• 2:27
  bit
• 2:27
  of
• 2:27
  a
• 2:28
  shifting
• 2:29
  power
• 2:29
  dynamic
• 2:30
  between
• 2:30
  Sephora
• 2:31
  and
• 2:31
  its
• 2:31
  brand
• 2:32
  partners.
• 2:33
  Having
• 2:34
  spent
• 2:34
  a
• 2:35
  lot
• 2:35
  of
• 2:35
  time
• 2:36
  more
• 2:36
  on
• 2:36
  the
• 2:36
  manufacturing
• 2:37
  side
• 2:37
  of
• 2:37
  the
• 2:37
  beauty
• 2:38
  business,
• 2:38
  you
• 2:38
  know,
• 2:39
  you'll
• 2:40
  do
• 2:40
  what
• 2:40
  you
• 2:40
  gotta
• 2:40
  do
• 2:41
  to,
• 2:41
  to
• 2:41
  get
• 2:42
  placement
• 2:42
  in
• 2:42
  Sephora.
• 2:43
  And
• 2:43
  typically
• 2:44
  there's,
• 2:45
  you
• 2:45
  know,
• 2:46
  they
• 2:46
  have
• 2:46
  the
• 2:46
  upper
• 2:46
  hand
• 2:46
  in
• 2:47
  those
• 2:47
  negotiations.
• 2:48
  It's
• 2:48
  more
• 2:48
  expensive
• 2:49
  but
• 2:49
  you
• 2:49
  need
• 2:49
  to
• 2:49
  be
• 2:50
  there
• 2:50
  and
• 2:50
  they
• 2:50
  have
• 2:50
  the
• 2:51
  market
• 2:51
  share.
• 2:52
  So
• 2:52
  to
• 2:52
  hear
• 2:52
  them
• 2:53
  really
• 2:54
  being
• 2:54
  proactive
• 2:55
  about
• 2:55
  how
• 2:55
  to
• 2:55
  make
• 2:56
  the
• 2:56
  experience
• 2:56
  more
• 2:57
  affordable
• 2:57
  for
• 2:57
  their
• 2:58
  brand
• 2:58
  partners
• 2:59
  just
• 2:59
  kind
• 2:59
  of
• 3:00
  signals
• 3:00
  to
• 3:00
  me
• 3:00
  that
• 3:01
  they're
• 3:01
  thinking
• 3:02
  ahead
• 3:02
  about
• 3:03
  where
• 3:03
  the
• 3:04
  retail
• 3:04
  market
• 3:05
  might
• 3:05
  be
• 3:05
  going
• 3:05
  in
• 3:05
  the
• 3:06
  US
• 3:07
  And
• 3:07
  Ulta
• 3:08
  hasn't
• 3:08
  seen,
• 3:09
  you
• 3:09
  know,
• 3:10
  a
• 3:10
  great
• 3:10
  couple
• 3:10
  quarters
• 3:11
  in
• 3:11
  the
• 3:11
  last
• 3:11
  few
• 3:11
  quarters.
• 3:12
  But
• 3:12
  you
• 3:13
  know,
• 3:13
  are
• 3:13
  there
• 3:13
  other
• 3:14
  tides
• 3:14
  that
• 3:14
  they're
• 3:14
  concerned
• 3:15
  about
• 3:15
  whether
• 3:15
  it's
• 3:16
  E
• 3:16
  Comm
• 3:16
  where
• 3:17
  they're
• 3:17
  trying
• 3:17
  to
• 3:18
  shift
• 3:18
  some
• 3:18
  more
• 3:19
  attention
• 3:19
  to
• 3:19
  their
• 3:19
  brand
• 3:20
  partners?
• 3:20
  So
• 3:20
  I
• 3:20
  thought
• 3:21
  that
• 3:21
  was
• 3:21
  really
• 3:21
  interesting
• 3:22
  and
• 3:22
  there
• 3:23
  are
• 3:23
  a
• 3:23
  lot
• 3:23
  of
• 3:23
  other
• 3:23
  great
• 3:24
  things
• 3:24
  that
• 3:24
  they're
• 3:25
  doing
• 3:25
  which
• 3:25
  just
• 3:26
  seem
• 3:26
  like
• 3:26
  smart
• 3:27
  retailing
• 3:27
  to
• 3:28
  me
• 3:28
  from
• 3:28
  store
• 3:29
  of
• 3:29
  the
• 3:29
  future,
• 3:29
  really
• 3:30
  making
• 3:30
  a
• 3:31
  metrics
• 3:31
  based
• 3:32
  approach
• 3:32
  to
• 3:32
  the
• 3:33
  redesign.
• 3:33
  So
• 3:34
  I
• 3:34
  think
• 3:34
  there's
• 3:34
  more
• 3:34
  to
• 3:35
  it
• 3:35
  than
• 3:35
  just
• 3:35
  this
• 3:36
  kind
• 3:36
  of
• 3:37
  brand
• 3:37
  cosplay.
• 3:38
  But
• 3:38
  that
• 3:38
  was
• 3:38
  what
• 3:38
  really
• 3:39
  stood
• 3:39
  out
• 3:39
  to
• 3:39
  me.
• 3:40
  Yeah,
• 3:41
  that's
• 3:41
  really
• 3:41
  just,
• 3:41
  I
• 3:41
  never
• 3:42
  thought
• 3:42
  about
• 3:42
  that.
• 3:42
  You
• 3:42
  know,
• 3:42
  is
• 3:43
  it
• 3:43
  is
• 3:43
  this
• 3:43
  kind
• 3:43
  of
• 3:43
  an
• 3:44
  attempt
• 3:44
  to,
• 3:44
  you
• 3:44
  know,
• 3:45
  keep
• 3:45
  the
• 3:45
  cachet,
• 3:46
  make
• 3:46
  it
• 3:46
  easier
• 3:46
  for
• 3:46
  the
• 3:46
  brands
• 3:47
  to
• 3:47
  come
• 3:47
  into
• 3:47
  the
• 3:48
  stores
• 3:48
  and
• 3:48
  elevate
• 3:49
  the
• 3:49
  experience
• 3:49
  and
• 3:49
  play
• 3:50
  up
• 3:50
  on
• 3:50
  the
• 3:50
  brands
• 3:51
  that
• 3:51
  you
• 3:51
  really
• 3:51
  want
• 3:52
  and
• 3:52
  expect
• 3:52
  to
• 3:52
  get
• 3:52
  from
• 3:53
  Sephora?
• 3:54
  And
• 3:54
  what
• 3:54
  do
• 3:54
  you
• 3:54
  think?
• 3:56
  I
• 3:56
  mean,
• 3:56
  I
• 3:57
  love
• 3:58
  Kelly's
• 3:58
  points.
• 3:58
  I
• 3:58
  hadn't
• 3:59
  thought
• 3:59
  about
• 3:59
  those.
• 3:59
  For
• 4:00
  me,
• 4:00
  this
• 4:00
  was
• 4:00
  a
• 4:00
  strictly
• 4:01
  operational
• 4:02
  Play.
• 4:02
  Like
• 4:02
  number
• 4:03
  one,
• 4:03
  there
• 4:04
  is
• 4:04
  100%
• 4:05
  benefit
• 4:05
  to
• 4:05
  making
• 4:05
  your
• 4:06
  fixtures
• 4:06
  flexible.
• 4:07
  Especially
• 4:07
  in
• 4:07
  a
• 4:07
  space
• 4:08
  like
• 4:08
  Sephora
• 4:08
  where
• 4:09
  they're
• 4:09
  getting
• 4:10
  people
• 4:10
  to
• 4:10
  come
• 4:10
  in
• 4:11
  there.
• 4:11
  They
• 4:11
  want
• 4:11
  to
• 4:12
  make
• 4:12
  sure
• 4:12
  that
• 4:12
  people,
• 4:13
  they
• 4:13
  can
• 4:13
  do
• 4:13
  events
• 4:14
  in
• 4:14
  there.
• 4:14
  When
• 4:14
  there's
• 4:15
  a
• 4:15
  new
• 4:15
  beauty
• 4:15
  brand
• 4:16
  launch,
• 4:16
  they're
• 4:16
  bringing
• 4:16
  in
• 4:17
  a
• 4:17
  new
• 4:17
  brand.
• 4:17
  Like
• 4:18
  the,
• 4:19
  the
• 4:19
  flexibility
• 4:20
  of
• 4:20
  this
• 4:20
  fixturing
• 4:21
  that
• 4:21
  Artemis
• 4:21
  was
• 4:22
  talking
• 4:22
  about
• 4:22
  I
• 4:22
  think
• 4:22
  is
• 4:22
  going
• 4:23
  to
• 4:23
  be
• 4:23
  critical
• 4:24
  to
• 4:24
  them
• 4:24
  being
• 4:24
  able
• 4:25
  to
• 4:25
  convert
• 4:25
  that
• 4:26
  store
• 4:26
  to
• 4:27
  work
• 4:27
  as
• 4:27
  hard
• 4:28
  as
• 4:28
  possible
• 4:29
  as
• 4:29
  needed
• 4:30
  on
• 4:31
  weekends,
• 4:31
  you
• 4:31
  know,
• 4:32
  for
• 4:32
  big
• 4:32
  launch
• 4:33
  events.
• 4:33
  I
• 4:33
  think
• 4:34
  that's,
• 4:34
  that's
• 4:35
  where
• 4:35
  the
• 4:35
  real
• 4:35
  trouble
• 4:36
  is
• 4:36
  right
• 4:36
  now.
• 4:36
  But
• 4:36
  for
• 4:37
  me,
• 4:37
  the
• 4:37
  best
• 4:38
  thing
• 4:38
  about
• 4:38
  this
• 4:38
  whole
• 4:39
  thing,
• 4:39
  I
• 4:39
  love
• 4:40
  Sephora,
• 4:40
  I
• 4:41
  love
• 4:41
  the
• 4:41
  associate
• 4:41
  help
• 4:42
  there.
• 4:42
  I
• 4:42
  hate
• 4:43
  the
• 4:43
  line.
• 4:43
  Sometimes
• 4:44
  I've
• 4:44
  had
• 4:44
  to
• 4:44
  even
• 4:44
  leave
• 4:45
  because
• 4:45
  you
• 4:45
  have
• 4:46
  this
• 4:46
  younger
• 4:46
  demographic
• 4:47
  that's
• 4:47
  coming
• 4:47
  in.
• 4:48
  They're
• 4:48
  each
• 4:48
  paying
• 4:49
  their
• 4:49
  own,
• 4:49
  you
• 4:49
  know,
• 4:49
  they're
• 4:50
  accru
• 4:50
  of
• 4:51
  six
• 4:51
  people
• 4:51
  and
• 4:51
  they're
• 4:51
  each
• 4:52
  paying
• 4:52
  individually.
• 4:52
  Like
• 4:53
  it's
• 4:53
  taking
• 4:53
  too
• 4:54
  long.
• 4:54
  And
• 4:54
  so
• 4:55
  for
• 4:55
  me,
• 4:55
  I
• 4:55
  think
• 4:55
  the
• 4:56
  key
• 4:56
  item
• 4:56
  in
• 4:56
  this
• 4:57
  article
• 4:57
  is
• 4:57
  that
• 4:57
  only
• 4:58
  25%
• 4:58
  of
• 4:59
  transactions
• 4:59
  are
• 4:59
  happening
• 5:00
  on
• 5:00
  mobile
• 5:00
  devices
• 5:01
  with
• 5:01
  the
• 5:01
  associates
• 5:02
  right
• 5:02
  now.
• 5:02
  And
• 5:02
  I
• 5:03
  think
• 5:03
  if
• 5:03
  you
• 5:03
  start
• 5:03
  to
• 5:04
  enable
• 5:04
  every
• 5:05
  associate,
• 5:05
  every
• 5:05
  transaction,
• 5:06
  if
• 5:06
  I
• 5:06
  just
• 5:07
  want
• 5:07
  to
• 5:07
  get
• 5:07
  out
• 5:07
  and
• 5:07
  get
• 5:08
  that
• 5:08
  thing
• 5:08
  that
• 5:08
  you
• 5:08
  helped
• 5:09
  me
• 5:09
  find,
• 5:09
  I
• 5:09
  think
• 5:09
  we're
• 5:10
  going
• 5:10
  to
• 5:10
  start
• 5:10
  to
• 5:10
  see
• 5:11
  significant
• 5:11
  increases
• 5:12
  in,
• 5:12
  in
• 5:13
  transactions
• 5:13
  and
• 5:13
  basket
• 5:14
  sizes
• 5:14
  once
• 5:14
  they
• 5:15
  enable
• 5:15
  that,
• 5:15
  you
• 5:15
  know,
• 5:16
  for
• 5:16
  all
• 5:17
  the
• 5:17
  associates
• 5:17
  and
• 5:17
  you
• 5:18
  can
• 5:18
  kind
• 5:18
  of
• 5:18
  skip
• 5:18
  that
• 5:18
  snake
• 5:19
  if
• 5:19
  you're
• 5:19
  just
• 5:19
  kind
• 5:20
  of
• 5:20
  snake
• 5:20
  line
• 5:21
  if
• 5:21
  you're
• 5:21
  just
• 5:21
  trying
• 5:21
  to
• 5:21
  come
• 5:21
  in
• 5:22
  and
• 5:22
  get
• 5:22
  something
• 5:22
  quickly.
• 5:23
  So
• 5:23
  I,
• 5:23
  I
• 5:24
  think
• 5:24
  smart
• 5:25
  operational
• 5:25
  decisions
• 5:26
  here
• 5:26
  for
• 5:26
  Sephora
• 5:27
  that
• 5:27
  are
• 5:27
  going
• 5:27
  to
• 5:27
  continue
• 5:28
  to
• 5:28
  pay
• 5:28
  dividends
• 5:29
  in
• 5:29
  the
• 5:29
  long
• 5:29
  run.
• 5:30
  Yeah,
• 5:31
  that
• 5:31
  was
• 5:31
  what
• 5:31
  the
• 5:31
  article
• 5:32
  highlighted
• 5:32
  for
• 5:32
  me
• 5:32
  that
• 5:32
  was
• 5:33
  most
• 5:33
  interesting
• 5:33
  too
• 5:33
  was
• 5:33
  how
• 5:34
  they're
• 5:34
  thinking
• 5:34
  about
• 5:34
  checkout
• 5:35
  and
• 5:35
  it
• 5:35
  was
• 5:35
  very
• 5:36
  light
• 5:36
  on
• 5:36
  the
• 5:36
  details
• 5:37
  in
• 5:37
  there.
• 5:37
  But
• 5:37
  I
• 5:37
  think
• 5:38
  you're
• 5:38
  hitting
• 5:38
  on
• 5:38
  points
• 5:39
  that,
• 5:39
  you
• 5:39
  know,
• 5:39
  especially
• 5:40
  when
• 5:40
  you
• 5:40
  talk
• 5:40
  modular
• 5:41
  fixturing,
• 5:41
  you
• 5:41
  could,
• 5:42
  you
• 5:42
  could
• 5:42
  apply
• 5:42
  modular,
• 5:43
  modular
• 5:44
  setup
• 5:44
  designs
• 5:44
  to
• 5:44
  your
• 5:45
  checkout
• 5:45
  process
• 5:45
  too.
• 5:46
  So
• 5:46
  you
• 5:46
  can
• 5:46
  scale
• 5:46
  it
• 5:46
  up,
• 5:46
  scale
• 5:47
  it
• 5:47
  down
• 5:47
  across
• 5:47
  the
• 5:47
  seasons.
• 5:48
  You
• 5:48
  know,
• 5:48
  lots
• 5:48
  of
• 5:48
  different
• 5:49
  ways
• 5:49
  you
• 5:49
  could
• 5:49
  do
• 5:49
  this.
• 5:49
  Mobile
• 5:50
  enabled.
• 5:50
  John,
• 5:51
  what
• 5:51
  do
• 5:51
  you
• 5:51
  think
• 5:51
  though?
• 5:51
  Any
• 5:52
  final
• 5:52
  words
• 5:52
  here?
• 5:53
  Yeah,
• 5:54
  I
• 5:54
  mean
• 5:54
  my
• 5:54
  first
• 5:55
  thought
• 5:55
  is
• 5:55
  I
• 5:56
  think
• 5:56
  this
• 5:56
  is
• 5:56
  a
• 5:56
  great
• 5:56
  example
• 5:57
  of
• 5:57
  the
• 5:57
  kind
• 5:57
  of
• 5:57
  benefits
• 5:58
  of
• 5:58
  CRG
• 5:58
  because
• 5:59
  Kelly
• 5:59
  had
• 5:59
  a
• 5:59
  totally
• 5:59
  different
• 6:00
  perspective
• 6:00
  than
• 6:00
  I
• 6:00
  have.
• 6:02
  She's
• 6:03
  got
• 6:03
  obviously
• 6:04
  way
• 6:04
  more
• 6:04
  detail
• 6:04
  and
• 6:04
  understanding
• 6:05
  and
• 6:05
  the
• 6:05
  points
• 6:05
  that
• 6:05
  she
• 6:06
  made
• 6:06
  around
• 6:06
  the
• 6:07
  dynamic
• 6:07
  between
• 6:07
  Sephora
• 6:08
  and
• 6:08
  the
• 6:08
  brands
• 6:08
  is
• 6:08
  something
• 6:09
  I
• 6:09
  never
• 6:09
  thought
• 6:09
  about.
• 6:09
  But
• 6:09
  actually
• 6:10
  I
• 6:10
  think
• 6:10
  now
• 6:11
  looking
• 6:11
  through
• 6:11
  the
• 6:11
  information
• 6:12
  with
• 6:12
  that
• 6:12
  lens,
• 6:12
  it
• 6:13
  kind
• 6:13
  of
• 6:13
  makes
• 6:13
  a
• 6:13
  bit
• 6:13
  more
• 6:13
  sense
• 6:14
  sense
• 6:14
  to
• 6:14
  me
• 6:14
  because
• 6:15
  honestly
• 6:15
  when
• 6:15
  I
• 6:15
  was
• 6:16
  looking
• 6:16
  at
• 6:16
  it,
• 6:16
  I,
• 6:17
  I
• 6:17
  think
• 6:17
  what
• 6:17
  I
• 6:17
  wrote
• 6:17
  down
• 6:18
  when
• 6:18
  I
• 6:18
  was
• 6:18
  writing
• 6:18
  my
• 6:19
  notes
• 6:19
  is
• 6:19
  that
• 6:19
  I
• 6:19
  felt
• 6:19
  like
• 6:20
  it
• 6:20
  was
• 6:20
  kind
• 6:20
  of
• 6:20
  a
• 6:20
  nothing
• 6:20
  burger.
• 6:21
  I
• 6:21
  was
• 6:21
  like,
• 6:21
  yeah,
• 6:21
  okay,
• 6:22
  we're,
• 6:22
  we're
• 6:22
  updating
• 6:23
  our
• 6:23
  store
• 6:23
  fleet
• 6:24
  and
• 6:24
  it's
• 6:24
  our
• 6:24
  biggest
• 6:24
  ever
• 6:24
  capital
• 6:25
  investment.
• 6:26
  But
• 6:26
  I
• 6:26
  can
• 6:26
  tell
• 6:26
  you
• 6:26
  if
• 6:27
  I
• 6:27
  did
• 6:27
  my
• 6:27
  capital
• 6:27
  investment
• 6:28
  now
• 6:28
  versus
• 6:28
  10
• 6:29
  years
• 6:29
  ago,
• 6:29
  it's
• 6:29
  always
• 6:29
  going
• 6:30
  to
• 6:30
  be
• 6:30
  my
• 6:30
  biggest
• 6:30
  ever
• 6:30
  capital.
• 6:31
  Right.
• 6:31
  It's
• 6:31
  way
• 6:31
  more
• 6:32
  expensive.
• 6:32
  So
• 6:33
  I
• 6:33
  felt
• 6:33
  a
• 6:33
  little
• 6:33
  bit
• 6:34
  like
• 6:34
  it
• 6:34
  was
• 6:34
  an
• 6:34
  announcement
• 6:35
  for
• 6:35
  NRF
• 6:36
  that
• 6:36
  they
• 6:36
  put
• 6:36
  some
• 6:37
  buzzy
• 6:37
  language
• 6:37
  around
• 6:39
  and,
• 6:39
  and
• 6:39
  the
• 6:39
  other
• 6:40
  point
• 6:40
  was
• 6:40
  I
• 6:40
  know
• 6:40
  that
• 6:41
  Kelly
• 6:41
  mentioned
• 6:41
  they're
• 6:41
  using
• 6:42
  a
• 6:42
  metrics
• 6:42
  based
• 6:42
  approach
• 6:43
  which
• 6:43
  is
• 6:43
  great,
• 6:43
  but
• 6:44
  I
• 6:44
  don't
• 6:44
  know
• 6:44
  if
• 6:44
  anybody
• 6:45
  here
• 6:45
  has
• 6:45
  ever
• 6:45
  redesigned
• 6:46
  a
• 6:46
  store
• 6:46
  where
• 6:46
  the
• 6:46
  sales
• 6:47
  didn't
• 6:47
  go
• 6:47
  up
• 6:48
  because.
• 6:48
  Right.
• 6:49
  All
• 6:49
  this
• 6:49
  extra
• 6:49
  attention,
• 6:50
  you've
• 6:50
  got
• 6:50
  all
• 6:50
  the
• 6:50
  extra
• 6:51
  staffing.
• 6:51
  Once
• 6:51
  you
• 6:51
  pull
• 6:51
  that
• 6:52
  out,
• 6:52
  your
• 6:52
  sales
• 6:53
  normally
• 6:53
  revert
• 6:53
  to
• 6:54
  the
• 6:54
  mean.
• 6:54
  Right.
• 6:54
  So
• 6:54
  it's.
• 6:55
  So
• 6:55
  for
• 6:55
  me
• 6:55
  it
• 6:56
  felt
• 6:56
  a
• 6:56
  little
• 6:56
  bit
• 6:56
  like
• 6:57
  we're
• 6:57
  doing
• 6:57
  all
• 6:57
  this
• 6:57
  work
• 6:58
  and
• 6:58
  we're
• 6:58
  going
• 6:58
  to
• 6:58
  change
• 6:58
  trajectory.
• 6:59
  But
• 6:59
  once
• 6:59
  you
• 7:00
  went
• 7:00
  below
• 7:00
  the
• 7:00
  details,
• 7:01
  I
• 7:01
  didn't
• 7:01
  quite
• 7:02
  get
• 7:02
  it.
• 7:02
  However,
• 7:03
  I
• 7:03
  think
• 7:03
  the
• 7:04
  checkout
• 7:04
  points
• 7:05
  also
• 7:05
  stood
• 7:05
  out
• 7:06
  to
• 7:06
  me
• 7:06
  because
• 7:06
  I
• 7:06
  think
• 7:07
  if
• 7:07
  you
• 7:07
  can
• 7:07
  make
• 7:07
  that
• 7:07
  easier
• 7:08
  to
• 7:08
  get
• 7:08
  out
• 7:08
  of
• 7:08
  the
• 7:08
  store.
• 7:09
  Obviously
• 7:10
  I'm
• 7:10
  not
• 7:10
  like
• 7:11
  a
• 7:11
  high
• 7:11
  Sephora
• 7:12
  shopper,
• 7:12
  but
• 7:12
  My
• 7:12
  wife
• 7:13
  is.
• 7:13
  And
• 7:14
  so,
• 7:14
  like,
• 7:14
  she
• 7:14
  has
• 7:15
  talked
• 7:15
  before
• 7:15
  about
• 7:15
  how
• 7:15
  difficult
• 7:16
  it
• 7:16
  is
• 7:16
  to
• 7:16
  get
• 7:16
  in
• 7:16
  and
• 7:16
  out
• 7:16
  of
• 7:17
  the
• 7:17
  store,
• 7:18
  and
• 7:18
  I
• 7:18
  think
• 7:18
  that
• 7:18
  would
• 7:18
  be
• 7:18
  a
• 7:18
  big
• 7:19
  thing.
• 7:19
  But.
• 7:19
  But
• 7:20
  more
• 7:20
  operationally,
• 7:21
  I'm
• 7:21
  actually
• 7:21
  more
• 7:21
  excited
• 7:22
  by
• 7:22
  what
• 7:22
  Kelly
• 7:22
  says
• 7:22
  about
• 7:23
  the
• 7:23
  connection
• 7:23
  with
• 7:23
  the
• 7:23
  brands
• 7:24
  because
• 7:24
  having
• 7:25
  done
• 7:25
  some
• 7:25
  work
• 7:25
  in
• 7:25
  the
• 7:25
  drug
• 7:26
  space,
• 7:26
  getting
• 7:27
  the
• 7:27
  fixtures
• 7:28
  changed
• 7:28
  over
• 7:29
  by
• 7:29
  your
• 7:29
  brand
• 7:30
  partners
• 7:30
  is
• 7:30
  a
• 7:31
  massive
• 7:31
  lift
• 7:31
  for
• 7:31
  everybody.
• 7:32
  And
• 7:32
  if
• 7:32
  you
• 7:33
  can
• 7:33
  make
• 7:33
  that
• 7:33
  smoother,
• 7:34
  that
• 7:34
  also
• 7:34
  then
• 7:35
  feeds
• 7:35
  into
• 7:36
  the.
• 7:36
  The
• 7:36
  idea
• 7:37
  of
• 7:37
  being
• 7:37
  more
• 7:37
  on
• 7:38
  trend
• 7:38
  and
• 7:38
  more
• 7:38
  relevant
• 7:39
  if
• 7:39
  you
• 7:39
  can
• 7:40
  make
• 7:40
  that
• 7:40
  happen
• 7:40
  quicker.
• 7:41
  So
• 7:41
  I
• 7:41
  see
• 7:41
  a
• 7:41
  much
• 7:42
  bigger
• 7:42
  benefit
• 7:42
  from
• 7:42
  that
• 7:43
  now
• 7:43
  than
• 7:43
  I
• 7:43
  kind
• 7:43
  of
• 7:44
  originally
• 7:44
  thought.
• 7:45
  Absolutely.
• 7:45
  Yeah.
• 7:46
  Those
• 7:46
  are
• 7:46
  great
• 7:47
  points,
• 7:47
  John.
• 7:47
  You
• 7:47
  know,
• 7:48
  it's
• 7:48
  funny
• 7:48
  to
• 7:48
  me
• 7:48
  too,
• 7:48
  when
• 7:49
  I
• 7:49
  think
• 7:49
  about
• 7:49
  the
• 7:49
  psychological
• 7:50
  dynamics
• 7:50
  of
• 7:51
  doing
• 7:51
  this
• 7:51
  show
• 7:51
  too,
• 7:52
  is
• 7:52
  like,
• 7:52
  when
• 7:52
  I
• 7:52
  first
• 7:52
  read
• 7:52
  the
• 7:53
  headline,
• 7:53
  I
• 7:53
  was
• 7:53
  like,
• 7:53
  yeah,
• 7:53
  I
• 7:53
  feel
• 7:54
  like
• 7:54
  John
• 7:54
  does.
• 7:54
  But
• 7:55
  then
• 7:55
  you
• 7:55
  go
• 7:55
  and
• 7:55
  you
• 7:55
  think.
• 7:55
  About
• 7:56
  who's
• 7:56
  the
• 7:56
  leadership
• 7:56
  team,
• 7:57
  you
• 7:57
  know,
• 7:57
  what
• 7:57
  pedigree
• 7:58
  do
• 7:58
  they
• 7:58
  have
• 7:58
  behind
• 7:59
  them?
• 7:59
  What
• 7:59
  performance
• 8:00
  has
• 8:00
  the
• 8:00
  company
• 8:01
  exhibited
• 8:01
  in
• 8:01
  the
• 8:01
  past?
• 8:02
  And
• 8:02
  it
• 8:02
  gives
• 8:02
  us
• 8:02
  a
• 8:02
  little
• 8:02
  more
• 8:03
  license
• 8:04
  to
• 8:04
  accept
• 8:04
  what
• 8:05
  Sephora
• 8:05
  is
• 8:05
  telling
• 8:05
  us
• 8:06
  and
• 8:06
  being
• 8:06
  a
• 8:06
  little
• 8:06
  more
• 8:06
  optimistic
• 8:07
  about
• 8:07
  it
• 8:07
  as
• 8:07
  well.
• 8:08
  So
• 8:08
  it's
• 8:08
  interesting
• 8:08
  as,
• 8:09
  as
• 8:09
  we
• 8:09
  review
• 8:09
  these
• 8:10
  headlines
• 8:10
  each
• 8:10
  and
• 8:10
  every
• 8:10
  week.