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Fast Five Shorts | Pro Or Con: Target Exploring A Factory-Direct Model? · Omni Talk Retail

• 0:00
  Target
• 0:00
  is
• 0:00
  exploring
• 0:01
  the
• 0:01
  factory
• 0:02
  direct
• 0:02
  shipping
• 0:02
  model
• 0:03
  used
• 0:03
  by
• 0:03
  Temu.
• 0:04
  According
• 0:04
  to
• 0:05
  Bloomberg,
• 0:05
  Target
• 0:05
  is
• 0:06
  testing
• 0:06
  a
• 0:06
  service
• 0:06
  that
• 0:06
  delivers
• 0:07
  products
• 0:07
  directly
• 0:08
  to
• 0:08
  customers
• 0:08
  homes
• 0:09
  from
• 0:09
  factories.
• 0:10
  Similar
• 0:10
  to
• 0:11
  the
• 0:11
  Chinese
• 0:11
  e
• 0:12
  commerce
• 0:12
  platforms
• 0:13
  Temu
• 0:13
  and
• 0:13
  Shein.
• 0:14
  The
• 0:14
  effort
• 0:14
  aims
• 0:14
  to
• 0:15
  broaden
• 0:15
  Target's
• 0:15
  range
• 0:16
  of
• 0:16
  low
• 0:16
  cost
• 0:16
  offerings,
• 0:17
  primarily
• 0:18
  including
• 0:18
  apparel,
• 0:19
  household
• 0:19
  goods
• 0:20
  and
• 0:20
  non
• 0:20
  food
• 0:21
  items.
• 0:22
  And
• 0:22
  it's
• 0:22
  still
• 0:22
  in
• 0:23
  its
• 0:23
  early
• 0:23
  stages.
• 0:24
  Most
• 0:24
  online
• 0:24
  orders
• 0:25
  from
• 0:25
  Target
• 0:25
  and
• 0:26
  other
• 0:26
  US
• 0:26
  Retailers
• 0:27
  get
• 0:27
  sent
• 0:27
  to
• 0:27
  warehouses
• 0:28
  before
• 0:28
  going
• 0:28
  to
• 0:29
  customers
• 0:29
  via
• 0:29
  truck
• 0:30
  delivery.
• 0:31
  By
• 0:31
  shipping
• 0:31
  directly
• 0:32
  from
• 0:32
  production
• 0:32
  sites,
• 0:33
  Target
• 0:33
  can
• 0:33
  offer
• 0:34
  lower
• 0:34
  prices
• 0:34
  and
• 0:35
  potentially
• 0:35
  increase
• 0:36
  market
• 0:36
  share
• 0:36
  among
• 0:37
  discounters.
• 0:38
  The
• 0:38
  X
• 0:38
  factor
• 0:39
  remains
• 0:39
  the
• 0:39
  US
• 0:40
  Government's
• 0:40
  move
• 0:41
  to
• 0:41
  close
• 0:41
  the
• 0:41
  so
• 0:41
  called
• 0:42
  de
• 0:42
  minimis
• 0:42
  exception,
• 0:43
  which
• 0:43
  for
• 0:44
  years
• 0:44
  allowed
• 0:44
  Shein
• 0:45
  and
• 0:45
  Temu
• 0:45
  to
• 0:45
  capture
• 0:46
  market
• 0:46
  share
• 0:46
  by
• 0:46
  shipping
• 0:47
  orders
• 0:47
  of
• 0:47
  less
• 0:47
  than
• 0:47
  $800
• 0:48
  to
• 0:48
  US
• 0:49
  customers
• 0:49
  duty
• 0:50
  free.
• 0:50
  The
• 0:51
  change
• 0:51
  has
• 0:51
  eroded
• 0:51
  performance
• 0:52
  at
• 0:52
  both
• 0:52
  companies
• 0:53
  and
• 0:53
  could
• 0:53
  also
• 0:54
  impact
• 0:54
  direct
• 0:54
  shipping
• 0:55
  efforts
• 0:55
  of
• 0:55
  Target
• 0:56
  and
• 0:56
  other
• 0:56
  retailers.
• 0:57
  Nevertheless,
• 0:58
  Chris,
• 0:58
  you
• 0:59
  have
• 0:59
  taken
• 0:59
  a
• 0:59
  few
• 0:59
  shots
• 1:00
  at
• 1:00
  Target
• 1:00
  on
• 1:00
  this
• 1:01
  podcast
• 1:01
  recently.
• 1:02
  So
• 1:02
  are
• 1:02
  you
• 1:02
  pro
• 1:03
  or
• 1:03
  con
• 1:04
  Target
• 1:04
  exploring
• 1:05
  this
• 1:05
  factory
• 1:05
  direct
• 1:06
  model?
• 1:07
  I
• 1:08
  I
• 1:08
  actually
• 1:08
  love
• 1:08
  this.
• 1:08
  I
• 1:09
  think
• 1:09
  it's
• 1:09
  a
• 1:09
  great
• 1:09
  defensive
• 1:10
  move
• 1:10
  as
• 1:11
  well
• 1:11
  as
• 1:11
  a
• 1:11
  great
• 1:11
  offensive
• 1:12
  move.
• 1:12
  Because
• 1:12
  you
• 1:13
  know,
• 1:13
  Target,
• 1:13
  to
• 1:13
  me,
• 1:14
  yeah,
• 1:14
  it's,
• 1:14
  I
• 1:14
  swear
• 1:15
  to
• 1:15
  God.
• 1:15
  And
• 1:15
  like
• 1:15
  I
• 1:15
  know
• 1:15
  it
• 1:16
  surprised
• 1:16
  me
• 1:16
  when
• 1:16
  I
• 1:16
  read
• 1:16
  it.
• 1:17
  Even
• 1:17
  with
• 1:17
  the,
• 1:18
  even
• 1:18
  with
• 1:18
  the
• 1:18
  like
• 1:18
  de
• 1:18
  minimis
• 1:19
  exceptions
• 1:20
  being
• 1:21
  reconsidered
• 1:22
  by
• 1:22
  the
• 1:22
  government.
• 1:23
  Yeah,
• 1:23
  I
• 1:24
  think
• 1:24
  that's,
• 1:24
  I
• 1:24
  think
• 1:24
  that's
• 1:25
  something
• 1:25
  we
• 1:25
  have
• 1:25
  to
• 1:25
  figure
• 1:25
  out.
• 1:25
  But
• 1:26
  I
• 1:26
  think
• 1:26
  that
• 1:26
  can
• 1:26
  be
• 1:26
  calibrated
• 1:27
  in
• 1:27
  terms
• 1:27
  of
• 1:27
  pricing
• 1:27
  and
• 1:28
  what
• 1:28
  the
• 1:28
  expectations
• 1:28
  are
• 1:29
  for
• 1:29
  the
• 1:29
  customer
• 1:29
  that
• 1:29
  you
• 1:29
  set
• 1:30
  over
• 1:30
  time
• 1:30
  too.
• 1:31
  And
• 1:31
  God
• 1:31
  knows
• 1:31
  where
• 1:31
  those
• 1:32
  things
• 1:32
  are
• 1:32
  going
• 1:32
  to
• 1:32
  fall
• 1:32
  out
• 1:32
  in
• 1:32
  the
• 1:33
  long
• 1:33
  run
• 1:33
  too.
• 1:33
  But
• 1:34
  you
• 1:34
  know,
• 1:34
  I
• 1:34
  love
• 1:34
  it
• 1:35
  because
• 1:35
  I
• 1:35
  think
• 1:36
  Target
• 1:37
  has
• 1:37
  the
• 1:37
  sourcing
• 1:38
  and
• 1:38
  brand
• 1:38
  credibility
• 1:39
  in
• 1:39
  the
• 1:39
  apparel
• 1:40
  and
• 1:40
  home
• 1:40
  space
• 1:41
  to
• 1:41
  do
• 1:41
  this
• 1:41
  better
• 1:41
  than
• 1:42
  anyone,
• 1:42
  to
• 1:42
  do
• 1:42
  it
• 1:42
  better
• 1:43
  than
• 1:43
  she
• 1:43
  and
• 1:43
  Timu,
• 1:44
  honestly.
• 1:44
  And
• 1:45
  they
• 1:45
  can
• 1:45
  do
• 1:45
  it
• 1:45
  in
• 1:45
  a
• 1:45
  way
• 1:46
  that
• 1:46
  keeps
• 1:46
  the
• 1:46
  price
• 1:47
  value
• 1:47
  relationship
• 1:48
  strong
• 1:48
  in
• 1:49
  the
• 1:49
  minds
• 1:49
  of
• 1:49
  their
• 1:49
  consumers.
• 1:50
  In
• 1:51
  fact,
• 1:51
  and
• 1:51
  I
• 1:51
  you
• 1:52
  might
• 1:52
  not
• 1:52
  remember
• 1:52
  this,
• 1:53
  I
• 1:53
  don't
• 1:53
  even
• 1:53
  remember
• 1:53
  how
• 1:53
  long
• 1:53
  ago
• 1:54
  it
• 1:54
  was,
• 1:54
  but
• 1:54
  I
• 1:55
  mentioned
• 1:55
  on
• 1:55
  a
• 1:55
  previous
• 1:56
  podcast
• 1:56
  how
• 1:57
  the
• 1:57
  president
• 1:57
  of
• 1:57
  Target
• 1:58
  Sourcing
• 1:58
  Services
• 1:59
  and
• 2:00
  I,
• 2:00
  Tim
• 2:00
  Mantel
• 2:01
  was
• 2:01
  his
• 2:01
  name
• 2:01
  at
• 2:01
  the
• 2:01
  time.
• 2:02
  Back
• 2:02
  in
• 2:02
  2008,
• 2:03
  in
• 2:03
  2013,
• 2:04
  we
• 2:04
  hypothesized
• 2:05
  about
• 2:05
  doing
• 2:06
  this
• 2:06
  with
• 2:06
  rugs
• 2:07
  direct
• 2:07
  from
• 2:07
  factory.
• 2:08
  And
• 2:09
  the
• 2:09
  reason,
• 2:09
  and
• 2:09
  the
• 2:10
  reason
• 2:10
  I
• 2:10
  love
• 2:10
  it
• 2:10
  is
• 2:11
  because
• 2:11
  for
• 2:11
  the
• 2:12
  categories
• 2:12
  for
• 2:12
  which
• 2:12
  Target
• 2:13
  is
• 2:13
  known,
• 2:13
  particularly
• 2:14
  home
• 2:14
  and
• 2:14
  apparel,
• 2:15
  it
• 2:15
  provides
• 2:16
  the
• 2:16
  opportunity
• 2:17
  to
• 2:17
  never
• 2:17
  be
• 2:17
  out
• 2:18
  of
• 2:18
  stage
• 2:18
  stock
• 2:18
  online.
• 2:19
  That's
• 2:19
  what
• 2:19
  I
• 2:19
  like
• 2:19
  about
• 2:20
  this
• 2:20
  and
• 2:20
  that's
• 2:20
  a
• 2:20
  mental
• 2:21
  flip
• 2:21
  that
• 2:21
  I
• 2:21
  would
• 2:21
  recommend
• 2:22
  everyone
• 2:22
  listening
• 2:22
  to
• 2:23
  this
• 2:23
  podcast
• 2:24
  do
• 2:24
  in
• 2:24
  assessing
• 2:25
  this
• 2:25
  headline.
• 2:25
  Think
• 2:26
  about
• 2:26
  what
• 2:26
  that
• 2:26
  means
• 2:27
  if
• 2:27
  you
• 2:27
  could
• 2:27
  set
• 2:27
  up
• 2:27
  your
• 2:28
  sourcing
• 2:28
  structure
• 2:28
  to
• 2:29
  go
• 2:29
  direct
• 2:29
  from
• 2:29
  factory
• 2:30
  to
• 2:30
  never
• 2:30
  be
• 2:31
  out
• 2:31
  of
• 2:31
  stock
• 2:31
  online.
• 2:32
  Sure,
• 2:32
  you
• 2:32
  have
• 2:32
  to
• 2:33
  communicate
• 2:33
  the
• 2:33
  expectations
• 2:34
  and
• 2:34
  the
• 2:34
  cost
• 2:35
  of
• 2:35
  the
• 2:35
  consumer,
• 2:35
  but
• 2:36
  that's
• 2:36
  a
• 2:36
  really
• 2:36
  advantageous
• 2:37
  position
• 2:37
  to
• 2:37
  put
• 2:38
  yourselves
• 2:38
  in.
• 2:38
  And
• 2:39
  Target
• 2:39
  has
• 2:39
  the
• 2:39
  reputation
• 2:40
  to
• 2:40
  do
• 2:40
  that
• 2:40
  better
• 2:40
  than
• 2:41
  anyone
• 2:41
  in
• 2:41
  home
• 2:41
  and
• 2:41
  apparel.
• 2:43
  So
• 2:43
  that's
• 2:43
  what
• 2:43
  I
• 2:44
  like
• 2:44
  about
• 2:44
  this.
• 2:45
  That's
• 2:45
  the
• 2:45
  customer
• 2:45
  value,
• 2:46
  there's
• 2:46
  growth
• 2:46
  that
• 2:47
  growth
• 2:47
  that
• 2:47
  can
• 2:47
  come
• 2:48
  from
• 2:48
  this
• 2:48
  and
• 2:49
  minimally.
• 2:49
  I
• 2:49
  think
• 2:49
  the
• 2:50
  other
• 2:50
  point
• 2:50
  about
• 2:50
  this
• 2:50
  I
• 2:50
  mentioned
• 2:51
  at
• 2:51
  the
• 2:51
  outset,
• 2:52
  it
• 2:52
  stems
• 2:52
  the
• 2:52
  slow
• 2:53
  breed
• 2:53
  from
• 2:53
  Temu
• 2:54
  and
• 2:54
  Shein
• 2:54
  and
• 2:55
  also
• 2:55
  it
• 2:55
  helps
• 2:56
  your
• 2:56
  product
• 2:56
  development
• 2:56
  too
• 2:57
  because
• 2:57
  you're
• 2:57
  going
• 2:57
  to
• 2:57
  get
• 2:57
  faster
• 2:58
  and
• 2:58
  sharper
• 2:58
  on
• 2:59
  the
• 2:59
  small
• 2:59
  batch
• 3:00
  production
• 3:00
  runs.
• 3:00
  You
• 3:00
  can
• 3:01
  run
• 3:01
  through
• 3:01
  this
• 3:01
  as
• 3:01
  well
• 3:02
  before
• 3:02
  you
• 3:02
  place
• 3:03
  the
• 3:03
  bigger
• 3:03
  bets
• 3:03
  on
• 3:03
  your
• 3:04
  assortment,
• 3:04
  which
• 3:04
  are
• 3:05
  quite,
• 3:06
  very
• 3:06
  substantial
• 3:06
  bets
• 3:07
  that
• 3:07
  you
• 3:07
  have
• 3:07
  to
• 3:07
  get
• 3:08
  right
• 3:08
  when
• 3:08
  you're
• 3:08
  deploying
• 3:09
  that
• 3:09
  amount
• 3:09
  of
• 3:10
  product
• 3:10
  into
• 3:10
  a
• 3:10
  store.
• 3:11
  So
• 3:11
  that's
• 3:11
  my
• 3:11
  take.
• 3:11
  What
• 3:11
  do
• 3:12
  you
• 3:12
  think?
• 3:12
  Do
• 3:12
  you
• 3:12
  like
• 3:12
  it
• 3:12
  just
• 3:12
  as
• 3:13
  much?
• 3:14
  I
• 3:14
  don't
• 3:14
  know.
• 3:15
  You're
• 3:15
  not
• 3:15
  as
• 3:15
  big
• 3:15
  on
• 3:16
  it.
• 3:16
  Wow.
• 3:16
  I'm
• 3:16
  not.
• 3:17
  Because
• 3:17
  I
• 3:18
  think
• 3:18
  that
• 3:18
  we're,
• 3:19
  I
• 3:19
  think
• 3:19
  we're,
• 3:20
  you're
• 3:20
  looking
• 3:20
  at
• 3:21
  target
• 3:22
  back
• 3:22
  in
• 3:23
  2013.
• 3:23
  I,
• 3:24
  I
• 3:24
  would,
• 3:24
  I
• 3:25
  would
• 3:25
  challenge
• 3:25
  whether
• 3:26
  or
• 3:26
  not
• 3:26
  Target
• 3:27
  still
• 3:27
  has
• 3:29
  the,
• 3:29
  the
• 3:30
  credibility
• 3:31
  in
• 3:31
  these
• 3:31
  categories
• 3:32
  that
• 3:33
  they
• 3:34
  did
• 3:34
  back
• 3:34
  then.
• 3:35
  I
• 3:35
  think
• 3:35
  that,
• 3:36
  you
• 3:36
  know,
• 3:36
  we
• 3:36
  mentioned,
• 3:37
  we
• 3:37
  talked
• 3:38
  to,
• 3:39
  we
• 3:39
  talked
• 3:39
  to
• 3:39
  Ethan
• 3:40
  Chernofsky
• 3:40
  recently.
• 3:42
  This
• 3:42
  morning
• 3:42
  we
• 3:42
  were
• 3:42
  recording
• 3:43
  about
• 3:43
  like,
• 3:43
  you
• 3:43
  know,
• 3:44
  what,
• 3:44
  what,
• 3:44
  what
• 3:45
  should
• 3:45
  retailers
• 3:45
  be
• 3:45
  thinking
• 3:46
  about
• 3:46
  doing?
• 3:46
  And
• 3:46
  I,
• 3:47
  I
• 3:47
  think
• 3:47
  Target
• 3:48
  still
• 3:48
  has
• 3:49
  this
• 3:49
  challenge
• 3:50
  of
• 3:50
  really
• 3:50
  getting
• 3:50
  back
• 3:51
  to
• 3:52
  putting
• 3:52
  a
• 3:52
  flag
• 3:52
  in
• 3:53
  the
• 3:53
  sand
• 3:53
  and
• 3:53
  really
• 3:54
  standing
• 3:54
  for
• 3:54
  something
• 3:55
  and
• 3:55
  their
• 3:55
  perspective
• 3:56
  on
• 3:56
  product
• 3:56
  and
• 3:57
  especially
• 3:58
  in
• 3:59
  home
• 3:59
  categories
• 4:00
  that
• 4:00
  they
• 4:00
  were
• 4:00
  really
• 4:00
  big
• 4:01
  in.
• 4:01
  Because
• 4:01
  I
• 4:01
  think
• 4:01
  you
• 4:01
  look
• 4:02
  at
• 4:02
  the
• 4:02
  com.
• 4:02
  The
• 4:02
  competition,
• 4:03
  Chris,
• 4:04
  you
• 4:04
  look
• 4:04
  at
• 4:04
  temu,
• 4:05
  you
• 4:05
  look
• 4:05
  at
• 4:05
  she,
• 4:05
  and
• 4:06
  you
• 4:06
  look
• 4:06
  at
• 4:06
  Walmart.
• 4:06
  You
• 4:06
  look
• 4:07
  at
• 4:07
  Wayfair,
• 4:07
  like
• 4:08
  they're
• 4:08
  doing
• 4:09
  a
• 4:09
  really
• 4:10
  great
• 4:10
  job
• 4:11
  right
• 4:11
  now
• 4:11
  of
• 4:11
  providing
• 4:13
  product
• 4:13
  that
• 4:13
  is
• 4:14
  unique,
• 4:14
  that
• 4:15
  has
• 4:15
  a
• 4:15
  point
• 4:15
  of
• 4:16
  view
• 4:16
  that
• 4:16
  isn't
• 4:16
  just
• 4:16
  like
• 4:17
  run
• 4:17
  of
• 4:17
  the
• 4:17
  mill.
• 4:18
  We're
• 4:18
  trying,
• 4:18
  even
• 4:18
  Amazon,
• 4:19
  like
• 4:19
  we're
• 4:19
  trying
• 4:20
  to
• 4:20
  just
• 4:20
  replicate
• 4:21
  it
• 4:21
  and
• 4:21
  make
• 4:21
  it
• 4:21
  as
• 4:21
  big
• 4:22
  and
• 4:22
  bold
• 4:22
  as
• 4:22
  we
• 4:22
  can.
• 4:23
  I
• 4:23
  think
• 4:24
  you're
• 4:24
  seeing
• 4:26
  more
• 4:26
  competition
• 4:26
  in
• 4:27
  this
• 4:27
  space
• 4:27
  and
• 4:27
  I
• 4:28
  worry
• 4:28
  that
• 4:28
  Target
• 4:29
  going
• 4:29
  this
• 4:29
  route
• 4:30
  now
• 4:30
  is
• 4:30
  a
• 4:31
  little,
• 4:31
  is
• 4:31
  too
• 4:32
  little
• 4:32
  too
• 4:32
  late
• 4:33
  and
• 4:34
  you're
• 4:34
  going
• 4:34
  to
• 4:34
  like,
• 4:35
  you're,
• 4:35
  you're
• 4:35
  now
• 4:36
  competing
• 4:36
  on
• 4:36
  price
• 4:37
  and
• 4:37
  I
• 4:37
  don't
• 4:37
  think
• 4:38
  that's
• 4:38
  something
• 4:38
  that
• 4:38
  Target's
• 4:39
  going
• 4:39
  to
• 4:39
  win
• 4:39
  on
• 4:40
  when
• 4:40
  it
• 4:41
  comes
• 4:41
  to
• 4:41
  these
• 4:41
  products,
• 4:42
  I
• 4:42
  think
• 4:42
  Walmart,
• 4:43
  Amazon
• 4:44
  can
• 4:44
  offer
• 4:45
  a
• 4:45
  better
• 4:45
  price
• 4:46
  point
• 4:46
  and
• 4:47
  comparable
• 4:47
  product.
• 4:48
  And
• 4:48
  so
• 4:48
  that's
• 4:48
  what
• 4:48
  I
• 4:49
  worry
• 4:49
  about
• 4:49
  here.
• 4:49
  Like,
• 4:50
  I
• 4:50
  think
• 4:50
  it's
• 4:50
  a
• 4:50
  good
• 4:50
  move
• 4:51
  from
• 4:51
  Target
• 4:52
  to
• 4:52
  get
• 4:52
  into
• 4:53
  this
• 4:53
  and
• 4:53
  do
• 4:53
  this,
• 4:53
  but
• 4:54
  I
• 4:54
  question
• 4:55
  whether
• 4:55
  or
• 4:55
  not
• 4:55
  they're
• 4:56
  in
• 4:56
  a
• 4:56
  position
• 4:56
  to
• 4:57
  win
• 4:57
  when
• 4:57
  you
• 4:57
  start
• 4:58
  putting
• 4:58
  them
• 4:59
  in
• 4:59
  a
• 4:59
  price
• 4:59
  race
• 5:00
  for
• 5:00
  product
• 5:01
  against
• 5:01
  Amazon
• 5:02
  and
• 5:02
  Walmart.
• 5:03
  Wow.
• 5:03
  I'm
• 5:03
  blown
• 5:03
  away.
• 5:04
  Okay,
• 5:04
  so
• 5:04
  hold
• 5:04
  on
• 5:04
  a
• 5:04
  sec.
• 5:05
  So
• 5:05
  you're
• 5:05
  basically
• 5:05
  saying
• 5:06
  that
• 5:06
  you
• 5:06
  don't
• 5:07
  think
• 5:07
  Target
• 5:07
  has
• 5:07
  the
• 5:08
  brand
• 5:08
  reputation
• 5:09
  anymore
• 5:09
  in
• 5:09
  home
• 5:10
  and
• 5:10
  apparel.
• 5:11
  The
• 5:11
  Target
• 5:12
  reputation,
• 5:12
  the
• 5:12
  design
• 5:13
  for
• 5:13
  all
• 5:13
  reputation,
• 5:14
  the
• 5:14
  brand
• 5:15
  ethos
• 5:15
  of
• 5:15
  expect
• 5:16
  more,
• 5:16
  pay
• 5:16
  less
• 5:17
  to
• 5:17
  be
• 5:17
  able
• 5:17
  to
• 5:17
  pull
• 5:18
  this
• 5:18
  off.
• 5:18
  That's
• 5:18
  what
• 5:18
  you're
• 5:19
  saying.
• 5:19
  I,
• 5:20
  I
• 5:20
  don't
• 5:20
  know.
• 5:20
  I
• 5:21
  really
• 5:21
  think
• 5:22
  it's
• 5:22
  a
• 5:22
  question
• 5:23
  in
• 5:23
  your
• 5:23
  head,
• 5:23
  right?
• 5:24
  It's
• 5:24
  a
• 5:24
  question
• 5:24
  in
• 5:24
  my
• 5:25
  head
• 5:25
  that
• 5:25
  is
• 5:26
  going
• 5:26
  to.
• 5:27
  Is
• 5:27
  this,
• 5:27
  is
• 5:27
  this
• 5:28
  a
• 5:28
  moat
• 5:28
  that
• 5:28
  I'd
• 5:29
  be
• 5:29
  working
• 5:29
  on?
• 5:29
  I
• 5:30
  mean,
• 5:30
  if
• 5:30
  it
• 5:30
  were
• 5:30
  me,
• 5:31
  I
• 5:31
  think
• 5:31
  I'd
• 5:31
  be
• 5:31
  putting
• 5:32
  more
• 5:32
  of
• 5:32
  my
• 5:32
  resources
• 5:33
  towards
• 5:33
  building
• 5:33
  up
• 5:34
  the
• 5:34
  marketplace
• 5:34
  so
• 5:35
  that
• 5:35
  they're
• 5:35
  showing
• 5:35
  up
• 5:36
  in
• 5:36
  more
• 5:36
  places.
• 5:36
  Oh,
• 5:37
  100%.
• 5:37
  I'd
• 5:37
  be
• 5:37
  doing
• 5:38
  that
• 5:38
  too.
• 5:38
  Yeah.
• 5:38
  It's
• 5:39
  not
• 5:39
  an
• 5:39
  either
• 5:39
  or
• 5:39
  question.
• 5:40
  Not
• 5:40
  that
• 5:40
  it's
• 5:40
  an
• 5:40
  either
• 5:40
  or,
• 5:41
  but
• 5:41
  I
• 5:41
  think
• 5:41
  that's
• 5:42
  where
• 5:42
  I
• 5:42
  would
• 5:42
  be
• 5:42
  levering
• 5:43
  up
• 5:43
  is
• 5:43
  like,
• 5:44
  okay,
• 5:44
  the
• 5:45
  real
• 5:45
  point
• 5:45
  of
• 5:46
  differentiation
• 5:47
  or
• 5:47
  if
• 5:47
  I
• 5:47
  really
• 5:47
  want
• 5:48
  to
• 5:48
  continue
• 5:48
  to
• 5:48
  get
• 5:48
  consumers
• 5:49
  into
• 5:49
  my
• 5:50
  store,
• 5:50
  I'm
• 5:50
  working
• 5:50
  on
• 5:51
  not
• 5:51
  having,
• 5:52
  you
• 5:52
  know,
• 5:52
  1100
• 5:53
  items
• 5:54
  in
• 5:54
  my
• 5:54
  marketplace.
• 5:55
  It's
• 5:55
  really
• 5:55
  building
• 5:56
  this
• 5:56
  out.
• 5:57
  Right.
• 5:57
  And
• 5:57
  using
• 5:58
  my
• 5:58
  creative
• 5:59
  like
• 6:00
  that,
• 6:00
  that
• 6:00
  magic
• 6:01
  that
• 6:01
  used
• 6:01
  to
• 6:02
  be
• 6:02
  there
• 6:02
  for
• 6:02
  Target
• 6:03
  and
• 6:03
  really
• 6:03
  applying
• 6:04
  that
• 6:04
  to
• 6:04
  the
• 6:04
  products
• 6:05
  that,
• 6:05
  that,
• 6:05
  that
• 6:06
  you
• 6:06
  are
• 6:06
  even
• 6:06
  talking
• 6:06
  about.
• 6:07
  Like,
• 6:07
  how
• 6:07
  do
• 6:07
  I.
• 6:07
  Why
• 6:07
  do
• 6:07
  I
• 6:08
  go
• 6:08
  to
• 6:08
  Target?
• 6:08
  I
• 6:09
  go
• 6:09
  to
• 6:09
  Target
• 6:09
  because
• 6:10
  they're
• 6:10
  bringing
• 6:10
  design
• 6:11
  to
• 6:11
  the
• 6:11
  masses.
• 6:12
  They're
• 6:12
  really
• 6:12
  like,
• 6:13
  edging
• 6:14
  and
• 6:14
  putting
• 6:14
  a,
• 6:15
  like
• 6:15
  putting
• 6:16
  their
• 6:16
  place,
• 6:16
  their
• 6:16
  Target
• 6:17
  into
• 6:18
  design.
• 6:19
  And
• 6:19
  I
• 6:19
  feel
• 6:19
  like
• 6:20
  right
• 6:20
  now
• 6:21
  this
• 6:21
  just
• 6:21
  feels
• 6:22
  like
• 6:22
  a
• 6:22
  total
• 6:22
  move
• 6:23
  towards,
• 6:23
  like,
• 6:24
  how
• 6:24
  do
• 6:24
  we
• 6:24
  just
• 6:25
  stay
• 6:25
  competitive,
• 6:26
  not
• 6:26
  focused
• 6:26
  on
• 6:26
  how
• 6:27
  are
• 6:27
  we
• 6:27
  differentiating
• 6:28
  and
• 6:28
  being
• 6:28
  that
• 6:28
  Target
• 6:29
  that
• 6:29
  we
• 6:29
  used
• 6:29
  to
• 6:30
  be.
• 6:30
  Right.
• 6:31
  And
• 6:31
  let
• 6:31
  me
• 6:31
  be
• 6:31
  clear
• 6:31
  too.
• 6:31
  I
• 6:32
  100
• 6:32
  agree
• 6:32
  with
• 6:32
  you
• 6:32
  on
• 6:33
  the
• 6:33
  marketplace.
• 6:33
  In
• 6:33
  fact,
• 6:33
  like,
• 6:33
  I'd
• 6:34
  be
• 6:34
  hitting
• 6:34
  the
• 6:34
  gas
• 6:34
  pedal
• 6:35
  to
• 6:35
  the
• 6:35
  metal
• 6:36
  on
• 6:36
  the
• 6:36
  marketplace.
• 6:37
  And
• 6:37
  I
• 6:37
  think
• 6:37
  this
• 6:37
  is
• 6:37
  more
• 6:37
  of
• 6:38
  a
• 6:38
  slow
• 6:38
  grow.
• 6:38
  But
• 6:39
  the
• 6:39
  important
• 6:39
  point
• 6:39
  here
• 6:39
  that
• 6:40
  I
• 6:40
  want
• 6:40
  to
• 6:40
  make
• 6:40
  sure
• 6:40
  is,
• 6:40
  is
• 6:41
  you
• 6:41
  have
• 6:41
  a
• 6:41
  question
• 6:42
  about
• 6:42
  whether.
• 6:42
  So
• 6:42
  do
• 6:42
  you
• 6:43
  think
• 6:43
  they
• 6:43
  can
• 6:43
  get
• 6:43
  it
• 6:43
  back?
• 6:44
  Do
• 6:44
  you
• 6:44
  think
• 6:44
  they
• 6:44
  can
• 6:45
  get
• 6:45
  their
• 6:45
  brand
• 6:45
  cache
• 6:46
  back?
• 6:46
  Or
• 6:47
  do
• 6:47
  you
• 6:47
  think,
• 6:47
  are
• 6:47
  you
• 6:47
  worried
• 6:48
  that
• 6:48
  it's
• 6:48
  gone?
• 6:49
  Because.
• 6:49
  No,
• 6:49
  like,
• 6:50
  I
• 6:50
  would
• 6:50
  think
• 6:50
  I
• 6:50
  would.
• 6:50
  Think
• 6:50
  with
• 6:51
  a
• 6:51
  merchandising
• 6:51
  regime
• 6:52
  change
• 6:52
  or
• 6:52
  something,
• 6:52
  you
• 6:53
  could
• 6:53
  get
• 6:53
  somebody
• 6:54
  in
• 6:54
  there
• 6:54
  that,
• 6:54
  you
• 6:55
  know,
• 6:55
  understands
• 6:56
  what
• 6:56
  this
• 6:56
  brand
• 6:56
  is
• 6:56
  about
• 6:56
  and
• 6:57
  get
• 6:57
  it
• 6:57
  back.
• 6:58
  But,
• 6:58
  you
• 6:59
  know,
• 6:59
  do
• 6:59
  you
• 6:59
  think
• 6:59
  the
• 6:59
  same.
• 7:00
  Are
• 7:00
  you
• 7:00
  hopeful?
• 7:00
  I
• 7:01
  mean,
• 7:01
  what.
• 7:01
  Yes,
• 7:01
  absolutely.
• 7:02
  I
• 7:02
  absolutely
• 7:03
  think
• 7:03
  they
• 7:03
  can
• 7:03
  get
• 7:03
  it
• 7:04
  back.
• 7:04
  I
• 7:04
  think
• 7:04
  that
• 7:05
  the,
• 7:05
  that
• 7:06
  crazy
• 7:06
  you're
• 7:06
  saying
• 7:07
  this,
• 7:07
  this,
• 7:08
  this
• 7:09
  leadership
• 7:10
  at
• 7:10
  Target
• 7:10
  right
• 7:10
  now,
• 7:11
  I
• 7:11
  think
• 7:11
  is.
• 7:11
  Has
• 7:12
  become
• 7:12
  so
• 7:13
  focused
• 7:13
  post
• 7:14
  pandemic
• 7:14
  on,
• 7:15
  oh,
• 7:15
  my
• 7:15
  God,
• 7:15
  we
• 7:16
  got
• 7:16
  to
• 7:16
  compete,
• 7:16
  we
• 7:16
  got
• 7:16
  to
• 7:17
  keep
• 7:17
  that,
• 7:17
  that,
• 7:17
  you
• 7:18
  know,
• 7:18
  momentum
• 7:19
  going
• 7:19
  that
• 7:19
  we
• 7:19
  saw
• 7:19
  during
• 7:20
  the
• 7:20
  pandemic
• 7:20
  and
• 7:21
  that
• 7:21
  the
• 7:21
  focus
• 7:21
  has
• 7:22
  shifted
• 7:22
  from
• 7:23
  being
• 7:23
  uniquely
• 7:24
  Target
• 7:24
  to
• 7:25
  trying
• 7:25
  to
• 7:25
  compete
• 7:26
  with
• 7:26
  our
• 7:26
  competitors.
• 7:27
  And
• 7:27
  I
• 7:28
  think
• 7:28
  that
• 7:28
  in
• 7:29
  order
• 7:29
  for
• 7:29
  Target
• 7:29
  to
• 7:30
  turn
• 7:30
  around,
• 7:30
  they
• 7:31
  are
• 7:31
  going
• 7:31
  to
• 7:31
  have
• 7:31
  to
• 7:32
  focus
• 7:32
  on
• 7:32
  being
• 7:32
  uniquely
• 7:33
  Target
• 7:33
  again
• 7:34
  and
• 7:34
  prioritizing
• 7:36
  what
• 7:36
  that
• 7:36
  means
• 7:37
  as
• 7:37
  a
• 7:37
  culture
• 7:38
  at
• 7:38
  Target,
• 7:38
  as
• 7:39
  a.
• 7:39
  And
• 7:39
  I
• 7:39
  didn't
• 7:39
  mean
• 7:40
  for
• 7:40
  this
• 7:40
  to
• 7:40
  be
• 7:40
  like
• 7:41
  the
• 7:41
  Target
• 7:41
  turnaround
• 7:42
  story
• 7:42
  by
• 7:42
  any
• 7:43
  means,
• 7:43
  but.
• 7:43
  No,
• 7:44
  it's
• 7:44
  going
• 7:44
  there.
• 7:45
  But
• 7:46
  yeah,
• 7:46
  I
• 7:46
  think,
• 7:46
  I
• 7:47
  think
• 7:47
  that's
• 7:47
  what
• 7:47
  really
• 7:49
  where
• 7:49
  Target
• 7:49
  has
• 7:50
  to
• 7:50
  go
• 7:50
  in
• 7:50
  order
• 7:51
  to
• 7:51
  kind
• 7:52
  of
• 7:52
  come
• 7:52
  back
• 7:52
  and
• 7:53
  see
• 7:53
  this
• 7:53
  turnaround.
• 7:54
  And
• 7:54
  I
• 7:54
  don't
• 7:55
  know
• 7:55
  that
• 7:55
  that's
• 7:55
  happening
• 7:57
  with
• 7:57
  things
• 7:58
  staying
• 7:58
  the
• 7:58
  way
• 7:58
  that
• 7:58
  they
• 7:59
  are
• 7:59
  and
• 7:59
  with,
• 8:00
  you
• 8:00
  know,
• 8:00
  these
• 8:00
  types
• 8:01
  of
• 8:01
  investments
• 8:01
  being
• 8:02
  as
• 8:02
  heavily
• 8:02
  focused
• 8:03
  on
• 8:03
  as
• 8:03
  they
• 8:03
  are.
• 8:04
  Yeah,
• 8:05
  that's,
• 8:05
  that's
• 8:05
  actually
• 8:05
  why
• 8:05
  I
• 8:05
  like.
• 8:06
  That's
• 8:06
  kind
• 8:06
  of
• 8:06
  why
• 8:06
  I
• 8:06
  like
• 8:06
  the
• 8:07
  move,
• 8:07
  too,
• 8:07
  because
• 8:07
  I
• 8:07
  think
• 8:08
  it
• 8:08
  actually,
• 8:08
  if
• 8:08
  you
• 8:08
  had
• 8:09
  good
• 8:09
  merch,
• 8:09
  if
• 8:09
  you
• 8:09
  had
• 8:10
  the
• 8:10
  merchandising
• 8:11
  turned
• 8:11
  around
• 8:11
  and
• 8:12
  you
• 8:12
  got
• 8:12
  the
• 8:12
  brand
• 8:12
  back,
• 8:13
  I
• 8:13
  think
• 8:13
  it
• 8:13
  actually
• 8:13
  gives
• 8:13
  you
• 8:14
  a
• 8:14
  bullet
• 8:14
  in
• 8:14
  the
• 8:14
  chamber
• 8:15
  to
• 8:15
  absolutely
• 8:16
  what
• 8:16
  Target
• 8:17
  is
• 8:17
  about
• 8:17
  even
• 8:18
  more.
• 8:18
  And
• 8:19
  a
• 8:19
  lot
• 8:19
  of
• 8:19
  people
• 8:19
  online
• 8:19
  were,
• 8:20
  you
• 8:20
  know,
• 8:20
  kind
• 8:20
  of
• 8:20
  coming
• 8:21
  at
• 8:21
  me
• 8:21
  saying,
• 8:21
  like,
• 8:21
  I
• 8:21
  think
• 8:21
  they
• 8:22
  need
• 8:22
  to
• 8:22
  invest
• 8:22
  in
• 8:22
  stores
• 8:23
  and
• 8:23
  100.
• 8:24
  They
• 8:24
  need
• 8:24
  to
• 8:24
  get
• 8:24
  their
• 8:24
  store
• 8:25
  experience
• 8:25
  right,
• 8:25
  too.
• 8:26
  But
• 8:26
  I
• 8:26
  think
• 8:26
  you've
• 8:26
  got
• 8:26
  to,
• 8:27
  you
• 8:27
  got
• 8:27
  to
• 8:27
  position
• 8:27
  the
• 8:28
  bets,
• 8:28
  and
• 8:28
  this
• 8:28
  is
• 8:28
  one
• 8:29
  in
• 8:29
  the
• 8:29
  portfolio
• 8:29
  of
• 8:30
  bet
• 8:30
  and
• 8:30
  capital
• 8:31
  that
• 8:31
  I
• 8:31
  think
• 8:31
  actually
• 8:32
  makes
• 8:32
  a
• 8:32
  ton
• 8:32
  of
• 8:32
  sense.
• 8:33
  But.
• 8:33
  Wow,
• 8:33
  I
• 8:33
  did
• 8:33
  not
• 8:34
  expect
• 8:34
  you
• 8:35
  to
• 8:35
  say
• 8:35
  that
• 8:36
  and
• 8:36
  that
• 8:36
  that's
• 8:37
  a
• 8:37
  big
• 8:37
  shot
• 8:37
  call
• 8:37
  right
• 8:38
  there.
• 8:38
  I
• 8:38
  mean,
• 8:38
  you
• 8:38
  know,
• 8:38
  a
• 8:39
  big
• 8:39
  shot
• 8:39
  fired
• 8:39
  actually,
• 8:40
  you
• 8:40
  know,
• 8:40
  in
• 8:40
  terms
• 8:40
  of
• 8:40
  where
• 8:40
  Target's
• 8:41
  brand
• 8:41
  stands
• 8:41
  right
• 8:41
  now.