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Amazon & Saks: Luxury Retail's Most Asinine Partnership? · Omni Talk Retail

• 0:00
  Amazon
• 0:00
  and
• 0:00
  Saks
• 0:01
  Fifth
• 0:01
  Avenue
• 0:01
  have
• 0:02
  launched
• 0:02
  a
• 0:03
  luxury
• 0:04
  e
• 0:04
  commerce
• 0:04
  storefront.
• 0:05
  According
• 0:06
  to
• 0:06
  Retail
• 0:06
  Dive,
• 0:07
  the
• 0:07
  new
• 0:07
  shopping
• 0:07
  section
• 0:07
  is
• 0:08
  called
• 0:08
  Luxury
• 0:08
  Stores
• 0:09
  at
• 0:09
  Amazon.
• 0:10
  It
• 0:10
  features
• 0:10
  a
• 0:10
  selection
• 0:11
  of
• 0:11
  merchandise
• 0:11
  curated
• 0:12
  by
• 0:12
  Saks
• 0:12
  Fifth
• 0:12
  Avenue,
• 0:13
  including
• 0:13
  women's
• 0:14
  and
• 0:14
  men's
• 0:14
  ready
• 0:14
  to
• 0:14
  wear
• 0:15
  beauty,
• 0:15
  shoes,
• 0:16
  handbags
• 0:17
  and
• 0:17
  accessories.
• 0:18
  Merchandise
• 0:19
  is
• 0:19
  available
• 0:20
  through
• 0:20
  Amazon's
• 0:21
  app
• 0:21
  and
• 0:22
  website.
• 0:22
  The
• 0:23
  launch
• 0:23
  is
• 0:23
  accompanied
• 0:23
  by
• 0:24
  specially
• 0:25
  designed
• 0:25
  digital
• 0:25
  displays
• 0:26
  inspired
• 0:26
  by
• 0:26
  the
• 0:27
  windows
• 0:27
  of
• 0:27
  Saks
• 0:27
  Fifth
• 0:28
  Avenue's
• 0:28
  New
• 0:28
  York
• 0:29
  flagship.
• 0:29
  And.
• 0:29
  And
• 0:29
  the
• 0:30
  online
• 0:30
  storefront
• 0:30
  is
• 0:31
  also
• 0:31
  being
• 0:31
  promoted
• 0:32
  via
• 0:32
  a
• 0:32
  window
• 0:33
  installation
• 0:34
  at
• 0:34
  the
• 0:34
  Saks
• 0:34
  Fifth
• 0:34
  Avenue
• 0:35
  New
• 0:35
  York
• 0:35
  flagship
• 0:36
  store.
• 0:37
  Ben,
• 0:37
  we're
• 0:37
  going
• 0:37
  to
• 0:37
  go
• 0:38
  to
• 0:38
  you
• 0:38
  first.
• 0:38
  Our
• 0:39
  guest
• 0:40
  today.
• 0:40
  Did
• 0:41
  Saks
• 0:41
  just
• 0:41
  signal
• 0:42
  its
• 0:42
  ultimate
• 0:42
  demise
• 0:43
  with
• 0:43
  the
• 0:44
  new
• 0:44
  Amazon
• 0:44
  partnership
• 0:45
  or
• 0:45
  do
• 0:45
  you
• 0:45
  think
• 0:45
  the
• 0:46
  partnership
• 0:46
  is
• 0:46
  the
• 0:46
  right
• 0:47
  move
• 0:47
  to
• 0:47
  make?
• 0:48
  Thank
• 0:49
  you.
• 0:49
  I
• 0:49
  think
• 0:50
  there's
• 0:51
  two
• 0:51
  perspectives
• 0:51
  on
• 0:51
  this.
• 0:52
  There
• 0:52
  is
• 0:52
  the
• 0:53
  Amazon
• 0:53
  perspective
• 0:53
  and
• 0:54
  the
• 0:54
  Sacks
• 0:54
  perspective.
• 0:55
  Yeah.
• 0:56
  So
• 0:57
  let's
• 0:57
  do
• 0:57
  Amazon
• 0:58
  first.
• 1:00
  Okay.
• 1:00
  So
• 1:01
  who
• 1:01
  wouldn't
• 1:01
  want
• 1:01
  luxury
• 1:02
  consumers
• 1:02
  on
• 1:02
  the
• 1:02
  platform?
• 1:04
  High
• 1:04
  spenders,
• 1:05
  high
• 1:05
  net
• 1:05
  value,
• 1:06
  high
• 1:06
  margin
• 1:07
  goods.
• 1:07
  And
• 1:08
  it's
• 1:08
  something
• 1:08
  that
• 1:08
  Amazon
• 1:09
  has
• 1:09
  been
• 1:09
  trying
• 1:09
  to
• 1:09
  do
• 1:09
  for
• 1:09
  a
• 1:10
  while.
• 1:11
  They've
• 1:11
  had
• 1:11
  these
• 1:11
  kind
• 1:11
  of
• 1:11
  luxury
• 1:12
  stores
• 1:13
  since
• 1:13
  about
• 1:13
  2020
• 1:14
  and
• 1:15
  there's
• 1:15
  been
• 1:15
  really
• 1:15
  limited
• 1:16
  traction
• 1:17
  to
• 1:17
  this.
• 1:17
  And
• 1:19
  somebody
• 1:19
  said
• 1:20
  to
• 1:20
  me
• 1:20
  the
• 1:20
  other
• 1:20
  day,
• 1:20
  which
• 1:21
  really
• 1:21
  resonated.
• 1:22
  They
• 1:22
  were
• 1:22
  talking
• 1:23
  about
• 1:23
  luxury
• 1:23
  retail
• 1:24
  and
• 1:24
  they
• 1:24
  said
• 1:24
  to
• 1:24
  me,
• 1:24
  luxury
• 1:25
  retail
• 1:25
  is
• 1:26
  the
• 1:26
  game
• 1:26
  of
• 1:26
  making
• 1:27
  people
• 1:28
  want
• 1:28
  things
• 1:28
  they
• 1:29
  really
• 1:29
  don't
• 1:29
  need.
• 1:31
  Which
• 1:31
  I
• 1:31
  thought
• 1:31
  was
• 1:32
  great.
• 1:32
  And
• 1:32
  that's
• 1:33
  absolutely
• 1:34
  not
• 1:34
  what
• 1:34
  Amazon
• 1:34
  is
• 1:34
  designed
• 1:35
  for.
• 1:36
  That's
• 1:36
  the
• 1:36
  antithesis
• 1:37
  of
• 1:38
  Amazon.
• 1:38
  So
• 1:39
  there's
• 1:39
  always
• 1:39
  been
• 1:39
  a
• 1:40
  mismatch.
• 1:40
  So
• 1:40
  for
• 1:40
  Amazon
• 1:41
  bringing
• 1:42
  the
• 1:42
  Saks
• 1:42
  brand
• 1:43
  onto
• 1:43
  the
• 1:43
  platform
• 1:44
  and
• 1:45
  crucially
• 1:45
  getting
• 1:45
  access
• 1:46
  to
• 1:46
  their
• 1:46
  supplier
• 1:47
  relations,
• 1:49
  that's
• 1:50
  a
• 1:50
  win.
• 1:51
  And
• 1:51
  that
• 1:51
  win
• 1:52
  for
• 1:52
  them
• 1:52
  is
• 1:52
  probably
• 1:53
  what
• 1:53
  led
• 1:53
  them
• 1:54
  to
• 1:54
  invest
• 1:54
  in
• 1:54
  this
• 1:55
  new
• 1:55
  Sax
• 1:55
  Global
• 1:56
  formation
• 1:57
  last
• 1:57
  summer.
• 1:57
  And
• 1:58
  ever
• 1:58
  since
• 1:58
  they
• 1:58
  did
• 1:59
  that,
• 1:59
  this
• 1:59
  move
• 2:00
  has
• 2:00
  felt
• 2:00
  pretty
• 2:01
  inevitable.
• 2:01
  So,
• 2:03
  and
• 2:03
  that
• 2:04
  I
• 2:04
  think
• 2:04
  that
• 2:04
  context
• 2:04
  is
• 2:05
  really
• 2:05
  important
• 2:05
  because
• 2:05
  Amazon,
• 2:06
  along
• 2:06
  with
• 2:07
  Salesforce
• 2:07
  and
• 2:08
  Authentic
• 2:08
  Brands
• 2:09
  Group,
• 2:09
  helped
• 2:09
  finance
• 2:11
  Sax,
• 2:11
  the
• 2:12
  acquisition
• 2:12
  of
• 2:12
  Neiman
• 2:13
  Marcus.
• 2:13
  So
• 2:13
  they
• 2:13
  helped
• 2:14
  finance
• 2:15
  the
• 2:15
  creation
• 2:15
  of
• 2:15
  Saks
• 2:16
  Global.
• 2:17
  And
• 2:17
  I
• 2:17
  think
• 2:17
  that's
• 2:18
  the
• 2:18
  rub.
• 2:19
  Yeah,
• 2:20
  really,
• 2:20
  if
• 2:20
  you
• 2:20
  start
• 2:20
  going
• 2:21
  from
• 2:21
  the
• 2:21
  Saks
• 2:21
  perspective,
• 2:22
  there's
• 2:22
  been
• 2:22
  so
• 2:23
  much
• 2:23
  coverage
• 2:23
  about
• 2:23
  this
• 2:24
  acquisition,
• 2:24
  we
• 2:25
  could,
• 2:25
  I'm
• 2:25
  sure
• 2:25
  we
• 2:26
  could
• 2:26
  do
• 2:26
  a
• 2:26
  podcast
• 2:26
  series
• 2:26
  in
• 2:27
  its
• 2:27
  own
• 2:28
  right.
• 2:28
  But
• 2:28
  yeah,
• 2:29
  I
• 2:29
  think,
• 2:29
  I
• 2:30
  think
• 2:30
  everybody's
• 2:30
  aware
• 2:30
  it's
• 2:31
  not
• 2:31
  going
• 2:31
  very
• 2:31
  well.
• 2:32
  It's
• 2:32
  got
• 2:32
  a
• 2:33
  huge
• 2:33
  amount
• 2:33
  of
• 2:33
  debt.
• 2:34
  It's
• 2:34
  raised
• 2:35
  over
• 2:35
  2
• 2:36
  billion
• 2:36
  in
• 2:36
  junk
• 2:36
  bonds
• 2:37
  to
• 2:37
  finance
• 2:37
  the
• 2:37
  acquisition.
• 2:38
  He's
• 2:38
  got
• 2:38
  a
• 2:38
  really
• 2:39
  large
• 2:39
  debt
• 2:39
  repayment
• 2:40
  coming
• 2:40
  up
• 2:40
  soon.
• 2:41
  So
• 2:42
  Sachs
• 2:43
  has
• 2:43
  To
• 2:43
  find
• 2:43
  the
• 2:43
  cash
• 2:44
  flow
• 2:44
  to
• 2:44
  be
• 2:44
  able
• 2:44
  to
• 2:44
  make
• 2:44
  that
• 2:45
  payment.
• 2:47
  And
• 2:47
  he's
• 2:47
  got
• 2:47
  to
• 2:47
  keep
• 2:48
  Amazon,
• 2:48
  one
• 2:48
  of
• 2:48
  his
• 2:48
  big
• 2:49
  investors
• 2:49
  on
• 2:49
  side.
• 2:50
  And
• 2:51
  I
• 2:51
  think
• 2:51
  when
• 2:51
  you
• 2:51
  strip
• 2:51
  it
• 2:52
  all
• 2:52
  back,
• 2:52
  I
• 2:52
  think
• 2:53
  that's
• 2:53
  what's
• 2:53
  driving
• 2:54
  this
• 2:54
  activity
• 2:55
  above
• 2:56
  anything
• 2:56
  else.
• 2:57
  Interesting.
• 2:58
  So
• 2:59
  you,
• 2:59
  so
• 3:00
  you
• 3:00
  think
• 3:00
  there's
• 3:01
  no
• 3:01
  value?
• 3:02
  If
• 3:02
  I'm
• 3:02
  reading
• 3:03
  between
• 3:03
  the
• 3:03
  lines,
• 3:03
  you
• 3:03
  don't
• 3:03
  think
• 3:04
  there's
• 3:04
  value
• 3:04
  from
• 3:04
  a
• 3:04
  consumer
• 3:05
  perspective.
• 3:05
  You
• 3:05
  just
• 3:06
  think
• 3:06
  you,
• 3:06
  you
• 3:06
  think
• 3:07
  that
• 3:07
  it's,
• 3:07
  they're
• 3:07
  not
• 3:07
  going
• 3:07
  to
• 3:08
  be
• 3:08
  going
• 3:08
  to
• 3:08
  Amazon
• 3:08
  for
• 3:09
  luxury.
• 3:09
  That's,
• 3:09
  that's
• 3:10
  just,
• 3:10
  this
• 3:11
  is
• 3:11
  a,
• 3:11
  this
• 3:11
  is
• 3:11
  a
• 3:12
  move
• 3:12
  to
• 3:12
  pacify
• 3:13
  investors
• 3:14
  not
• 3:14
  so
• 3:14
  much
• 3:15
  or
• 3:15
  keep
• 3:16
  the
• 3:16
  peace
• 3:16
  not
• 3:16
  so
• 3:17
  much
• 3:17
  for
• 3:18
  the
• 3:18
  consumer.
• 3:19
  I
• 3:19
  think
• 3:19
  the
• 3:19
  rationale
• 3:20
  is
• 3:20
  really
• 3:20
  strong
• 3:21
  for
• 3:21
  why
• 3:21
  Amazon
• 3:22
  would
• 3:22
  want
• 3:22
  to
• 3:22
  try
• 3:22
  and
• 3:23
  make
• 3:23
  this
• 3:23
  happen.
• 3:24
  I
• 3:24
  think
• 3:24
  it's
• 3:26
  really
• 3:26
  challenging
• 3:26
  to
• 3:27
  see
• 3:27
  why
• 3:27
  from
• 3:28
  a
• 3:28
  Sax
• 3:28
  perspective.
• 3:29
  Yeah,
• 3:29
  yeah,
• 3:30
  that
• 3:30
  makes
• 3:30
  sense.
• 3:30
  Chris,
• 3:30
  where
• 3:31
  do
• 3:31
  you
• 3:31
  land
• 3:31
  on
• 3:31
  this?
• 3:31
  What
• 3:32
  are
• 3:32
  your
• 3:32
  thoughts?
• 3:32
  Yeah,
• 3:32
  I
• 3:33
  mean
• 3:33
  a
• 3:33
  couple
• 3:33
  thoughts.
• 3:33
  On
• 3:34
  what,
• 3:34
  on
• 3:34
  what
• 3:34
  Ben's,
• 3:35
  what
• 3:35
  Ben
• 3:35
  said
• 3:36
  and
• 3:36
  then
• 3:36
  kind
• 3:36
  of
• 3:36
  add
• 3:36
  my
• 3:36
  own
• 3:36
  twist
• 3:37
  to
• 3:37
  it
• 3:37
  too.
• 3:37
  I
• 3:37
  think,
• 3:37
  you
• 3:37
  know,
• 3:38
  for
• 3:39
  Amazon
• 3:39
  it's
• 3:39
  kind
• 3:39
  of
• 3:39
  a
• 3:39
  no
• 3:39
  brainer
• 3:40
  in
• 3:40
  a
• 3:40
  way.
• 3:40
  But
• 3:41
  I
• 3:41
  would
• 3:41
  caution
• 3:41
  the
• 3:42
  idea
• 3:42
  of
• 3:42
  Amazon
• 3:43
  being
• 3:43
  able
• 3:43
  to
• 3:43
  get
• 3:44
  all
• 3:44
  the
• 3:44
  brands
• 3:45
  under
• 3:45
  the
• 3:45
  Saks
• 3:46
  umbrella
• 3:46
  onto
• 3:46
  the
• 3:47
  platform
• 3:47
  because
• 3:47
  the
• 3:47
  brands
• 3:48
  still
• 3:48
  have
• 3:48
  to
• 3:48
  give
• 3:48
  permission
• 3:49
  to
• 3:49
  sell.
• 3:49
  And
• 3:49
  I
• 3:50
  lived
• 3:50
  through
• 3:50
  that
• 3:50
  at
• 3:50
  Target
• 3:51
  when
• 3:51
  we,
• 3:51
  we
• 3:51
  acquired
• 3:52
  some
• 3:52
  high
• 3:52
  end
• 3:52
  cooking
• 3:53
  online
• 3:53
  websites
• 3:54
  with
• 3:54
  the
• 3:54
  idea
• 3:54
  or
• 3:54
  the
• 3:55
  premise
• 3:55
  that
• 3:55
  we
• 3:55
  would
• 3:56
  get
• 3:56
  access
• 3:56
  to
• 3:56
  their
• 3:56
  brands,
• 3:57
  which
• 3:57
  turned
• 3:57
  out
• 3:57
  not
• 3:58
  to
• 3:58
  be
• 3:58
  true.
• 3:59
  We
• 3:59
  saw
• 3:59
  the
• 3:59
  same
• 3:59
  thing
• 4:00
  with
• 4:00
  Moosejaw
• 4:00
  and
• 4:01
  Walmart,
• 4:01
  the
• 4:01
  kerfuffle
• 4:02
  that
• 4:02
  they
• 4:02
  had
• 4:02
  trying
• 4:03
  to
• 4:03
  do
• 4:03
  the
• 4:03
  same
• 4:03
  thing.
• 4:03
  It
• 4:04
  just
• 4:04
  doesn't
• 4:04
  happen
• 4:05
  that
• 4:05
  way
• 4:05
  as
• 4:05
  much
• 4:05
  as
• 4:06
  people
• 4:06
  want
• 4:06
  to
• 4:06
  think
• 4:06
  that
• 4:07
  it
• 4:07
  does.
• 4:08
  So
• 4:08
  but
• 4:08
  you
• 4:08
  know,
• 4:08
  for
• 4:09
  Amazon.
• 4:09
  So
• 4:09
  like
• 4:09
  let's
• 4:10
  try
• 4:10
  it.
• 4:10
  But
• 4:10
  the
• 4:10
  other
• 4:10
  point
• 4:10
  I
• 4:10
  would
• 4:11
  make
• 4:11
  on
• 4:11
  the
• 4:11
  sacks
• 4:12
  side
• 4:12
  for
• 4:12
  on
• 4:12
  the
• 4:12
  investor
• 4:13
  side,
• 4:13
  this
• 4:13
  move,
• 4:14
  I
• 4:14
  mean
• 4:14
  this
• 4:14
  thing
• 4:14
  is
• 4:15
  just
• 4:15
  silly.
• 4:15
  I
• 4:15
  mean
• 4:15
  to
• 4:15
  me
• 4:16
  it's
• 4:16
  like
• 4:16
  signals
• 4:16
  the
• 4:17
  death
• 4:17
  knell
• 4:17
  of
• 4:17
  eventually
• 4:18
  sacks.
• 4:18
  Because
• 4:19
  the
• 4:19
  most
• 4:20
  ridiculous
• 4:20
  part
• 4:20
  of
• 4:20
  the
• 4:21
  announcement
• 4:21
  to
• 4:21
  me
• 4:22
  is
• 4:22
  is
• 4:22
  that
• 4:22
  someone
• 4:22
  at
• 4:23
  Saks
• 4:23
  actually
• 4:23
  thinks
• 4:24
  it
• 4:24
  makes
• 4:24
  sense
• 4:25
  to
• 4:25
  use
• 4:25
  the
• 4:26
  windows
• 4:26
  along
• 4:27
  fifth
• 4:27
  Avenue
• 4:28
  to
• 4:28
  advertise
• 4:29
  this.
• 4:29
  It's
• 4:29
  like
• 4:29
  don't
• 4:30
  come
• 4:30
  into
• 4:30
  our
• 4:30
  store.
• 4:31
  Everyone
• 4:31
  walking
• 4:32
  by
• 4:32
  on
• 4:32
  the
• 4:32
  greatest
• 4:33
  shopping
• 4:33
  street
• 4:34
  in
• 4:34
  America.
• 4:35
  You
• 4:35
  know,
• 4:35
  you
• 4:36
  could
• 4:36
  just
• 4:36
  go
• 4:36
  to
• 4:36
  get
• 4:36
  the
• 4:37
  goods
• 4:37
  on
• 4:37
  Amazon.
• 4:37
  I
• 4:38
  mean
• 4:38
  that
• 4:38
  is
• 4:38
  just
• 4:39
  absolutely
• 4:40
  asinine
• 4:41
  when
• 4:41
  I
• 4:41
  say
• 4:41
  that
• 4:41
  out
• 4:42
  loud.
• 4:42
  I
• 4:42
  mean
• 4:42
  you
• 4:42
  guys
• 4:43
  have
• 4:43
  to
• 4:43
  agree
• 4:43
  with
• 4:43
  that.
• 4:43
  I
• 4:44
  think
• 4:44
  so.
• 4:44
  I
• 4:44
  don't
• 4:44
  know.
• 4:44
  I
• 4:45
  mean
• 4:45
  I.
• 4:45
  Driving
• 4:45
  awareness,
• 4:46
  right?
• 4:46
  Like
• 4:46
  it's,
• 4:47
  it's
• 4:47
  awareness
• 4:48
  to
• 4:48
  consumers
• 4:48
  that
• 4:49
  you
• 4:49
  could
• 4:49
  that
• 4:49
  now
• 4:50
  they
• 4:50
  are
• 4:50
  the.
• 4:51
  Awareness
• 4:51
  of
• 4:51
  the
• 4:51
  death
• 4:52
  of
• 4:52
  your
• 4:52
  business
• 4:52
  model.
• 4:53
  Like
• 4:53
  if
• 4:53
  people
• 4:53
  start
• 4:53
  to
• 4:54
  do,
• 4:54
  do
• 4:54
  that
• 4:54
  your,
• 4:54
  your
• 4:55
  stores
• 4:55
  are
• 4:55
  going
• 4:55
  to
• 4:55
  become
• 4:55
  obsoleted
• 4:56
  that
• 4:57
  quickly.
• 4:57
  And
• 4:57
  so
• 4:57
  it
• 4:57
  just
• 4:57
  goes
• 4:58
  back
• 4:58
  to
• 4:58
  my
• 4:58
  point
• 4:58
  again
• 4:59
  of
• 4:59
  barring
• 5:00
  a
• 5:00
  few
• 5:00
  exceptions,
• 5:01
  department
• 5:01
  stores
• 5:02
  are
• 5:02
  the
• 5:02
  21st
• 5:03
  century
• 5:03
  retail
• 5:03
  equivalent
• 5:04
  of
• 5:04
  the
• 5:04
  horse
• 5:04
  and
• 5:04
  buggy.
• 5:05
  They're
• 5:05
  going
• 5:05
  away
• 5:06
  and
• 5:06
  this
• 5:06
  is
• 5:06
  just
• 5:06
  a
• 5:06
  further
• 5:07
  example
• 5:07
  of
• 5:07
  it.
• 5:07
  And
• 5:08
  man,
• 5:08
  I
• 5:08
  think
• 5:09
  the
• 5:09
  proof's
• 5:09
  in
• 5:09
  the
• 5:09
  pudding.
• 5:10
  I
• 5:10
  think
• 5:10
  that's
• 5:10
  a
• 5:11
  really
• 5:11
  interesting
• 5:11
  point
• 5:12
  around
• 5:12
  the
• 5:13
  department
• 5:13
  store
• 5:14
  model.
• 5:14
  And
• 5:15
  I
• 5:15
  think
• 5:15
  the
• 5:15
  exception
• 5:16
  to
• 5:16
  that
• 5:16
  is
• 5:16
  the
• 5:17
  success
• 5:17
  that
• 5:17
  Nordstrom's
• 5:18
  having.
• 5:19
  And
• 5:20
  Right.
• 5:20
  Not
• 5:20
  Nordstrom
• 5:21
  is
• 5:21
  having
• 5:21
  because
• 5:22
  it
• 5:22
  recognizes
• 5:23
  that
• 5:24
  at
• 5:24
  the
• 5:25
  moment
• 5:25
  to
• 5:25
  sell
• 5:26
  luxury
• 5:27
  you
• 5:27
  need
• 5:28
  experience,
• 5:29
  you
• 5:30
  need
• 5:30
  personal
• 5:30
  selling.
• 5:31
  You
• 5:31
  know,
• 5:32
  there
• 5:32
  is,
• 5:33
  I
• 5:33
  think
• 5:33
  there's
• 5:34
  lots
• 5:34
  of
• 5:34
  stories
• 5:34
  about
• 5:34
  the
• 5:35
  number
• 5:35
  one
• 5:35
  personal
• 5:36
  seller
• 5:36
  in
• 5:36
  the
• 5:37
  Neiman
• 5:37
  Marcus
• 5:37
  estate
• 5:38
  having
• 5:38
  moved
• 5:38
  to
• 5:39
  Nordstrom
• 5:40
  and
• 5:40
  taken
• 5:41
  her
• 5:42
  account
• 5:42
  book
• 5:42
  with
• 5:43
  her
• 5:44
  and
• 5:44
  she's
• 5:44
  turning
• 5:44
  over
• 5:45
  the
• 5:45
  equivalent
• 5:45
  of
• 5:45
  a,
• 5:46
  of
• 5:46
  a
• 5:46
  department
• 5:47
  store
• 5:47
  on
• 5:47
  a,
• 5:47
  on
• 5:47
  her
• 5:47
  own
• 5:48
  through
• 5:48
  personal
• 5:48
  selling.
• 5:49
  So
• 5:49
  there
• 5:49
  is
• 5:49
  this
• 5:50
  ultra
• 5:50
  high
• 5:50
  end
• 5:51
  market
• 5:51
  whereby
• 5:52
  a
• 5:52
  physical
• 5:52
  environment
• 5:53
  of
• 5:53
  departments
• 5:54
  of
• 5:54
  curated
• 5:54
  products
• 5:55
  really
• 5:56
  resonates.
• 5:56
  Now
• 5:57
  as
• 5:59
  the
• 5:59
  economies
• 6:00
  contract,
• 6:01
  you
• 6:02
  know,
• 6:02
  where
• 6:03
  is
• 6:03
  price
• 6:03
  and
• 6:04
  convenience
• 6:04
  going
• 6:05
  to
• 6:05
  become
• 6:05
  more
• 6:05
  compelling
• 6:06
  to
• 6:06
  consumers
• 6:06
  and
• 6:06
  more
• 6:07
  compelling
• 6:07
  for
• 6:07
  brands
• 6:07
  to
• 6:08
  get
• 6:08
  there?
• 6:09
  Possibly.
• 6:09
  Does
• 6:10
  luxury
• 6:10
  have
• 6:10
  a
• 6:11
  level
• 6:11
  of
• 6:13
  protection
• 6:13
  from
• 6:14
  that?
• 6:15
  Possibly.
• 6:15
  But
• 6:16
  I
• 6:16
  think
• 6:16
  there
• 6:16
  is
• 6:16
  still
• 6:16
  a
• 6:16
  role
• 6:17
  to
• 6:17
  play
• 6:17
  for
• 6:17
  that
• 6:17
  connection,
• 6:18
  that
• 6:18
  experience.
• 6:19
  You've
• 6:19
  just
• 6:19
  got
• 6:19
  to
• 6:19
  look
• 6:20
  at
• 6:20
  the
• 6:20
  buzz
• 6:20
  of
• 6:20
  the
• 6:20
  Printom
• 6:21
  store
• 6:21
  in
• 6:21
  New
• 6:22
  York,
• 6:22
  create
• 6:22
  experience
• 6:23
  and
• 6:23
  you
• 6:24
  and
• 6:24
  sell
• 6:24
  luxury.
• 6:25
  So
• 6:25
  I'm
• 6:25
  not,
• 6:25
  I'm
• 6:26
  not
• 6:26
  quite
• 6:26
  sure
• 6:26
  that
• 6:26
  the
• 6:26
  department
• 6:27
  store
• 6:27
  in
• 6:27
  luxury
• 6:28
  isn't
• 6:28
  the
• 6:28
  right
• 6:29
  thing
• 6:29
  to
• 6:29
  do.
• 6:30
  I'm
• 6:30
  not
• 6:30
  sure
• 6:30
  that
• 6:31
  Saxon
• 6:31
  necessarily
• 6:32
  taking
• 6:32
  the
• 6:32
  right
• 6:32
  route
• 6:32
  to
• 6:33
  unlock
• 6:33
  it.
• 6:33
  Yeah,
• 6:34
  right.
• 6:34
  You
• 6:34
  have
• 6:34
  to
• 6:34
  position
• 6:35
  it
• 6:35
  that
• 6:35
  way.
• 6:35
  That's
• 6:35
  why
• 6:36
  I
• 6:36
  said
• 6:36
  barring
• 6:36
  few
• 6:36
  exceptions
• 6:37
  for
• 6:37
  the
• 6:38
  most
• 6:38
  part
• 6:38
  it's
• 6:38
  going
• 6:39
  away.
• 6:39
  Just
• 6:40
  like
• 6:40
  there's
• 6:40
  still
• 6:40
  horse
• 6:40
  and
• 6:40
  buggies
• 6:41
  riding
• 6:41
  around
• 6:41
  Central
• 6:42
  park
• 6:42
  if
• 6:42
  you
• 6:42
  do
• 6:42
  it
• 6:43
  right.
• 6:43
  Right.
• 6:44
  You
• 6:44
  know,
• 6:44
  like
• 6:44
  you
• 6:44
  have
• 6:45
  to
• 6:45
  position
• 6:45
  the
• 6:45
  store
• 6:46
  experience
• 6:46
  in
• 6:47
  the
• 6:47
  right
• 6:47
  way.
• 6:47
  And
• 6:48
  this
• 6:48
  particularly
• 6:49
  putting
• 6:49
  the
• 6:50
  devoting
• 6:51
  your
• 6:51
  windows
• 6:51
  to
• 6:51
  selling
• 6:52
  on
• 6:52
  Amazon
• 6:52
  is
• 6:52
  not
• 6:53
  that.
• 6:53
  I
• 6:54
  don't
• 6:54
  know
• 6:54
  guys,
• 6:54
  I'm
• 6:55
  going
• 6:55
  to
• 6:55
  come
• 6:55
  in
• 6:55
  here
• 6:55
  with
• 6:55
  a
• 6:56
  different
• 6:56
  perspective.
• 6:58
  I
• 6:58
  think
• 6:58
  that
• 6:59
  on
• 6:59
  one
• 6:59
  hand
• 6:59
  I
• 7:00
  totally
• 7:00
  agree.
• 7:00
  Like
• 7:01
  the
• 7:01
  department
• 7:01
  store
• 7:02
  as
• 7:02
  we
• 7:02
  know
• 7:03
  needs
• 7:04
  to
• 7:04
  evolve
• 7:04
  or
• 7:04
  it's
• 7:05
  going
• 7:05
  to
• 7:05
  die.
• 7:05
  And
• 7:06
  does
• 7:06
  this
• 7:07
  Amazon
• 7:07
  connection
• 7:07
  dilute
• 7:08
  the
• 7:08
  Sam's,
• 7:09
  the
• 7:09
  Saks
• 7:10
  brand
• 7:10
  a
• 7:10
  little
• 7:10
  bit?
• 7:11
  Maybe.
• 7:11
  But
• 7:12
  I
• 7:12
  do
• 7:12
  think
• 7:12
  that
• 7:13
  there's
• 7:13
  an
• 7:13
  important
• 7:13
  thing
• 7:14
  to
• 7:14
  call
• 7:14
  out
• 7:14
  here
• 7:15
  and
• 7:15
  that
• 7:15
  is
• 7:15
  that
• 7:17
  we've
• 7:17
  said
• 7:17
  that
• 7:17
  it's
• 7:17
  okay
• 7:18
  for
• 7:18
  Walmart.com
• 7:19
  to
• 7:19
  sell
• 7:19
  luxury,
• 7:20
  but
• 7:20
  now
• 7:20
  we're
• 7:21
  saying
• 7:21
  it's
• 7:21
  not
• 7:21
  okay
• 7:21
  for
• 7:22
  Amazon.com
• 7:22
  to
• 7:23
  sell
• 7:23
  luxury.
• 7:23
  I
• 7:23
  think
• 7:23
  there's
• 7:24
  a
• 7:24
  major
• 7:24
  disconnect
• 7:25
  there
• 7:25
  because
• 7:26
  I
• 7:26
  think
• 7:26
  when
• 7:26
  you
• 7:27
  think
• 7:27
  about.
• 7:27
  How
• 7:28
  people
• 7:28
  are
• 7:28
  selling,
• 7:28
  that's
• 7:28
  a
• 7:29
  different
• 7:29
  question.
• 7:29
  But
• 7:29
  that's,
• 7:30
  that's
• 7:30
  from
• 7:30
  a
• 7:30
  different
• 7:30
  starting
• 7:31
  point
• 7:31
  and
• 7:31
  that's,
• 7:31
  that's
• 7:32
  Walmart
• 7:32
  selling
• 7:33
  luxury,
• 7:33
  having
• 7:33
  access
• 7:34
  to
• 7:34
  luxury.
• 7:34
  That's
• 7:35
  different
• 7:35
  than.
• 7:35
  That's
• 7:36
  to
• 7:36
  the
• 7:36
  point
• 7:36
  about
• 7:36
  Amazon.
• 7:37
  Yeah,
• 7:37
  it
• 7:37
  makes
• 7:37
  sense
• 7:37
  for
• 7:38
  Amazon,
• 7:39
  but
• 7:39
  you
• 7:39
  know,
• 7:39
  for
• 7:39
  the,
• 7:40
  for
• 7:40
  the
• 7:40
  point
• 7:40
  of
• 7:40
  Sachs,
• 7:41
  that's
• 7:42
  Saks
• 7:42
  going
• 7:43
  on.
• 7:43
  Amazon
• 7:43
  is
• 7:43
  different
• 7:44
  than
• 7:44
  the
• 7:44
  Walmart
• 7:45
  example.
• 7:45
  There's
• 7:45
  still
• 7:46
  a
• 7:46
  point
• 7:46
  of
• 7:46
  Saks
• 7:47
  going
• 7:47
  on
• 7:47
  this
• 7:48
  to
• 7:48
  keep
• 7:49
  their
• 7:49
  business
• 7:49
  model
• 7:50
  alive.
• 7:51
  The
• 7:51
  convenience
• 7:51
  stuff
• 7:52
  is,
• 7:52
  is
• 7:52
  number
• 7:53
  one
• 7:53
  here
• 7:53
  because
• 7:54
  if
• 7:54
  you
• 7:54
  still
• 7:54
  order
• 7:54
  something
• 7:55
  from
• 7:55
  Saks,
• 7:55
  from
• 7:56
  Nordstrom,
• 7:56
  from
• 7:57
  any
• 7:57
  of
• 7:57
  these
• 7:57
  retailers,
• 7:58
  the
• 7:58
  shipping
• 7:59
  take,
• 7:59
  you
• 7:59
  know,
• 8:00
  for
• 8:00
  me
• 8:00
  to
• 8:00
  cover
• 8:00
  shipping,
• 8:01
  even
• 8:01
  when
• 8:01
  I'm
• 8:02
  spending
• 8:02
  a
• 8:02
  certain
• 8:03
  amount
• 8:03
  of
• 8:03
  money
• 8:03
  to
• 8:03
  get
• 8:04
  free
• 8:04
  shipping,
• 8:04
  it
• 8:04
  still
• 8:05
  takes,
• 8:05
  I'm
• 8:05
  still
• 8:05
  waiting
• 8:06
  a
• 8:06
  week
• 8:06
  for
• 8:06
  an
• 8:07
  order
• 8:07
  from
• 8:07
  Nordstrom,
• 8:08
  for
• 8:08
  example.
• 8:09
  Now
• 8:09
  I
• 8:09
  can
• 8:09
  go
• 8:10
  on.
• 8:10
  If
• 8:10
  I'm
• 8:11
  a
• 8:11
  luxury
• 8:11
  shopper,
• 8:11
  I've
• 8:12
  already
• 8:12
  been
• 8:12
  in
• 8:12
  the
• 8:12
  store,
• 8:13
  I
• 8:13
  know
• 8:13
  what
• 8:13
  handbag
• 8:14
  I
• 8:14
  want.
• 8:14
  If
• 8:15
  I
• 8:15
  want
• 8:15
  that
• 8:15
  delivered
• 8:16
  to
• 8:16
  me
• 8:16
  or
• 8:16
  that
• 8:17
  dress
• 8:17
  delivered
• 8:18
  to
• 8:18
  me
• 8:18
  for
• 8:18
  an
• 8:18
  event
• 8:18
  the
• 8:19
  next
• 8:19
  day,
• 8:19
  and
• 8:20
  I
• 8:20
  already
• 8:20
  have
• 8:20
  all
• 8:21
  of
• 8:21
  my
• 8:21
  Amazon
• 8:21
  information
• 8:22
  there
• 8:22
  and
• 8:22
  I
• 8:22
  can
• 8:23
  get
• 8:23
  it
• 8:23
  in
• 8:23
  one
• 8:23
  day,
• 8:24
  I
• 8:24
  think
• 8:24
  there's
• 8:24
  value
• 8:25
  to
• 8:25
  that.
• 8:26
  And
• 8:26
  that's
• 8:26
  not
• 8:27
  something
• 8:27
  that
• 8:27
  with
• 8:27
  the
• 8:27
  current
• 8:28
  SAX
• 8:28
  model
• 8:29
  they're
• 8:29
  able
• 8:29
  to
• 8:29
  deliver
• 8:30
  on.
• 8:30
  Second,
• 8:31
  I
• 8:31
  think
• 8:31
  when
• 8:32
  it
• 8:32
  does
• 8:32
  come
• 8:32
  to
• 8:33
  searching
• 8:33
  for
• 8:33
  something,
• 8:34
  like
• 8:35
  yesterday,
• 8:35
  I'm
• 8:35
  looking
• 8:36
  for
• 8:36
  basic
• 8:36
  black
• 8:37
  T
• 8:37
  shirts,
• 8:37
  but
• 8:37
  I
• 8:38
  want
• 8:38
  a
• 8:38
  high
• 8:38
  quality
• 8:39
  black
• 8:39
  T
• 8:39
  shirt.
• 8:39
  When
• 8:40
  you
• 8:40
  start
• 8:40
  to
• 8:40
  think
• 8:40
  about
• 8:40
  things
• 8:41
  like
• 8:41
  Rufus,
• 8:41
  that
• 8:42
  Amazon's
• 8:42
  deployed
• 8:43
  where
• 8:43
  I
• 8:43
  can
• 8:43
  have
• 8:43
  an
• 8:43
  engaging
• 8:44
  conversation
• 8:45
  with
• 8:45
  somebody.
• 8:45
  So
• 8:46
  the
• 8:46
  new
• 8:46
  version,
• 8:47
  the,
• 8:47
  the
• 8:48
  like
• 8:48
  now
• 8:48
  version
• 8:49
  of
• 8:49
  what
• 8:49
  that
• 8:50
  sales
• 8:50
  associate
• 8:50
  was
• 8:50
  able
• 8:51
  to
• 8:51
  help
• 8:51
  me
• 8:51
  with
• 8:51
  online
• 8:52
  in
• 8:53
  a
• 8:53
  store,
• 8:53
  when
• 8:54
  you
• 8:54
  think
• 8:54
  about
• 8:54
  how
• 8:54
  that's
• 8:54
  happening
• 8:55
  on
• 8:55
  Amazon
• 8:55
  and
• 8:56
  now
• 8:56
  I
• 8:56
  can
• 8:56
  be
• 8:56
  served
• 8:57
  up
• 8:57
  not
• 8:57
  just
• 8:57
  Amazon
• 8:58
  essentials
• 8:58
  T
• 8:59
  shirts,
• 8:59
  but
• 8:59
  I
• 9:00
  can
• 9:00
  also
• 9:00
  say,
• 9:00
  you
• 9:01
  know,
• 9:01
  Rufus,
• 9:01
  I
• 9:01
  want
• 9:01
  something
• 9:02
  that's
• 9:02
  a
• 9:02
  little
• 9:02
  bit
• 9:02
  more
• 9:02
  high
• 9:03
  quality
• 9:03
  and
• 9:03
  maybe
• 9:04
  I'm
• 9:04
  getting
• 9:05
  a
• 9:05
  James
• 9:05
  Purse
• 9:06
  T
• 9:06
  shirt
• 9:06
  that
• 9:06
  I
• 9:06
  would
• 9:07
  only
• 9:07
  be
• 9:07
  able
• 9:07
  to
• 9:07
  get
• 9:08
  if
• 9:08
  Saks
• 9:09
  is
• 9:09
  on
• 9:09
  the
• 9:09
  Amazon
• 9:10
  platform.
• 9:10
  So
• 9:10
  I
• 9:11
  do
• 9:11
  think
• 9:11
  that
• 9:11
  there's
• 9:12
  value
• 9:12
  and
• 9:13
  this
• 9:13
  is
• 9:13
  Saks
• 9:14
  and
• 9:14
  Amazon
• 9:15
  kind
• 9:15
  of
• 9:15
  evolving
• 9:16
  together
• 9:16
  into
• 9:17
  the
• 9:17
  new
• 9:18
  definition
• 9:18
  of
• 9:18
  selling
• 9:19
  luxury.
• 9:19
  Wow,
• 9:20
  we're
• 9:20
  starting
• 9:20
  off
• 9:20
  hot
• 9:21
  today.
• 9:21
  So
• 9:21
  shots
• 9:22
  fired
• 9:22
  there.
• 9:22
  But
• 9:23
  okay,
• 9:23
  I'm
• 9:23
  going
• 9:23
  to
• 9:23
  refute
• 9:23
  the
• 9:24
  point
• 9:24
  on
• 9:24
  two
• 9:24
  things.
• 9:24
  The
• 9:24
  first
• 9:25
  part
• 9:25
  of
• 9:25
  that,
• 9:25
  just
• 9:25
  use
• 9:26
  by
• 9:26
  with
• 9:26
  Prime.
• 9:26
  Then
• 9:27
  why
• 9:27
  do
• 9:27
  you
• 9:27
  have
• 9:27
  to
• 9:27
  do
• 9:27
  all
• 9:27
  this?
• 9:28
  Like
• 9:28
  you
• 9:28
  could
• 9:28
  get
• 9:28
  all
• 9:28
  those
• 9:29
  shipping
• 9:29
  benefits
• 9:29
  just
• 9:29
  by
• 9:30
  linking
• 9:30
  up
• 9:30
  with
• 9:30
  buy
• 9:30
  with
• 9:30
  Prime.
• 9:31
  You
• 9:31
  could,
• 9:31
  but
• 9:31
  I
• 9:32
  think
• 9:32
  that
• 9:32
  assumes
• 9:32
  that
• 9:32
  people
• 9:33
  are
• 9:33
  going
• 9:33
  directly
• 9:33
  to
• 9:34
  Saks.com,
• 9:35
  which
• 9:35
  we
• 9:35
  know
• 9:35
  they
• 9:35
  aren't
• 9:36
  going
• 9:36
  to
• 9:37
  as
• 9:37
  frequently
• 9:38
  and
• 9:38
  they're
• 9:38
  going
• 9:38
  to
• 9:39
  Amazon.
• 9:40
  But
• 9:40
  that
• 9:40
  was
• 9:40
  the
• 9:40
  premise
• 9:41
  of
• 9:41
  what
• 9:41
  you
• 9:41
  said.
• 9:41
  Like
• 9:41
  they
• 9:42
  can't.
• 9:42
  They're
• 9:42
  shopping
• 9:42
  there
• 9:42
  and
• 9:43
  they're
• 9:43
  not
• 9:43
  confident
• 9:43
  in
• 9:43
  the
• 9:43
  delivery
• 9:44
  and
• 9:44
  the
• 9:44
  experience.
• 9:44
  So
• 9:45
  okay,
• 9:45
  then
• 9:45
  get
• 9:45
  confidence
• 9:46
  in
• 9:46
  the
• 9:46
  delivery
• 9:46
  experience
• 9:46
  by
• 9:46
  leaning
• 9:47
  on
• 9:47
  with
• 9:47
  buyer
• 9:47
  Prime.
• 9:48
  But
• 9:48
  then
• 9:48
  the
• 9:48
  second
• 9:48
  point
• 9:49
  is
• 9:49
  you're
• 9:50
  thinking
• 9:50
  about
• 9:50
  this
• 9:50
  in
• 9:50
  isolation.
• 9:51
  You
• 9:51
  have
• 9:51
  to
• 9:51
  remember
• 9:51
  too
• 9:52
  that
• 9:52
  Amazon
• 9:52
  already
• 9:53
  has
• 9:54
  items
• 9:54
  available
• 9:55
  from
• 9:55
  these
• 9:55
  brands
• 9:56
  on
• 9:56
  their
• 9:56
  website.
• 9:56
  So
• 9:56
  this
• 9:57
  isn't
• 9:57
  changing
• 9:57
  the
• 9:57
  experience.
• 9:58
  Not
• 9:58
  all
• 9:58
  of
• 9:58
  the
• 9:58
  brands.
• 9:59
  Well,
• 10:00
  the,
• 10:00
  the
• 10:00
  brands.
• 10:01
  Anyone
• 10:01
  that
• 10:01
  wants
• 10:01
  to
• 10:02
  put
• 10:02
  a
• 10:02
  brand
• 10:02
  on
• 10:02
  the
• 10:02
  website
• 10:02
  as
• 10:03
  a
• 10:03
  third
• 10:03
  party
• 10:03
  seller
• 10:04
  can
• 10:04
  do
• 10:04
  that
• 10:04
  and
• 10:04
  that's
• 10:05
  been
• 10:05
  a
• 10:05
  problem
• 10:05
  on
• 10:05
  Amazon
• 10:06
  for
• 10:06
  years.
• 10:06
  So.
• 10:07
  So
• 10:07
  the
• 10:07
  search
• 10:08
  experience
• 10:08
  is
• 10:08
  not
• 10:08
  really
• 10:09
  going
• 10:09
  to
• 10:09
  be
• 10:09
  augmented
• 10:10
  by
• 10:10
  this
• 10:10
  in
• 10:10
  any
• 10:11
  way,
• 10:11
  shape
• 10:11
  or
• 10:11
  form
• 10:11
  as
• 10:12
  well.
• 10:12
  So.