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Amazon's Tariff Pricing Drama: Smart Retail Strategy or Pure Misstep? · Omni Talk Retail

• 0:00
  Amazon
• 0:00
  said
• 0:00
  Tuesday
• 0:01
  it
• 0:01
  considered
• 0:02
  displaying
• 0:03
  import
• 0:03
  charges
• 0:03
  on
• 0:04
  items
• 0:04
  sold
• 0:04
  via
• 0:05
  its
• 0:05
  site
• 0:06
  for
• 0:06
  ultra
• 0:06
  discount
• 0:07
  items,
• 0:07
  but
• 0:08
  that
• 0:08
  plan
• 0:09
  was
• 0:09
  apparently
• 0:10
  never
• 0:10
  approved
• 0:11
  and
• 0:12
  never
• 0:12
  going
• 0:12
  to
• 0:12
  happen
• 0:13
  as
• 0:13
  a
• 0:13
  direct
• 0:14
  quote
• 0:15
  from
• 0:15
  Amazon.
• 0:16
  According
• 0:16
  to
• 0:16
  cnbc,
• 0:17
  the
• 0:17
  move
• 0:17
  would
• 0:17
  have
• 0:17
  affected
• 0:18
  items
• 0:18
  sold
• 0:19
  on
• 0:19
  Amazon's
• 0:19
  haul,
• 0:20
  their
• 0:21
  answer
• 0:21
  to
• 0:21
  Chinese
• 0:22
  discount
• 0:22
  retailer
• 0:23
  Temu,
• 0:23
  which
• 0:24
  offers
• 0:24
  apparel,
• 0:24
  home
• 0:24
  goods
• 0:25
  and
• 0:25
  other
• 0:25
  Items
• 0:26
  priced
• 0:26
  at
• 0:26
  $20
• 0:27
  or
• 0:27
  less.
• 0:28
  Amazon
• 0:28
  weighed
• 0:29
  adding
• 0:29
  a
• 0:29
  separate
• 0:29
  line
• 0:30
  item
• 0:30
  to
• 0:30
  products
• 0:30
  on
• 0:31
  haul
• 0:31
  in
• 0:31
  response
• 0:32
  to
• 0:32
  Trump's
• 0:32
  removal
• 0:33
  of
• 0:33
  the
• 0:33
  de
• 0:33
  minimis
• 0:34
  trade
• 0:34
  loophole,
• 0:35
  according
• 0:35
  to
• 0:35
  a
• 0:35
  source
• 0:36
  familiar
• 0:36
  with
• 0:36
  the
• 0:36
  matter.
• 0:37
  The
• 0:37
  consideration
• 0:38
  apparently
• 0:38
  was
• 0:39
  not
• 0:39
  related
• 0:40
  to
• 0:40
  Trump's
• 0:40
  145%
• 0:42
  tariff
• 0:42
  on
• 0:42
  imports
• 0:43
  from
• 0:43
  China.
• 0:44
  Punchbowl
• 0:44
  News
• 0:45
  first
• 0:46
  time
• 0:46
  call
• 0:47
  out
• 0:47
  I
• 0:47
  think
• 0:47
  on
• 0:47
  the
• 0:48
  fast
• 0:48
  five,
• 0:48
  Chris.
• 0:48
  If
• 0:49
  not
• 0:49
  yes,
• 0:50
  I
• 0:50
  think
• 0:50
  it
• 0:50
  was.
• 0:50
  Too
• 0:51
  when
• 0:51
  I
• 0:51
  was
• 0:51
  right.
• 0:51
  Yes,
• 0:51
  yes.
• 0:53
  Reported
• 0:53
  earlier
• 0:54
  on
• 0:54
  Tuesday
• 0:54
  that
• 0:54
  Amazon
• 0:55
  would
• 0:56
  quote,
• 0:56
  soon
• 0:57
  begin
• 0:57
  displaying
• 0:58
  the
• 0:58
  cost
• 0:58
  of
• 0:58
  tariffs
• 0:59
  alongside
• 0:59
  the
• 0:59
  price
• 1:00
  of
• 1:00
  each
• 1:00
  product,
• 1:00
  citing
• 1:01
  a
• 1:01
  source
• 1:01
  familiar
• 1:02
  with
• 1:02
  the
• 1:02
  company's
• 1:03
  plans.
• 1:03
  The
• 1:04
  report
• 1:04
  drew
• 1:05
  the
• 1:05
  ire
• 1:05
  of
• 1:06
  the
• 1:06
  White
• 1:06
  House,
• 1:06
  which
• 1:07
  called
• 1:07
  Amazon's
• 1:08
  reported
• 1:09
  plans
• 1:09
  a
• 1:09
  quote,
• 1:10
  hostile
• 1:10
  and
• 1:10
  political
• 1:11
  act.
• 1:12
  Jeff,
• 1:13
  we're
• 1:13
  going
• 1:13
  to
• 1:13
  go
• 1:13
  to
• 1:13
  you
• 1:14
  on
• 1:14
  this
• 1:14
  hotly
• 1:15
  debated
• 1:16
  topic
• 1:16
  to
• 1:16
  kick
• 1:17
  us
• 1:17
  off
• 1:17
  here.
• 1:18
  All
• 1:18
  the
• 1:18
  Tuesday
• 1:18
  craziness
• 1:19
  notwithstanding,
• 1:21
  is
• 1:21
  the
• 1:21
  idea
• 1:22
  of
• 1:22
  Amazon
• 1:23
  potentially
• 1:23
  displaying
• 1:24
  costs
• 1:25
  of
• 1:25
  tariffs,
• 1:26
  even
• 1:26
  good
• 1:26
  retailing
• 1:27
  to
• 1:27
  begin
• 1:28
  with.
• 1:28
  The
• 1:28
  floor
• 1:29
  is
• 1:29
  yours.
• 1:31
  This
• 1:31
  is
• 1:31
  a
• 1:31
  good
• 1:31
  one.
• 1:32
  I'm
• 1:32
  not
• 1:33
  aligned
• 1:33
  with
• 1:33
  you
• 1:34
  on
• 1:34
  is
• 1:34
  this
• 1:34
  even
• 1:34
  actually
• 1:35
  really
• 1:35
  news
• 1:36
  by
• 1:36
  the
• 1:36
  time
• 1:37
  you
• 1:37
  get
• 1:37
  to
• 1:37
  lunchtime
• 1:37
  it's
• 1:38
  off
• 1:38
  the
• 1:38
  front
• 1:38
  page
• 1:38
  of
• 1:39
  the
• 1:39
  press,
• 1:40
  right?
• 1:42
  This
• 1:42
  is
• 1:42
  an
• 1:42
  interesting
• 1:43
  one.
• 1:43
  No,
• 1:43
  it's
• 1:43
  not
• 1:43
  good
• 1:43
  retailing,
• 1:44
  but
• 1:44
  I
• 1:45
  think
• 1:45
  you're
• 1:45
  going
• 1:45
  to
• 1:45
  see
• 1:45
  a
• 1:45
  number
• 1:46
  of
• 1:48
  strategies
• 1:49
  and
• 1:49
  approaches
• 1:49
  that
• 1:49
  are
• 1:49
  taken
• 1:50
  by
• 1:50
  retailers
• 1:51
  that
• 1:51
  are
• 1:51
  having
• 1:52
  to
• 1:52
  bear
• 1:53
  not
• 1:53
  insignificant
• 1:54
  amount
• 1:54
  of
• 1:55
  cost
• 1:55
  pressure
• 1:56
  that's
• 1:57
  inbound.
• 1:58
  Obviously
• 1:58
  would
• 1:58
  love
• 1:59
  to
• 1:59
  see
• 2:01
  Amazon
• 2:02
  and
• 2:02
  other
• 2:02
  larger
• 2:03
  retailers
• 2:03
  do
• 2:04
  something
• 2:04
  different
• 2:05
  than
• 2:07
  what
• 2:07
  I
• 2:07
  think
• 2:07
  is
• 2:07
  a
• 2:07
  pretty
• 2:08
  extreme
• 2:08
  measure
• 2:08
  that
• 2:09
  in
• 2:09
  my
• 2:10
  mind
• 2:10
  needs
• 2:10
  to
• 2:10
  protect
• 2:10
  local
• 2:11
  brands
• 2:11
  and
• 2:12
  some
• 2:12
  of
• 2:12
  the
• 2:12
  smaller
• 2:13
  private
• 2:14
  label
• 2:14
  type
• 2:14
  companies
• 2:15
  that
• 2:15
  are
• 2:16
  really
• 2:16
  going
• 2:16
  to
• 2:16
  have
• 2:16
  a
• 2:16
  hard
• 2:17
  time
• 2:17
  weathering
• 2:17
  the
• 2:18
  next
• 2:18
  six
• 2:18
  to
• 2:18
  12
• 2:19
  months
• 2:20
  and
• 2:20
  using
• 2:21
  that
• 2:21
  as
• 2:21
  a
• 2:22
  transparent
• 2:22
  pricing
• 2:23
  to
• 2:23
  have
• 2:23
  a
• 2:23
  more
• 2:24
  honest
• 2:24
  conversation
• 2:25
  with
• 2:25
  your
• 2:26
  customer
• 2:26
  and
• 2:26
  demographic
• 2:27
  and
• 2:27
  consumer
• 2:27
  base
• 2:28
  than
• 2:28
  what
• 2:29
  I
• 2:29
  think
• 2:29
  this
• 2:29
  was
• 2:30
  with
• 2:30
  a
• 2:30
  large
• 2:31
  retailer
• 2:32
  potentially
• 2:32
  making
• 2:33
  a
• 2:33
  political
• 2:33
  move
• 2:33
  or
• 2:34
  trying
• 2:34
  to
• 2:34
  get
• 2:34
  the
• 2:35
  extra
• 2:35
  margin
• 2:36
  probably
• 2:36
  the
• 2:37
  wrong
• 2:37
  way
• 2:37
  for
• 2:37
  them.
• 2:38
  But
• 2:39
  it'll
• 2:39
  be
• 2:39
  interesting
• 2:40
  to
• 2:40
  see
• 2:40
  how
• 2:40
  a
• 2:40
  lot
• 2:40
  of
• 2:41
  other
• 2:41
  mass
• 2:41
  retailers
• 2:42
  are
• 2:42
  employing
• 2:42
  it.
• 2:43
  I
• 2:43
  think
• 2:43
  we're
• 2:43
  already
• 2:43
  seeing
• 2:44
  the
• 2:44
  early
• 2:44
  cracks
• 2:45
  of
• 2:45
  pricing
• 2:46
  increases
• 2:46
  across
• 2:47
  certainly
• 2:47
  the
• 2:47
  apparel
• 2:48
  landscape
• 2:48
  and
• 2:49
  it's,
• 2:50
  it's,
• 2:51
  it's,
• 2:51
  you
• 2:51
  know,
• 2:52
  with
• 2:52
  my
• 2:52
  CFO
• 2:53
  services
• 2:53
  background,
• 2:53
  I
• 2:53
  can
• 2:54
  tell
• 2:54
  you
• 2:54
  It's
• 2:54
  a
• 2:54
  mess
• 2:54
  out
• 2:54
  there
• 2:54
  right
• 2:55
  now.
• 2:55
  Right,
• 2:56
  right.
• 2:56
  Well,
• 2:57
  and
• 2:57
  Chris,
• 2:57
  you,
• 2:58
  I
• 2:58
  know,
• 2:58
  you
• 2:59
  know,
• 2:59
  when
• 2:59
  we,
• 2:59
  when
• 2:59
  this
• 3:00
  question
• 3:00
  gets
• 3:00
  posed,
• 3:01
  is
• 3:01
  this
• 3:01
  good
• 3:01
  retailing?
• 3:02
  What
• 3:02
  would
• 3:02
  you
• 3:03
  have
• 3:03
  done
• 3:03
  in
• 3:03
  this
• 3:03
  scenario
• 3:04
  if
• 3:04
  you
• 3:04
  were
• 3:05
  Amazon
• 3:05
  or
• 3:05
  even
• 3:05
  as
• 3:06
  a,
• 3:06
  as
• 3:06
  someone
• 3:06
  listening
• 3:07
  who's
• 3:07
  trying
• 3:07
  to
• 3:07
  think
• 3:07
  about
• 3:08
  like,
• 3:08
  is
• 3:08
  this
• 3:08
  a
• 3:08
  viable
• 3:09
  option?
• 3:10
  Yeah,
• 3:10
  I
• 3:10
  know.
• 3:11
  Like
• 3:11
  I
• 3:11
  thought
• 3:11
  Jeff
• 3:12
  said
• 3:12
  it
• 3:12
  well,
• 3:12
  like,
• 3:12
  I
• 3:12
  don't
• 3:13
  even
• 3:13
  think
• 3:13
  this
• 3:13
  story
• 3:13
  is
• 3:13
  really
• 3:14
  news.
• 3:14
  I
• 3:14
  mean,
• 3:14
  we're
• 3:14
  reporting
• 3:15
  on
• 3:15
  conversations
• 3:16
  I
• 3:16
  think
• 3:16
  that
• 3:16
  are
• 3:16
  happening
• 3:17
  inside
• 3:17
  Amazon
• 3:17
  in
• 3:18
  terms
• 3:18
  of
• 3:18
  what
• 3:18
  to
• 3:18
  do.
• 3:19
  That's
• 3:19
  what
• 3:19
  we're
• 3:19
  doing.
• 3:19
  I
• 3:19
  don't
• 3:20
  believe
• 3:20
  this
• 3:20
  thing
• 3:20
  would
• 3:20
  have
• 3:21
  ever
• 3:21
  seen
• 3:21
  the
• 3:21
  light
• 3:21
  of
• 3:22
  day
• 3:22
  like
• 3:22
  this
• 3:23
  concept
• 3:23
  because,
• 3:24
  yeah,
• 3:24
  it's
• 3:24
  just,
• 3:24
  it's
• 3:24
  bad
• 3:25
  merchandising.
• 3:25
  In
• 3:25
  my
• 3:26
  experience
• 3:26
  as
• 3:26
  a
• 3:26
  merchant,
• 3:27
  you
• 3:27
  never
• 3:27
  give
• 3:27
  people
• 3:27
  a
• 3:27
  reason
• 3:28
  not
• 3:28
  to
• 3:28
  buy
• 3:28
  something.
• 3:29
  Like
• 3:29
  you're
• 3:29
  basically
• 3:29
  telling
• 3:30
  people,
• 3:30
  why
• 3:30
  don't
• 3:30
  you
• 3:30
  go
• 3:30
  comparison
• 3:31
  shop
• 3:31
  for
• 3:31
  this
• 3:31
  while
• 3:31
  you're
• 3:32
  on
• 3:32
  my
• 3:32
  site?
• 3:32
  Because
• 3:32
  you're
• 3:33
  seeing
• 3:33
  the
• 3:33
  tariff
• 3:33
  surcharge
• 3:34
  here.
• 3:34
  So,
• 3:35
  so
• 3:35
  I
• 3:35
  just
• 3:35
  don't
• 3:35
  see
• 3:35
  it.
• 3:35
  It
• 3:36
  doesn't
• 3:36
  make
• 3:36
  sense
• 3:36
  to
• 3:36
  me
• 3:37
  that
• 3:37
  you
• 3:37
  would
• 3:37
  do
• 3:37
  this
• 3:38
  and
• 3:38
  maybe
• 3:39
  some
• 3:39
  other
• 3:39
  people
• 3:39
  are
• 3:39
  thinking
• 3:39
  about
• 3:40
  it,
• 3:40
  but
• 3:40
  I
• 3:40
  don't
• 3:40
  think
• 3:40
  Amazon
• 3:41
  would
• 3:41
  ever
• 3:41
  actually
• 3:42
  put
• 3:42
  this
• 3:42
  into
• 3:43
  practice.
• 3:43
  So,
• 3:44
  you
• 3:44
  know,
• 3:44
  I
• 3:44
  don't
• 3:44
  know.
• 3:45
  My
• 3:45
  question
• 3:45
  really
• 3:45
  for
• 3:45
  Jeff
• 3:46
  is
• 3:46
  like,
• 3:46
  what,
• 3:46
  what
• 3:47
  is
• 3:47
  some
• 3:47
  of,
• 3:47
  what
• 3:47
  are
• 3:47
  some
• 3:48
  of
• 3:48
  the
• 3:48
  things
• 3:48
  that
• 3:48
  you're
• 3:48
  seeing
• 3:49
  different
• 3:49
  retailers
• 3:50
  do
• 3:51
  in
• 3:51
  regards
• 3:51
  to,
• 3:52
  particularly
• 3:52
  on
• 3:52
  the
• 3:52
  shipment
• 3:53
  side
• 3:53
  of
• 3:53
  things.
• 3:53
  I'm
• 3:53
  curious
• 3:54
  if
• 3:54
  you
• 3:54
  have
• 3:54
  any
• 3:54
  intel
• 3:54
  on
• 3:55
  that
• 3:55
  in
• 3:55
  terms
• 3:55
  of
• 3:55
  what
• 3:55
  you're
• 3:55
  seeing
• 3:56
  different
• 3:56
  responses
• 3:58
  to
• 3:58
  this
• 3:58
  tariff
• 3:59
  situation,
• 4:00
  what
• 4:00
  the
• 4:00
  responses
• 4:01
  have
• 4:01
  been.
• 4:02
  Yeah,
• 4:03
  it's
• 4:04
  a
• 4:04
  mixed
• 4:04
  bag
• 4:04
  and
• 4:05
  I
• 4:05
  hate
• 4:05
  that
• 4:05
  answer.
• 4:06
  But
• 4:06
  the
• 4:06
  answer,
• 4:06
  that's
• 4:06
  the
• 4:06
  truth.
• 4:07
  Right
• 4:07
  now
• 4:07
  you
• 4:07
  have
• 4:07
  a
• 4:08
  number
• 4:08
  of
• 4:09
  retailers
• 4:09
  that
• 4:09
  can
• 4:11
  either
• 4:12
  be
• 4:13
  specific
• 4:14
  and
• 4:14
  differentiated
• 4:14
  in
• 4:14
  the
• 4:15
  product
• 4:15
  they're
• 4:15
  bringing
• 4:15
  in
• 4:15
  because
• 4:16
  there's
• 4:16
  enough
• 4:16
  margin
• 4:16
  to
• 4:17
  support
• 4:17
  it
• 4:17
  and
• 4:17
  you're
• 4:17
  going
• 4:18
  to
• 4:18
  have
• 4:18
  less
• 4:18
  choice.
• 4:19
  You've
• 4:19
  probably
• 4:19
  already
• 4:19
  heard
• 4:19
  it
• 4:19
  in
• 4:19
  the
• 4:20
  past
• 4:20
  two
• 4:20
  weeks.
• 4:20
  They're
• 4:21
  going
• 4:21
  to
• 4:21
  bring
• 4:21
  the
• 4:21
  products
• 4:22
  that
• 4:22
  they
• 4:22
  can
• 4:22
  afford
• 4:22
  to
• 4:23
  pass
• 4:23
  on
• 4:24
  or
• 4:24
  they
• 4:24
  make
• 4:24
  enough
• 4:25
  money
• 4:25
  to
• 4:25
  make
• 4:25
  it
• 4:27
  a
• 4:27
  mathematical
• 4:27
  equation
• 4:28
  that's
• 4:28
  acceptable
• 4:29
  for
• 4:29
  them.
• 4:30
  And
• 4:30
  then
• 4:30
  in
• 4:30
  instances
• 4:31
  where
• 4:32
  businesses
• 4:33
  are
• 4:33
  unable
• 4:34
  to
• 4:34
  actually
• 4:35
  weather
• 4:36
  the
• 4:36
  storm,
• 4:36
  we've
• 4:36
  heard
• 4:37
  examples
• 4:37
  of
• 4:37
  companies
• 4:38
  that
• 4:38
  have
• 4:38
  taken
• 4:38
  imports
• 4:39
  down
• 4:39
  to
• 4:39
  zero
• 4:40
  and
• 4:40
  are
• 4:40
  just
• 4:40
  waiting
• 4:41
  to
• 4:41
  see
• 4:42
  if
• 4:43
  there
• 4:43
  is
• 4:43
  an
• 4:43
  alternative
• 4:43
  option
• 4:44
  for
• 4:44
  them
• 4:44
  to
• 4:44
  either
• 4:45
  take
• 4:45
  inventory
• 4:46
  down
• 4:46
  and
• 4:47
  try
• 4:48
  to
• 4:48
  pass
• 4:48
  on
• 4:48
  the
• 4:48
  price
• 4:48
  for
• 4:49
  the
• 4:49
  inventory
• 4:49
  that
• 4:49
  they
• 4:49
  already
• 4:49
  have
• 4:49
  in
• 4:50
  the
• 4:50
  door,
• 4:52
  but
• 4:52
  it's
• 4:53
  not
• 4:53
  a
• 4:53
  one
• 4:53
  size
• 4:54
  fits
• 4:54
  all
• 4:54
  model.
• 4:54
  We
• 4:55
  have
• 4:55
  a
• 4:55
  number
• 4:55
  of
• 4:56
  kind
• 4:56
  of
• 4:57
  near
• 4:57
  term,
• 4:57
  short
• 4:57
  term
• 4:58
  mechanisms
• 4:59
  that
• 4:59
  a
• 4:59
  lot
• 4:59
  of
• 4:59
  companies
• 4:59
  are
• 5:00
  employing.
• 5:00
  And
• 5:00
  then
• 5:01
  the
• 5:01
  reality
• 5:02
  is
• 5:02
  where
• 5:03
  do
• 5:03
  you
• 5:03
  bet
• 5:03
  right
• 5:03
  now,
• 5:04
  given
• 5:05
  how
• 5:05
  limbo
• 5:06
  everything
• 5:06
  is
• 5:07
  on
• 5:07
  country
• 5:08
  of
• 5:08
  origin
• 5:08
  outside
• 5:08
  of
• 5:09
  just
• 5:09
  obviously
• 5:09
  everything
• 5:10
  going
• 5:10
  on
• 5:10
  with
• 5:10
  the
• 5:11
  145%
• 5:12
  tariff
• 5:12
  on
• 5:12
  China.
• 5:13
  But
• 5:13
  it's,
• 5:14
  it's,
• 5:15
  it's
• 5:15
  a
• 5:15
  little
• 5:15
  bit
• 5:16
  of
• 5:16
  a
• 5:16
  wait
• 5:16
  and
• 5:16
  see
• 5:16
  right
• 5:17
  now.
• 5:17
  And
• 5:17
  that's
• 5:17
  across
• 5:18
  everything.
• 5:18
  Capital
• 5:18
  markets,
• 5:19
  companies
• 5:20
  trying
• 5:20
  to
• 5:20
  figure
• 5:21
  out
• 5:21
  where,
• 5:22
  what
• 5:22
  they
• 5:22
  can
• 5:22
  do
• 5:23
  in
• 5:23
  the
• 5:23
  short
• 5:23
  term
• 5:23
  to,
• 5:23
  to
• 5:23
  get
• 5:24
  the
• 5:24
  price
• 5:24
  back.
• 5:24
  And
• 5:24
  then
• 5:24
  longer
• 5:25
  term,
• 5:25
  what,
• 5:25
  what
• 5:25
  do
• 5:25
  they
• 5:25
  need
• 5:26
  to
• 5:26
  do
• 5:26
  from
• 5:26
  a
• 5:26
  supply
• 5:26
  chain
• 5:26
  and
• 5:27
  operational
• 5:27
  perspective
• 5:28
  to,
• 5:28
  to
• 5:28
  avoid
• 5:28
  this
• 5:29
  longer
• 5:30
  term.
• 5:30
  Yeah,
• 5:31
  I
• 5:31
  think
• 5:31
  that's
• 5:31
  really
• 5:31
  well
• 5:32
  said
• 5:32
  and,
• 5:32
  and
• 5:32
  Luis,
• 5:33
  we'll
• 5:33
  go
• 5:33
  to
• 5:33
  you
• 5:34
  for
• 5:34
  the
• 5:34
  final
• 5:34
  word
• 5:34
  on
• 5:35
  here.
• 5:35
  But
• 5:35
  I,
• 5:36
  I
• 5:36
  think
• 5:36
  it's
• 5:36
  like,
• 5:37
  it's
• 5:37
  definitely
• 5:38
  like
• 5:38
  something
• 5:39
  that
• 5:39
  you
• 5:39
  hear
• 5:39
  in
• 5:39
  therapy.
• 5:40
  Like
• 5:40
  what,
• 5:40
  let's
• 5:41
  focus
• 5:41
  on
• 5:41
  the
• 5:41
  things
• 5:41
  you
• 5:42
  can
• 5:42
  control,
• 5:42
  right?
• 5:43
  What
• 5:43
  can
• 5:44
  you
• 5:44
  control
• 5:44
  in
• 5:44
  this
• 5:45
  scenario?
• 5:45
  And
• 5:45
  I
• 5:46
  think
• 5:46
  for
• 5:46
  retailers,
• 5:46
  right,
• 5:47
  it's
• 5:47
  like
• 5:47
  looking
• 5:47
  at,
• 5:48
  okay,
• 5:48
  how
• 5:48
  do
• 5:49
  I
• 5:49
  focus
• 5:49
  on
• 5:49
  loyalty?
• 5:50
  Like
• 5:50
  the
• 5:50
  costs
• 5:50
  are
• 5:51
  going
• 5:51
  to
• 5:51
  go
• 5:51
  up
• 5:51
  across
• 5:51
  the
• 5:52
  board.
• 5:52
  Consumers
• 5:52
  are
• 5:53
  going
• 5:53
  to
• 5:53
  be
• 5:53
  impacted
• 5:54
  by
• 5:54
  these
• 5:54
  tariffs.
• 5:55
  So
• 5:55
  how
• 5:56
  are
• 5:56
  you
• 5:56
  working
• 5:57
  on
• 5:57
  lever
• 5:57
  using
• 5:58
  what
• 5:58
  you
• 5:58
  have
• 5:58
  internally,
• 5:59
  even
• 5:59
  as
• 6:00
  Amazon
• 6:00
  to
• 6:00
  like
• 6:00
  lever
• 6:01
  up
• 6:01
  and
• 6:01
  down,
• 6:02
  you
• 6:02
  know,
• 6:02
  where
• 6:02
  you
• 6:02
  might
• 6:03
  be
• 6:03
  able
• 6:03
  to
• 6:03
  take
• 6:04
  a
• 6:04
  hit
• 6:05
  on
• 6:05
  some
• 6:05
  of
• 6:05
  your
• 6:06
  margins
• 6:06
  so
• 6:06
  that
• 6:06
  you
• 6:06
  can
• 6:07
  provide
• 6:07
  a
• 6:07
  lower
• 6:07
  price
• 6:08
  point
• 6:08
  for
• 6:08
  that
• 6:08
  consumer
• 6:08
  for
• 6:09
  some
• 6:09
  of,
• 6:09
  of
• 6:09
  these
• 6:09
  topics
• 6:10
  or
• 6:10
  for
• 6:10
  some
• 6:10
  of
• 6:10
  these
• 6:11
  products
• 6:11
  in
• 6:12
  addition
• 6:12
  to
• 6:12
  that.
• 6:12
  But
• 6:13
  Luis,
• 6:13
  last
• 6:14
  word
• 6:14
  here.
• 6:14
  What,
• 6:15
  what,
• 6:15
  what
• 6:15
  would
• 6:15
  you
• 6:15
  add
• 6:16
  to
• 6:16
  this
• 6:16
  big,
• 6:17
  big
• 6:17
  topic
• 6:18
  of
• 6:18
  tariffs
• 6:18
  and
• 6:19
  pricing
• 6:19
  and,
• 6:19
  and
• 6:20
  how
• 6:20
  the
• 6:20
  consumer
• 6:20
  is
• 6:20
  going
• 6:20
  to
• 6:21
  be
• 6:21
  impacted.
• 6:21
  And
• 6:22
  as
• 6:22
  Jeff
• 6:22
  said,
• 6:22
  I
• 6:22
  mean,
• 6:23
  it's
• 6:23
  hitting,
• 6:24
  you
• 6:24
  know,
• 6:25
  the
• 6:25
  entire
• 6:25
  economy.
• 6:26
  And
• 6:26
  if
• 6:26
  you
• 6:26
  take
• 6:26
  it
• 6:26
  from
• 6:27
  the
• 6:28
  consumer
• 6:29
  companies,
• 6:30
  I
• 6:30
  mean,
• 6:30
  there's
• 6:30
  not
• 6:30
  one
• 6:31
  company
• 6:31
  that's
• 6:31
  not,
• 6:32
  not
• 6:32
  hit
• 6:32
  by
• 6:32
  it
• 6:32
  because
• 6:33
  the
• 6:33
  supply
• 6:33
  chains
• 6:33
  are
• 6:34
  so
• 6:34
  integrated,
• 6:35
  so
• 6:35
  global.
• 6:36
  And
• 6:36
  a
• 6:37
  lot
• 6:37
  of
• 6:37
  the
• 6:37
  players
• 6:37
  had
• 6:38
  in
• 6:39
  the
• 6:39
  2016
• 6:40
  era
• 6:41
  had
• 6:41
  moved
• 6:42
  away
• 6:42
  from
• 6:42
  China
• 6:43
  to
• 6:44
  other
• 6:44
  Southeast
• 6:44
  Asia
• 6:45
  countries
• 6:45
  or
• 6:46
  Mexico
• 6:47
  and
• 6:48
  now
• 6:48
  it
• 6:48
  doesn't
• 6:48
  work
• 6:48
  anymore.
• 6:49
  They
• 6:49
  need
• 6:49
  to
• 6:49
  rethink
• 6:51
  and
• 6:51
  reshuffle
• 6:52
  their
• 6:53
  supply
• 6:53
  base
• 6:53
  and
• 6:54
  it's
• 6:54
  putting
• 6:54
  a
• 6:54
  lot
• 6:54
  of
• 6:54
  strain
• 6:55
  on
• 6:55
  the
• 6:55
  system
• 6:56
  and
• 6:56
  a
• 6:56
  lot
• 6:56
  of
• 6:57
  cost
• 6:57
  increases.
• 6:59
  Right.
• 7:00
  Jeff,
• 7:00
  I'm
• 7:01
  curious
• 7:02
  before
• 7:02
  we
• 7:02
  move
• 7:02
  on
• 7:02
  to
• 7:03
  the
• 7:03
  next
• 7:03
  headline,
• 7:03
  I'm
• 7:03
  curious,
• 7:03
  maybe
• 7:04
  you
• 7:04
  can
• 7:04
  give
• 7:04
  me
• 7:04
  a
• 7:04
  number
• 7:05
  here
• 7:05
  or
• 7:05
  not.
• 7:05
  But
• 7:06
  as
• 7:07
  you
• 7:07
  look
• 7:07
  to
• 7:07
  the
• 7:07
  summer
• 7:08
  and
• 7:08
  maybe
• 7:08
  even
• 7:09
  into
• 7:09
  the
• 7:09
  fall,
• 7:10
  how
• 7:10
  much
• 7:11
  lower
• 7:11
  will
• 7:11
  inventories
• 7:12
  on
• 7:12
  shelf
• 7:13
  be
• 7:13
  in
• 7:13
  the
• 7:13
  average
• 7:14
  retailer
• 7:14
  across
• 7:14
  America?
• 7:17
  How
• 7:18
  many
• 7:18
  retailers
• 7:18
  will
• 7:18
  be
• 7:18
  here
• 7:19
  if
• 7:19
  there
• 7:19
  isn't
• 7:19
  any
• 7:20
  movement
• 7:20
  in
• 7:21
  the
• 7:21
  summertime
• 7:21
  is
• 7:21
  probably
• 7:22
  the
• 7:22
  more
• 7:22
  concern
• 7:22
  I
• 7:23
  have.
• 7:23
  Wow.
• 7:24
  Okay.
• 7:26
  Yeah.
• 7:27
  Again,
• 7:28
  I
• 7:28
  think
• 7:28
  there's
• 7:28
  a
• 7:28
  number
• 7:29
  of
• 7:29
  companies
• 7:29
  for
• 7:29
  the
• 7:30
  first
• 7:30
  time
• 7:30
  that
• 7:30
  are
• 7:30
  actually
• 7:32
  excited
• 7:33
  that
• 7:33
  they're,
• 7:33
  they're
• 7:33
  long
• 7:34
  inventory
• 7:34
  and
• 7:34
  sitting
• 7:35
  on
• 7:35
  six
• 7:36
  to
• 7:36
  12
• 7:36
  months
• 7:36
  of,
• 7:37
  of
• 7:37
  a
• 7:37
  particular
• 7:38
  category
• 7:39
  when
• 7:39
  that
• 7:39
  would
• 7:39
  have
• 7:40
  obviously
• 7:40
  been
• 7:40
  frowned
• 7:40
  upon
• 7:42
  just
• 7:42
  three
• 7:43
  weeks
• 7:43
  or
• 7:43
  four
• 7:43
  weeks
• 7:43
  ago.
• 7:44
  So
• 7:46
  I
• 7:46
  think
• 7:46
  you're
• 7:46
  going
• 7:46
  to
• 7:47
  see
• 7:47
  inventory
• 7:48
  levels
• 7:48
  certainly
• 7:49
  being
• 7:49
  impacted
• 7:50
  for
• 7:51
  the
• 7:51
  holiday
• 7:51
  buys
• 7:52
  as
• 7:52
  you
• 7:52
  think
• 7:52
  about
• 7:52
  all
• 7:53
  the
• 7:53
  seasonal
• 7:53
  categories
• 7:54
  that
• 7:54
  are
• 7:54
  coming
• 7:54
  in
• 7:55
  that
• 7:55
  you
• 7:56
  usually
• 7:56
  land
• 7:57
  kind
• 7:57
  of
• 7:57
  in
• 7:57
  that
• 7:57
  September
• 7:58
  October
• 7:58
  timeframe
• 8:00
  that
• 8:00
  stuff
• 8:00
  is
• 8:01
  going
• 8:01
  to
• 8:01
  be
• 8:01
  on
• 8:01
  a
• 8:01
  boat
• 8:01
  here
• 8:01
  in
• 8:02
  90
• 8:02
  days,
• 8:02
  60
• 8:03
  days
• 8:03
  and,
• 8:03
  and
• 8:05
  I,
• 8:05
  I,
• 8:05
  I'm
• 8:06
  more
• 8:06
  worried
• 8:06
  about
• 8:07
  the
• 8:07
  impact
• 8:07
  you're
• 8:07
  going
• 8:07
  to
• 8:07
  have
• 8:08
  on
• 8:08
  the
• 8:08
  more
• 8:10
  November
• 8:11
  December
• 8:11
  seasonal
• 8:11
  type
• 8:12
  type
• 8:12
  areas
• 8:12
  than
• 8:13
  I
• 8:13
  think
• 8:13
  you're
• 8:13
  going
• 8:14
  to
• 8:14
  see.
• 8:14
  Worried
• 8:14
  about
• 8:15
  what's
• 8:16
  on
• 8:16
  shelf
• 8:16
  at
• 8:16
  a
• 8:16
  Walmart
• 8:17
  for,
• 8:17
  for
• 8:17
  the
• 8:17
  next
• 8:17
  60
• 8:18
  days.
• 8:19
  Yeah.
• 8:19
  Yeah
• 8:19
  that's
• 8:20
  interesting.
• 8:20
  Yeah
• 8:20
  and
• 8:21
  I
• 8:21
  started
• 8:21
  talking
• 8:21
  about
• 8:21
  that
• 8:21
  for
• 8:22
  the
• 8:22
  first
• 8:22
  time
• 8:22
  last
• 8:22
  week
• 8:22
  too
• 8:23
  that
• 8:23
  that's
• 8:23
  kind
• 8:23
  of
• 8:23
  our
• 8:23
  new
• 8:24
  growing
• 8:24
  fear
• 8:24
  as
• 8:25
  well.