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Fast Five Shorts | Buy Or Sell: Target Cutting Its Production Lead Time · Omni Talk Retail

• 0:00
  Target
• 0:00
  has
• 0:01
  said
• 0:01
  that
• 0:01
  it
• 0:02
  has
• 0:02
  cut
• 0:02
  its
• 0:02
  go
• 0:03
  to
• 0:03
  market
• 0:03
  timeframe
• 0:04
  from
• 0:04
  seven
• 0:04
  months
• 0:05
  to
• 0:05
  eight
• 0:06
  weeks,
• 0:06
  according
• 0:07
  to
• 0:07
  Retail
• 0:07
  Dive.
• 0:08
  Rick
• 0:08
  Gomez,
• 0:09
  the
• 0:09
  chief
• 0:09
  commercial
• 0:10
  officer
• 0:10
  at
• 0:10
  Target,
• 0:11
  told
• 0:12
  an
• 0:12
  audience
• 0:12
  last
• 0:12
  Monday
• 0:13
  at
• 0:13
  the
• 0:13
  National
• 0:13
  Retail
• 0:14
  Federation's
• 0:14
  Big
• 0:14
  show
• 0:15
  conference
• 0:16
  that
• 0:16
  Target
• 0:16
  has
• 0:17
  shortened
• 0:17
  its
• 0:18
  go
• 0:18
  to
• 0:18
  market
• 0:18
  cycle
• 0:18
  to
• 0:19
  eight
• 0:19
  weeks,
• 0:19
  down
• 0:19
  from
• 0:19
  27
• 0:20
  weeks
• 0:21
  for
• 0:21
  specific
• 0:22
  trending
• 0:22
  items
• 0:23
  so
• 0:23
  they
• 0:23
  can
• 0:23
  reach
• 0:24
  shoppers
• 0:24
  faster.
• 0:25
  Quote,
• 0:26
  not
• 0:27
  everything
• 0:27
  is
• 0:27
  in
• 0:27
  eight
• 0:27
  weeks,
• 0:28
  Gomez
• 0:28
  explained,
• 0:29
  but
• 0:29
  the
• 0:29
  things
• 0:30
  that
• 0:30
  are
• 0:30
  trending
• 0:30
  and
• 0:31
  that
• 0:31
  we're
• 0:31
  seeing
• 0:32
  that
• 0:32
  are
• 0:32
  going
• 0:32
  viral,
• 0:33
  that
• 0:33
  we
• 0:33
  want
• 0:33
  to
• 0:34
  be
• 0:34
  in
• 0:34
  market
• 0:34
  ahead
• 0:35
  of
• 0:35
  the
• 0:35
  competition,
• 0:36
  we've
• 0:36
  created
• 0:37
  an
• 0:37
  operating
• 0:37
  model
• 0:38
  that
• 0:38
  enables
• 0:38
  us
• 0:39
  to
• 0:39
  do
• 0:39
  that,
• 0:39
  end
• 0:40
  quote.
• 0:41
  John,
• 0:41
  we're
• 0:41
  going
• 0:41
  to
• 0:42
  go
• 0:42
  to
• 0:42
  you
• 0:42
  again
• 0:42
  on
• 0:43
  this
• 0:43
  one.
• 0:44
  Are
• 0:44
  you
• 0:44
  buying
• 0:45
  or
• 0:45
  selling?
• 0:45
  Target's
• 0:46
  announcement
• 0:47
  of
• 0:47
  cutting
• 0:47
  its
• 0:47
  product
• 0:48
  lead
• 0:48
  times
• 0:49
  from
• 0:49
  seven
• 0:49
  months
• 0:49
  to
• 0:50
  eight
• 0:50
  weeks.
• 0:50
  And
• 0:51
  what,
• 0:51
  if
• 0:51
  any,
• 0:52
  impact
• 0:52
  will
• 0:52
  it
• 0:52
  have
• 0:52
  on
• 0:53
  Target's
• 0:53
  overall
• 0:54
  business
• 0:54
  performance?
• 0:56
  Yeah,
• 0:56
  I
• 0:56
  mean,
• 0:56
  to
• 0:56
  answer
• 0:57
  the
• 0:57
  first
• 0:57
  question,
• 0:57
  I
• 0:57
  think
• 0:58
  I'm
• 0:58
  a
• 0:58
  hold
• 0:58
  right
• 0:59
  now
• 0:59
  because
• 0:59
  I'm
• 0:59
  not
• 0:59
  quite,
• 1:00
  to
• 1:00
  be
• 1:00
  honest,
• 1:01
  it's,
• 1:02
  it's,
• 1:03
  I
• 1:04
  don't
• 1:04
  know,
• 1:04
  it's
• 1:04
  kind
• 1:04
  of,
• 1:05
  it's,
• 1:05
  it
• 1:05
  feels
• 1:05
  like
• 1:05
  a
• 1:06
  very
• 1:06
  exciting
• 1:06
  announcement,
• 1:07
  right?
• 1:07
  We're
• 1:07
  going
• 1:07
  to
• 1:07
  do
• 1:08
  stuff
• 1:08
  in
• 1:08
  eight
• 1:08
  weeks
• 1:08
  and
• 1:09
  we
• 1:09
  cut
• 1:09
  it
• 1:09
  down
• 1:09
  from
• 1:09
  seven
• 1:10
  months.
• 1:10
  And
• 1:10
  like
• 1:10
  all
• 1:11
  those
• 1:11
  numbers
• 1:11
  sound
• 1:11
  great,
• 1:12
  but
• 1:13
  I'd
• 1:13
  have
• 1:13
  a
• 1:13
  couple
• 1:13
  of
• 1:14
  like,
• 1:14
  first
• 1:14
  of
• 1:14
  all,
• 1:14
  concerns
• 1:15
  about
• 1:15
  impacts
• 1:16
  this
• 1:16
  could
• 1:16
  have
• 1:16
  on
• 1:16
  Target
• 1:17
  operationally,
• 1:17
  right?
• 1:18
  So
• 1:18
  first
• 1:18
  thing
• 1:18
  is
• 1:19
  that
• 1:19
  historically,
• 1:20
  I
• 1:20
  mean,
• 1:20
  say
• 1:21
  historically,
• 1:21
  over
• 1:21
  the
• 1:21
  last
• 1:21
  number
• 1:22
  of
• 1:22
  years,
• 1:22
  Target
• 1:22
  have
• 1:22
  mentioned
• 1:23
  inventory
• 1:23
  issues
• 1:24
  a
• 1:24
  lot
• 1:24
  in
• 1:24
  earnings
• 1:25
  calls,
• 1:25
  right?
• 1:25
  That
• 1:25
  they've
• 1:26
  had
• 1:26
  too
• 1:26
  much
• 1:26
  inventory
• 1:26
  of
• 1:27
  the,
• 1:27
  the
• 1:27
  wrong
• 1:27
  items,
• 1:27
  they've
• 1:28
  gotten
• 1:28
  hit
• 1:28
  by
• 1:28
  markdowns,
• 1:29
  it's
• 1:30
  driving
• 1:30
  some
• 1:30
  of
• 1:30
  their
• 1:30
  underlying
• 1:32
  underperformance.
• 1:33
  I
• 1:34
  only
• 1:34
  see
• 1:34
  this
• 1:35
  exacerbating
• 1:36
  that
• 1:36
  issue,
• 1:37
  right?
• 1:37
  If
• 1:37
  you're,
• 1:37
  if
• 1:37
  you're
• 1:37
  changing
• 1:38
  and
• 1:38
  saying,
• 1:38
  hey,
• 1:38
  this
• 1:38
  is
• 1:39
  a
• 1:39
  big
• 1:39
  deal
• 1:39
  and
• 1:39
  we're
• 1:39
  going
• 1:39
  to
• 1:39
  go
• 1:40
  after
• 1:40
  it
• 1:40
  in
• 1:40
  eight
• 1:40
  weeks,
• 1:40
  but
• 1:41
  you
• 1:41
  choose
• 1:41
  the
• 1:41
  wrong
• 1:41
  thing,
• 1:42
  suddenly
• 1:42
  you've
• 1:42
  got
• 1:43
  a
• 1:43
  ton
• 1:43
  of
• 1:43
  like,
• 1:43
  quote,
• 1:43
  unquote
• 1:44
  trendy
• 1:44
  inventory
• 1:45
  that
• 1:45
  actually
• 1:46
  nobody
• 1:46
  wants,
• 1:47
  which
• 1:47
  is
• 1:47
  not
• 1:48
  probably
• 1:48
  going
• 1:48
  to
• 1:48
  solve
• 1:49
  Target's
• 1:49
  underlying
• 1:49
  issue.
• 1:50
  And
• 1:50
  if
• 1:50
  they
• 1:50
  currently
• 1:51
  have
• 1:52
  forecasting
• 1:53
  issues
• 1:53
  at
• 1:53
  a
• 1:53
  seven
• 1:54
  month
• 1:54
  lead
• 1:54
  time,
• 1:55
  I
• 1:55
  don't
• 1:55
  see
• 1:55
  how
• 1:55
  that's
• 1:55
  suddenly
• 1:56
  going
• 1:56
  to
• 1:56
  get
• 1:56
  better
• 1:56
  in
• 1:56
  an
• 1:56
  eight
• 1:57
  week
• 1:57
  lead
• 1:57
  time.
• 1:57
  So
• 1:57
  that's
• 1:58
  my
• 1:58
  first
• 1:58
  kind
• 1:58
  of
• 1:59
  operational
• 2:00
  concern
• 2:00
  I
• 2:00
  would
• 2:00
  have
• 2:01
  from
• 2:01
  a,
• 2:02
  from
• 2:02
  like
• 2:02
  kind
• 2:02
  of
• 2:03
  a
• 2:03
  merchandising
• 2:03
  ops
• 2:04
  perspective.
• 2:05
  The
• 2:05
  other
• 2:05
  thing
• 2:05
  I
• 2:05
  would
• 2:06
  say
• 2:06
  is
• 2:07
  like,
• 2:07
  I
• 2:07
  don't
• 2:07
  think
• 2:08
  that
• 2:08
  this
• 2:08
  gets
• 2:08
  at
• 2:09
  Target's
• 2:09
  underlying
• 2:10
  problem
• 2:10
  of
• 2:11
  underperformance,
• 2:11
  right?
• 2:12
  So
• 2:12
  we
• 2:12
  know
• 2:12
  that
• 2:12
  they're
• 2:12
  constrained
• 2:13
  on
• 2:14
  basically
• 2:15
  price.
• 2:15
  I
• 2:15
  mean
• 2:15
  is
• 2:15
  the
• 2:16
  big
• 2:16
  issue
• 2:16
  that
• 2:16
  the
• 2:16
  stick
• 2:17
  that's
• 2:17
  being
• 2:17
  used
• 2:17
  to
• 2:17
  beat
• 2:17
  Target
• 2:18
  all
• 2:18
  the
• 2:18
  time,
• 2:18
  having
• 2:19
  a
• 2:19
  trendy,
• 2:20
  I
• 2:20
  think
• 2:20
  bow
• 2:20
  that
• 2:21
  is
• 2:21
  one
• 2:21
  of
• 2:21
  the
• 2:21
  examples
• 2:22
  that
• 2:22
  they
• 2:22
  use.
• 2:22
  Having
• 2:22
  a
• 2:23
  trendy
• 2:23
  bow
• 2:23
  in
• 2:23
  time
• 2:23
  for
• 2:24
  holiday
• 2:24
  seasons
• 2:24
  is
• 2:24
  not
• 2:24
  going
• 2:25
  to
• 2:25
  change
• 2:25
  that.
• 2:25
  There's
• 2:25
  a
• 2:25
  little
• 2:26
  bit
• 2:26
  of
• 2:26
  maybe
• 2:27
  additional
• 2:27
  incremental
• 2:28
  sales
• 2:28
  you
• 2:28
  can
• 2:28
  gain,
• 2:28
  but
• 2:28
  I
• 2:28
  don't
• 2:29
  know
• 2:29
  if
• 2:29
  it's
• 2:29
  going
• 2:29
  to
• 2:29
  change
• 2:29
  it.
• 2:30
  The
• 2:30
  other
• 2:30
  thing
• 2:30
  is
• 2:31
  eight
• 2:31
  weeks
• 2:31
  I
• 2:32
  was
• 2:32
  trying
• 2:32
  to
• 2:32
  think
• 2:32
  through
• 2:33
  in
• 2:33
  the
• 2:34
  year
• 2:34
  right.
• 2:34
  Where
• 2:34
  eight
• 2:35
  weeks
• 2:35
  could
• 2:35
  actually
• 2:35
  be
• 2:36
  helpful
• 2:36
  for
• 2:36
  you
• 2:36
  on
• 2:36
  a
• 2:36
  trend.
• 2:38
  So
• 2:38
  if
• 2:38
  you
• 2:38
  see
• 2:38
  a
• 2:38
  holiday
• 2:39
  trend,
• 2:39
  it's
• 2:40
  probably
• 2:40
  going
• 2:40
  to
• 2:40
  come
• 2:40
  in
• 2:41
  maybe
• 2:41
  mid
• 2:42
  October
• 2:42
  to
• 2:42
  early
• 2:42
  November.
• 2:43
  You're
• 2:44
  already
• 2:44
  past
• 2:44
  the
• 2:44
  holidays
• 2:45
  at
• 2:45
  eight
• 2:45
  weeks.
• 2:46
  If
• 2:46
  you
• 2:46
  see
• 2:46
  a
• 2:47
  back
• 2:47
  to
• 2:47
  school
• 2:47
  trend,
• 2:48
  which
• 2:48
  I
• 2:48
  thought
• 2:48
  was
• 2:48
  maybe
• 2:49
  the
• 2:49
  closest
• 2:50
  I
• 2:50
  could
• 2:50
  get,
• 2:50
  you
• 2:50
  might
• 2:50
  see
• 2:50
  it
• 2:51
  in
• 2:51
  June
• 2:51
  and
• 2:51
  you
• 2:51
  hit
• 2:52
  stores
• 2:52
  in
• 2:52
  September.
• 2:53
  But
• 2:53
  we
• 2:53
  all
• 2:53
  know
• 2:54
  in
• 2:54
  real
• 2:54
  life,
• 2:54
  in
• 2:54
  retail,
• 2:55
  back
• 2:55
  to
• 2:55
  school
• 2:55
  is
• 2:55
  done
• 2:56
  by
• 2:56
  September.
• 2:56
  Right.
• 2:56
  You're
• 2:56
  into
• 2:57
  Halloween.
• 2:57
  So
• 2:58
  I
• 2:58
  don't
• 2:58
  see
• 2:58
  how
• 2:58
  this
• 2:59
  actually
• 2:59
  helps
• 2:59
  them
• 3:00
  from
• 3:00
  that
• 3:00
  perspective.
• 3:01
  And
• 3:01
  the
• 3:01
  final
• 3:02
  point
• 3:02
  I'd
• 3:02
  have
• 3:02
  is
• 3:03
  like
• 3:04
  eight
• 3:04
  weeks
• 3:04
  is
• 3:04
  still
• 3:04
  way
• 3:05
  behind
• 3:05
  the
• 3:05
  market
• 3:06
  leaders
• 3:07
  of
• 3:07
  like
• 3:08
  real
• 3:08
  quick
• 3:08
  turn.
• 3:09
  So
• 3:09
  Zara
• 3:09
  is
• 3:09
  two
• 3:09
  to
• 3:10
  two
• 3:10
  to
• 3:10
  four
• 3:10
  weeks.
• 3:10
  Right.
• 3:11
  And
• 3:11
  so
• 3:11
  that's
• 3:11
  kind
• 3:11
  of
• 3:11
  our
• 3:11
  benchmark.
• 3:12
  It's
• 3:12
  not
• 3:12
  the
• 3:12
  exact
• 3:13
  same
• 3:13
  model,
• 3:14
  but
• 3:14
  I
• 3:15
  still
• 3:15
  think
• 3:15
  it
• 3:15
  doesn't
• 3:15
  think
• 3:16
  it
• 3:16
  brings
• 3:16
  it
• 3:16
  quite
• 3:17
  there.
• 3:17
  So
• 3:17
  it's
• 3:18
  actually
• 3:18
  funny
• 3:18
  having
• 3:18
  started
• 3:19
  from
• 3:19
  a
• 3:19
  hold
• 3:19
  and
• 3:19
  then
• 3:19
  work
• 3:20
  my
• 3:20
  way
• 3:20
  through
• 3:20
  those
• 3:20
  three
• 3:20
  points,
• 3:21
  I'm
• 3:21
  probably
• 3:22
  on
• 3:22
  a
• 3:22
  not
• 3:22
  buying
• 3:23
  situation
• 3:23
  right
• 3:23
  now.
• 3:24
  I
• 3:24
  just
• 3:24
  don't
• 3:24
  see
• 3:25
  how
• 3:25
  it
• 3:25
  trains
• 3:25
  to
• 3:25
  their
• 3:26
  actual
• 3:26
  solves
• 3:27
  the
• 3:27
  problems.
• 3:28
  And
• 3:28
  I
• 3:28
  think
• 3:28
  that
• 3:28
  the
• 3:29
  thing
• 3:29
  that
• 3:29
  Target's
• 3:30
  always
• 3:30
  been
• 3:30
  known
• 3:30
  for
• 3:30
  is
• 3:30
  kind
• 3:31
  of
• 3:31
  storytelling,
• 3:31
  building
• 3:32
  a
• 3:32
  brand
• 3:33
  that
• 3:33
  tells
• 3:33
  a
• 3:33
  story
• 3:34
  that
• 3:34
  you
• 3:34
  can
• 3:34
  rely
• 3:34
  on,
• 3:35
  that's
• 3:35
  consistent
• 3:35
  that
• 3:35
  you
• 3:36
  know
• 3:36
  what
• 3:36
  you're
• 3:36
  going
• 3:36
  to
• 3:36
  get.
• 3:37
  Yes,
• 3:37
  there's
• 3:37
  some
• 3:38
  kind
• 3:38
  of
• 3:38
  trend
• 3:39
  on
• 3:39
  trend
• 3:40
  moments
• 3:40
  that
• 3:40
  they've
• 3:40
  had,
• 3:41
  but
• 3:41
  it's
• 3:41
  not
• 3:41
  their
• 3:42
  usp.
• 3:43
  So
• 3:43
  I,
• 3:43
  I
• 3:44
  think
• 3:44
  it
• 3:44
  sounds
• 3:44
  great,
• 3:45
  but
• 3:45
  I
• 3:45
  don't
• 3:46
  know
• 3:46
  what
• 3:46
  it's
• 3:46
  driving
• 3:47
  at
• 3:47
  to
• 3:47
  solve
• 3:47
  for
• 3:48
  for
• 3:48
  them.
• 3:49
  Kud.
• 3:49
  Kudos
• 3:49
  to
• 3:49
  you,
• 3:50
  John,
• 3:50
  because
• 3:50
  I
• 3:50
  was
• 3:50
  gonna,
• 3:50
  I
• 3:51
  was
• 3:51
  gonna
• 3:51
  hammer
• 3:51
  you
• 3:51
  over
• 3:51
  the
• 3:52
  head
• 3:52
  with.
• 3:52
  So
• 3:52
  you're
• 3:52
  a
• 3:52
  hold
• 3:53
  on
• 3:53
  this,
• 3:53
  huh?
• 3:53
  But
• 3:53
  no,
• 3:54
  you,
• 3:54
  you
• 3:55
  switched
• 3:55
  me,
• 3:55
  I.
• 3:56
  Think
• 3:56
  with
• 3:56
  me
• 3:56
  on
• 3:56
  my
• 3:57
  feet.
• 3:57
  Chris,
• 3:57
  it's
• 3:57
  good
• 3:58
  you
• 3:58
  do.
• 3:59
  Yeah,
• 3:59
  yeah,
• 3:59
  right.
• 4:00
  You
• 4:00
  switch
• 4:00
  mid
• 4:01
  diatribe.
• 4:02
  All
• 4:02
  right,
• 4:02
  so
• 4:02
  and
• 4:02
  the
• 4:03
  other
• 4:03
  part
• 4:03
  too
• 4:03
  that
• 4:03
  you
• 4:04
  know,
• 4:04
  that
• 4:04
  we.
• 4:04
  You
• 4:05
  didn't
• 4:05
  mention
• 4:05
  was
• 4:05
  if
• 4:06
  depending
• 4:06
  on
• 4:07
  the
• 4:07
  degree
• 4:07
  to
• 4:07
  which
• 4:08
  you
• 4:08
  try
• 4:08
  to
• 4:08
  do
• 4:08
  this,
• 4:08
  it's
• 4:08
  Going
• 4:09
  to
• 4:09
  have
• 4:09
  a
• 4:09
  sizable
• 4:10
  impact
• 4:10
  on
• 4:10
  your
• 4:10
  product
• 4:10
  margins
• 4:11
  as
• 4:11
  well.
• 4:11
  Like
• 4:12
  incredibly
• 4:13
  sizable.
• 4:13
  Yeah,
• 4:14
  Kelly,
• 4:14
  so
• 4:14
  I
• 4:14
  was
• 4:14
  going
• 4:14
  to
• 4:14
  bring
• 4:15
  you
• 4:15
  in
• 4:15
  on
• 4:15
  this
• 4:15
  now.
• 4:15
  So,
• 4:16
  so
• 4:16
  what's
• 4:16
  your
• 4:16
  take?
• 4:17
  Are
• 4:17
  you,
• 4:17
  are
• 4:17
  you
• 4:17
  equally
• 4:18
  skeptical?
• 4:18
  Not
• 4:19
  as
• 4:19
  skeptical.
• 4:19
  More
• 4:20
  skeptical.
• 4:20
  What
• 4:20
  do
• 4:21
  you
• 4:21
  think
• 4:21
  here?
• 4:22
  I'd
• 4:22
  say
• 4:22
  I'm,
• 4:22
  I
• 4:23
  came
• 4:23
  in
• 4:24
  maybe
• 4:24
  less
• 4:24
  skeptical.
• 4:25
  And
• 4:25
  John
• 4:25
  has,
• 4:26
  has
• 4:26
  fully
• 4:26
  talked
• 4:26
  me
• 4:27
  into
• 4:27
  the
• 4:28
  selling
• 4:28
  as
• 4:28
  well.
• 4:29
  Uh,
• 4:29
  margin
• 4:30
  was
• 4:30
  exactly
• 4:31
  where
• 4:31
  my
• 4:31
  mind
• 4:32
  went
• 4:32
  when
• 4:32
  I
• 4:32
  read
• 4:32
  this
• 4:33
  headline.
• 4:33
  Um,
• 4:34
  one
• 4:34
  the
• 4:34
  eight
• 4:35
  weeks.
• 4:35
  Like
• 4:35
  John
• 4:35
  said,
• 4:36
  not
• 4:36
  as
• 4:36
  fast
• 4:37
  as
• 4:37
  your
• 4:37
  competitors
• 4:38
  in
• 4:38
  the
• 4:38
  apparel
• 4:38
  space
• 4:39
  are
• 4:39
  doing,
• 4:39
  if
• 4:39
  that's
• 4:40
  really
• 4:40
  who
• 4:40
  you're
• 4:41
  looking
• 4:41
  to
• 4:41
  play
• 4:41
  against.
• 4:42
  They,
• 4:42
  they
• 4:42
  talked
• 4:43
  about
• 4:43
  cherries
• 4:44
  and,
• 4:44
  you
• 4:44
  know,
• 4:44
  I'm,
• 4:44
  I'm
• 4:45
  seeing
• 4:45
  cherry
• 4:45
  pajamas
• 4:46
  for
• 4:46
  Valentine's
• 4:46
  Day.
• 4:47
  So
• 4:47
  I
• 4:47
  get
• 4:47
  it.
• 4:47
  I,
• 4:48
  I,
• 4:48
  I've
• 4:48
  seen
• 4:48
  the
• 4:49
  trends.
• 4:49
  But
• 4:50
  if
• 4:51
  you're
• 4:51
  really
• 4:51
  looking
• 4:51
  to
• 4:51
  do
• 4:52
  it
• 4:52
  that
• 4:52
  fast,
• 4:53
  I
• 4:53
  question
• 4:53
  how
• 4:54
  much
• 4:54
  of
• 4:54
  that
• 4:54
  development
• 4:54
  they're
• 4:55
  actually
• 4:55
  doing
• 4:56
  internally
• 4:57
  with
• 4:57
  their
• 4:57
  merchandising
• 4:58
  team
• 4:58
  versus
• 4:59
  going,
• 4:59
  you
• 4:59
  know,
• 4:59
  to
• 4:59
  the
• 5:01
  A
• 5:01
  vendor,
• 5:02
  and
• 5:02
  you're
• 5:02
  going
• 5:02
  to
• 5:03
  lose
• 5:03
  margin
• 5:03
  on
• 5:03
  that.
• 5:04
  So
• 5:04
  if
• 5:04
  they're
• 5:05
  not
• 5:05
  able
• 5:05
  to
• 5:05
  figure
• 5:06
  that
• 5:06
  mix
• 5:07
  out
• 5:07
  effectively,
• 5:08
  they
• 5:08
  could
• 5:08
  run
• 5:09
  the
• 5:09
  risk
• 5:09
  of
• 5:10
  buying
• 5:10
  a
• 5:10
  lot
• 5:10
  of
• 5:11
  more
• 5:11
  expensive
• 5:12
  product
• 5:12
  that
• 5:12
  they're
• 5:13
  trying
• 5:13
  to
• 5:13
  push
• 5:13
  for
• 5:13
  trend.
• 5:14
  And
• 5:14
  then
• 5:14
  to
• 5:14
  John's
• 5:15
  point,
• 5:15
  you
• 5:16
  know,
• 5:16
  if
• 5:16
  it's
• 5:16
  the
• 5:16
  wrong
• 5:16
  trend
• 5:17
  or
• 5:17
  you
• 5:17
  miss
• 5:17
  the
• 5:17
  sale,
• 5:18
  not
• 5:18
  only
• 5:19
  are
• 5:19
  you
• 5:19
  inventory
• 5:20
  bloated,
• 5:20
  but
• 5:20
  you
• 5:21
  also
• 5:21
  have
• 5:22
  less
• 5:22
  profitable
• 5:23
  inventory
• 5:23
  on
• 5:23
  hand.
• 5:24
  Right.
• 5:25
  And
• 5:25
  the
• 5:25
  other
• 5:25
  point
• 5:25
  that
• 5:26
  you
• 5:26
  bring
• 5:26
  up
• 5:26
  to
• 5:26
  Kelly
• 5:26
  is
• 5:26
  you're
• 5:26
  probably
• 5:27
  not
• 5:27
  doing
• 5:27
  this
• 5:27
  through
• 5:27
  your
• 5:27
  own
• 5:28
  brands,
• 5:28
  which
• 5:28
  has
• 5:28
  always
• 5:29
  been
• 5:29
  a
• 5:29
  pillar
• 5:29
  of
• 5:30
  Target
• 5:30
  strategy
• 5:30
  as
• 5:31
  well,
• 5:31
  if
• 5:31
  you're
• 5:31
  trying
• 5:31
  to
• 5:31
  chase
• 5:32
  business.
• 5:33
  But,
• 5:33
  and
• 5:33
  at
• 5:33
  the
• 5:33
  end
• 5:34
  of
• 5:34
  the
• 5:34
  day,
• 5:34
  too,
• 5:34
  is
• 5:34
  it
• 5:34
  isn't
• 5:35
  what
• 5:35
  he's
• 5:35
  describing
• 5:36
  just
• 5:36
  good,
• 5:37
  good
• 5:37
  merchandising?
• 5:38
  Like,
• 5:38
  you're
• 5:38
  always
• 5:39
  trying
• 5:39
  to
• 5:39
  capture
• 5:39
  the
• 5:39
  trends
• 5:40
  and
• 5:40
  get
• 5:40
  products
• 5:40
  in
• 5:40
  as
• 5:41
  quickly
• 5:41
  as
• 5:41
  you
• 5:41
  can.
• 5:41
  Right?
• 5:42
  Yeah.
• 5:42
  I
• 5:42
  mean,
• 5:43
  I'm
• 5:43
  not
• 5:43
  a
• 5:43
  merchant,
• 5:44
  but
• 5:44
  I've
• 5:44
  spent
• 5:44
  the
• 5:44
  last
• 5:44
  10
• 5:45
  years
• 5:45
  with
• 5:45
  you,
• 5:45
  and
• 5:45
  we've
• 5:46
  interviewed
• 5:46
  plenty
• 5:46
  of
• 5:46
  merchants
• 5:47
  at
• 5:47
  this
• 5:47
  level.
• 5:47
  And
• 5:48
  that
• 5:48
  was
• 5:48
  the
• 5:48
  first
• 5:48
  thing
• 5:48
  that
• 5:48
  I
• 5:49
  saw
• 5:49
  when
• 5:49
  I
• 5:49
  heard
• 5:49
  this.
• 5:50
  I
• 5:50
  was
• 5:50
  like,
• 5:51
  isn't
• 5:51
  this
• 5:52
  just
• 5:52
  what
• 5:52
  you're
• 5:52
  supposed
• 5:53
  to
• 5:53
  do
• 5:53
  as
• 5:53
  a
• 5:53
  merchant?
• 5:54
  Like,
• 5:54
  capture
• 5:54
  the
• 5:54
  trends
• 5:55
  and
• 5:55
  figure
• 5:55
  out
• 5:55
  what
• 5:56
  makes
• 5:56
  sense
• 5:56
  for
• 5:56
  Target
• 5:57
  to
• 5:57
  invest
• 5:57
  in.
• 5:57
  But,
• 5:58
  Chris,
• 5:58
  I
• 5:58
  think,
• 5:59
  I
• 5:59
  think
• 5:59
  they're
• 6:00
  hitting.
• 6:00
  There's
• 6:00
  a
• 6:00
  bigger
• 6:01
  issue
• 6:01
  here.
• 6:02
  Like,
• 6:02
  I
• 6:02
  don't
• 6:02
  think
• 6:03
  this
• 6:03
  is
• 6:03
  an
• 6:03
  issue
• 6:04
  for
• 6:04
  Target.
• 6:05
  Target.
• 6:05
  I
• 6:05
  mean,
• 6:06
  Kelly,
• 6:06
  I'm
• 6:06
  not
• 6:06
  going
• 6:07
  to
• 6:07
  go
• 6:07
  to
• 6:07
  you
• 6:07
  and
• 6:07
  John
• 6:07
  on
• 6:07
  this
• 6:08
  one
• 6:08
  because
• 6:08
  I
• 6:08
  don't
• 6:08
  think
• 6:08
  you're
• 6:08
  probably
• 6:09
  buying
• 6:09
  a
• 6:09
  lot
• 6:09
  of
• 6:09
  your
• 6:10
  clothes
• 6:10
  or
• 6:11
  fill
• 6:11
  in
• 6:11
  items
• 6:11
  at
• 6:12
  Target.
• 6:12
  But
• 6:13
  like
• 6:13
  Kelly,
• 6:13
  do
• 6:13
  you
• 6:13
  feel
• 6:14
  like,
• 6:14
  I
• 6:14
  feel
• 6:15
  like
• 6:15
  Target's
• 6:16
  already
• 6:16
  hitting
• 6:16
  on
• 6:17
  the
• 6:17
  trends.
• 6:17
  Like
• 6:17
  if
• 6:18
  you
• 6:18
  need
• 6:18
  something
• 6:19
  like
• 6:19
  that's
• 6:20
  been
• 6:20
  Target's
• 6:20
  cachet
• 6:21
  all
• 6:21
  along
• 6:21
  is
• 6:22
  that
• 6:22
  they
• 6:22
  have
• 6:23
  great
• 6:23
  products
• 6:24
  that's
• 6:24
  on
• 6:25
  trend
• 6:25
  at
• 6:25
  a
• 6:26
  lower
• 6:26
  price.
• 6:26
  Would
• 6:27
  you
• 6:27
  agree
• 6:27
  with
• 6:27
  that,
• 6:27
  Kelly?
• 6:28
  I
• 6:28
  would
• 6:28
  agree.
• 6:29
  Yeah.
• 6:29
  You
• 6:29
  know,
• 6:30
  go
• 6:30
  to
• 6:30
  any
• 6:30
  store,
• 6:31
  back
• 6:31
  to
• 6:31
  school,
• 6:31
  you're
• 6:32
  going
• 6:32
  to
• 6:32
  find
• 6:32
  something.
• 6:32
  Oh,
• 6:33
  cute.
• 6:33
  Do
• 6:33
  I
• 6:33
  need
• 6:34
  this?
• 6:34
  No.
• 6:34
  Does
• 6:34
  it
• 6:35
  kind
• 6:35
  of
• 6:35
  hit
• 6:35
  the
• 6:35
  mark
• 6:36
  for
• 6:36
  the
• 6:36
  moment?
• 6:36
  Yeah.
• 6:37
  Ah,
• 6:37
  interesting.
• 6:38
  Yes.
• 6:38
  Right.
• 6:39
  So
• 6:40
  I
• 6:40
  think
• 6:40
  like
• 6:40
  to
• 6:40
  me
• 6:41
  it's
• 6:41
  really,
• 6:41
  this
• 6:42
  really
• 6:42
  is
• 6:43
  like
• 6:43
  throwing
• 6:44
  tech
• 6:44
  at
• 6:44
  a
• 6:45
  problem
• 6:45
  or
• 6:45
  an
• 6:46
  investment
• 6:46
  at
• 6:46
  a
• 6:46
  problem
• 6:47
  that
• 6:47
  they
• 6:47
  don't
• 6:47
  need
• 6:47
  to
• 6:48
  solve.
• 6:48
  Right
• 6:48
  now
• 6:49
  I'm
• 6:50
  giving
• 6:50
  a
• 6:50
  quick
• 6:50
  plug
• 6:51
  for
• 6:51
  our
• 6:51
  show,
• 6:51
  Fashion's
• 6:52
  missing
• 6:52
  middle.
• 6:52
  Like
• 6:53
  we
• 6:53
  were
• 6:53
  going,
• 6:54
  we,
• 6:54
  we
• 6:54
  have
• 6:54
  Target
• 6:55
  in
• 6:55
  the
• 6:55
  plan
• 6:55
  because
• 6:56
  they
• 6:56
  are
• 6:57
  serving
• 6:57
  people
• 6:58
  at
• 6:58
  a
• 6:58
  price
• 6:58
  point
• 6:59
  where
• 6:59
  you
• 6:59
  can
• 6:59
  get
• 7:00
  affordable
• 7:01
  on
• 7:01
  trend.
• 7:02
  Fashion
• 7:02
  like
• 7:03
  this
• 7:03
  is
• 7:03
  not
• 7:03
  an
• 7:03
  issue.
• 7:04
  And
• 7:04
  if
• 7:04
  they
• 7:04
  miss
• 7:05
  one
• 7:05
  bow
• 7:06
  trend
• 7:06
  or
• 7:06
  they
• 7:06
  miss
• 7:07
  one
• 7:07
  cherry
• 7:08
  trend,
• 7:08
  like
• 7:08
  they
• 7:08
  still
• 7:09
  have
• 7:09
  plenty
• 7:09
  of
• 7:09
  other
• 7:09
  assortment
• 7:10
  that
• 7:10
  people
• 7:10
  are
• 7:10
  already
• 7:11
  going
• 7:11
  there
• 7:11
  for.
• 7:12
  I
• 7:12
  think
• 7:12
  they
• 7:12
  need
• 7:12
  to
• 7:13
  find
• 7:13
  a
• 7:13
  new
• 7:13
  problem
• 7:14
  to
• 7:14
  solve.
• 7:15
  Yeah.
• 7:16
  Okay,
• 7:16
  so
• 7:17
  I,
• 7:17
  I
• 7:17
  mean
• 7:17
  I
• 7:17
  agree
• 7:18
  with
• 7:18
  all
• 7:18
  of
• 7:18
  you
• 7:18
  and
• 7:19
  I
• 7:19
  think
• 7:19
  I'm
• 7:19
  going
• 7:19
  to
• 7:19
  be
• 7:19
  the
• 7:20
  most
• 7:20
  skeptical
• 7:20
  one
• 7:20
  here.
• 7:21
  I
• 7:21
  mean
• 7:21
  I,
• 7:22
  I,
• 7:22
  I,
• 7:22
  I,
• 7:22
  I
• 7:23
  actually
• 7:23
  question
• 7:23
  how
• 7:23
  much
• 7:24
  investment
• 7:24
  is
• 7:24
  actually
• 7:25
  really
• 7:25
  even
• 7:25
  being
• 7:25
  put
• 7:25
  into
• 7:26
  solving
• 7:26
  this
• 7:26
  at
• 7:26
  the
• 7:27
  end
• 7:27
  of
• 7:27
  the
• 7:27
  day.
• 7:27
  Because
• 7:27
  I
• 7:27
  think
• 7:28
  it's,
• 7:28
  I
• 7:28
  think
• 7:28
  it's
• 7:29
  code
• 7:29
  for
• 7:29
  pure
• 7:30
  window
• 7:30
  dressing
• 7:31
  at
• 7:31
  a
• 7:31
  large
• 7:31
  industry
• 7:32
  conference
• 7:32
  when
• 7:33
  you
• 7:33
  have
• 7:33
  nothing
• 7:33
  else
• 7:34
  substantive
• 7:34
  to
• 7:34
  talk
• 7:35
  about.
• 7:35
  That's
• 7:35
  what
• 7:35
  I
• 7:35
  think.
• 7:36
  I
• 7:36
  mean,
• 7:36
  come
• 7:37
  on,
• 7:37
  the
• 7:37
  things
• 7:37
  you're
• 7:38
  selling,
• 7:38
  you're
• 7:38
  selling
• 7:38
  on
• 7:39
  stage
• 7:39
  are
• 7:39
  buying
• 7:40
  into
• 7:40
  cherries
• 7:40
  and
• 7:41
  bows
• 7:41
  at
• 7:41
  the
• 7:41
  hot,
• 7:42
  you
• 7:42
  know,
• 7:42
  around
• 7:42
  the
• 7:42
  holiday
• 7:43
  season.
• 7:43
  I
• 7:43
  mean,
• 7:43
  come
• 7:43
  on,
• 7:43
  like
• 7:44
  that's
• 7:44
  going
• 7:44
  to
• 7:44
  have
• 7:45
  no
• 7:45
  material
• 7:45
  impact
• 7:46
  on
• 7:46
  your
• 7:46
  business.
• 7:47
  It's
• 7:47
  just
• 7:47
  what
• 7:47
  Target
• 7:48
  always
• 7:48
  is
• 7:48
  trying
• 7:48
  to
• 7:48
  take
• 7:49
  credit
• 7:49
  in
• 7:49
  the
• 7:49
  media
• 7:49
  for
• 7:50
  something
• 7:50
  that
• 7:50
  you
• 7:51
  should
• 7:51
  already
• 7:51
  be
• 7:51
  doing.
• 7:51
  Anyway,
• 7:52
  to
• 7:52
  your
• 7:52
  point
• 7:52
  and
• 7:52
  your
• 7:52
  point,
• 7:52
  San,
• 7:53
  about,
• 7:53
  you
• 7:53
  know,
• 7:53
  why
• 7:54
  do
• 7:54
  you
• 7:54
  really
• 7:54
  go
• 7:54
  to
• 7:54
  Target
• 7:55
  and
• 7:55
  Kelly
• 7:55
  too,
• 7:55
  like
• 7:56
  it's
• 7:56
  the
• 7:56
  things
• 7:56
  you,
• 7:57
  you
• 7:57
  don't
• 7:57
  expect
• 7:57
  to
• 7:58
  find.
• 7:58
  It's
• 7:58
  not
• 7:58
  necessarily
• 7:59
  that
• 7:59
  you
• 7:59
  want
• 7:59
  to
• 7:59
  go
• 8:00
  find
• 8:00
  the
• 8:00
  thing
• 8:00
  that's
• 8:00
  going
• 8:00
  viral
• 8:01
  on
• 8:01
  TikTok.
• 8:01
  It's
• 8:02
  the
• 8:02
  things
• 8:02
  that
• 8:02
  just
• 8:02
  surprise
• 8:03
  and
• 8:03
  delight
• 8:03
  you
• 8:03
  every
• 8:04
  single
• 8:04
  day.
• 8:04
  So
• 8:05
  I
• 8:06
  don't
• 8:06
  know,
• 8:06
  it's.
• 8:06
  Once
• 8:06
  again
• 8:07
  we've
• 8:07
  talked
• 8:08
  about
• 8:08
  the
• 8:08
  old
• 8:08
  adage
• 8:09
  and
• 8:09
  you
• 8:09
  and
• 8:09
  I
• 8:09
  talk
• 8:10
  about
• 8:10
  this
• 8:10
  quote
• 8:10
  all
• 8:10
  the
• 8:11
  time.
• 8:11
  Honesty
• 8:11
  is
• 8:12
  not
• 8:12
  synonymous
• 8:13
  with
• 8:13
  truth.
• 8:13
  From
• 8:13
  the
• 8:14
  Departed,
• 8:14
  one
• 8:14
  of
• 8:15
  my
• 8:15
  all
• 8:15
  time
• 8:15
  favorite
• 8:15
  movies.
• 8:16
  It's
• 8:16
  not
• 8:16
  synonymous
• 8:17
  with
• 8:17
  truth.
• 8:17
  And.
• 8:18
  And
• 8:18
  that's.
• 8:18
  That's
• 8:19
  what
• 8:19
  they're
• 8:19
  doing
• 8:19
  here
• 8:19
  again,
• 8:20
  so.
• 8:20
  I
• 8:20
  don't
• 8:20
  know.
• 8:21
  I'm
• 8:22
  glad
• 8:22
  we
• 8:22
  all
• 8:22
  feel
• 8:22
  the
• 8:22
  same
• 8:22
  way
• 8:23
  about
• 8:23
  this,
• 8:23
  relatively.