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Small Stores, Big Ideas: The New Bed, Bath and Beyond Strategy · Omni Talk Retail

• 0:00
  Bed,
• 0:00
  Bath
• 0:00
  and
• 0:00
  Beyond
• 0:01
  stores
• 0:01
  could
• 0:01
  soon
• 0:02
  return.
• 0:03
  Yay.
• 0:04
  According
• 0:04
  to
• 0:05
  Retail
• 0:05
  Dive,
• 0:05
  Kirkland's
• 0:06
  Home
• 0:06
  and
• 0:06
  Beyond
• 0:07
  have
• 0:07
  entered
• 0:07
  a
• 0:07
  strategic
• 0:08
  partnership
• 0:08
  that
• 0:08
  includes
• 0:09
  the
• 0:09
  pilot
• 0:09
  opening
• 0:10
  of
• 0:10
  up
• 0:10
  to
• 0:11
  5
• 0:11
  neighborhood
• 0:12
  small
• 0:12
  format
• 0:13
  Bed,
• 0:13
  Bath
• 0:13
  and
• 0:13
  Beyond
• 0:14
  stores.
• 0:14
  The
• 0:14
  company
• 0:15
  said
• 0:15
  Monday.
• 0:15
  You
• 0:16
  won't
• 0:16
  need
• 0:16
  the
• 0:16
  whole
• 0:17
  Saturday
• 0:17
  to
• 0:17
  go
• 0:17
  to
• 0:17
  Bed,
• 0:18
  Bath
• 0:18
  and
• 0:18
  Beyond,
• 0:18
  Home
• 0:18
  Depot
• 0:19
  and
• 0:19
  others.
• 0:19
  You
• 0:19
  will
• 0:20
  just
• 0:20
  need
• 0:20
  a
• 0:20
  short
• 0:20
  amount
• 0:20
  of
• 0:21
  time
• 0:21
  because
• 0:21
  they're
• 0:21
  just
• 0:21
  tiny
• 0:22
  little
• 0:22
  cute
• 0:22
  Bed,
• 0:22
  Bath
• 0:23
  and
• 0:23
  Beyond
• 0:23
  good
• 0:24
  frank
• 0:24
  to
• 0:24
  take
• 0:24
  reference
• 0:25
  and
• 0:25
  nice
• 0:26
  subtle
• 0:27
  Kirkland's
• 0:28
  is
• 0:28
  Beyond
• 0:29
  beyond
• 0:29
  exclusive
• 0:30
  operator
• 0:30
  and
• 0:31
  licensee
• 0:31
  for
• 0:31
  the
• 0:32
  new
• 0:32
  stores.
• 0:32
  Bed,
• 0:33
  Bath
• 0:33
  and
• 0:33
  Beyond
• 0:33
  shopping
• 0:34
  shops
• 0:34
  may
• 0:35
  also
• 0:35
  be
• 0:35
  opened
• 0:36
  inside
• 0:36
  of
• 0:36
  Kirkland's
• 0:37
  locations,
• 0:37
  but
• 0:38
  that's
• 0:38
  yet
• 0:38
  to
• 0:38
  be
• 0:38
  determined.
• 0:39
  Beyond
• 0:40
  is
• 0:40
  providing
• 0:41
  $17
• 0:41
  million
• 0:42
  in
• 0:42
  debt
• 0:42
  financing
• 0:43
  to
• 0:43
  Kirkland's
• 0:44
  under
• 0:44
  the
• 0:44
  deal's
• 0:44
  financial
• 0:45
  terms.
• 0:46
  Eight
• 0:46
  and
• 0:46
  a
• 0:46
  half
• 0:47
  million
• 0:47
  of
• 0:47
  that
• 0:47
  is
• 0:47
  a
• 0:47
  convertible
• 0:48
  note
• 0:48
  that
• 0:48
  will
• 0:49
  convert
• 0:49
  to
• 0:49
  Kirkland's
• 0:50
  common
• 0:50
  stock
• 0:51
  at
• 0:51
  $1.85
• 0:51
  per
• 0:52
  share.
• 0:52
  Upon
• 0:53
  stockholder
• 0:53
  approval,
• 0:54
  beyond
• 0:54
  will
• 0:55
  also
• 0:55
  buy
• 0:56
  $8
• 0:56
  million
• 0:56
  of
• 0:57
  Kirkland
• 0:57
  stock
• 0:58
  in
• 0:58
  a
• 0:58
  subscription
• 0:59
  agreement.
• 1:00
  The
• 1:00
  company's
• 1:00
  also
• 1:01
  entered
• 1:01
  a
• 1:01
  seven
• 1:01
  year
• 1:02
  collaboration
• 1:02
  agreement
• 1:03
  starting
• 1:04
  in
• 1:04
  Q1
• 1:05
  of
• 1:05
  2025.
• 1:06
  Beyond
• 1:06
  will
• 1:07
  earn
• 1:07
  a
• 1:07
  collaboration
• 1:08
  fee
• 1:08
  equal
• 1:09
  to
• 1:09
  0.25%
• 1:10
  on
• 1:10
  all
• 1:10
  of
• 1:11
  Kirkland's
• 1:11
  quarterly
• 1:12
  retail
• 1:12
  and
• 1:12
  E
• 1:12
  Commerce
• 1:13
  revenue,
• 1:13
  an
• 1:13
  incentive
• 1:14
  fee
• 1:14
  equal
• 1:14
  to
• 1:15
  1.5%
• 1:15
  of
• 1:16
  Kirkland's
• 1:16
  incremental
• 1:17
  growth
• 1:17
  in
• 1:17
  E
• 1:17
  Commerce
• 1:18
  revenue,
• 1:19
  and
• 1:19
  a
• 1:19
  trademark
• 1:19
  license
• 1:20
  agreement
• 1:20
  where
• 1:21
  beyond
• 1:21
  will
• 1:21
  earn
• 1:22
  a
• 1:22
  store
• 1:22
  royalty
• 1:23
  fee
• 1:23
  equal
• 1:23
  to
• 1:23
  3%
• 1:24
  of
• 1:24
  net
• 1:24
  store
• 1:25
  sales
• 1:25
  generated
• 1:26
  under
• 1:26
  the
• 1:26
  Bed,
• 1:27
  Bath
• 1:27
  and
• 1:27
  Beyond
• 1:27
  banner.
• 1:28
  I
• 1:28
  hope
• 1:28
  you
• 1:29
  were
• 1:29
  taking
• 1:29
  notes
• 1:29
  there.
• 1:30
  There
• 1:30
  was
• 1:30
  a
• 1:30
  lot
• 1:30
  of
• 1:31
  data
• 1:31
  that
• 1:31
  I
• 1:31
  just
• 1:31
  threw
• 1:32
  out
• 1:32
  you,
• 1:33
  but
• 1:33
  my
• 1:33
  question
• 1:34
  is
• 1:34
  simpler.
• 1:35
  Does
• 1:36
  the
• 1:36
  market
• 1:36
  need
• 1:36
  a
• 1:37
  smaller
• 1:37
  incarnation
• 1:38
  of
• 1:38
  Bed,
• 1:38
  Bath
• 1:38
  and
• 1:38
  Beyond
• 1:39
  or
• 1:39
  is
• 1:40
  this
• 1:40
  an
• 1:40
  example
• 1:41
  of
• 1:41
  two
• 1:42
  wrongs
• 1:42
  that
• 1:42
  won't
• 1:42
  likely
• 1:43
  make
• 1:43
  a
• 1:43
  right?
• 1:44
  If
• 1:44
  you
• 1:44
  step
• 1:45
  back
• 1:45
  and
• 1:45
  think
• 1:45
  about
• 1:45
  what
• 1:46
  beyond
• 1:46
  is
• 1:46
  trying
• 1:46
  to
• 1:46
  do
• 1:47
  here.
• 1:47
  Right
• 1:47
  which
• 1:47
  is
• 1:48
  trying
• 1:48
  to
• 1:48
  have
• 1:49
  a
• 1:49
  broader
• 1:49
  play
• 1:50
  in
• 1:50
  home
• 1:50
  home
• 1:51
  improvement,
• 1:51
  home
• 1:52
  services,
• 1:53
  decoration,
• 1:54
  furniture.
• 1:55
  I
• 1:56
  think
• 1:56
  that
• 1:56
  makes
• 1:56
  sense,
• 1:56
  right?
• 1:57
  Zulily
• 1:57
  they
• 1:58
  they
• 1:58
  have
• 1:58
  bought,
• 1:59
  you
• 1:59
  know,
• 1:59
  bed
• 1:59
  batten
• 2:00
  beyond,
• 2:00
  the
• 2:01
  IP
• 2:01
  of
• 2:01
  it
• 2:02
  overstock
• 2:03
  and
• 2:03
  now
• 2:03
  they
• 2:03
  are
• 2:04
  forging
• 2:04
  a
• 2:04
  partnership
• 2:04
  with
• 2:05
  Container
• 2:05
  Store.
• 2:06
  So
• 2:06
  they're
• 2:06
  moving
• 2:06
  more
• 2:07
  towards
• 2:07
  this
• 2:08
  home
• 2:10
  centered
• 2:10
  around
• 2:11
  home
• 2:12
  concept.
• 2:12
  Right.
• 2:14
  And
• 2:14
  Marcus
• 2:14
  is
• 2:14
  a,
• 2:15
  is
• 2:15
  a,
• 2:15
  is
• 2:15
  a
• 2:15
  phenomenally
• 2:16
  well
• 2:17
  proven
• 2:17
  leader
• 2:18
  so
• 2:18
  he
• 2:18
  has
• 2:19
  a
• 2:19
  plan
• 2:19
  to
• 2:19
  execute
• 2:20
  against
• 2:20
  it.
• 2:21
  Now
• 2:22
  it's
• 2:22
  a
• 2:23
  small
• 2:23
  test
• 2:24
  that
• 2:24
  they
• 2:24
  are
• 2:24
  trying
• 2:24
  to
• 2:25
  get
• 2:25
  into
• 2:26
  may
• 2:26
  likely
• 2:27
  be
• 2:27
  that
• 2:28
  Kirkland's
• 2:30
  is
• 2:30
  not
• 2:30
  penetrated
• 2:31
  as
• 2:32
  much
• 2:32
  in
• 2:32
  the
• 2:32
  brick
• 2:33
  and
• 2:33
  mortar
• 2:33
  space
• 2:34
  as
• 2:34
  opposed
• 2:34
  to
• 2:35
  online.
• 2:35
  Probably
• 2:36
  their
• 2:36
  sales
• 2:36
  are
• 2:37
  a
• 2:37
  lot
• 2:37
  more
• 2:37
  lopsided
• 2:38
  towards
• 2:39
  online
• 2:39
  and
• 2:39
  E
• 2:39
  Commerce,
• 2:40
  especially
• 2:40
  Coming
• 2:41
  out
• 2:41
  of
• 2:41
  COVID
• 2:43
  and
• 2:43
  I
• 2:43
  mean
• 2:44
  they
• 2:44
  have
• 2:44
  about
• 2:44
  $60
• 2:45
  million
• 2:45
  in
• 2:45
  sales,
• 2:46
  net
• 2:46
  sales
• 2:46
  and
• 2:47
  likely
• 2:47
  the
• 2:48
  revenue
• 2:48
  is
• 2:48
  going
• 2:48
  to
• 2:48
  be,
• 2:49
  you
• 2:49
  know,
• 2:49
  they're
• 2:49
  expecting
• 2:50
  probably
• 2:50
  the
• 2:50
  vicinity
• 2:50
  of
• 2:51
  200
• 2:52
  to
• 2:52
  500
• 2:53
  range
• 2:53
  in
• 2:53
  terms
• 2:54
  of
• 2:54
  revenue
• 2:54
  from
• 2:54
  a
• 2:54
  store
• 2:55
  from
• 2:55
  this
• 2:56
  particular
• 2:56
  format,
• 2:57
  which
• 2:57
  is
• 2:57
  not
• 2:58
  huge
• 2:58
  expectation.
• 2:59
  Right.
• 2:59
  From
• 2:59
  a
• 3:00
  small,
• 3:00
  tightly
• 3:02
  controlled
• 3:03
  and
• 3:03
  well
• 3:04
  placed
• 3:04
  retail
• 3:05
  location.
• 3:05
  That's
• 3:06
  the
• 3:06
  key,
• 3:06
  right.
• 3:07
  If
• 3:07
  they
• 3:07
  put
• 3:07
  it
• 3:08
  in
• 3:08
  the
• 3:08
  right
• 3:08
  set
• 3:08
  of
• 3:08
  semi
• 3:09
  urban,
• 3:10
  highly
• 3:11
  populated
• 3:12
  strip
• 3:12
  mall
• 3:12
  location,
• 3:13
  then
• 3:13
  you
• 3:14
  have
• 3:14
  low
• 3:15
  labor,
• 3:15
  low
• 3:15
  rentals,
• 3:16
  low
• 3:16
  leases.
• 3:17
  So
• 3:17
  it
• 3:17
  has
• 3:18
  some
• 3:18
  legs,
• 3:18
  right.
• 3:19
  If
• 3:19
  you
• 3:19
  have,
• 3:19
  you
• 3:19
  can
• 3:20
  make
• 3:20
  the
• 3:20
  economics
• 3:21
  work.
• 3:22
  Bed
• 3:22
  Bath
• 3:23
  and
• 3:23
  Beyond
• 3:23
  still
• 3:23
  has
• 3:23
  a
• 3:24
  wonderful
• 3:24
  brand
• 3:24
  recall,
• 3:25
  but
• 3:26
  it's
• 3:26
  a
• 3:26
  more
• 3:28
  promotion
• 3:28
  oriented.
• 3:29
  Coupons,
• 3:30
  discounts,
• 3:31
  markdowns,
• 3:32
  so
• 3:32
  they'll
• 3:32
  have
• 3:32
  to
• 3:32
  price
• 3:32
  it
• 3:33
  properly.
• 3:35
  The
• 3:35
  biggest
• 3:35
  thing
• 3:35
  that
• 3:36
  led
• 3:36
  to
• 3:37
  chapter
• 3:37
  11
• 3:38
  for
• 3:38
  bed
• 3:39
  bath
• 3:39
  and
• 3:39
  beyond
• 3:39
  was
• 3:40
  that
• 3:40
  the
• 3:41
  costs
• 3:41
  were
• 3:42
  not
• 3:42
  in
• 3:43
  control
• 3:44
  and
• 3:45
  a
• 3:45
  lot
• 3:45
  of
• 3:45
  the
• 3:45
  merchandise
• 3:46
  choices
• 3:46
  that
• 3:46
  were
• 3:47
  made
• 3:47
  were
• 3:47
  competing
• 3:47
  with
• 3:47
  the
• 3:48
  national
• 3:48
  brands
• 3:49
  and
• 3:49
  with
• 3:49
  Target
• 3:49
  and
• 3:49
  with
• 3:50
  Walmart,
• 3:50
  especially
• 3:51
  in
• 3:51
  the
• 3:51
  home
• 3:51
  improvement
• 3:52
  category,
• 3:52
  home
• 3:53
  improvement
• 3:53
  and
• 3:53
  decor.
• 3:54
  And
• 3:54
  now
• 3:55
  this
• 3:55
  is
• 3:55
  a
• 3:55
  very
• 3:56
  particular
• 3:56
  category,
• 3:57
  furniture
• 3:57
  that
• 3:58
  they
• 3:58
  can
• 3:58
  probably
• 3:58
  reach
• 3:59
  more,
• 3:59
  lean
• 4:00
  more
• 4:00
  into
• 4:01
  and
• 4:01
  have
• 4:02
  very
• 4:02
  clear
• 4:03
  merchandising,
• 4:04
  supply
• 4:05
  chain
• 4:06
  procurement,
• 4:07
  cogs,
• 4:08
  gross
• 4:08
  margin
• 4:09
  play
• 4:09
  from
• 4:10
  Kirkland
• 4:10
  that
• 4:10
  they
• 4:10
  probably
• 4:11
  have
• 4:11
  a
• 4:11
  good
• 4:11
  team
• 4:12
  already
• 4:12
  in
• 4:12
  place
• 4:13
  and
• 4:13
  they
• 4:13
  can
• 4:13
  lift
• 4:14
  and
• 4:14
  shift.
• 4:14
  So
• 4:14
  if
• 4:14
  you
• 4:14
  read
• 4:15
  the
• 4:15
  press
• 4:15
  release,
• 4:16
  Markus
• 4:16
  is
• 4:17
  very
• 4:17
  clearly
• 4:18
  pointing
• 4:18
  that
• 4:18
  out
• 4:19
  that
• 4:20
  they
• 4:20
  have
• 4:20
  a
• 4:20
  track,
• 4:21
  proven
• 4:21
  track
• 4:21
  record
• 4:22
  and
• 4:22
  he
• 4:23
  has
• 4:23
  confidence
• 4:23
  in
• 4:23
  the
• 4:23
  leadership
• 4:24
  team.
• 4:25
  So
• 4:25
  I
• 4:25
  think
• 4:25
  if
• 4:26
  you
• 4:26
  tie
• 4:26
  all
• 4:26
  this
• 4:27
  together,
• 4:27
  I
• 4:27
  think
• 4:27
  there
• 4:27
  is
• 4:28
  something
• 4:28
  here
• 4:29
  that
• 4:29
  they
• 4:29
  can
• 4:30
  start
• 4:30
  this
• 4:31
  experiment
• 4:31
  in
• 4:31
  a
• 4:32
  small
• 4:32
  format
• 4:33
  and
• 4:33
  then
• 4:34
  assess.
• 4:34
  And
• 4:35
  I
• 4:35
  believe
• 4:35
  that
• 4:35
  the
• 4:36
  right
• 4:36
  location
• 4:36
  and
• 4:37
  the
• 4:37
  right
• 4:37
  investments
• 4:38
  will
• 4:39
  likely
• 4:39
  be,
• 4:40
  will
• 4:41
  help
• 4:41
  them
• 4:41
  shape
• 4:41
  this
• 4:42
  strategy
• 4:42
  and
• 4:43
  the
• 4:43
  pilots.
• 4:44
  Okay.
• 4:44
  All
• 4:44
  right,
• 4:45
  Chris
• 4:45
  Kreitz,
• 4:45
  what
• 4:45
  do
• 4:45
  you
• 4:46
  say
• 4:46
  about
• 4:46
  this?
• 4:47
  I'm
• 4:47
  going
• 4:47
  to
• 4:47
  go
• 4:47
  off
• 4:48
  on
• 4:48
  the
• 4:48
  rails
• 4:48
  here
• 4:49
  and
• 4:49
  just
• 4:49
  go
• 4:50
  a
• 4:50
  totally
• 4:50
  different
• 4:51
  direction
• 4:51
  and
• 4:51
  answer.
• 4:52
  Oh
• 4:52
  boy.
• 4:52
  I
• 4:53
  think
• 4:53
  the
• 4:53
  whole
• 4:54
  history
• 4:54
  of
• 4:55
  beyond
• 4:55
  is
• 4:56
  so
• 4:56
  in
• 4:56
  the
• 4:56
  new
• 4:57
  beyond
• 4:57
  is
• 4:57
  so
• 4:57
  interesting,
• 4:58
  right?
• 4:58
  Yeah.
• 4:59
  They
• 4:59
  buy
• 5:00
  the
• 5:00
  Bed
• 5:00
  bath
• 5:00
  and
• 5:01
  Beyond
• 5:01
  IP
• 5:02
  for
• 5:02
  $20
• 5:02
  million,
• 5:03
  right?
• 5:03
  Then
• 5:04
  they
• 5:04
  buy,
• 5:05
  they
• 5:05
  close
• 5:06
  overstock.com
• 5:06
  they've
• 5:07
  now
• 5:07
  reopened
• 5:08
  overstock.com
• 5:08
  they
• 5:08
  did
• 5:09
  a
• 5:09
  $40
• 5:10
  million
• 5:10
  deal
• 5:11
  with
• 5:11
  the
• 5:12
  Container
• 5:12
  Store.
• 5:13
  They
• 5:13
  did
• 5:14
  this
• 5:14
  $17
• 5:15
  million
• 5:15
  deal
• 5:15
  with
• 5:15
  Kirkland's.
• 5:16
  They
• 5:16
  said,
• 5:16
  we're
• 5:17
  never
• 5:17
  going
• 5:17
  to
• 5:17
  open
• 5:18
  physical
• 5:18
  retail
• 5:18
  stores
• 5:19
  again.
• 5:19
  A
• 5:20
  year
• 5:20
  later,
• 5:20
  they've
• 5:20
  opened
• 5:21
  physical
• 5:21
  retail
• 5:22
  stores
• 5:22
  again.
• 5:23
  And
• 5:23
  at
• 5:24
  the,
• 5:25
  from
• 5:25
  the
• 5:26
  outside,
• 5:26
  it
• 5:26
  looks
• 5:26
  like
• 5:27
  the
• 5:27
  most
• 5:27
  scattered
• 5:28
  retailing
• 5:29
  strategy
• 5:29
  you
• 5:29
  can
• 5:29
  possibly
• 5:30
  imagine.
• 5:31
  And
• 5:32
  then
• 5:32
  like,
• 5:32
  you
• 5:32
  know,
• 5:32
  just
• 5:33
  dumping
• 5:33
  money
• 5:33
  into,
• 5:34
  you
• 5:34
  know,
• 5:34
  failing
• 5:35
  brands
• 5:35
  or
• 5:35
  struggling
• 5:36
  brands.
• 5:37
  If
• 5:38
  I
• 5:38
  step
• 5:38
  back
• 5:38
  and
• 5:39
  say
• 5:39
  it's,
• 5:39
  you
• 5:39
  know,
• 5:39
  it's
• 5:40
  either
• 5:40
  a
• 5:40
  very
• 5:40
  scattered
• 5:41
  strategy
• 5:41
  or
• 5:41
  there's
• 5:42
  something
• 5:42
  brilliant
• 5:42
  going
• 5:43
  on
• 5:43
  here.
• 5:44
  I
• 5:44
  thought
• 5:44
  Lakshman
• 5:44
  had
• 5:45
  a
• 5:45
  really
• 5:45
  good
• 5:45
  point.
• 5:45
  Right.
• 5:46
  Like
• 5:46
  the
• 5:46
  beyond
• 5:46
  brand
• 5:47
  has
• 5:47
  extremely
• 5:48
  high
• 5:49
  rankings
• 5:50
  on
• 5:50
  search
• 5:50
  and
• 5:51
  customer
• 5:51
  recall
• 5:52
  that
• 5:52
  they
• 5:52
  know
• 5:52
  the
• 5:52
  name.
• 5:53
  Right.
• 5:53
  So
• 5:54
  one
• 5:54
  of
• 5:54
  the
• 5:54
  things
• 5:55
  that's
• 5:55
  interesting,
• 5:55
  in
• 5:55
  all
• 5:56
  the
• 5:56
  releases
• 5:56
  of
• 5:56
  the
• 5:57
  deals
• 5:57
  that
• 5:57
  they've
• 5:57
  done
• 5:57
  with
• 5:58
  Kirkland's,
• 5:58
  with
• 5:58
  the
• 5:59
  Container
• 5:59
  Store,
• 5:59
  there's
• 5:59
  like
• 6:00
  a
• 6:00
  small
• 6:00
  snippet
• 6:01
  that's
• 6:01
  hidden
• 6:02
  in
• 6:02
  where
• 6:02
  they
• 6:02
  say
• 6:04
  all
• 6:04
  the
• 6:04
  companies
• 6:05
  are
• 6:05
  going
• 6:05
  to
• 6:05
  join
• 6:06
  Beyond
• 6:06
  Customer
• 6:07
  Data,
• 6:07
  global
• 6:08
  data
• 6:08
  platform.
• 6:09
  Which
• 6:10
  means
• 6:10
  my
• 6:11
  curiosity
• 6:11
  is,
• 6:12
  are
• 6:12
  they
• 6:12
  just
• 6:12
  making
• 6:13
  these
• 6:13
  investments
• 6:13
  to
• 6:14
  get
• 6:14
  access
• 6:14
  to
• 6:14
  the
• 6:15
  customer
• 6:15
  lists,
• 6:16
  to
• 6:16
  Lakshman's
• 6:17
  point,
• 6:17
  to
• 6:18
  use
• 6:18
  their
• 6:19
  brand
• 6:19
  recall
• 6:20
  and
• 6:20
  search
• 6:20
  prominence
• 6:21
  to
• 6:21
  be
• 6:22
  able
• 6:22
  to
• 6:22
  funnel
• 6:23
  customers
• 6:23
  towards
• 6:23
  these
• 6:24
  brands.
• 6:24
  Like,
• 6:25
  I
• 6:25
  think
• 6:25
  it
• 6:25
  could
• 6:26
  be
• 6:26
  overall,
• 6:26
  just
• 6:27
  a
• 6:27
  large
• 6:27
  marketing
• 6:28
  play.
• 6:29
  The
• 6:29
  other
• 6:29
  interesting
• 6:30
  piece
• 6:30
  is
• 6:30
  they
• 6:30
  all
• 6:31
  say
• 6:31
  that
• 6:31
  they're
• 6:31
  going
• 6:31
  to
• 6:31
  adopt
• 6:32
  the
• 6:32
  loyalty
• 6:32
  program
• 6:33
  and
• 6:33
  then
• 6:33
  it
• 6:34
  looks
• 6:34
  like
• 6:34
  they're
• 6:34
  going
• 6:34
  to
• 6:35
  start
• 6:35
  selling
• 6:36
  payment
• 6:36
  solutions
• 6:37
  and
• 6:37
  insurance
• 6:37
  and
• 6:38
  those
• 6:38
  like
• 6:38
  ancillary
• 6:39
  financial
• 6:40
  products
• 6:41
  now
• 6:41
  that
• 6:42
  beyond
• 6:42
  is
• 6:42
  going
• 6:42
  to
• 6:43
  own.
• 6:43
  So
• 6:44
  to
• 6:44
  me,
• 6:45
  there's
• 6:45
  some
• 6:45
  sort
• 6:46
  of
• 6:46
  marketing
• 6:47
  data
• 6:47
  play
• 6:47
  there
• 6:47
  where
• 6:48
  they're
• 6:48
  just
• 6:48
  making
• 6:48
  these
• 6:49
  investments
• 6:49
  into
• 6:49
  smaller
• 6:51
  in
• 6:51
  decline
• 6:52
  retailers
• 6:52
  that
• 6:53
  used
• 6:53
  to
• 6:53
  have
• 6:54
  billion
• 6:54
  dollars
• 6:54
  of
• 6:55
  sales
• 6:55
  and
• 6:55
  now
• 6:56
  you
• 6:56
  have
• 6:56
  access
• 6:56
  to
• 6:56
  all
• 6:57
  of
• 6:57
  that
• 6:57
  customer
• 6:57
  data
• 6:58
  and
• 6:58
  you
• 6:58
  can
• 6:58
  figure
• 6:59
  out
• 6:59
  ways
• 6:59
  to
• 6:59
  funnel
• 7:00
  that
• 7:00
  data
• 7:00
  towards
• 7:01
  your
• 7:01
  future
• 7:02
  platform
• 7:03
  of
• 7:03
  brands.
• 7:03
  So
• 7:04
  I
• 7:04
  think
• 7:04
  it's
• 7:04
  really
• 7:04
  interesting
• 7:05
  from
• 7:05
  that
• 7:05
  perspective
• 7:06
  too.
• 7:07
  So
• 7:07
  it's
• 7:07
  a
• 7:07
  data
• 7:08
  play.
• 7:08
  You
• 7:08
  think,
• 7:08
  Chris
• 7:09
  Walton,
• 7:10
  you,
• 7:10
  this
• 7:11
  is,
• 7:11
  this
• 7:11
  is
• 7:11
  your
• 7:11
  wheelhouse.
• 7:13
  You,
• 7:14
  you
• 7:14
  worked
• 7:14
  in
• 7:14
  home
• 7:14
  furnishings
• 7:15
  for
• 7:15
  a
• 7:15
  long
• 7:15
  time
• 7:15
  with
• 7:16
  Target.
• 7:16
  What
• 7:17
  do
• 7:17
  you
• 7:17
  make
• 7:17
  of
• 7:17
  this?
• 7:17
  Yeah,
• 7:18
  you,
• 7:18
  I
• 7:18
  mean,
• 7:19
  I.
• 7:19
  God,
• 7:20
  there's
• 7:20
  a
• 7:20
  lot
• 7:20
  here.
• 7:20
  I
• 7:21
  mean,
• 7:21
  I
• 7:21
  think
• 7:21
  both,
• 7:21
  both
• 7:22
  the
• 7:22
  two
• 7:22
  gentlemen
• 7:23
  before
• 7:23
  me
• 7:23
  summed
• 7:23
  it
• 7:23
  up
• 7:24
  pretty
• 7:24
  well.
• 7:24
  I
• 7:24
  mean,
• 7:24
  I
• 7:25
  mean,
• 7:25
  my
• 7:25
  biggest
• 7:25
  takeaway
• 7:25
  from
• 7:26
  this
• 7:26
  is
• 7:26
  I
• 7:26
  got
• 7:26
  to
• 7:26
  say,
• 7:26
  great
• 7:27
  job,
• 7:27
  Marcus.
• 7:27
  You
• 7:27
  know,
• 7:28
  like
• 7:28
  he's
• 7:28
  doing
• 7:29
  what
• 7:29
  the
• 7:29
  entrepreneur
• 7:29
  does,
• 7:30
  which
• 7:30
  is
• 7:30
  like
• 7:30
  offloading
• 7:31
  all
• 7:31
  the
• 7:31
  risk
• 7:32
  onto
• 7:32
  two
• 7:32
  other
• 7:33
  companies.
• 7:33
  You
• 7:33
  know,
• 7:34
  we
• 7:34
  brought
• 7:34
  up
• 7:34
  the
• 7:34
  Container
• 7:35
  Store,
• 7:35
  but
• 7:35
  in
• 7:35
  this
• 7:35
  case,
• 7:36
  you
• 7:36
  know,
• 7:36
  he's
• 7:36
  offloading
• 7:36
  it
• 7:36
  to
• 7:37
  Kirkland's.
• 7:37
  Like,
• 7:38
  you
• 7:38
  know,
• 7:38
  that
• 7:39
  basically
• 7:39
  the
• 7:39
  money
• 7:39
  is
• 7:39
  just
• 7:39
  going
• 7:40
  to
• 7:40
  float
• 7:40
  to
• 7:41
  beyond,
• 7:41
  you
• 7:42
  know,
• 7:42
  if
• 7:42
  Kirkland
• 7:42
  tries
• 7:43
  to
• 7:43
  do
• 7:43
  anything.
• 7:43
  And
• 7:44
  Bed
• 7:44
  Bath
• 7:44
  beyond
• 7:44
  doesn't
• 7:45
  really
• 7:45
  have
• 7:45
  to
• 7:45
  do
• 7:45
  anything
• 7:46
  to
• 7:46
  make
• 7:46
  that
• 7:46
  happen.
• 7:46
  So
• 7:47
  from
• 7:47
  a,
• 7:47
  from
• 7:47
  a
• 7:47
  cash
• 7:48
  flow
• 7:48
  perspective,
• 7:48
  I
• 7:48
  got
• 7:48
  to
• 7:48
  think
• 7:49
  that's
• 7:49
  good
• 7:49
  for
• 7:50
  Beyond's
• 7:50
  business.
• 7:51
  But
• 7:51
  net
• 7:52
  net,
• 7:52
  when
• 7:52
  I
• 7:52
  step
• 7:53
  back
• 7:53
  from
• 7:53
  it,
• 7:53
  I
• 7:54
  struggle
• 7:54
  seeing
• 7:54
  why
• 7:55
  a
• 7:55
  new,
• 7:56
  smaller
• 7:56
  incarnation
• 7:57
  of
• 7:57
  Bed
• 7:57
  Bath
• 7:58
  and
• 7:58
  Beyond
• 7:58
  is
• 7:58
  going
• 7:58
  to
• 7:58
  amount
• 7:59
  to
• 7:59
  anything.
• 7:59
  Because
• 8:00
  I
• 8:00
  Just
• 8:00
  don't
• 8:00
  know
• 8:01
  the
• 8:01
  why.
• 8:01
  Like,
• 8:02
  what
• 8:02
  is
• 8:02
  the
• 8:02
  why
• 8:03
  in
• 8:03
  terms
• 8:03
  of
• 8:03
  why
• 8:03
  I'm
• 8:04
  going
• 8:04
  to
• 8:05
  that
• 8:06
  store
• 8:06
  over
• 8:07
  any
• 8:07
  other
• 8:07
  option?
• 8:08
  Like,
• 8:08
  I
• 8:08
  just
• 8:08
  don't
• 8:09
  get
• 8:09
  it.
• 8:09
  The
• 8:09
  space
• 8:10
  is
• 8:10
  so
• 8:10
  crowded
• 8:11
  already.
• 8:11
  Yeah.
• 8:12
  And
• 8:12
  you
• 8:12
  know,
• 8:12
  when
• 8:12
  I
• 8:12
  go
• 8:13
  back
• 8:13
  to
• 8:13
  like
• 8:13
  why,
• 8:14
  why
• 8:14
  Bed
• 8:14
  Bath
• 8:14
  beyond
• 8:15
  failed
• 8:15
  initially,
• 8:15
  it's
• 8:16
  because
• 8:16
  Bed
• 8:16
  Bath
• 8:17
  and
• 8:17
  Beyond
• 8:17
  was
• 8:18
  done
• 8:18
  better
• 8:18
  by
• 8:19
  Amazon.
• 8:19
  It
• 8:19
  was
• 8:19
  all
• 8:19
  the
• 8:20
  beyond
• 8:20
  stuff
• 8:20
  that
• 8:21
  you
• 8:21
  could
• 8:21
  get
• 8:21
  now
• 8:22
  through
• 8:22
  Amazon
• 8:22
  just
• 8:22
  delivered
• 8:23
  to
• 8:23
  you.
• 8:23
  So
• 8:24
  especially
• 8:24
  with
• 8:24
  all
• 8:24
  the
• 8:24
  other
• 8:25
  competitions.
• 8:25
  So
• 8:25
  I.
• 8:27
  Good
• 8:27
  luck.
• 8:27
  Kirkland's
• 8:28
  trying
• 8:28
  to
• 8:28
  do
• 8:28
  this.
• 8:28
  I
• 8:28
  think
• 8:29
  you
• 8:29
  might
• 8:29
  have
• 8:29
  gotten
• 8:29
  hoodwinked
• 8:30
  a
• 8:30
  little
• 8:30
  bit
• 8:30
  on
• 8:30
  this
• 8:30
  one.
• 8:31
  Yeah,
• 8:31
  I
• 8:32
  agree,
• 8:32
  Chris.
• 8:32
  I
• 8:32
  don't
• 8:33
  understand
• 8:33
  the
• 8:33
  new
• 8:33
  small
• 8:34
  format
• 8:34
  ones.
• 8:34
  I'm
• 8:34
  a
• 8:35
  little
• 8:35
  softer
• 8:36
  on
• 8:36
  the,
• 8:38
  you
• 8:38
  know,
• 8:38
  the
• 8:39
  collaborations,
• 8:40
  the
• 8:40
  going
• 8:40
  inside
• 8:41
  the
• 8:41
  Container
• 8:41
  Store
• 8:42
  or
• 8:43
  going
• 8:43
  inside
• 8:44
  of
• 8:44
  a
• 8:44
  Kirklands.
• 8:44
  Like,
• 8:45
  I
• 8:45
  don't
• 8:45
  hate
• 8:45
  that
• 8:46
  idea.
• 8:46
  I
• 8:46
  think
• 8:46
  that's
• 8:47
  an
• 8:47
  easy,
• 8:47
  easier
• 8:48
  thing
• 8:48
  for
• 8:49
  them
• 8:49
  to
• 8:49
  test
• 8:49
  and
• 8:49
  they
• 8:50
  have
• 8:50
  the
• 8:50
  data,
• 8:50
  like
• 8:50
  Chris
• 8:51
  was
• 8:51
  saying,
• 8:51
  you
• 8:52
  know,
• 8:52
  collected
• 8:52
  from
• 8:53
  shoppers
• 8:53
  across
• 8:54
  the
• 8:54
  platform,
• 8:55
  what
• 8:55
  they're
• 8:55
  interested
• 8:55
  in,
• 8:56
  what
• 8:56
  people
• 8:56
  are
• 8:56
  buying
• 8:57
  in
• 8:57
  those
• 8:57
  locations.
• 8:58
  And
• 8:58
  I
• 8:58
  think
• 8:59
  the
• 8:59
  thing
• 8:59
  that
• 8:59
  we
• 8:59
  haven't
• 8:59
  talked
• 8:59
  about
• 9:00
  is
• 9:00
  from
• 9:00
  a
• 9:00
  customer
• 9:01
  perspective,
• 9:01
  I
• 9:02
  do
• 9:02
  like
• 9:02
  the
• 9:02
  potential
• 9:03
  option
• 9:03
  to
• 9:04
  use
• 9:04
  these
• 9:04
  Kirkland's
• 9:05
  locations,
• 9:05
  these
• 9:05
  Container
• 9:06
  Store
• 9:06
  locations,
• 9:07
  as,
• 9:07
  you
• 9:07
  know,
• 9:08
  returns
• 9:08
  drop
• 9:09
  off
• 9:09
  points
• 9:09
  for
• 9:10
  these
• 9:10
  retailers.
• 9:11
  Like
• 9:11
  there
• 9:11
  is
• 9:12
  some
• 9:12
  benefit
• 9:12
  there,
• 9:12
  especially
• 9:13
  when
• 9:13
  you're
• 9:13
  buying
• 9:13
  home
• 9:14
  products.
• 9:14
  I
• 9:14
  think
• 9:14
  that
• 9:14
  it's
• 9:15
  just
• 9:15
  like
• 9:15
  a
• 9:15
  peril
• 9:15
  in
• 9:16
  my
• 9:16
  mind
• 9:16
  where
• 9:16
  it's
• 9:17
  like
• 9:17
  you
• 9:17
  could
• 9:17
  be
• 9:18
  trying
• 9:18
  a
• 9:19
  different
• 9:19
  color
• 9:19
  pillow
• 9:20
  or
• 9:20
  comforter
• 9:20
  or
• 9:20
  something
• 9:21
  and
• 9:21
  so
• 9:21
  you
• 9:21
  might
• 9:21
  be
• 9:21
  ordering
• 9:22
  three
• 9:22
  or
• 9:22
  four.
• 9:22
  Like,
• 9:22
  I
• 9:23
  think
• 9:23
  that
• 9:23
  from
• 9:24
  a
• 9:24
  customer
• 9:24
  standpoint
• 9:25
  it
• 9:25
  could
• 9:25
  be
• 9:25
  worth
• 9:25
  the
• 9:26
  test.
• 9:26
  But
• 9:26
  does
• 9:27
  it
• 9:27
  have
• 9:27
  the
• 9:27
  long
• 9:28
  term
• 9:29
  support?
• 9:30
  I
• 9:30
  think
• 9:30
  from
• 9:30
  an
• 9:31
  organizational
• 9:31
  perspective
• 9:32
  and
• 9:32
  from
• 9:33
  an
• 9:33
  ROI
• 9:33
  perspective,
• 9:34
  I
• 9:34
  really,
• 9:35
  I
• 9:35
  don't
• 9:35
  see
• 9:35
  that
• 9:36
  happening.
• 9:36
  But
• 9:37
  yeah,
• 9:37
  and
• 9:37
  I
• 9:37
  don't
• 9:38
  know,
• 9:38
  I
• 9:38
  think
• 9:38
  like,
• 9:38
  while
• 9:38
  Bed
• 9:38
  Bath
• 9:39
  and
• 9:39
  Beyond
• 9:39
  has
• 9:39
  good
• 9:40
  recall
• 9:40
  nationally
• 9:41
  as
• 9:41
  a
• 9:41
  brand,
• 9:41
  I
• 9:42
  don't
• 9:42
  see
• 9:42
  like
• 9:42
  what
• 9:43
  products
• 9:43
  are
• 9:43
  driving
• 9:44
  me
• 9:44
  into
• 9:44
  a
• 9:44
  shop
• 9:44
  and
• 9:45
  shop
• 9:45
  in
• 9:45
  either
• 9:46
  instance.
• 9:46
  Like,
• 9:46
  you
• 9:47
  know,
• 9:47
  like,
• 9:47
  oh,
• 9:47
  I'm
• 9:47
  going
• 9:47
  to
• 9:47
  go
• 9:47
  to
• 9:47
  the
• 9:48
  Container
• 9:48
  Store
• 9:48
  to
• 9:48
  check
• 9:48
  out
• 9:49
  Bed,
• 9:49
  Bath
• 9:49
  and
• 9:49
  Beyond.
• 9:50
  What,
• 9:51
  you
• 9:51
  know?
• 9:51
  Well,
• 9:51
  I
• 9:51
  mean,
• 9:52
  I
• 9:52
  think
• 9:52
  it's
• 9:52
  more
• 9:52
  of
• 9:52
  like
• 9:53
  a
• 9:53
  vignette.
• 9:54
  Like
• 9:54
  when
• 9:54
  you
• 9:54
  go
• 9:55
  into
• 9:55
  the
• 9:55
  Container
• 9:55
  Store,
• 9:56
  like,
• 9:56
  are
• 9:56
  you
• 9:56
  able
• 9:56
  to
• 9:57
  make
• 9:57
  purchases
• 9:57
  like,
• 9:58
  do
• 9:58
  you
• 9:58
  buy
• 9:58
  a
• 9:59
  rug
• 9:59
  at
• 9:59
  that
• 9:59
  same
• 10:00
  point
• 10:00
  in
• 10:00
  time?
• 10:00
  Or
• 10:00
  are
• 10:00
  there
• 10:01
  certain
• 10:01
  items
• 10:02
  that
• 10:02
  maybe
• 10:02
  make
• 10:02
  sense
• 10:03
  that,
• 10:03
  you
• 10:03
  know,
• 10:03
  it's
• 10:04
  just
• 10:04
  saving
• 10:04
  their
• 10:05
  customers
• 10:05
  a
• 10:05
  trip.
• 10:06
  But
• 10:06
  brands
• 10:07
  don't
• 10:07
  matter.
• 10:07
  In
• 10:07
  home
• 10:08
  furnishings
• 10:08
  though,
• 10:08
  like
• 10:08
  we've
• 10:08
  talked
• 10:09
  about,
• 10:09
  what
• 10:09
  people
• 10:09
  care
• 10:09
  about
• 10:09
  is
• 10:10
  the
• 10:10
  style,
• 10:10
  design,
• 10:11
  and
• 10:11
  the
• 10:11
  quality
• 10:11
  of
• 10:11
  the
• 10:11
  product.
• 10:12
  So
• 10:12
  the
• 10:12
  brands
• 10:12
  of
• 10:13
  home
• 10:13
  furnishings
• 10:13
  are
• 10:13
  almost
• 10:14
  obsolete
• 10:14
  at
• 10:14
  this
• 10:14
  point,
• 10:15
  you
• 10:15
  know,
• 10:15
  so.