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Macy's Strategic Abercrombie Partnership | Fast Five Shorts · Omni Talk Retail

• 0:00
  Macy's
• 0:00
  is
• 0:00
  now
• 0:00
  selling
• 0:01
  an
• 0:01
  assortment
• 0:01
  from
• 0:01
  Abercrombie
• 0:02
  Kids
• 0:03
  as
• 0:03
  part
• 0:03
  of
• 0:03
  its
• 0:04
  back
• 0:04
  to
• 0:04
  school
• 0:04
  merchandising.
• 0:05
  According
• 0:06
  to
• 0:06
  Retail
• 0:06
  Dive,
• 0:07
  the
• 0:07
  collection
• 0:07
  of
• 0:07
  jeans,
• 0:08
  T
• 0:08
  shirts,
• 0:08
  dresses,
• 0:09
  skirts,
• 0:09
  sweaters,
• 0:10
  outerwear
• 0:10
  and
• 0:11
  accessories
• 0:11
  will
• 0:12
  now
• 0:12
  be
• 0:12
  available
• 0:12
  in
• 0:12
  sizes
• 0:13
  5
• 0:14
  to
• 0:14
  18
• 0:15
  in
• 0:15
  stores
• 0:15
  and
• 0:16
  online,
• 0:16
  according
• 0:17
  to
• 0:17
  a
• 0:17
  Monday
• 0:18
  press
• 0:18
  release.
• 0:18
  Chris,
• 0:19
  what
• 0:19
  do
• 0:19
  you
• 0:19
  think
• 0:20
  of
• 0:20
  this
• 0:20
  Abercrombie
• 0:21
  Kids
• 0:21
  and
• 0:21
  Macy's
• 0:22
  partnership?
• 0:23
  Wow.
• 0:24
  And
• 0:24
  you
• 0:24
  know,
• 0:24
  I
• 0:24
  think
• 0:25
  net
• 0:25
  net,
• 0:25
  I
• 0:25
  like
• 0:25
  it
• 0:26
  for
• 0:26
  both
• 0:26
  sides.
• 0:26
  I
• 0:26
  really
• 0:27
  do.
• 0:27
  I
• 0:27
  think
• 0:27
  numbers
• 0:27
  wise,
• 0:28
  you
• 0:28
  know,
• 0:28
  numbers
• 0:28
  wise.
• 0:29
  I
• 0:29
  was
• 0:29
  looking
• 0:29
  at
• 0:29
  the
• 0:29
  numbers
• 0:29
  last
• 0:30
  night.
• 0:30
  There
• 0:30
  are
• 0:30
  approximately
• 0:31
  one
• 0:31
  Abercrombie
• 0:32
  Kids
• 0:32
  stores.
• 0:33
  There's
• 0:33
  350
• 0:34
  Macy
• 0:34
  stores
• 0:34
  in
• 0:35
  the
• 0:35
  US
• 0:35
  approximately.
• 0:36
  So
• 0:36
  that's
• 0:37
  like
• 0:37
  three
• 0:37
  times
• 0:37
  the
• 0:38
  distribution,
• 0:38
  3x
• 0:39
  the
• 0:39
  distribution
• 0:39
  for
• 0:39
  Abercrombie.
• 0:40
  So
• 0:41
  I
• 0:41
  like
• 0:41
  that
• 0:41
  for
• 0:42
  Macy's.
• 0:42
  I
• 0:42
  like
• 0:42
  the
• 0:43
  back
• 0:43
  to
• 0:43
  school
• 0:43
  hook.
• 0:44
  It
• 0:44
  gives
• 0:44
  people
• 0:45
  a
• 0:45
  reason
• 0:45
  to
• 0:45
  want
• 0:45
  to
• 0:45
  go
• 0:46
  to
• 0:46
  Macy's,
• 0:46
  which
• 0:46
  I've
• 0:46
  said
• 0:47
  has
• 0:47
  been
• 0:47
  a
• 0:47
  consistent
• 0:48
  problem
• 0:48
  for
• 0:48
  the
• 0:49
  department
• 0:49
  store
• 0:49
  in
• 0:50
  general.
• 0:50
  Macy's
• 0:50
  particular.
• 0:51
  Yeah.
• 0:52
  And
• 0:52
  so
• 0:52
  it
• 0:52
  gives
• 0:52
  them
• 0:52
  a
• 0:53
  hook
• 0:53
  over
• 0:53
  the
• 0:53
  next
• 0:53
  couple
• 0:53
  months.
• 0:55
  Abercrombie
• 0:57
  also
• 0:57
  gets
• 0:57
  wider
• 0:58
  distribution
• 0:58
  for
• 0:58
  their
• 0:58
  inventory
• 0:59
  at
• 0:59
  this
• 0:59
  period
• 1:00
  of
• 1:00
  time,
• 1:00
  which
• 1:00
  is
• 1:00
  also
• 1:01
  important,
• 1:01
  especially
• 1:01
  when
• 1:02
  you
• 1:02
  look
• 1:02
  at
• 1:03
  the
• 1:03
  macroeconomic
• 1:04
  conditions.
• 1:04
  And
• 1:05
  it
• 1:05
  also
• 1:05
  will
• 1:05
  get
• 1:06
  an
• 1:06
  understanding
• 1:06
  of
• 1:07
  where
• 1:07
  it's
• 1:08
  selling
• 1:08
  and
• 1:08
  what
• 1:09
  markets
• 1:09
  it's
• 1:09
  selling,
• 1:10
  you
• 1:11
  know,
• 1:11
  in
• 1:11
  the
• 1:11
  Macy's
• 1:11
  stores
• 1:12
  where
• 1:12
  it
• 1:12
  doesn't
• 1:13
  have
• 1:13
  its
• 1:13
  own
• 1:13
  standalone
• 1:14
  store.
• 1:14
  So
• 1:15
  that
• 1:15
  could
• 1:15
  be
• 1:15
  advantageous
• 1:16
  in
• 1:16
  terms
• 1:16
  of
• 1:17
  understanding,
• 1:17
  you
• 1:18
  know,
• 1:18
  how
• 1:18
  it
• 1:18
  looks
• 1:18
  as
• 1:19
  it
• 1:19
  looks
• 1:19
  to
• 1:19
  redefine
• 1:20
  its
• 1:20
  store
• 1:20
  strategy
• 1:21
  in
• 1:21
  the
• 1:21
  long
• 1:21
  term.
• 1:22
  And
• 1:22
  Macy's,
• 1:23
  you
• 1:23
  know,
• 1:23
  at
• 1:23
  the
• 1:23
  end
• 1:23
  of
• 1:23
  the
• 1:23
  day,
• 1:23
  the
• 1:24
  funny
• 1:24
  thing
• 1:24
  about
• 1:24
  this
• 1:24
  story
• 1:24
  too,
• 1:25
  Macy's
• 1:26
  is
• 1:26
  only
• 1:26
  doing
• 1:26
  what
• 1:27
  it's
• 1:27
  always
• 1:27
  done,
• 1:27
  which
• 1:28
  is
• 1:28
  buying
• 1:29
  brands
• 1:29
  wholesale
• 1:29
  from
• 1:30
  companies
• 1:30
  that
• 1:30
  thinks
• 1:30
  are
• 1:31
  relevant
• 1:31
  for
• 1:31
  the
• 1:31
  time
• 1:31
  period.
• 1:32
  So
• 1:32
  you
• 1:33
  know,
• 1:33
  and,
• 1:33
  and
• 1:34
  does
• 1:34
  Abercrombie
• 1:35
  Kids
• 1:35
  Hollister,
• 1:36
  Abercrombie
• 1:37
  itself
• 1:38
  become
• 1:39
  also
• 1:39
  a
• 1:39
  long
• 1:39
  term
• 1:40
  digital
• 1:40
  marketplace
• 1:41
  partner
• 1:41
  of
• 1:41
  Macy's
• 1:41
  too,
• 1:42
  based
• 1:42
  on
• 1:42
  the
• 1:42
  success
• 1:43
  of
• 1:43
  this.
• 1:44
  Maybe
• 1:44
  it's
• 1:45
  something
• 1:45
  I
• 1:45
  wouldn't
• 1:45
  take
• 1:46
  off
• 1:46
  the
• 1:46
  table
• 1:46
  given
• 1:47
  how
• 1:47
  the
• 1:47
  industry
• 1:47
  is
• 1:48
  consolidating
• 1:48
  and
• 1:48
  there's
• 1:48
  strange
• 1:49
  bedfellows
• 1:49
  emerging
• 1:50
  every
• 1:50
  day.
• 1:51
  But
• 1:51
  this
• 1:51
  could
• 1:51
  be
• 1:52
  proof
• 1:52
  point
• 1:53
  number
• 1:53
  one
• 1:53
  to
• 1:53
  that
• 1:54
  concept
• 1:54
  potentially
• 1:55
  over
• 1:55
  time
• 1:55
  too.
• 1:56
  So,
• 1:56
  so
• 1:56
  net.
• 1:56
  I
• 1:57
  don't,
• 1:57
  I
• 1:57
  don't
• 1:57
  think
• 1:57
  there's,
• 1:58
  there's
• 1:58
  anything
• 1:58
  not
• 1:59
  to
• 1:59
  like
• 1:59
  about
• 1:59
  this
• 1:59
  partnership.
• 2:00
  But
• 2:00
  what
• 2:00
  do
• 2:00
  you
• 2:00
  think?
• 2:01
  Yeah,
• 2:01
  I
• 2:01
  agree.
• 2:02
  I
• 2:02
  mean
• 2:02
  I
• 2:02
  think
• 2:03
  especially
• 2:03
  for
• 2:04
  Abercrombie
• 2:04
  and
• 2:05
  Fitch
• 2:05
  kids
• 2:05
  like
• 2:06
  it
• 2:06
  gets
• 2:06
  them
• 2:06
  space
• 2:07
  inside
• 2:08
  demos
• 2:08
  that
• 2:09
  they're
• 2:09
  going
• 2:09
  to
• 2:09
  want
• 2:09
  to
• 2:09
  be
• 2:10
  in
• 2:11
  without
• 2:11
  worrying
• 2:12
  about
• 2:12
  the
• 2:12
  overhead
• 2:13
  and
• 2:13
  Staffing
• 2:14
  a
• 2:14
  whole
• 2:14
  store
• 2:15
  and
• 2:15
  doing
• 2:15
  all
• 2:15
  the
• 2:15
  things
• 2:17
  at
• 2:17
  peak
• 2:18
  times
• 2:18
  when
• 2:18
  they
• 2:18
  want
• 2:18
  to
• 2:19
  be
• 2:19
  there.
• 2:19
  This
• 2:19
  is
• 2:19
  Back
• 2:20
  to
• 2:20
  School
• 2:20
  is
• 2:20
  one
• 2:20
  of
• 2:20
  the
• 2:20
  biggest
• 2:21
  times
• 2:21
  they'll,
• 2:21
  you
• 2:22
  know,
• 2:22
  I
• 2:22
  could
• 2:22
  see
• 2:22
  them
• 2:22
  doing
• 2:22
  something
• 2:23
  for
• 2:23
  holiday.
• 2:24
  Um,
• 2:25
  this,
• 2:25
  this
• 2:25
  makes
• 2:26
  complete
• 2:26
  sense.
• 2:27
  And
• 2:28
  we
• 2:28
  also
• 2:29
  significantly
• 2:29
  reduced
• 2:30
  their
• 2:30
  stores
• 2:30
  not
• 2:30
  too
• 2:30
  long
• 2:31
  ago
• 2:31
  too.
• 2:31
  So
• 2:31
  this
• 2:31
  is
• 2:32
  really
• 2:32
  giving
• 2:32
  them
• 2:33
  the
• 2:33
  ability
• 2:34
  to
• 2:35
  find,
• 2:36
  you
• 2:36
  know,
• 2:37
  give
• 2:37
  people,
• 2:38
  give
• 2:38
  mace
• 2:38
  people
• 2:38
  a
• 2:39
  reason
• 2:39
  to
• 2:39
  go
• 2:39
  to
• 2:40
  Macy's
• 2:40
  and
• 2:41
  for
• 2:41
  Abercrombie
• 2:42
  to
• 2:42
  be
• 2:42
  able
• 2:42
  to,
• 2:43
  to
• 2:44
  learn
• 2:44
  from
• 2:44
  their
• 2:45
  presence
• 2:45
  in
• 2:45
  these
• 2:45
  Macy's
• 2:46
  stores
• 2:46
  without
• 2:47
  that,
• 2:47
  that
• 2:47
  concern
• 2:48
  about
• 2:48
  overhead.
• 2:49
  Um,
• 2:49
  I
• 2:50
  think
• 2:50
  this
• 2:50
  is
• 2:50
  actually,
• 2:50
  I'm
• 2:51
  really
• 2:51
  curious
• 2:51
  to
• 2:51
  see
• 2:51
  and
• 2:52
  maybe
• 2:52
  we'll
• 2:52
  ask.
• 2:52
  Ask
• 2:53
  Ethan
• 2:53
  Chernofsky
• 2:53
  at
• 2:54
  Placer
• 2:54
  to
• 2:54
  see
• 2:54
  what
• 2:55
  kind
• 2:55
  of
• 2:55
  traffic
• 2:55
  Macy'
• 2:56
  from
• 2:56
  that.
• 2:57
  Because
• 2:57
  right
• 2:58
  now
• 2:58
  we
• 2:59
  just
• 2:59
  shot
• 2:59
  a
• 3:00
  Back
• 3:00
  to
• 3:00
  School
• 3:01
  video
• 3:01
  for
• 3:01
  fashion's
• 3:02
  Missing
• 3:02
  Middle.
• 3:03
  And
• 3:03
  Abercrombie
• 3:04
  and
• 3:04
  Fitch
• 3:04
  kids
• 3:04
  is
• 3:05
  definitely
• 3:05
  the
• 3:06
  most
• 3:06
  on
• 3:07
  trend
• 3:07
  assortment
• 3:08
  of
• 3:08
  product
• 3:08
  right
• 3:08
  now
• 3:09
  based
• 3:09
  on
• 3:10
  price.
• 3:10
  Like
• 3:11
  it's
• 3:11
  a
• 3:11
  great
• 3:12
  like
• 3:12
  product.
• 3:13
  It's
• 3:13
  driving.
• 3:13
  There's
• 3:14
  tons
• 3:14
  of
• 3:14
  people
• 3:14
  in
• 3:15
  those
• 3:15
  stores.
• 3:15
  And
• 3:15
  so
• 3:16
  I
• 3:16
  think
• 3:16
  we're
• 3:16
  going
• 3:16
  to
• 3:16
  see
• 3:16
  a
• 3:17
  lot
• 3:17
  of
• 3:17
  people
• 3:18
  end
• 3:18
  up
• 3:18
  going
• 3:18
  into
• 3:19
  Macy's
• 3:20
  to
• 3:20
  find
• 3:20
  this.
• 3:21
  Plus
• 3:21
  it's
• 3:21
  a
• 3:21
  better
• 3:22
  place
• 3:22
  for
• 3:22
  product
• 3:23
  mix.
• 3:23
  They
• 3:23
  can
• 3:23
  also
• 3:23
  get
• 3:24
  shoes
• 3:24
  there,
• 3:24
  they
• 3:24
  can
• 3:25
  get
• 3:25
  basics
• 3:25
  there.
• 3:26
  They
• 3:26
  can
• 3:26
  get
• 3:26
  all
• 3:26
  the
• 3:26
  things
• 3:26
  they
• 3:27
  need
• 3:27
  while
• 3:27
  they're
• 3:27
  inside
• 3:28
  that
• 3:28
  at
• 3:28
  Macy's
• 3:28
  stores.
• 3:29
  But
• 3:29
  store
• 3:30
  but
• 3:30
  are
• 3:30
  really
• 3:30
  driven
• 3:30
  there
• 3:31
  because
• 3:31
  of
• 3:31
  the
• 3:32
  Abercrombie
• 3:32
  and
• 3:33
  Fitch
• 3:33
  kids
• 3:33
  being
• 3:34
  in
• 3:34
  that
• 3:35
  market.
• 3:35
  So
• 3:36
  I
• 3:36
  think
• 3:36
  it's,
• 3:37
  it's
• 3:37
  going
• 3:37
  to
• 3:38
  benefit
• 3:38
  everyone
• 3:39
  all
• 3:39
  around.
• 3:40
  And
• 3:40
  I'm
• 3:40
  curious
• 3:40
  to
• 3:41
  see
• 3:41
  where
• 3:41
  Macy's
• 3:42
  takes
• 3:42
  this
• 3:42
  next
• 3:43
  and
• 3:43
  with
• 3:43
  what
• 3:44
  brands
• 3:45
  they
• 3:45
  bring
• 3:45
  in.
• 3:45
  Maybe
• 3:46
  even
• 3:46
  Abercrombie
• 3:46
  and
• 3:47
  Fitch,
• 3:47
  the
• 3:48
  adult
• 3:48
  version
• 3:48
  like
• 3:49
  you
• 3:49
  suggested.
• 3:50
  Yeah,
• 3:50
  who
• 3:50
  knows?
• 3:51
  I
• 3:51
  mean
• 3:51
  you
• 3:51
  can
• 3:51
  be
• 3:51
  very
• 3:51
  smart
• 3:52
  about
• 3:52
  that,
• 3:52
  you
• 3:52
  know,
• 3:52
  depending
• 3:53
  on
• 3:53
  where
• 3:53
  the
• 3:53
  stores
• 3:54
  are
• 3:54
  located
• 3:54
  and
• 3:54
  you
• 3:54
  could,
• 3:55
  you
• 3:55
  could
• 3:55
  use
• 3:55
  Macy's
• 3:56
  or
• 3:56
  other
• 3:56
  avenues
• 3:57
  to
• 3:57
  put
• 3:57
  them
• 3:58
  in
• 3:58
  products
• 3:58
  where
• 3:58
  you
• 3:59
  don't
• 3:59
  want
• 3:59
  to
• 3:59
  build
• 3:59
  stores
• 4:00
  know
• 4:00
  or
• 4:00
  put
• 4:01
  them
• 4:01
  in
• 4:01
  the
• 4:01
  online
• 4:01
  sphere
• 4:02
  too.
• 4:02
  You
• 4:02
  know,
• 4:02
  I
• 4:02
  think
• 4:03
  the
• 4:03
  online
• 4:03
  sphere
• 4:03
  is
• 4:04
  particularly
• 4:04
  interesting
• 4:04
  part
• 4:04
  of
• 4:05
  this
• 4:05
  story
• 4:05
  to
• 4:05
  me
• 4:05
  in
• 4:06
  terms
• 4:06
  of
• 4:06
  how
• 4:06
  it
• 4:06
  evolves
• 4:07
  like
• 4:07
  you
• 4:07
  know,
• 4:07
  next
• 4:07
  year
• 4:07
  do
• 4:08
  they
• 4:08
  just
• 4:08
  put
• 4:08
  it
• 4:08
  online?
• 4:08
  Do
• 4:09
  they
• 4:09
  put
• 4:09
  it
• 4:09
  in
• 4:09
  store
• 4:09
  again?
• 4:10
  Like
• 4:10
  who
• 4:10
  knows?
• 4:11
  Yeah,
• 4:11
  and
• 4:11
  we
• 4:12
  just
• 4:12
  saw
• 4:12
  like
• 4:12
  JCPenney
• 4:13
  just
• 4:13
  acquired
• 4:13
  Aeropostale,
• 4:14
  Brooks
• 4:15
  Brothers,
• 4:15
  some
• 4:15
  of
• 4:15
  these
• 4:16
  other.
• 4:16
  So
• 4:16
  I'm
• 4:17
  almost
• 4:17
  wondering
• 4:17
  if
• 4:18
  this
• 4:18
  starts
• 4:18
  to
• 4:18
  be
• 4:18
  a
• 4:18
  trend
• 4:19
  that
• 4:19
  we
• 4:19
  start
• 4:19
  to
• 4:19
  see
• 4:20
  with
• 4:20
  the
• 4:20
  department
• 4:21
  stores
• 4:21
  bringing
• 4:22
  in
• 4:22
  some
• 4:22
  of
• 4:22
  these
• 4:23
  mall
• 4:23
  brands
• 4:23
  to
• 4:24
  kind
• 4:24
  of,
• 4:24
  you
• 4:24
  know,
• 4:24
  just
• 4:24
  consolidate
• 4:25
  the
• 4:25
  space
• 4:26
  during
• 4:26
  those
• 4:26
  peak
• 4:27
  times
• 4:27
  when
• 4:27
  it
• 4:27
  makes
• 4:28
  sense
• 4:28
  to.
• 4:28
  To
• 4:29
  department
• 4:29
  stores
• 4:29
  become
• 4:29
  mini
• 4:30
  malls
• 4:30
  in
• 4:30
  and
• 4:31
  of
• 4:31
  themselves
• 4:31
  in
• 4:31
  a
• 4:32
  lot
• 4:32
  of
• 4:32
  ways.
• 4:32
  Yeah.
• 4:32
  Which
• 4:33
  actually,
• 4:33
  from
• 4:33
  a
• 4:33
  convenience
• 4:34
  standpoint,
• 4:34
  would
• 4:34
  make
• 4:34
  a
• 4:34
  ton
• 4:35
  of
• 4:35
  sense.