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Gap Inc. Beauty Expansion: Smart or Risky? | Fast Five Shorts · Omni Talk Retail

• 0:00
  Gap
• 0:00
  Inc.
• 0:01
  Wants
• 0:01
  to
• 0:01
  bet
• 0:02
  big
• 0:02
  on
• 0:02
  beauty
• 0:03
  and
• 0:03
  accessories,
• 0:04
  according
• 0:04
  to
• 0:04
  retail
• 0:04
  dive.
• 0:05
  Gap
• 0:06
  Inc.
• 0:06
  CEO
• 0:06
  Richard
• 0:07
  Dickson
• 0:07
  called
• 0:07
  these
• 0:08
  quote
• 0:08
  sleeper
• 0:09
  categories,
• 0:10
  which
• 0:10
  the
• 0:10
  company's
• 0:11
  internal
• 0:11
  research
• 0:12
  shows
• 0:12
  already
• 0:13
  resonate
• 0:13
  with
• 0:14
  its
• 0:14
  customers.
• 0:15
  Efforts
• 0:15
  to
• 0:16
  expand
• 0:16
  are
• 0:16
  already
• 0:17
  underway,
• 0:17
  at
• 0:17
  least
• 0:18
  at
• 0:18
  Old
• 0:18
  Navy.
• 0:18
  This
• 0:19
  fall,
• 0:19
  the
• 0:19
  value
• 0:19
  brand
• 0:20
  will
• 0:20
  launch
• 0:20
  beauty
• 0:21
  and
• 0:21
  personal
• 0:21
  care
• 0:21
  products
• 0:22
  in
• 0:22
  150
• 0:23
  stores,
• 0:23
  with
• 0:23
  some
• 0:24
  locations
• 0:24
  offering
• 0:25
  staffed
• 0:25
  shop
• 0:26
  and
• 0:26
  shops.
• 0:27
  Gap
• 0:27
  Inc.
• 0:27
  Said
• 0:28
  last
• 0:28
  Thursday
• 0:29
  this
• 0:29
  is
• 0:29
  the
• 0:29
  test
• 0:29
  and
• 0:30
  learn
• 0:30
  phase
• 0:30
  of
• 0:30
  the
• 0:30
  plan
• 0:31
  to
• 0:31
  scale
• 0:31
  an
• 0:31
  Old
• 0:31
  Navy
• 0:32
  beauty
• 0:32
  business.
• 0:33
  Next
• 0:33
  year,
• 0:33
  the
• 0:34
  company's
• 0:34
  other
• 0:34
  retailers,
• 0:35
  Gap,
• 0:35
  Banana
• 0:35
  Republic
• 0:36
  and
• 0:36
  Athleta,
• 0:36
  will
• 0:37
  also
• 0:37
  launch
• 0:37
  quote
• 0:38
  brand
• 0:38
  right
• 0:39
  expressions,
• 0:39
  end
• 0:40
  quote
• 0:40
  in
• 0:40
  the
• 0:41
  category.
• 0:41
  The
• 0:42
  company
• 0:42
  is
• 0:42
  pursuing
• 0:43
  the
• 0:43
  growth
• 0:43
  potential
• 0:43
  in
• 0:44
  beauty,
• 0:44
  Dixon
• 0:45
  said,
• 0:45
  based
• 0:45
  on
• 0:46
  research
• 0:46
  from
• 0:46
  Euromonitor
• 0:47
  that
• 0:48
  found
• 0:48
  beauty
• 0:48
  and
• 0:48
  personal
• 0:49
  care
• 0:49
  sales
• 0:49
  surpass
• 0:50
  $100
• 0:50
  billion
• 0:51
  this
• 0:51
  year.
• 0:52
  And,
• 0:52
  and
• 0:52
  that
• 0:52
  the
• 0:52
  market
• 0:52
  is
• 0:53
  one
• 0:53
  of
• 0:53
  the
• 0:53
  fastest
• 0:54
  growing
• 0:54
  in
• 0:54
  the
• 0:54
  U.S.
• 0:55
  and
• 0:56
  yes,
• 0:57
  tease,
• 0:58
  we're
• 0:58
  going
• 0:58
  to
• 0:58
  spend
• 0:58
  some
• 0:58
  time
• 0:58
  on
• 0:58
  this,
• 0:59
  and
• 0:59
  that
• 0:59
  is
• 0:59
  because
• 0:59
  this
• 1:00
  is
• 1:00
  also
• 1:00
  the
• 1:00
  A
• 1:00
  and
• 1:01
  M.
• 1:01
  Put
• 1:02
  you
• 1:02
  on
• 1:02
  the
• 1:02
  spot.
• 1:02
  Question
• 1:03
  of
• 1:03
  the
• 1:03
  week.
• 1:04
  Are
• 1:04
  you
• 1:04
  ready
• 1:05
  for
• 1:05
  it?
• 1:06
  Yeah,
• 1:06
  let's
• 1:06
  do
• 1:06
  it.
• 1:07
  They're
• 1:07
  coming
• 1:08
  for
• 1:08
  you.
• 1:08
  And
• 1:08
  all
• 1:09
  right,
• 1:09
  here
• 1:09
  it
• 1:09
  is.
• 1:09
  What
• 1:09
  does
• 1:10
  GAPS
• 1:10
  move
• 1:11
  tell
• 1:11
  us
• 1:11
  about
• 1:11
  the
• 1:12
  evolving
• 1:12
  role
• 1:12
  of
• 1:12
  beauty
• 1:13
  as
• 1:13
  a
• 1:13
  driver
• 1:13
  of
• 1:14
  revenue
• 1:14
  growth
• 1:14
  and
• 1:15
  consumer
• 1:15
  engagement
• 1:16
  for
• 1:16
  the
• 1:16
  broader
• 1:16
  apparel
• 1:17
  industry
• 1:18
  and,
• 1:19
  and
• 1:19
  for
• 1:19
  brands
• 1:20
  considering
• 1:20
  a
• 1:20
  similar
• 1:21
  expansion?
• 1:22
  What
• 1:22
  needs
• 1:22
  to
• 1:22
  be
• 1:22
  true
• 1:23
  for
• 1:23
  them
• 1:23
  to
• 1:23
  succeed
• 1:24
  in
• 1:24
  this
• 1:24
  crowded
• 1:25
  market
• 1:25
  in
• 1:26
  an
• 1:26
  authentic
• 1:26
  and
• 1:27
  differentiated
• 1:28
  way?
• 1:29
  Ugh.
• 1:29
  I
• 1:30
  mean,
• 1:30
  I
• 1:30
  think,
• 1:31
  I
• 1:31
  think
• 1:32
  Gap's
• 1:32
  move
• 1:33
  here
• 1:33
  tells
• 1:34
  us
• 1:34
  that
• 1:34
  they're
• 1:34
  going
• 1:35
  for,
• 1:35
  obviously,
• 1:36
  as
• 1:36
  Richard
• 1:36
  Dixon
• 1:37
  said,
• 1:37
  like,
• 1:37
  what's
• 1:38
  an
• 1:38
  easy
• 1:38
  thing
• 1:38
  that
• 1:39
  we
• 1:39
  could,
• 1:39
  you
• 1:40
  know,
• 1:40
  put
• 1:41
  into
• 1:41
  the
• 1:41
  stores,
• 1:42
  put
• 1:42
  into
• 1:42
  the
• 1:42
  Snake
• 1:43
  line
• 1:43
  for
• 1:43
  checkout
• 1:44
  that
• 1:44
  still
• 1:44
  exists,
• 1:45
  unfortunately,
• 1:46
  in
• 1:46
  many
• 1:46
  apparel
• 1:46
  settings?
• 1:47
  Um,
• 1:48
  yeah.
• 1:48
  Is
• 1:49
  there,
• 1:49
  is
• 1:49
  there
• 1:50
  potentially
• 1:50
  some
• 1:51
  areas
• 1:51
  of
• 1:51
  growth?
• 1:52
  Should
• 1:52
  you
• 1:52
  put,
• 1:53
  you
• 1:53
  know,
• 1:53
  body
• 1:53
  sprays
• 1:54
  or
• 1:54
  whatever,
• 1:55
  you
• 1:55
  know,
• 1:56
  personal
• 1:56
  care
• 1:56
  items
• 1:57
  you
• 1:57
  want
• 1:57
  to
• 1:57
  throw
• 1:58
  in
• 1:58
  there?
• 1:58
  I
• 1:59
  would
• 1:59
  caution,
• 2:00
  however,
• 2:00
  that
• 2:01
  we've
• 2:01
  seen
• 2:01
  some
• 2:02
  pretty
• 2:02
  significant
• 2:03
  apparel
• 2:04
  brands
• 2:04
  like
• 2:05
  Lululemon,
• 2:06
  like
• 2:06
  Athleta,
• 2:07
  like
• 2:07
  Zara,
• 2:08
  really
• 2:08
  invest
• 2:09
  heavily
• 2:09
  here
• 2:10
  in
• 2:10
  doing
• 2:10
  exactly
• 2:11
  what
• 2:11
  Gap's
• 2:12
  about
• 2:12
  to
• 2:12
  do
• 2:12
  here
• 2:12
  and
• 2:12
  not
• 2:13
  succeed.
• 2:13
  And
• 2:14
  so
• 2:14
  in
• 2:15
  my
• 2:15
  mind,
• 2:16
  I
• 2:16
  think
• 2:16
  Gap
• 2:17
  has
• 2:17
  to
• 2:17
  be
• 2:18
  particularly
• 2:19
  careful
• 2:19
  about
• 2:20
  making
• 2:20
  this
• 2:20
  decision
• 2:21
  because
• 2:21
  I
• 2:21
  would
• 2:22
  argue
• 2:22
  that
• 2:22
  Gap
• 2:23
  still
• 2:23
  has
• 2:23
  a
• 2:23
  long
• 2:24
  way
• 2:24
  to
• 2:24
  come.
• 2:24
  They're
• 2:24
  making
• 2:25
  some
• 2:25
  really
• 2:25
  good
• 2:25
  strides.
• 2:26
  They've
• 2:26
  had
• 2:26
  some
• 2:26
  great
• 2:26
  collaborations
• 2:27
  here.
• 2:28
  But
• 2:28
  Gap
• 2:28
  has
• 2:28
  a
• 2:29
  long
• 2:29
  way
• 2:29
  to
• 2:29
  come
• 2:29
  in
• 2:29
  terms
• 2:30
  of
• 2:30
  just
• 2:30
  doing
• 2:31
  apparel
• 2:31
  and
• 2:31
  accessories
• 2:32
  better
• 2:33
  and
• 2:34
  finding
• 2:34
  their
• 2:34
  footing
• 2:35
  in
• 2:36
  the
• 2:36
  cultural
• 2:37
  zeitgeist
• 2:37
  right
• 2:38
  now.
• 2:38
  And
• 2:38
  so
• 2:38
  I
• 2:38
  think
• 2:39
  that's
• 2:39
  where
• 2:39
  I
• 2:39
  would
• 2:39
  be
• 2:40
  focused
• 2:40
  on
• 2:40
  is
• 2:41
  if
• 2:41
  I
• 2:41
  was
• 2:41
  Richard
• 2:41
  Dixon
• 2:43
  because
• 2:43
  of
• 2:43
  the
• 2:44
  dangers
• 2:44
  that
• 2:44
  we've
• 2:45
  seen
• 2:45
  from
• 2:45
  more
• 2:46
  successful
• 2:46
  apparel
• 2:47
  brands
• 2:47
  already
• 2:48
  than
• 2:48
  Gap.
• 2:49
  The,
• 2:50
  the
• 2:50
  one
• 2:50
  thing
• 2:50
  I
• 2:50
  do
• 2:50
  think
• 2:51
  is
• 2:51
  important
• 2:51
  to
• 2:51
  differentiate
• 2:52
  here,
• 2:52
  I
• 2:52
  think
• 2:52
  beauty's
• 2:53
  getting
• 2:53
  a
• 2:53
  lot
• 2:53
  of
• 2:53
  the
• 2:53
  focus
• 2:54
  from
• 2:54
  this
• 2:54
  headline.
• 2:55
  But
• 2:55
  he
• 2:55
  also
• 2:55
  did
• 2:56
  talk
• 2:56
  about
• 2:56
  accessories
• 2:57
  and
• 2:57
  that
• 2:58
  I
• 2:58
  feel
• 2:58
  very
• 2:58
  differently
• 2:59
  about
• 2:59
  that
• 3:00
  is
• 3:00
  an
• 3:00
  area
• 3:01
  where
• 3:01
  I
• 3:01
  think
• 3:02
  Gap
• 3:02
  should
• 3:02
  go
• 3:02
  full
• 3:03
  steam
• 3:03
  ahead.
• 3:03
  The
• 3:03
  Old
• 3:04
  Navy,
• 3:04
  like
• 3:04
  more
• 3:05
  designer
• 3:05
  Zack
• 3:06
  Posen
• 3:06
  inspired
• 3:07
  handbags.
• 3:08
  That's,
• 3:08
  that's
• 3:09
  perfect
• 3:09
  because
• 3:10
  you
• 3:10
  are
• 3:10
  getting
• 3:11
  to
• 3:11
  your
• 3:11
  consumers
• 3:12
  with
• 3:12
  a
• 3:12
  product
• 3:13
  that
• 3:13
  they're
• 3:14
  going
• 3:14
  to
• 3:14
  want
• 3:14
  to
• 3:14
  pick
• 3:14
  up.
• 3:15
  It
• 3:15
  makes
• 3:15
  sense
• 3:16
  for
• 3:16
  them
• 3:16
  to
• 3:16
  add
• 3:16
  a
• 3:17
  nice
• 3:17
  handbag
• 3:17
  onto
• 3:18
  an
• 3:18
  outfit
• 3:18
  that
• 3:18
  they're,
• 3:19
  they're
• 3:19
  going
• 3:19
  for.
• 3:19
  But
• 3:20
  I,
• 3:20
  this,
• 3:21
  this
• 3:21
  mass,
• 3:22
  mass
• 3:22
  market,
• 3:22
  you
• 3:23
  know,
• 3:23
  beauty
• 3:23
  and,
• 3:24
  and,
• 3:25
  and,
• 3:25
  and
• 3:26
  personal
• 3:26
  care
• 3:26
  products,
• 3:27
  they're
• 3:27
  not
• 3:28
  going
• 3:28
  to
• 3:28
  be
• 3:28
  at
• 3:28
  a,
• 3:28
  at
• 3:28
  a
• 3:29
  mass
• 3:29
  retail
• 3:29
  price
• 3:30
  point
• 3:30
  either,
• 3:30
  which
• 3:30
  is
• 3:31
  where
• 3:31
  you're
• 3:31
  seeing
• 3:31
  the
• 3:31
  increase
• 3:32
  in,
• 3:32
  in
• 3:32
  spend
• 3:33
  from
• 3:33
  consumers.
• 3:33
  So
• 3:34
  I
• 3:34
  just,
• 3:34
  I
• 3:34
  really,
• 3:35
  really,
• 3:35
  really
• 3:35
  cannot
• 3:36
  caution
• 3:36
  Gap
• 3:36
  enough
• 3:37
  about
• 3:37
  making
• 3:37
  this
• 3:37
  move.
• 3:38
  But
• 3:38
  you're,
• 3:38
  you're
• 3:39
  an
• 3:39
  ex
• 3:39
  Gapper.
• 3:39
  What
• 3:40
  do
• 3:40
  you
• 3:40
  say
• 3:40
  about
• 3:40
  this?
• 3:41
  Do
• 3:41
  you
• 3:41
  think
• 3:41
  they
• 3:41
  have
• 3:41
  a
• 3:41
  chance?
• 3:42
  Yeah,
• 3:43
  I,
• 3:43
  I'm
• 3:43
  actually
• 3:43
  surprised
• 3:44
  on
• 3:44
  your
• 3:44
  take
• 3:44
  on
• 3:45
  this
• 3:45
  one.
• 3:45
  I
• 3:45
  thought
• 3:45
  you
• 3:45
  were
• 3:45
  going
• 3:45
  to
• 3:45
  go
• 3:46
  the
• 3:46
  other
• 3:46
  way
• 3:46
  and
• 3:46
  I
• 3:46
  was
• 3:46
  going
• 3:47
  to
• 3:47
  come
• 3:47
  and
• 3:47
  have
• 3:47
  to
• 3:47
  come
• 3:47
  in
• 3:48
  and,
• 3:48
  and
• 3:48
  pour,
• 3:49
  pour
• 3:49
  water
• 3:50
  on
• 3:50
  the
• 3:50
  fire.
• 3:50
  But
• 3:51
  no,
• 3:51
  I'm
• 3:51
  with
• 3:51
  you.
• 3:52
  I,
• 3:52
  I
• 3:52
  agree
• 3:52
  with
• 3:52
  your
• 3:53
  accessories
• 3:53
  point.
• 3:53
  And
• 3:54
  because
• 3:54
  there's
• 3:54
  a
• 3:55
  competitive,
• 3:55
  there's
• 3:55
  a,
• 3:55
  there's
• 3:56
  a,
• 3:56
  there's
• 3:56
  an
• 3:56
  actual
• 3:57
  competency
• 3:58
  there,
• 3:58
  you
• 3:58
  know,
• 3:58
  from
• 3:59
  Gap
• 3:59
  to
• 3:59
  make
• 4:00
  accessories,
• 4:00
  like
• 4:01
  they've
• 4:01
  been
• 4:01
  in
• 4:01
  accessories
• 4:02
  forever.
• 4:02
  Like
• 4:03
  they
• 4:03
  should
• 4:03
  know
• 4:03
  how
• 4:03
  to
• 4:03
  make
• 4:04
  those
• 4:04
  and
• 4:04
  it
• 4:04
  should
• 4:04
  be
• 4:04
  a
• 4:04
  key
• 4:04
  part
• 4:05
  of
• 4:05
  their
• 4:05
  business
• 4:05
  and
• 4:05
  it's
• 4:06
  the
• 4:06
  highest
• 4:06
  margin
• 4:06
  part
• 4:07
  of
• 4:07
  their
• 4:07
  business
• 4:07
  too.
• 4:07
  So
• 4:08
  yes,
• 4:08
  all
• 4:08
  in
• 4:09
  on
• 4:09
  that.
• 4:09
  But
• 4:09
  the
• 4:10
  reason
• 4:10
  this
• 4:10
  story
• 4:10
  is
• 4:10
  getting
• 4:11
  the
• 4:11
  headlines
• 4:11
  is
• 4:11
  because
• 4:11
  150
• 4:12
  store
• 4:12
  pilot
• 4:13
  with
• 4:13
  old
• 4:13
  Navy.
• 4:13
  That's
• 4:13
  a
• 4:13
  commitment.
• 4:14
  Like
• 4:14
  you're,
• 4:15
  you're
• 4:15
  going
• 4:15
  into
• 4:15
  those
• 4:15
  stores
• 4:16
  and
• 4:16
  you're
• 4:16
  trying
• 4:16
  to,
• 4:17
  trying
• 4:17
  to
• 4:17
  do
• 4:17
  this.
• 4:18
  But
• 4:18
  I'm
• 4:19
  with
• 4:19
  you.
• 4:19
  I'm
• 4:19
  selling
• 4:20
  this
• 4:20
  hard
• 4:20
  and
• 4:21
  I'm
• 4:21
  selling
• 4:21
  it
• 4:21
  for
• 4:21
  a
• 4:22
  number
• 4:22
  of
• 4:22
  reasons.
• 4:22
  And
• 4:22
  like,
• 4:23
  first
• 4:23
  of
• 4:23
  all,
• 4:23
  you
• 4:23
  know,
• 4:23
  and
• 4:24
  I'm
• 4:24
  asked
• 4:24
  what
• 4:24
  has
• 4:24
  to
• 4:25
  be
• 4:25
  true?
• 4:25
  Well,
• 4:25
  that's
• 4:26
  my
• 4:26
  question
• 4:26
  is
• 4:26
  because
• 4:27
  just
• 4:27
  because
• 4:27
  a
• 4:27
  market
• 4:28
  is
• 4:28
  big
• 4:28
  and
• 4:29
  growing
• 4:30
  doesn't
• 4:30
  mean
• 4:30
  you
• 4:30
  have
• 4:30
  a
• 4:31
  right
• 4:31
  to
• 4:31
  win
• 4:31
  in
• 4:32
  it.
• 4:32
  And
• 4:32
  for
• 4:33
  example,
• 4:33
  if
• 4:33
  I
• 4:34
  take
• 4:34
  that
• 4:34
  logic
• 4:34
  out
• 4:34
  and
• 4:35
  I
• 4:35
  extend
• 4:35
  it
• 4:35
  to
• 4:35
  other
• 4:36
  categories
• 4:36
  like
• 4:37
  trading
• 4:37
  cards
• 4:38
  is
• 4:38
  growing.
• 4:38
  Nintendo
• 4:39
  Switch
• 4:39
  just
• 4:40
  launched
• 4:40
  and
• 4:40
  is
• 4:40
  growing.
• 4:41
  Does
• 4:41
  that
• 4:41
  mean
• 4:42
  Gap
• 4:42
  should
• 4:42
  carry,
• 4:43
  you
• 4:43
  know,
• 4:43
  those
• 4:44
  products?
• 4:45
  No,
• 4:45
  it
• 4:45
  doesn't.
• 4:46
  Or
• 4:46
  vice
• 4:47
  versa.
• 4:47
  Like
• 4:47
  if
• 4:47
  we,
• 4:47
  if
• 4:48
  we
• 4:48
  flip
• 4:48
  this
• 4:48
  on
• 4:48
  its
• 4:48
  head.
• 4:49
  And
• 4:49
  we
• 4:49
  said,
• 4:50
  okay,
• 4:50
  apparel's
• 4:51
  growing
• 4:52
  and
• 4:52
  beauty
• 4:53
  is,
• 4:53
  like,
• 4:53
  kind
• 4:53
  of
• 4:53
  lagging,
• 4:54
  you
• 4:54
  know,
• 4:54
  if
• 4:54
  we
• 4:54
  switch.
• 4:54
  If
• 4:55
  we
• 4:55
  switch
• 4:55
  the
• 4:55
  roles,
• 4:56
  does
• 4:56
  that
• 4:56
  mean
• 4:56
  Sephora
• 4:56
  and
• 4:57
  Ulta
• 4:57
  should
• 4:57
  now
• 4:57
  go
• 4:57
  into
• 4:58
  apparel?
• 4:59
  No,
• 4:59
  probably
• 4:59
  not.
• 5:00
  And
• 5:00
  so
• 5:00
  when
• 5:00
  you
• 5:00
  think
• 5:00
  about
• 5:00
  it
• 5:01
  that
• 5:01
  way,
• 5:02
  it
• 5:02
  just.
• 5:02
  It
• 5:02
  doesn't
• 5:03
  make
• 5:03
  sense.
• 5:03
  But
• 5:05
  with
• 5:05
  that
• 5:05
  said,
• 5:06
  Dixon
• 5:07
  is
• 5:07
  the
• 5:07
  master.
• 5:08
  And
• 5:08
  sometimes
• 5:08
  it's
• 5:08
  about
• 5:09
  what
• 5:09
  you
• 5:09
  can
• 5:09
  sell,
• 5:09
  not
• 5:10
  about
• 5:10
  what
• 5:10
  is
• 5:10
  true.
• 5:11
  And
• 5:11
  he's
• 5:11
  a
• 5:11
  master
• 5:12
  at
• 5:12
  that.
• 5:12
  He's
• 5:12
  got
• 5:12
  the
• 5:13
  charisma.
• 5:13
  So
• 5:13
  can
• 5:13
  you
• 5:13
  get
• 5:14
  people
• 5:14
  behind
• 5:14
  this
• 5:14
  in
• 5:14
  the
• 5:15
  short
• 5:15
  term?
• 5:16
  Possibly.
• 5:16
  I'll
• 5:17
  be
• 5:17
  watching,
• 5:17
  but
• 5:17
  I
• 5:18
  think
• 5:18
  this
• 5:18
  is
• 5:18
  a
• 5:19
  really
• 5:19
  long
• 5:19
  bet
• 5:19
  to
• 5:20
  make.
• 5:20
  And
• 5:20
  to
• 5:21
  your
• 5:21
  point,
• 5:22
  not
• 5:22
  only
• 5:22
  have
• 5:22
  other
• 5:22
  brands
• 5:23
  tried
• 5:23
  it
• 5:23
  in
• 5:23
  the
• 5:23
  past,
• 5:24
  but
• 5:24
  Gap
• 5:24
  has
• 5:25
  tried
• 5:25
  it
• 5:25
  in
• 5:25
  the
• 5:25
  past
• 5:26
  as
• 5:26
  well
• 5:27
  at
• 5:27
  all
• 5:27
  of
• 5:27
  it,
• 5:28
  at
• 5:28
  many
• 5:28
  of
• 5:28
  its
• 5:29
  brands,
• 5:29
  and
• 5:29
  it
• 5:29
  hasn't
• 5:30
  worked.
• 5:30
  And
• 5:30
  they
• 5:30
  tried
• 5:30
  home
• 5:30
  in
• 5:31
  Banana
• 5:31
  Republic,
• 5:31
  too,
• 5:32
  and
• 5:32
  that
• 5:32
  seemingly
• 5:33
  hasn't
• 5:33
  worked
• 5:33
  as
• 5:33
  well.
• 5:34
  So,
• 5:34
  yeah,
• 5:34
  I'm
• 5:34
  very
• 5:35
  skeptical
• 5:35
  of
• 5:35
  this,
• 5:35
  but
• 5:36
  you
• 5:36
  get
• 5:36
  the
• 5:36
  word
• 5:37
  here.
• 5:37
  Yeah.
• 5:38
  I
• 5:38
  think
• 5:38
  the
• 5:38
  other
• 5:39
  thing
• 5:39
  for
• 5:39
  me,
• 5:39
  that
• 5:39
  was
• 5:40
  missing
• 5:40
  from
• 5:40
  this,
• 5:40
  and
• 5:41
  I
• 5:41
  wasn't
• 5:41
  able
• 5:41
  to
• 5:41
  track
• 5:42
  this
• 5:42
  down
• 5:42
  in
• 5:42
  my
• 5:42
  research,
• 5:42
  like,
• 5:43
  Old
• 5:43
  Navy's
• 5:44
  been
• 5:44
  selling
• 5:44
  all
• 5:45
  kinds
• 5:45
  of
• 5:45
  stuff
• 5:45
  at
• 5:45
  their
• 5:46
  checkout,
• 5:46
  and
• 5:46
  I
• 5:46
  think
• 5:46
  it's
• 5:47
  very
• 5:47
  important
• 5:47
  to,
• 5:47
  like,
• 5:47
  distinguish
• 5:48
  the.
• 5:49
  The
• 5:49
  athletic
• 5:49
  experience,
• 5:50
  the
• 5:50
  Banana
• 5:50
  experience,
• 5:51
  the
• 5:51
  Gap
• 5:51
  experience,
• 5:52
  and
• 5:52
  the
• 5:52
  Old
• 5:52
  Navy
• 5:52
  experience.
• 5:53
  Old
• 5:53
  Navy
• 5:54
  had,
• 5:54
  like,
• 5:54
  dunkaroos
• 5:55
  and,
• 5:55
  you
• 5:55
  know,
• 5:56
  chapstick
• 5:57
  and
• 5:57
  socks,
• 5:58
  and
• 5:58
  they
• 5:58
  have
• 5:58
  all
• 5:58
  kinds
• 5:59
  of
• 5:59
  stuff
• 5:59
  in
• 5:59
  their
• 6:00
  winding
• 6:00
  snake
• 6:01
  to
• 6:01
  get
• 6:01
  up
• 6:01
  to
• 6:02
  the
• 6:02
  checkout.
• 6:03
  So
• 6:03
  I
• 6:03
  think
• 6:04
  I
• 6:04
  couldn't
• 6:05
  understand.
• 6:05
  There
• 6:06
  must
• 6:06
  be
• 6:06
  some
• 6:06
  data
• 6:07
  that
• 6:07
  Dickson
• 6:08
  and
• 6:08
  the
• 6:08
  team
• 6:08
  are
• 6:08
  seeing
• 6:09
  that
• 6:09
  supports,
• 6:09
  like,
• 6:10
  oh,
• 6:10
  we're
• 6:10
  selling
• 6:10
  a
• 6:11
  lot
• 6:11
  of
• 6:11
  chapstick.
• 6:11
  Maybe
• 6:12
  we
• 6:12
  should
• 6:12
  go
• 6:12
  into
• 6:12
  our
• 6:13
  own
• 6:13
  brand.
• 6:14
  So
• 6:14
  there's
• 6:14
  parts
• 6:15
  of
• 6:15
  me
• 6:15
  that
• 6:15
  question,
• 6:15
  like,
• 6:16
  what
• 6:16
  categories
• 6:17
  they'll
• 6:17
  actually
• 6:18
  go
• 6:18
  into
• 6:18
  versus,
• 6:19
  like,
• 6:19
  beauty
• 6:19
  and
• 6:20
  personal
• 6:20
  care.
• 6:20
  Like,
• 6:20
  I
• 6:20
  think
• 6:21
  that's
• 6:21
  still
• 6:21
  very
• 6:21
  broad.
• 6:22
  And
• 6:22
  so
• 6:22
  they
• 6:22
  might
• 6:22
  see
• 6:23
  some
• 6:23
  success
• 6:23
  with,
• 6:23
  you
• 6:24
  know,
• 6:24
  going
• 6:24
  off
• 6:24
  of
• 6:24
  the
• 6:24
  numbers
• 6:25
  that
• 6:25
  they've
• 6:25
  already
• 6:25
  seen.
• 6:26
  But
• 6:27
  I
• 6:27
  really
• 6:28
  am
• 6:28
  going
• 6:28
  to
• 6:28
  have
• 6:28
  to
• 6:28
  see
• 6:28
  this
• 6:29
  one
• 6:29
  to
• 6:29
  believe
• 6:29
  it.
• 6:30
  And
• 6:30
  if
• 6:31
  there
• 6:31
  is
• 6:31
  a
• 6:31
  chance,
• 6:32
  I
• 6:32
  would
• 6:32
  say
• 6:32
  Old
• 6:32
  Navy
• 6:33
  probably
• 6:33
  is
• 6:34
  the
• 6:34
  best
• 6:34
  place
• 6:34
  for
• 6:35
  this
• 6:35
  to
• 6:35
  start.
• 6:36
  But
• 6:36
  I
• 6:36
  don't
• 6:37
  know
• 6:37
  that
• 6:37
  that
• 6:37
  means
• 6:37
  that
• 6:37
  they
• 6:37
  should
• 6:37
  continue
• 6:38
  on
• 6:38
  across
• 6:39
  Athletic
• 6:40
  Gap
• 6:40
  and
• 6:40
  Banana.