Digital Winners: Jeff Bezos & Amazon, Retail Like It's 1999 (video)

Retail Like It's 1999

L2inc.com video above published Dec 14, 2017: Scott Galloway on digital winners and losers:

Winner: Jeff Bezos. But as the Amazon founder becomes the world's richest person, who's losing?

(0:03) “Bloomberg Billionaires Index,” Bloomberg, December 2017.
(0:28) Credit Suisse. 
(0:33) “Sears And Kmart Are Closing 63 More Stores — See If Your Store Is On The List,” Business Insider, November 2017.
(0:35) “Sears’ Loss Narrows As Same-Store Sales Plunge,” Business Insider, November 2017.
(0:39) “Sears, Roebuck And Co.,” Chicago Tribune, April 1999. http://trib.in/2jVeZMm
(0:39) Yahoo! Finance.
(2:01) “9 Facts About Amazon’s Unprecedented Warehouse Empire,” Curbed, November 2017.
(2:01) “Amazon Global Fulfillment Center Network," MVPVL, 2017.
(2:18) “Amazon’s Ever-Growing Shipping Costs,” Statista, February 2017.
(2:25) “Employment, Hours, and Earnings from the Current Employment Statistics Survey (National),” Bureau of Labor Statistics, December 2017.
(2:32) “There Are 170,000 Fewer Retail Jobs In 2017—And 75,000 More Amazon Robots,” Quartz, December 2017.
(2:32) “Amazon Now Has More Than 500,000 Employees,” CNN, October 2017.
(2:32) “Amazon Soars To More Than 341K Employees — Adding More Than 110K People In A Single Year,” Geekwire, February 2017.
(2:41) “Calvin De-Kleins Retailers to Sell on Amazon,” L2, Inc., November 2017.
(2:52) “PVH’s (PVH) CEO Manny Chirico on Q3 2016 Results - Earnings Call,” Seeking Alpha, December 2016.
(3:17) “How Dollar General Became Rural America’s Store of Choice,” The Wall Street Journal, December 2017.
(3:17) “Net Sales of Macy's Inc. Worldwide From 2005 To 2016 (In Million U.S. Dollars),” Statista, 2017.

Transcript auto-generated via YouTube.com:
00:00 a winner Jeff Bezos who is now the
00:04 wealthiest person in the world he's been
00:10 criticized for not being more
00:11 philanthropic which in my view is total
00:14 BS just recently mr. Bazo spent almost
00:16 14 billion dollars trying to solve the
00:20 shortage of almond milk in Tribeca who's
00:22 losing retailers more stores closed in
00:25 2017 than during the financial crisis of
00:28 2008 one retailer shuttering stores
00:31 Sears dozens of stores after sales
00:34 plunged 17% in the third quarter in 1999
00:38 Sears had a market cap of 16 billion
00:42 meanwhile in July of 1995 from this
00:46 modest ranch house outside Seattle Bezos
00:50 sold his first book today he has five
00:53 huge warehouses in the United States and
00:55 Europe last year Amazon sold more than
00:58 600 million dollars worth of merchandise
01:00 over the Internet and Wall Street isn't
01:03 concerned that Amazon has never made a
01:05 profit not a dime in fact it lost a
01:09 hundred and twenty five million dollars
01:11 last year the company says it's
01:14 investing for the future skeptics say it
01:17 would have to sell every book being sold
01:19 in the world today to justify its stock
01:23 price I think my generation grew up with
01:25 Sears and Amazon is worth 20% more than
01:28 Sears is worth in market capitalization
01:30 how do you view that phenomenon that
01:32 Amazon today is worth more than Sears
01:35 investors are focused on the future
01:36 Amazon has growth potential that Sears
01:39 doesn't could Amazon Dundas tributaries
01:41 be flowing towards the shopping mall and
01:44 eventually drown it out today the market
01:47 capitalization of Sears is four hundred
01:49 and thirty million and Amazon is
01:51 approaching six hundred billion or
01:54 approximately fourteen hundred times
01:56 what Sears is worth an Amazon operates
01:58 75 fulfillment centers or put another
02:01 way there's an Amazon warehouse within
02:03 20 miles of half the US population and
02:06 some of those warehouses are shipping
02:08 more than a million items a day
02:10 meanwhile retailers are scrambling to
02:12 offer the same level of
02:13 but only Amazon can afford the seven and
02:16 a half billion dollar loss getting you
02:18 your kombucha tea within 47 minutes this
02:22 year there will be a hundred and seventy
02:23 thousand fewer retail jobs in the United
02:26 States but don't worry amazon added
02:28 fifty five thousand robots to its
02:32 workforce to win as a brand you have to
02:34 have an Amazon strategy and sometimes it
02:37 means distributing on the platform
02:39 Calvin Klein sells certain items
02:41 exclusively on the e-tailer and focuses
02:43 on selective high-volume low-cost
02:45 products and core replenishment
02:47 categories for example under we're
02:49 helping parent company PVH achieve 20%
02:52 digital revenue growth in the third
02:55 quarter of 2016 Levi's a brand that
02:58 missed the boat in the early part of the
02:59 millennium has rebounded with an Amazon
03:01 strategy focused on selling its core
03:04 product genes on the platform how do you
03:07 win as a retailer Dollar General one of
03:09 the most profitable retailers in the US
03:11 this year is winning by focusing on
03:13 where Amazon is not the low end market
03:15 its 14,000 stores more than doubled
03:17 Macy's profit last year on less revenue
03:20 and its market value exceeds that of
03:22 Kroger the largest pure-play grocer in
03:25 the country as other retailers close the
03:27 company plans to build thousands more
03:29 outlets in rural areas everybody is
03:33 looking for is silver bullets or some
03:34 sort of magic pixie dust to compete with
03:36 Amazon the first thing I tell boards
03:38 when asked how do we compete with Amazon
03:39 is unfortunately you'll lower your
03:42 profit expectations how do you compete
03:44 with a company that doesn't want to be
03:45 profitable bottom line you reinvest more
03:48 in the consumer experience we leave you
03:51 with a picture of mr. Beezus in 1999 and
03:54 one in 2017 we are exactly the same age
03:58 except one of us a is worth a hundred
03:59 billion dollars but more importantly is
04:01 aging in Reverse what what is going on
04:05 here I want on the program you're my
04:07 trainer boss I'm here New York Sports
04:10 Club we're talking isometrics we're
04:11 talking yoga I have one of those
04:13 machines you wrap around and jiggles you
04:15 up call me we'll see you next week
04:21 [Music]

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