Millard Drexler: I've Learned That Growth Is the Enemy

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The first question. I just wanted to you to ask you you know. How did we end up here? That so many of these big American retailers find themselves in a position where you know there are teetering because you know the the companies that seemed to be surviving seemed to be seemed to be kind of getting through at least up until now are the ones that were strong going into this crisis. But many American retailers were already Suffering before this all started and this is kind of become the kind of final you know the the proverbial Straw against the camels back so talk to me a bit about how we ended up here in the first first thing I'm GonNa say is Speak to a lot of people every day to work and do whatever most people will say. I have no answer to your question. I mean I have one opinion on how he ended up here with. Most of us don't know what the other sides could look like in my own opinion on and I think statistics There's been for twenty years or so to many retailers too much inventory and I think what's happened because of a corona virus in one short sue. What probably could've happened ten or fifteen years ago. Too much out there to choice to inventory drove down prices drove down margins increase of price. And they're well if you look at Tj. Max I think the biggest most profitable department store in America if not the world and they have a great merchant account rich wanting running at night. I think the great were cheap or is also part of it. I think this just too much square footage for human being in America. It always has. That's one thing. Lack of creativity I think is another thing although with too many stores into choice of what you get is just a deflationary trend in retail nights. We've been going through that. Very simply stated is too much assortment out there too much goods not enough special. Not Enough unique. Lots of commodities Amazon certainly influenced a lot of this and that's life end so could add twenty or ten years ago because I always ask the question an I didn't know none of us knew about this while some people that Bill Gates I guess sold coming is what you do. Then you've named companies if solemn so didn't exist would you miss them and there was so many no. I will miss them if they weren't here anymore. Now what's happening is a lot of going away either. Unfortunately because they have no cash they're running out of cash in. They might be good at what they do and the rest. You just won't miss them and the balance sheet was week when you say their balance sheet was weak you mean they were heavily indebted right overly indebted or plus an I. Don't you know right now? Sitting with all these empty stores with huge Will push people over the edge if they might have survived longer than they probably would discount. It cleans up the landscape of Aqua Lung. Markdown companies and others who sadly will go away because you know maybe they just undercapitalized. And they might be run. Creatively have nice goods. The the report cards not in yet. I don't think it's close to being

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