Season of change for retailers? Former J. Crew CEO Mickey Drexler on the state of retail

It’s been a pretty big month for retail, with potential deals involving Macy’s and Nordstrom. Macy’s agreeing to open its books to investment firm Our House Management as part of a potential $6 billion takeover or take private bid. Separately, a report last week said the founding family behind Nordstrom wants to try taking the company private once again. Joining us right now on these stories and the overall state of retail is Mickey Drexler. He’s the chairman of Alex Mill and former chairman and CEO of J. Crew, Mickey, you understand merchandising, you understand the consumer. You see where trends are headed and when you look at what’s been happening with department stores, it’s a little scary. That’s a little stunning. I was in one yesterday and it was pretty empty. Well, I understand to the best of my ability because this business is never one that’s a sure bet. So I appreciate that. But every day I learn my opinion and I been a broken record on this for since I worked at Bloomingdale’s. My first job, Macy’s A&S, then I left to get. I was lucky I got the Ann Taylor President’s job. Anyway, I think that it’s. I don’t know who could actually turn in. All in all, due respect to Tony Spring, who is a good friend and is now the CEO of Macy’s Corp, that job and I said to Tony, I said, Tony, you know this is the hardest job in the world. Yeah, it is. And same with Nordstrom’s. Why? Because I think the world is becoming so much more focused attempting to be more focused on what they stand for or whatever. I I did. I do LinkedIn a few times and Mike, I think 2 days ago I said what well how do you feel about 30 cereal choices plus on a in the supermarkets And I said give me the five best as a customer edit for me and I I think it’s about simple focused in the world and do what you do the best ever. And if you look at the companies that are very successful, they stand for it every level of retail, there’s got to be a point of view general merchandising shops. It’s something I don’t know how to do in terms of being everything to all everything and it’s impossible. And then sale, sale, sale in every sector of our industry. I went into a shop the other day and I said company. I knew, well, you can guess. And I said what’s? I said what’s on the sale today, 30% off all Blazers. And I said because I knew the woman a bit from my history and I said what’s the deal, 40% off, all online. And I go to the store as a customer and I kind of get screwed. And I spoke to my good friend there. I’m not saying which company. Of course, it could be one of six. So I said to my good friend, I know it’s running through my head, I’ll tell you that way. So I said, you know, that’s really not fair that I always called bingo. If you were there when something’s on sale, you’re not. And he agreed he was in charge of that strategy. And no, you can’t bifurcate prices you go in this store, especially if you’re rewarding the customer who doesn’t show up in person, of course. And then so I said, well, I she says you can have 40% off since you mentioned it. Now that’s going on. I go online, I know who’s doing well, who’s not doing well because it’s out there. And then I go online and half the goods everywhere are on sale. But it is sale bingo to a degree. You’re in the store, everything, 25 off on another store, said. What’s the deal online? I just, I was shopping a mall just because I do that. So in terms of department stores in our industry, in my opinion, less is more. I’ve never been successful enough. Less is so, less is more. If you’re stock deeply, what I will say is, if you want, if you’re stock deeply in what you have, what I will say is I’ve gone into stores trying to find something. They don’t have my sizes. They tell me to go online to buy it. Well, you know interesting you say that we have some new merchants in our company and they’re investors like people buy stocks, you buy goods, the business and this and then it stops. The best 15 styles in our company are well over 50% of the business and among fifteen maybe there’s fifty styles and we are out and now it’s it’s a huge opportunity for us. We have sold out of almost everything that we love. But I blame myself. But the merchants, we’re not buying enough. So two new merchants. Boom, boom, boom. I’ve known them well. Boom, boom, boom. And that’s the deal. Out of stock, Out of stock. Now, yesterday or today we marketed a 60 unit by we didn’t say 60 hand done. And we it was not cheap. It was 303 fifty a sweater we sold last night. It just went out. Best customers a new thing. Send it to who’s we sold 1335 out of 60 last night. No returns. So get the goods and that we couldn’t get more of. So scarce goods are always good.