hi, everyone. welcome to "on the money." i'm becky quick reporting from the beautiful pebble beach golf course in california. this valentine's weekend, the big business of love. but is business booming? the drugstore that quit smoking and got rid of cigarettes. millions of americans are planning on popping the big question this weekend. money dos and don'ts you should know before you tie the knot. and what's the news with huey lewis. we caught up with the rock star on the links and talked music and money and the power of love. "on the money" starts right now. >> announcer: this is "on the money," your money, your life, your future. now, becky quick.

weekend. americans are expected to spend, on average, about $147 on valentine's gifts this year. that's up about five bucks from last year. but how and what we're spending that money on is changing. that's our cover story. red is the color of valentine's day, but retailers should be seeing green. the national retail federation predicts americans will spend a record amount on the holiday of love this year. nearly $20 billion. almost $2 billion of that on flowers. another $1.8 billion on candy, and even more on jewelry and going on that special evening. much of that spending has moved to the internet. 28% of americans will shop online, an increase of nearly 12% since 2010. and consumers are also going mobile. more than 17% plan to use their phone to shop for valentine's day. but how we celebrate is also changing, and it's not just chocolate and roses. while the percentage of americans buying flowers and candy has

remained relatively stable over the last decade, the number of consumers buying greeting cards has fallen off nearly 15% and the number buying clothing has increased by more than 5%. many couples now celebrate the holiday with a night out, which may include dinner to a restaurant or tickets to a show. 30 years ago, jim mccann was a disrupter before we ever knew what that term meant. he changed the name of his flower stores to a national toll-free number, 1-800 flowers. today he leads the company with more than $1 billion in sales. jim mccann is 1-800-flowers.com founder and ceo, and jim, thank you for joining us. great to see you. >> good to see you, becky. >> jim, i've known you for a lot of years, and i've never really known how you got started in the flower business. is it true you were moonlighting as a bartender and heard about a flower shop for sale? >> it was across the street from the place i worked at here in manhattan on friday and saturday nights. one of my customers who would stay later into the evening, owned the flower shop, told me

he was going to be selling it. i thought, that's an interesting business. i was a social worker during the anytime. i thought, retail, working at people with nice times in their life, maybe i'll give it a try. so i did, and that's how it started. i bought that flower shop and another and another and another. that was a long time ago, as you say. >> we're calling you a disrupter, because you were the original disrupter to the flower industry category, but you've reinvented yourself several times over. first it was the toll-free number, 1-800, and added dotcom to the end when it came to online. now you're into mobile. how do you keep changing with the times and what's the next wave? >> it's a multi-headed wave. it's everything about local. everything about social. i think the best way for us to stay connected is to be, is to be paranoid about what's going to come next, the change. if you look at the essence, becky, of why we embrace all the new technologies, it's all about being convenient, and it's all about being accessible. and if we do that, we can really help our customers to act on their thoughtfulness. the more convenient and accessible you are, the more

likely when you have that good thought like, oh, it's valentine's weekend, and geez, i ordered -- in my case, i want to make sure i'm sending those boxes of butter cream cookies to my grandkids' for valentine's weekend, i'm more likely to act on that if it's as convenient as picking up my smartphone and placing an order in just a minute or so. and we still have stores, we still have the internet, we still have telephone access when it's appropriate. and most of our customers are multi-channel or omni-channel. they come to us whichever way is convenient or appropriate for them at the time. >> i know your company earned more than $1 billion in revenue last year, but less than half of that came from flowers. i think it was 55% or something came from gourmet food and gift baskets that were out there. is that the trend that you expect is going to continue? >> what we're seeing, becky, is exactly that. our flower business continues to grow. our food business is actually growing at a faster pace. and now, more and more thoughtful, nonperishable gifts as well. >> valentine's day falls on a sunday this year.

is the delivery business, is that the worst time it could fall for you? >> from a delivery point of view, it's actually a little easier for us, because we have a network of florists around the country, around the world who are set up to make those deliveries. more people are going to be home friday, saturday, and sunday than they normally would be during a workweek. so it retards demand a little bit, but it gives us a better delivery opportunity. so business on the topline will be challenged a little bit. but on the bottom line, in terms of being able to deliver a lot of gifts, a lot of smiles, and do it more conveniently than we can on a busy friday, so it's a balance. we actually don't mind it falling on a sunday. >> jim, thank you. 1-800 flowers and ftd are the established online players, but new start-ups are also shaking up the industry. kate rogers is in new york city and joins us now with more. kate? >> reporter: hi, becky, that's right. if you're in a panic over last-minute flowers for valentine's day, it's not too late. there's a whole new crop of on-demand flower start-ups that are promising to make your lover

happy in two hours or less. take a look. new york city based florist rachel ciao is busy fulfilling same-day orders for the booth company. the california-based start up is sourcing flowers from eco-friendly farms in south america and the states for next-day delivery, and they've recently added same-day service to 130 markets from art sans like rachel. they say their leaner supply chain, cutting out the middleman, leads to lower costs. >> one of the things you'll see that's very different for us versus competitors is that pricing, especially this time of year, around valentine's day. >> armed with sleek apps, vc dollars, and a focus on sustainability, competitors in the on-demand eco-friendly space include bloom that, which wraps its flowers in compostable burlap, and urban stems, using its own in-house bike couriers for delivery. >> while spending on flowers for valentine's day has remained stable in the past two years at about $2 billion, the more traditional florist industry has taken a hit over the past

decade, going from more than $9 billion in 2006 to less than $6 billion last year, as grocery stores and online players have increased their market share. >> which is why savvy florists like rachel are turning to the bouks. >> as a booth customer, they keep growing, because they retain their customers, as well as they're reaching out to, you know, many different people, and the demographic. it's not only valentine's day, there's birthdays, and anniversaries, and gifts for their parents and things like that. so there's a lot of opportunity to keep buying flowers and just making somebody happy. >> rachel is expecting a very busy weekend with some very happy valentine's. >> kate, why are these companies so heavily marketing the eco-friendly on-demand services? >> becky, when i talked to john tabt, he's saying a lot of people that work for him and a lot of the customers he currently has and hopes to have are millennials, and they won't

stand for anything less than a company that's committed to that eco-friendly sustainable product. and if you go on those websites and those apps, it's a really seamless user interface, and i think that's something that speaks to the millennium generation. it seems to be something that all three of those companies are trying to market heavily towards. >> kate, thank you very much. up next, we are on the money. a year ago, cvs quit smoking, removing all cigarettes from its drugstore shelves. has it hurt the bottom line and does the chain have other changes in store? and later, your money, your marriage. what you need to ask before popping the question. and as we go to a break, take a look at how the stock market ended the week.

now here's look at what's making news as we head into a new week making money. if you never heard of negative interest rates, you are not alone. janet yellen said they are not off the table in her semi-annual testimony before the house and congress. negative interest rates means the central bank would charge banks interest for some money they keep at the fed. that could encourage the banks to actually lend more money instead of paying the fed to keep it. it's never been tried before in the united states, but it is being used right now in japan and other countries around the world that did stocks no favors. the dow falling 250 points on thursday after an incredibly volatile and negative week. the s&p 500 touched the lowest level it has seen in nearly two years. stocks rebounded on friday. but all is not lost. burger king is going to start selling hot dogs right along side the whopper, flame grilled and everything. that's the biggest change in its menu in decades, and it comes amid increased strength from mcdonald's with its all day breakfast menu. with new mergers, partnerships

and consolidations, there are changes ahead at your corner drugstore. cvs, the nation's second largest chain recently changed its name to cvs health. part of the move to add that word was removing all tobacco from its stores. david doorman is cvs health's non-executive chairman of the board. great to see you. >> thank you. >> i know this change went through a year ago, and some experts say it probably cost you about $2 billion to remove tobacco from the stores. was it worth it? >> absolutely. it was just inconsistent with our mission to be a health care provider to sell tobacco. what we didn't expect, frankly, is to get as much credit as we have. people have responded, the view of the brand is better than it's ever been, because they said, here's a company that made a decision to affect their sales and bottom line, and move forward with the right answer. >> let's talk a little bit about one of the headlines that we hear so frequently. and that is the high cost of drugs. it's back, front and center in the media at this point.

largely because of martin shkreli being called in front of congress. is that representative of the drug industry, overall? >> so to generalize it, based on the behavior of a few bad actors is not fair. but at the same time, drug costs have gone up. and there's a cycle here, generic drugs, which have been a huge benefit to consumers the last three years, something like $90 billion of previously ethical pharmaceuticals on patent have come off, and those prices have fallen 60 or 70%. so for consumers, that's a $50 billion to $70 billion windfall. but at the same time, new drugs come on that are narrow in application, you know, they affect a fewer number of people than, say, statins have done and the prices are higher. but if you're someone who benefits from that drug, life-saving drug, the price is, you know, less material to you. >> we have a situation where consumers are paying more out of pocket for their drugs and for

their health care at this point, too. so maybe it's something that's hitting the consumer a lot more in the face than it used to. >> well, as obamacare evolves and people make their own health care insurance decisions, less made by their company and more about individuals, there is more choice. and sometimes those choices have higher costs than people ever realize, because their employer was paying for it, or the government. >> how has it changed your business from the care prescription side of the situation to realize that more and more people are self-insuring and going through the affordable care act, obamacare? >> in our business, we see increases in medicare part "d"/medicaid-filled prescriptions, which are negotiated very hard. >> right. >> and tend to be very -- at the very bottom of the pricing stack. and individuals, at least, who are self-insured, you know, who have not just co-pay, but total pay, you know, there's sticker shock.

>> cvs also just bought 1,600 pharmacies inside target. how's that partnership working out? >> target is a terrific brand. our brand will bring more foot traffic into target stores, so they win, and our health plan customers who look for convenience, they have 1,600 more locations where they can pick up prescriptions. and with our maintenance choice product, we allow our health plan customers to either pick up in store, have it mailed to their home, or to a pharmacy within the network of their choice. >> you not only sit on the board of cvs, but several other boards, including yum brands. i just wonder, you have an idea of what's happening with the consumer. where do you think we stand right now? how are americans feeling? >> with energy prices as low as they are, everyone who has a car feels this directly. so there's been a gas price dividend. it's hard to find where it's shown up, you know, i've heard some people say that, you know, casual dining and dining in general is maybe up a little bit. it's hard to see that from where we sit with yum. clearly, auto sales were up. so certain durables benefited, i think, from that dividend. but on the other hand, you know,

we're not in a robust economy, in this country, you know, given the recent economic numbers. it's a confusing time, because you wouldn't think we would be as linked to china's problems as we are as a consumer of their goods, which theoretically should be going down in price, based on supply and demand. >> david, thank you so much for your time today. >> you bet. up next, we're "on the money." planning to tie the knot? the conversation you need to have before you say "i do." >> and later, music, money, and golf. a candid conversation with rock 'n' roll's huey lewis.

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9 million americans are expected to get engaged this weekend. it will be valentine's day, after all. but before you put a ring on it, you better get financially intimate. i spoke to sharon epperson about what questions you should ask before you commit to someone else. >> so you really want to have an idea of what you want in the future. what is your vision for the future. what will your financial future look like? and here's a really key point. and it's hard to kind of have this conversation. but you need to know this. what do you owe and what do you own? you know, that's a conversation that's hard to have, but first, you have to see for yourself where you stand financially. and then, what is your style? how do you address money? do you pay all your bills as soon as they come? do you wait until the due date? or do you pay them late? what is your style and kind of

understanding what your own style is will help you then have that talk with your partner. >> what sort of questions should you be asking your spouse or your future spouse about money? >> well, it's not romantic, but you need to be a bit vulnerable. explain what your worries are. what are your concerns about money and being able to reach your financial goals. what is holding you up in getting there. what do you think may be a challenge for both of you going forward. and every question that you've asked yourself about money, you need to ask your spouse or your partner about that. and then, also, think about what their responses are, and listen carefully. respect their positions. don't just jump on them, because they said something that you don't agree with. you want to really respect where they stand. >> and especially where they've come from. a lot of people have reasons for the way they are. >> there's a reason why there's a lot of student loan debt. you have two graduate degrees, sometimes that's going to happen. you need to understand where they've come from, and what the potential is then to get on solid financial footing in the future. >> what are some of the dos and don'ts when it comes to financial -- >> one of the big things you don't want to do is you don't want to hide debt, you don't want to keep secrets, and you really want to make sure that

you don't label each other as a spender or a saver, but you want to make sure that you don't just automatically say, you know, you're no good with money, you're a total spender all the time. some of the things that -- >> or you're a cheapskate. >> or you're a cheapskate. the main thing you really want to do with your partner is have that conversation. you want to make sure that you have the conversation and that you are open about having that money talk. you want to make sure that, also, when you're having it, you're talking about what your goals are, what your dreams are, and that you're also being very realistic in reaching those. there are going to be some pitfalls along the way. how are you going to plan for those emergencies? that's a very important conversation to have. and make sure you both get where you want to go in the future? >> sharon, thank you. >> my pleasure. up next "on the money," a look at the news for the week ahead. and rock 'n' roll's huey lewis. we'll talk about the music business and how he turned down millions of dollars. why? >> i don't know. because i'm an idiot, frankly.

for more on our show and on our guests, you can go to our website, otm.cnbc.com and you can follow us on twitter @onthemoney. here are the stories coming up that may impact your money this week. on monday, the markets are closed for presidents' day. and the 58th annual grammy's will be taking place. on wednesday, we'll be getting a report on inflation with the producer price index.

we'll also hear about whether there's any improvement in the manufacturing sector from the industrial production numbers. and the federal reserve will release its minutes from january's meeting. on friday, the consumer price index for january comes out. huey lewis and the news are entering their 36th year ago as a band. they're set to go on tour this spring. earlier at pebble beach, i spoke to huey about the changing nature of the music industry and about how being on the road drove his love for golf. >> golf is a great complement to rock 'n roll touring, because, you know, we spend a lot of time in the midwest, for example. and what's in the -- well, if you play golf and you're in ohio, you're in mecca. there are great golf courses everywhere. you get out of the hotel, no cell phones, no people, fantastic. >> you know, i read a little bit about when you did sports, when you did the album. every song on that you wanted to be a hit. that's the way it worked with the radio stations. you had to have big hits. >> radio was king. >> how has music changed since then? >> well, immeasurably. you know, what's really interesting is to watch the internet and the effect it's going to have. and i'm not sure it's good.

when music's free, who's -- we just lost glenn frey this year, which is a sad deal. what a great talent. but the eagles, look at a band like the eagles, who made these wonderful records, but they were notoriously meticulous, those records. they pored over those records. they spent a lot of money on those records making "hotel california." spent a lot of time and a lot of money. who's going to do that when records are free? it's actually a very worrisome thing. >> i know that coca-cola pursued you pretty heavily at one point, after michael jackson got signed by pepsi and they wanted you and were throwing millions of dollars your way. why did you say no? >> i don't know, i was an idiot, frankly. i'd never done anything. i still haven't ever done anything for money, you know? and we just started selling out concerts and making more money than we'd ever made and i thought, why would i do this for money? you know, i'm an artist. >> would you change your mind today? >> oh, yeah. i'm a blues fanatic. where do we hear real blues music.

muddy water blues music. not second generation, first generation? where do we hear it? on ads, toyota ads. ♪ the corporate world, which was sort of -- we -- our influences were bohemian in those days, but now people who are my age in the corporate world, they're more bourgeois, but their tastes are rooted in those '60s bohemia, and that's where we get all the great music. a lot of it's corporate driven. >> even bob dillon. >> exactly, exactly. it's okay to do. >> yeah. bob -- everything bob does is cool. >> i know that you're an investor and have you been kind of watching the stock market this year with the horrific start to the year? >> yeah. >> what do you think? >> i think it's looking for a bottom somewhere. i'm an investor, i'm not a speculator. so, you know, i just sit tight, but i think we had an amazing run, so this is a correction of sorts. and i think if you just buy, you

know, blue chip stocks and the paid dividends and hang on, you're going to be fine. >> what kind of stocks do you buy? >> well, i buy funds. i'm a fund guy. i can't -- i can't watch -- if i was a stock -- if i watched the market every day, i can't do that. i'm out playing harmonica and golf! so i just buy funds. a nice little blend of funds and let it go. >> huey, thank you so much for your time. >> thank you. >> that's the show for today. i'm becky quick. thank you so much for joining me. next week, how to clean out your closet and make some money. the company that will take your gently used clothes and cut you a check. each week, keep it right here. we're "on the money." have a great one and we'll see you next weekend.

hey there. bad news, it's freezing outside and good news, stocks actually rallied today. these guys are making sense of it all. while they are doing that, here's what's coming up. >> i'm, shocked. >> that's what wall street is saying about the huge move in oil today, and we'll tell you why we may have just witnessed a bottom. plus -- ♪ coke and a smile ♪ makes me feel good >> and the charts will make you feel even better. we'll explain why coke could be on the verge of a major breakout. and market turmoil this week had traders running for cover in safe haven assets, but could these trades be a little overdone. we'll tell you how to protect yourself from the crowded trades. the action begins right now.