to take all the action i can despite these threats of a lawsuit to go forward on immigration and yet crisis on the border has things up.d you heard from the representative this is this this ation you'll get first before you get elief that undocumented expecting. are it's making it harder to provide easier to move forward. >> but when you talk to theyistration officials do game.ny end my view.ly unlikely in

you're seeing the president take this tour around the country where you're talking about his actions and they're sort of small scale but going around the country and he went to denver the other day and it each week talking about i'm going to take all the action for you. issues and republicans will hit on healthcare. but the president's going to talk and keep talking about what he can do without congress to move forward. i think in the white house you're saying this is our last going to havee're to do on your own. visit it a mistake ton the border was it a media side show? open hink that it's an question. i think that you never know what's going to help the when it politically comes to the current environment in congress and republican criticism of him. myself if it would

have. the conditions especially in the republicans are so acrimonious right now i don't know what else he could have things better over there. >> had he gone to the border blow back in a different way. he went to denver and was seen shooting pool and which was a pre planned idea to make him more approachable and to call class and austin to do fundraising with ome celebrities and that is what created sort of the strange stkao dichotomy of seeing what he with you doing and on the border. it would have been tough going border in a sense he's telling these children sleeping concrete floors saying i'm going to deport you. not the ntire trip was best image for the white house. thank you both for being us

makers." you.hank a lot of losing in baseball. to spring that goes training knows it's going to win ixties games and lose 60 games you and play the whole season.

>> for over 35 years c-span is bringing public affairs from ashington directly to you putting you in the room at riefings and conferences and offering complete gavel to gavel coverage at the u.s. house. c-span created by the cable tv industry and brought to public service by your satellite provider. hd, like us on facebook and follow us on twitter. > the national governor's association ended its three day summer meeting in nashville with a session focused on jobs and economy. the featured speaker was best ceo hubert skwrolly.

he's introduced by the chair of the nb a. an hour. out >> good morning everyone. verybody survive the wonderful entertainment we had last night? haslem. hat a fantastic to close off our last meeting. let's give him a round of applause. wonderful job. applause] >> i think you should sing for us. it makes you want to sing after coming to nashville. uts a little kick in your walk you know just being here. but it's been a fantastic trip meeting and we want to thank your staff. sponsors and your hosts that have helped put this together say & this is our of our 2014 ng a it's been a g and great pleasure to be able to

serve as your chair. one o reasons why i chose my chair's initiative american education and training for tomorrow's jobs was to ensure we changing business climate have in our nation matches the education needs and also our needs at home. all governors are keenly aware technology and invasion have changed and altered our national affects our ow it schools and daily lives. we must also pay attention to cities and our small ities and our rural cities and employers large and small. our businesses on main street have been the bread and butter economies, so we're very pleased this morning that our ext speaker comes from a very unique perspective leading a both y that is succeeding on main street and e street. in 1966 as a company

as the sound of music its name best buy.d to in 1983. a company has more than 140,000 employees globally and retail locations in the united states. each year about 1 billion people at best buy.com and 00 million shoppers visit best buy's u.s. stores. so it is a great pleasure that our guest h us as speaker the president of best want to say this right. that? o good on i expect to look forward to hearing his talk about the the brick and mortar stores. it's something that the overnors focus on and talk about a lot and how companies ranging from best buy to our stores can succeed in an

ever changing innovative economy reputation strong of being able to turn around ompanies to be able to transform them and bring his certainly hisalso work in the french division of he electronic data stems and his three years there the company reversed their revenue 1.3 billion to an review 2.1 billion. after joining best buy he was of carson. he led a subsidiary unit and grew its sales from 8 billion to in four year. that's quite a remarkable history. so, to our governors that are and all of our guests hat have joined us, let's give

mr. jolie.welcome to for the you so much opportunity to speak with you this morning. despite myack sent i'm from minnesota. state of minnesota which about 20 fortune 500 companies are headquarters and a wonderful place to live and we win t have winters but we won't talk did about that. the fourth chief executive officer of best buy and a great opportunity tohe speak with the governors of the tates that are united in this america.ited states of the future of main street is an topic.ant

it's important because of the importance of the industry in states.omy of all the globally speaking retail is gross quarter of the in the product united states. 15 ctly retail employees million people. when you take into account the eople who are working for retail and the contractors who build the stores or provide the stores it about a quarter of the in the united states. so from a job standpoint it's enormous. from a state standpoint do i need to tell you collect is t we $250 billion, and we're $6.2 billion.de

we also have a recycling program. most of you know that recycle the we electronics. n the last four years we have recycled 1 billion pounds of electronics therefore helping in planet so a big impact ways.different -commerce is significantly transforming the retail industry u.s..ghout the

e-commerce started 10, 15 years now about $260 billion worth of revenue and growing rapidly. year it grew at about 17% compared to the previous year. n our industry consumer electronics, e-commerce is 20% of the industry. it is very significant. nd beyond that it goes beyond that because the shoppers of the is now ion that available online in 80% of the cases when you buy something in 80% of the cases you start your shopping journey nline by researching the product and getting information about the products and comparing the products. not may complete the transactions online but in 80% online.ases it starts traffic is more going down. december was n if

down 14% year over year. 14%. and given the importance of again retail -- i feel it's very therefore the question is, in the future the death of main street. to ask this question. or more positively what does need to do to thrive in an environment where technology is significantly shopping ng the experience. what do we need to do to be that context. so i tried to answer this question. of course with the benefit of experience of the transformation of best buy that i started two years ago when became the ceo this and my message this morning will be of this is not the best of main street. main street can thrive provided transforms itself significantly in'cha it service the customer experience in marrying physical mortar through what we

through a ne experience. governor you highlighted a bit our history. we're proud of it. one these amazing success stories. and now a 1966 $35 billion company and been very successful. ceo of a go i was the video game company that was to best buy and i saw how great of a company it was. best in the business. about 5 or 6 years ago it go sideways. complacent. at the time there was the growth f a number of amazing competitors. amazon started to grow significantly and apple got into and we're business competing, walmart, costco and so forth. probably with this

complacency we stopped our customers.nder we got distracted and all of bit of a drama two years ago that was highly media.zed in the this why i joined because i love challenges. not suicidal. [laughter] did a he fall of 2012 we diagnosis of the situation and we saw that we had two problems. e had declining sales and declining margins, only two they were t significant. but we also took the time to identify our assets. amazing assets. we had an amazing customer base of you are customer. -- you talked 140,000. american population

this combined with the relationship we have with our a greatturned out to be opportunity. very significant for the tech community because we're the only of sale where they can billions wcase their of dollars for customers. ncreasingly products are complex and difficult to understand and they need a place where to showcase this. websiteourse we had our which was already quite significant at the time. so we had these assets. but we did need to transform the

company. >> we sell other people's could notas no way we be prize competitive. and there was enough talk about showrooming. this phenomenon where people go to the score and they of our0 minutes with one shirts and they decide to buy on the internet. that's frustrating for the blue shirts. the traffic we have in our 600 million visitors these people come with great intentions. was to match de internet prices to that blue to come to mpowered the stores and we will provide the ost you can find on main website. of course that was not good enough because it's not just about price. studied the strategy to advice, providing service and convenience at competitive prices to customers particular to customers who are interested in technology products but need a little bit help.

i don't know about you, but i need a bit of help when i'm shopping because it keeps all the time. advice, service and convenience. starting on the site. website.inventing our you find shopping guide. how do i compare. i have formation can with rich content videos. t can provide a hot of advice on the site. advice in the stores. we have invested significantly training of our blue shirts associates and also with our vendors to make the shopping experience a great experience. companies like samsung, intel, sony oogle, have invest hundreds of millions to display their newest technology and how together.g works we have super trained our blue shirts to be able to talk about products.

if you walk into a best buy tore you probably don't know that you need a high definition tv. but you walk in the store and you get to the vendor pad you and talk to one of our blue shirts and after 15 minutes i will know that you absolutely need that tv and the only question is which one and when. but that's the only question you're left w so it's a great opportunity. so advice, service. this technology is very complex. of help with the design of your home theatre solution for your home network, up, transferring data from your old phone to your new we'll take care of you and make sure you walk out working technology this ready to go. also help when you have use the products. troubleshooting and help with repair. focus and ig service we're proud of celebrating the 20th birthday of the geek squad one of our secret

weapons. the geek squad will be ringing at the new york stock exchange in celebration of the birthday. service, convenience. convenience of being a retailer.el it's an interesting site. bout 50% of the orders on our website, the customers decide to pick up the order in one of our stores. get this, we have free shipping on our store. and the customers decide to have free shipping from the website and the customers decide to go to the store convenience you can get it now. now is really good from a customer's standpoint and make you like what you are seeing and get the help and the advice. significant.ry we have also instilled or ship ished what we call from store. so we have throughout the centers 2 distribution but we also have 1400 stores and all of our stores can ship to directly or to

another store. so we have unlocked about inventory and when people go to the site, even though we may not have the central n one of the distribution centers we'll get it for them from one of the stores or showing a store we have the product in that particular store but we'll get you.o that's significant. returns.nce with the stores and the supply chain everything is being transformed significantly. let me illustrate that with a the marketing function. years ago marketing was very

tv and the ass and insert in the sunday newspaper. his now with the data we have bout our customers we have the opportunity to give targeted ighly relevant tkeupbl it advertised marketing ommunication and develop communication with our customers. you bought a p station four last can talk to but games. you bought a camera and maybe about lenses or you're moving. can i talk to you about how we and get it move hooked up in your new place. his is something transformational. we have a database that has this ich information that we're leveraging to be helpful to gamemers so it changes the very significantly. now not all the transformation painless.

e have taken out so far $860 million of cost out of the competitive and committed to a billion dollars. we're very advanced with our out. take shifting to growth. it's not always easy because you cycles and deflation and this tv is cheaper years ago and greater opportunities around new technology. lot of talk about health and fitness technology. can help reduce healthcare costs and we have a summit next week with an company, a hospital clubs, a chain of fitness to see how we can work together o the benefit of customers and educe healthcare costs and

improve people's lives. everything in our homes is now connected. our customers to take advantage of that. .e're focused significant growth opportunities for us. this gives you a flavor of the kind of transformation we're going through and frankly we're not that perspective. this are many retailers going through similar transformations. companies like cabellas from stores are -- their becoming amazing destinations. you want to go to their store to iscover what you can do from a fishing, hunting standpoint and a o a great company when consumer. that standpoint if i

of ral rise the key drivers this transfor theation refocus on the customer building an customer experience and unique assets. everyone will be somewhat different. insraeut to the benefit of our customers and standpoint this is still early days in that the image and i have from jim collins the famous business author about the need fire bullets before you fire cannonballs. have s the idea that you to try a great number of things and in retail you can experiment stores so have 1400 we can try things, a number of see whether this works. i call this also the bicycle theory. very difficult to direct a bicycle at stand still. you fall. if the sigh si-- bicycle is

it's not a problem because you can adjust. so a lot of experimentation that place.to take in that context my comments about main street would be i didn't talk about the help we need from the governors. marketplace. today in 2014 in this country, have a s who don't physical presence do not collect the sales tax. retailers who don't have a collect presence do not the sales tax. the customers are supposed to and most of them don't. this is not about the internet mortar. and it's been restaleers who don't presence and cal don't contribute to the communities and so forth. so we think it's unfair situation and i know that

governor's association fore front.he the any of you have led fight individually and i want to thank you for your leadership on this matter. this is clearly an issue that needs to be fixed. anyone know that believes that the government should be picking the winners in this country. are ready to fight when the playing field is level but the the nment shouldn't pick winners and this is also a states rights issue. the last revenue according to the niversity of tennessee ast opportunity from a revenue standpoint is about $25 million. do when the states will they collect that it's up to individual states. taxes y we'll lower the nd a famous economist has

concluded based on a thorough this if we change the law is the opportunity for the country to create 1.5 million jobs. 1.5 million jobs because many tates will reduce the tax burden and this will facilitate economic growth. to be solved because of jobs. the numbers of stores that have 15,000 store closers in 5,000 forew years and this year. our income margin at best buy is about 3 or 4%. internet prices i so jobs the sales tax are being lost every day and decisions about store closers eing made every day influenced by this decision. it's a situation that must be olved and needs to be solved urgently because at which the pace the business is moving online. it's an issue at

that be solved. and i think it's an issue that this solved and must be year. i know senator alexander was spokearlier this week and to you about this. meeting gton last week with various members of the house, it feels like we are on yard line. i know today is the final game soccer world cup. united states and france. we don't like that game. beaten by the germans every day. let's talk about football. we're on the five yard line. we can l work together push this over the finish line this year and create a great outcome for the employees and for the economies and the states and the country. so, i know that you're committed to his and i think speaking your litigation and leadership in congress has opportunity to helpful. the governors have a huge voice on this. delighted to hear that

you're working on this. a fight that has got support and rtisan xtremely broad mainstream coalition. trade associations and amazon is in favor. economists. this is something that makes sense. is a common sense solution to a problem. i want to again thank you for inviting me and giving me the opportunity to speak to the of the state and talk about the industry. take, time happy to permitting, questions from any of the governor's this morning. thank you very much. [applause]