macy's ceo terry lundgren said he was disappointed with the quarter salgz this morning on "squawk box the issues, some of macy's highest volumes and most profitable stores rshgs and unseasonably warm weather in other parts of the country. ceo terry lundgren says macy's will focus on sales driving activities which include cutting prices to move merchandise. that's good for shoppers. less optimal more margins. the department store also announced it signed an agreement to open lens crafters in 500 stores. that's similar to the partnership it has with finish line. now, lundgren also joined the earnings call. a rare alance. it was wide ranging, longer than normal at 90 minutes. he also said there was plans to add 53 of the back stage off price stores over the next two years. mace yeas is also testing incorporating 20,000 to 30,000 square feet within ten macy's stores for the back stage concept. like mcdonald's yesterday, macy's explained it underwent a thorough analysis, but said a reet doesn't create enough shareholder value. >> take a lifsh. whoo i'm hinting at is the traditional industr

terry lundgren is macy's chairman and ceo. terry, we've had a lot of people questioning the department stores, but do you think the death of the department store has been greatly exaggerated at this point? >> i sure do. i mean, the last five years, my own company has grown by $5 billion with 38 less stores than we had five years ago. so i think that's an accurate statement that it's been grossly exaggerated. and if you saw the traffic when we opened the doors at 6:00 p.m. flowing into stores like macy's harold's square, you'd say people definitely want to shop on that night and in a store like macy's. so we feel great about what's tran spired here. >> it's probably fair so say there's been a shift in how americans are shopping. what is macy's doing to try to capitalize on that? >> well, i think, becky, you know that we're the seventh largest internet company retailer in america at this point in time. and we're inching toward being sixth by the end of this year. so the online business is a complete strength for macys.com and blo

but can department stores get terry lundgren is macy's chair chairman and ceo. do you think the death ofhe department store has been greatly exaggerated at this point? >> i sure do. the last five years, my own company has grown by $5 million with 38 less stores than we had five years ago. so i think that's an accurate statement that it's been a grossly exaggerated. and when you saw the traffic at 6:00 p.m. flowing in to stores like macy's herald square, people definitely want to shop on that night and in stores like macy's. so we feel great about what has transpired here. >> so probably fair to say there is a shift. what is macy's doing to capitalize? >> we're the 7th largest internet company retailer in america at this point in time and we're inching towards being sixth by the end of this year. complete strength for macys.com and bloomingdales.com. but i think the way the consumer is shopping is quite different than it was. and that is that consumers starting the journey with their phone, doing their research, coming into the store are and trying on the clothes

now, let's talk to terry lundgren again. i want to stay international, we have to go china. last 30 days you're been telling to china for the first time. how is this going? terry: we just began, we just launched our site with inventory being held in china. we have been selling to 70 countries for the last couple of years, but is a small business because you have to pay shipping business and duty. now we have the shipping to china, and we're doing that with our partners. have a joint venture relationship because their logistics systems based in hong kong -- it is brand-new. are finding out what the chinese consumer wants from macy's. it is very exciting. items the fastest selling were home furnishings. in particularly, shoes and towels and high thread count sheets. interesting, you would think they would have that product. arestly, the quality we offering is so high, and so good, that the consumer has grabbed onto this and it is been our best-selling product out of the box. stephanie: did that surprise you? i thought it will be the celebrity brands. terry: i would've thought t

on "squawk box" this morning, macy's ceo terry lundgren said he was disappointed with the quarter sales. some of macy's highest volume and most profitable stores. and unseasonably warm weather. lundgren says macy's will focus on activities going forward, which includes cutting prices to lose merchandise. good for shoppers. less optimal for margins this holiday season. the company also putting a lot of effort into its off price concept, backstage with plans to open 53 of those stores in the next two years. macy's also announcing an agreement to open lens crafters in 500 department stores. separately, jcpenney's sales improved a better than expected 6.4%. it's pleased with the soon-to-be released third quarter results to come out on friday. it's a claim that alleges false advertisement in california. jcpenney denies that claim. >> while it may be that jcpenney is taking a share back, it's clear from the carnage across the retail space that the three-pronged pitch fork has everybody concerned on the tourism front. talking about how this could be a negative for tiffany. on the weather front

we heard terry lundgren on "squawk box" this morning. customer has not come back.as not come back for apparel. >> bad for real estate. they point blank said no to delivering alpha. david, now 30 points below where we heard they might do real estate. 30 points below. >> that was a monumental nondelivery of alpha. >> look, he's speechless. >> not just because of the mcmuffin? >> they see q4 comps down two to three, last year it was up by that amount. >> warm weather, because of that. who even wants to look at an overcoat. the flagship store is unique. but i think jcpenney had a decent number. people will draw conclusion that macy's is losing customers to jcpenney. i have wayfair on, leonard w. not a small thing. wayfair reminds you that amazon, everyone is nipping, nipping, nipping at macy's. >> this is a 10.5% decline at a stock that is at a two-year low. >> because -- >> what happened here? macy's was the star? suddenly somebody shut it off? >> jcpenney came back on line. target came back online. a new ceo at target. amazon. these shoes i'm wearing now, okay? they'

atget and terry lundgren macy's are hoping for a 2013 black friday. erik: and notoriously difficult to predict. they get it wrong pretty much every year. shannon: they are going pay some consumer surveys. where you going to shop? with black friday for the biggest day of the year. that comes more towards christmas. people do all the last minute shopping. is the biggest shopping event. for target, they said they feel black friday is not just about sales but holding their brand. they see it as an experience. we have all been talking about how customers want more experiences. they don't want stuff. they want an experience. you get the apple store and lululemon. and experience is what customers want and they hope to create adam black friday. erik: that raises the question about macy's. four years they were the -- for years they were the darlings. up 23% last year. was the 20% the previous two years. now it's down to the levels it was trading at in 2012. what happened? he was the formula that seemed to have perfected all the sudden proved to be not so effec

ceo terry lundgren said many of the issues that plagued them during the year have gotten worse, including declining tourist spending at its highest volume and most profitable big-city stores and unseasonably warm weather crimping sales of cold-weather merchandise. >> the reality is, particularly in the northeast, it is much warmer this year than last. and so, we expect that's going to continue. that's not going to -- those things are just not going to change dramatically, i don't believe. and at some point in time, you run out of days to sell through the inventory, because december 27th comes and volume just drops off precipitously. so, earnings is forecast down for fourth quarter because we're going to take markdowns. i mean, great for consumers. consumers are going to have a field day. >> reporter: macy's also said sales of merchandise like handbags, jewelry and accessories also slowed. while macy's stock posted its biggest loss in more than seven years, not every analyst thinks it spells trouble for the long term. >> it's sll a very powerful place with great vendors, great brands, a ve

>> how much of this discounting we've seen so far and some of it has been fairly aggressive, terry lundgren, the head of macy's saying basically he expects he is going to have to discount to move merchandise. do you agree with that? are we going to see that continue? >> it is a case by case basis with a lot of retailers. i think what you see right now is actually what is called planned promotion. that's going to be the most prevalent. and that's everything that retailers have already predetermined what they're going to set pricing at. of course, that could fluctuate throughout the season as markets dictate but right now, we're really still solidly in that planned promotion area which is a good thing for retailers. deep discounting after the fact, post christmas and in january, that would be trouble to look out for, but right now, i think a lot of this is still planned. >> what are your members tell you, if anything, about their increased plans for security in light of the paris attacks and do any of them express concern that people might be less inclined to go and congregate in large public

lundgren --rry terry lundgren, great to have you with us. and butts -- a much bigger move. lira soaring this morning. next. ♪ i just had a horrible nightmare. my company's entire network went down, and i was home in bed, unaware. but that would never happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offline. so i can rest easy. what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business. jonathan: good morning and welcome back to "on the move." in the european headquarters right here in the city of london. let's see how the markets are shaping up. kicking off november on a little bit of a low. the footsie 100 -- the ftse 100 by dennis the biggest month of gains since july 2009. switch up the boards. one currency standing out proud. , the biggest move lower. the turkish lira jumping on the hope that the -- on the hope of the ak party sweeping back into power. mackenzie whotom is in istanbul. they're not dead in and u.k., t

terry lundgren in london. .his is prime minister cameron the u.k. and russia should work together.oming major global events in paris may have some cancellations. the ramifications are substantial. we discussed this all after a very short break. ♪ discussed this all after a very short break. ♪ manus: welcome back to bloomberg television. let's get out to guy johnson. we are seeing prime minister vowels telling about the reality of paris dealing with the climate change conference coming up. they are going to be cancellations. a big sporting event here in the u.k. what is the biggest highlight of the morning for you in terms of the news flow? guy: what we have seen is the response to the attacks from the french authorities, bombing targets in northern syria. 12 jets taking part in that rate. friends waking up active business. -- france waking up back to business. ofcussing the idea that some these events will be canceled. the main event will go on. we see the president going in front of parliamentarians later on talking about the state of emergency could be extended for three months.

manus: we are joined by bloomberg's correspondent, terry --dgren -- terry lundgren kari lundgren.i: we are to see passengers going through delays. there is going to be nervous is over the weekend we saw the north terminal at gallic terminal closed for several hours when there was suspicious activity. you also saw twitter warning result in a air france flight getting the boarded at amsterdam. general nervousness across the board. francine: what is the market reaction. i: the stocks are down. over the weekend, airlines were telling pastors if they wanted to change their booking they could. this country weighing on bookings into and out of france. air france after charlie hebdo noted that was affecting their bookings. you have to think it is going to be a similar story. for airlines like air france, easyjet, ryanair. kari, thank you. wrapping giving up in terms of the meeting of those airline markets in shares. a little bit.d it is the french stocks in the deutsche lufthansa which is the real focus. francine: let's bring in peter toogood. he judges for market reaction. guys, think yo

and terry lundgren is the process of closing them. he does it every single year. is going to keep doing it. he got a lot of weak stores. so, a lot of those stores are not going to be viable -- they cost too much. it costs them 10 points more to run than their competitors. vonnie: what is going to happen to all that real estate? reports are department stores were sending out letters to their store owner saying you must open on black friday. market because it is a share game. look, if you are a department store business, you have lost market share for 20 years. 20 years! that's just going to continue. you're going to lose it to the discounters. tom: my basic take and the photos in garden city east of new york city on long island. howard, is the bloom off black friday? howard: it absolutely is because by this afternoon it will be over. it will be dead. amazon. it'll be over. tom: what is your record in boxes from amazon outside your door? mine's six. vonnie: i tend to stagger mine. tom: we are in the seachange of digital -- vonnie: where are consumers buying clothes.

. >> we had terry lundgren on, had not followed the stock that close.hurt them. people were expecting to have real estate investment trust deal. point blank just said that is not going to happen. i think that that's going to disappoint some people. at a certain point, you have to say it is going to get cold again, they will be relevant. they're a very good chain. then people see jcpenney's numbers, and they say is jcpenney taking away from macy's? i think terry is doing a good job. but there are fates against him. the worst one is the fact that i am still not wearing an overcoat. >> yeah. i know, that's true. i wonder if we can deduce anything else? walmart. there's other factors obviously. but it doesn't look like an economy headed to 3% gdp. and amazon goes up every single day. morgan stanley raised its target price to 800. the thing is a juggernaut. i don't know. if i'm in retail, i hate amazon so much. i don't know what i would do. >> we'll be tuned in. you have jack ma on later. 9:30? >> yeah. they say they're not amazon. point blank, we're not ama

i want to thank everyone at macy's, you're going to hear from the ceo terry lundgren in a moment. i want to say thank you to amy, vice president of macy's parade and entertainment group. really one of the driving forces. thank you and your whole team for your great work. i want to thank my colleagues who work with the city government who put the parade today. my senior advisor, and our director michael, paul, carrie. they've done a great, great job getting everything done. thousands tonight. millions tomorrow. 50 million television viewers tomorrow. 50 million people will be watching this what a showcase for all that's great it's a city. thanksgiving is a day when we appreciate all we have. it's also a time to take stop for a moment and recognize many, many of us are fortunate. but we know in this city there are a lot of folks not as fortunate. >> you're listening to mayor de blasio talking about the added security that will be in place for tomorrow's parade. they're working to keep spectators safe. they have additional mobile cameras, helicopters, uniformed officers, and speciall

we did talk to macy's ceo, terry lundgren, he talked about retail versus bricks and mortar. >> 90% of the products that we carry in our stores is still sold in bricks and mortar. last year it was 92.5%. so it's the gap is narrowed to 90%. but still, the significant amount of inventory still being sold in the in the actual stores. >> so kara, this morning, some people tried to argue that this is the season, where officially black friday as we know it, going to the mall. is a novelty. right? you go because you want to go through that experience. not because you need to. >> absolutely. it's really interesting. you know, i think the retailers that have brick-and-mortar stores are battling a secular trend. an age trend in that millennials and even everybody, i buy all my stuff online now. i can't tell you how much, how little gi to a store. the question is, if you like shopping, if you want to search for discounts, if it's entertainment, you go to stores. right now i think most people are very used to using retail online and it's gotten easier and easier. the sites have gotten better and t

is there something totally awry with the ceo terry lundgren and his team? i have to say unequivocally no. but terry was dispointed this morning on squawk and in the conference call, but it's not like this great merchant done so much to revitalize macy's over time has checked out. i can testify he's working harder than ever. second it's true that the weather's awful. way too hot for department stores like macy's filled with cold weather gear as you'd expect. it is november. it's so warm out that the company was abject about the need to discount aggressively before the holiday to clear this inventory. that's horrendous. it could leave the next quarter terrible too. but as bad as the weather is for retail, there is definitely something else at work here. i think the consumer habits have changed. and they've changed not glacially as they typically do, but with lightning speed. two years ago howard schultz, visionary runs starbucks famously opined what could be called the death of them all, the end of shopping as we know itd. he talked about time constraints, te

something is wrong with terry lundgren machine.ie: it is not just terry lundgren's machine -- retail across the board is hurting. you cannot walk into this office without walking into any retailer with sales, discounts --look at single state single day in china. it is about sales. erik: except we were intoxicated that lundgren had done something different at macy's, mastering the on the channel when every single retailer in america could not figure it out. macy's look like it was doing a good job. if i am not mistaken, macy's has a deal with alibaba, which we will talk about. david: at the macro level, retail sales are not going down. they are going up. they are losing market share to someone. those dollars are going someplace. tom: one word -- amazon. everyone wants to get their sales online -- macy's, target, the companies you just mentioned, but they still have a very tiny fraction of the overall e-commerce market. e-commerce is the going gangbusters, and amazon benefits. stephanie: oddly enough, walmart does not want you to com

if terry lundgren is speaking more bullishly, that's one you want go to. >> but a sales number that looks okay for some of these retailers now who are getting rid of inventory does not translate into big profit. >> only for tjx and ross stores who buy the inventorinventory. >> the deeper discounts will hurt gross margins. >> a lot of hot money in that stock. that's not what you do you don't buy retail for takeover. >> it's going to be an incredibly busy week. a lot of economic data led by the jobs number on friday. the last up with before the fed's december meeting. ecb set to hold a policy meeting on thursday, see if the fed unveils new stimulus measures. opec on thursday, cartel members urging saudi arabia to cut production in the wake of lower oil prices. the russell up 3.5 this month. the dow, nasdaq and s&p each poised to pose a second consecutive month of gains. even though for the year to date we'll waffle back and forth between the flat line. >> i think about the endless stories that we read about how the saudis have to change their view and have to cut back. always other opec mem

. >> that drag, it seems to be something i think what terry lundgren was on today, he made it sound liket's much more of an industry wide situation. maybe it is. we need to still hear from a few of the other big retailers throughout. we need to heard from nordstrom's and from folks on the did hes count side as well, like tjx. we'll get that in the next couple of days, and i think that will be a better tell. quite frankly, right now you're looking at a reaction, the cascading reaction, right now, of basically all retail sales say, all right, things aren't so great. this is pushing to the down side. there's competition on the e-commerce. we all know about that. >> how is that working out for you? >> not so swell. in fact, michelle, the seasonality seems to be mainly pointing towards the e-commerce sites that pete just mentioned. in particular take a look at amazon today. yes, i know they've got an upgrade. take a look at how they have performed over the past several weeks. >> they're not seeing the drivers or the weather cooperating in terms of getting colder fast enough for people to swit

terry lundgren sounded some bells today saying things are very slow for everybody. and he is actually even addressing that people are going towards electronics, toward other purchases and less toward clothing. he did talk about the weather. he did talk about the warmer weather. and t and the fact that is pushing things back. and he talked about inventory. that is a problem. they have to get rid of that. i think we'll have to wait and see is this everybody in the field or more macy's specific. because i look at the online presence of a jw nordstrom, are they suffering the same. they have the off brand and the rack. they have themselves in a couple of different spots that macy's hasn't been able to penetrate and i wonder is this everybody or just macy's. >> and that is the question. is it a macy's issue or a department store issue because across the board it was sold out. >> kohl's down and jw and others down. nike up 35% year-to-date. under arm our, up. and amazon up 116% year-to-date. there is no brick and mortar there to worry about. >> if i'm going to buy a kors b

terry lundgren is really going to be on later. how are they doing? tobias: it is mixed.ealing better, home improvement, for example. and retailers, for the simple perspective that they walk outside, and if it is cold, i put on my ratty old code and i say i need a new one. on top of that, throw the secular dynamics toward online and brick-and-mortar. you give candid a jackets? tobias: my kids ask for canada goose jackets. tom: do you know the cost? francine: i feel like i need to weigh in, first of all because black friday is catching on in the u.k. this is bigger than boxing day in the u.k. but if you look at retailers, and if you are looking at it from where i am sitting in london, you have a warning yesterday that tiffany's is saying they will miss estimates because of the higher dollar. then you have macy's, and it doesn't translate. if you look at retail stocks, are the ones exporting the ones that will lose the most? tobias: not necessarily be exporters. the bigger issue is, if you look at the s&p retailing index, it is outperforming year today -- it is up offering

transports correspondent terry lundgren joins us to explain.ook at security concerns, the impact is .hort-lived kari: when you look at british airways after the 2005 attack in london, the yields were actually up that quarter. 9/11 was a more prolonged period of depression for the airlines. seems like airline stocks are up and everyone seems to be -- tom? the is heathrow, cdg, other 4 airports francine has tattooed on her brain, are they terror targets? kari: it may be extreme to say that they are places where you need to have a high level of security. we saw prime minister david cameron saying they're are going to be increasing aviation security. and his casesting, he was saying they're going to be putting people outside of europe, say in northern africa or the middle east. and that way extending the borders. tom: tell us about air france, the world's worst frequent-flier program. i, make light of it but this is deadly serious. is very serious but after attacks like this, people still want to travel. air france, charles de gaulle airport, their

the chairman, terry lundgren. >> happy thanksgiving. >> let's have a parade. what does this mean to the employees of macy's? >> too bad about this weather, by the way. >> i know, my goodness. >> we have 260,000 employees at our company. this is our gift to america. we feel grateful to be able to deliver this parade and thank you for being here. thank you for all the coverage you've given us. >> terry told me he and his wife stayed overnight in the store last night. >> on the mattresses? >> no. we actually have a little space in my office where i sleep. i'll do that tonight. i'll be working tonight. we open at 6:00. i'll be here and working all the way through the night to tomorrow. >> what are your first memories of the parade? >> you know, my first memories are sitting right here underneath this awning and watching the snow come down. don't have that problem today. just the feeling, with my family being cuddled up. today, i have my first grandson with me. the family tradition to me is so special. >> what does it mean to you, to be a part of it? i love what yo

can you confirm what terry lundgren was saying? how is the traffic at this hour? >> yes. think definitely consumers are starting to shop earlier like we were talking about. last night was very crowded. overall i would say pretty strong traffic. >> so, neely, would you agree? "the new york times" busy section today has three articles. the graying out of black friday, door busters, no, and black friday bargains are fewer than you think. there's a lot of gloom and doom when it comes to major headlines. do you agree or do they have it wrong? >> i think they have it wrong this year. holiday has kicked it dead. we saw in minneapolis last night and again at 5:00 a.m. this morning the weather cooled and she showed up and she's converting. that's a very good sign. you say jcpenney is a winner. why? >> they opened first. jcpenney absolutely won. but was really a great, a lot of people on black friday going for an item and they leave with an item. they went in for an item and came out with a store. that's how you win at black friday. >> neely, it's coming at a time when you've got t

after listening to terry lundgren. he talked about the strong dollar. tiffany had good numbers in japan. good numbers in asia. but it's the strong dollar. i'm saying unless you thought the dollar was going to get weaker, there was no reason for them to be bullish. i do not know a single executive, any ceo i can name other than the tiffany's ceo who thought there would be a change here. you talk to these -- >> they all accept the idea of the dollar staying where it is. >> cigna misses by six cents. >> i was surprised by that. they didn't have the christmas quarter. that's zales, jared, every kiss begins with lower numbers. >> that's pretty good. >> i can't stand those ads. >> "usa today" has a list of retailer force whom the fourth quarter has the lions share of revenues. number one, gamestop. almost 40%. >> i went over that gamestop quarter. i'm a fan. they did exactly the opposite of what tiffany did. they had a november to remember. they had a november that was good, but not part of the quarter. so, they said wait a second. you know what? before you w

. >> terry lundgren is one of the best executives in retail. i think macy's is a powerhouse. they, without question, they set the tone in a lot of rights. you're seeing a lot of inventory and people reacting to the second warmest september and probably one of the warmest octobers in recent history. and that will have its effect. >> you mentioned weather yesterday. you said you have to -- it is warm out there. who wants to look at an overcoat. >> i love kevin plank. mark parker was honored by fortune. he'll hate that. he'll buy every copy of fortune and rip it up because that's the player kevin plank is. he's got this fabulous clothing line that keeps you warm when it's cold. well, guess what i don't want right now? kevin has done a remarkable thing. he's a technology company, connected fitness. i love the guy. scott interviews kevin plank. they have a great relationship. plank could not control the weather, which is monumental because he's in control of everything else i've seen him go up against. >> no big voting stalk when it comes to the weather. walmart is not only trying

. >> a great read in the journal today about macy's ceo terry lundgren trying to steer this retail ship as they continue to get buffeted by a changing consumer. >>> a down day for commodities. let's get out to jackie deangelis with the latest on this sell off. >> that's right. your 3% sell off in crude oil today, 4175 is where we close and what's interesting is there are days where i will argue it was a weak equity session that took crude down and some people will argue the other way around. today we have fundamental reasons that the commodities took a hit specifically energy, the first would be the inventory report this morning, for wti that was a big build over 4 million barrels but opec was out with its monthly report talking about its outlook. unchanged. it doesn't see an uptick in demand, it's a slight decrease in production in saudi arabia, worried a little bit about iraq, but, again, still near record highs. the third point is what draghi came out with this morning, this increased dovish tone. a lot of people are worried the dollar index will continue to spike and if this rate hi

but when you promote subcultures happen.not, it does not we have terry lundgren tomorrow, ceo and chairmanday, we continue the coverage of the french president in d.c. with president obama. that and more. thank you for watching "bloomberg ." ♪ >> it is 10:00 a.m. in new york city. 11:00 p.m. in hong kong. welcome to "bloomberg markets." >> from bloomberg world headquarters in midtown manhattan, i am erik schatzker. putin says turkey faces serious consequence is after shooting down a russian warplane along its border with syria. french president francois hollande will meet with president obama in the white house moments from now. bankers do not want to hear. the head of one of the world's they are stillay overpaid. let's check in on the first word. here is vonnie quinn. vonnie: french president francois hollande meeting with president obama to discuss the fight against islamic state shortly. british prime

host when we come back a programming note, tune in tomorrow at 7:00 a.m., we have macy's ceo terry lundgren can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive? . >>> welcome back. let's turn to our guest host. maggie, congratulations. ernst & young naming you their entrepreneur of the year. congratulations. >> thank you. it was privilege. i've been an entrepreneur for 35 years, multiple companies. it was a great opportunity. they do such a great job. >> when you are ceo of a major company people probably don't think of you as an entrepreneur anymore. you are running something and staying big. how do you stay an entrepreneur even when you're in charge of thousands of people? >> it's a great question. when i was first nominated, i said, really, i run an 86-year-old company, fortune 500. i always looked at frontier as small and then big. lots of small markets in rural and suburban america. pnls down at that level, general managers running th

terry lundgren himself said there are only so many days, you have to get it out there. >> clearly at some point if the weather doesn't turn, if sales don't pick up, they're going to have to get rid of the coats. >> it's been cold the last couple of days. >> which has helped. >> the ceo of eden's on earlier, focusing on open air malls and she has a particular security issue because they don't have entrances. they can't set up screenings, et cetera. people just show up. you don't necessarily have that issue. you don't have as much open air. what do you do in terms of security in the wake of pair snis. >> we are a soft target. we can't change that. we have extensive security with what you see and don't see. that's throughout the industry. we've never had a major incident at any of the malls in this country. i think that you're never 100% protected but you can do everything you can do. >> it's almost open air at a mall because there are so many entrances. >> that's true. but it's tough. it's a big job. >> you can close the doors. >> you're not gun-free zones, are you? >> generally yes. >

to terrying, we talked lundgren macy's ceo, and ask him about these retail trends. consumer starts with their phone, does research, and says i want to buy . when they do, hopefully macy's will pop up. they will come into the store and try it on to verify quality, color and all that, then they will decide whether they will buy in-store or go home and buy it on their couch. that is the way consumers are shopping today. we benefit from that. you are talking about the consumer in general, and we have seen the consumer buying other automobile record sales, home improvement doing extremely well. we are benefiting with furniture sales along with home improvement. weeks, how bige are the sales? we've seen thanksgiving and christmas, how big are they compared to the rest of the year? >> is huge. it is so important we have a great holiday season. that weo our employees work so hard 12 months out of the year, but if we don't finish the year between thanksgiving and christmas really strong, the year will be tough. you can make up a lot of ground with a great finish. >> has that

going to do it at home, whether they're wasting money and this whole multi-channel effort that terry lundgren is talking about. maybe five, ten years from now we won't be walking in the store, at least in the same numbers that we did before. >> when you think of catalog sales, when you think of internet sales, internet sales today are still less than 10% of overall retail sales. it's been 15 years since the internet was really created. not saying it's not growing. it's growing faster than regular retail. bricks and mortar is still the bulk of it. yes, being able to combine what you buy in the store, what you buy on your phones, that's what's integrating. retailers need their online channels to be just as efficient as their store channels and they're investing in it. >> let's go winners and losers. highlights. >> highlights overall we saw everything active. nike, not really big deals in nike. people are buying digital 23i9ness trackers, buying underarmor, nike. best buy was packed this holiday season. victoria secret, bath and body works very busy this holiday season. the surprise was the deal