and then the founders of warby parker it's valued at $1.8 billion.re watching "squawk box" right here on cnbc. s looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. >>> good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square and among the stories that are front and center this morning, hong kong's richest man is retiring 89-year-old li ka-shing is stepping down as chairman of c.k. hutch chin son holdings his eldest son will take control of the company. >>> a new bidder may be in the works for kwaul cqualcomm this comes days after broadcom dropped the bid for qualcomm after the white house moved to block the deal >>> and a negative week for stocks hasn't hurt investo appetite for equities. u.s. sto

and you look at these on-line retailers, like warby parker, who are doing these pop up shops, so that you can just kind of keep -- or minimize the risk of retail so that you're not locked into long-term leases. but these pop up shops are retail experiences. and on-line retailers are realizing that something some brick and mortar component can be useful to them. but we need to turn that around for our existing retailers, especially, and teach them if it's not already obvious to them because there are many people who, you know, who might not even be using e-mail to the extent that they should be. we think all these things are obvious because we talk about them all the time, but on the ground and in the trenches, it's not always obvious because you're busy running your business. whether you're running it into ground or whether you're running it into the future, you're usually head down and if you're not savvy, sometimes hearing from people like yourselves and people who are doing these things in their own businesses, their peers in their neighborhood merchant groups can really be helpful

brands,g in stronger hot internet players like warby parker, and they do find in this environment --hey will continue to grow. you will see a lot of those , maybe twice as many malls in the united states as you need to have. i would not be surprised if you see 400 or 500 of these c and d models closing over the next couple of years. it will not be about just stores like tesla, but it will be gyms, health centers, education. you will have to totally but theed these malls, a malls bring in movie theaters and payment complexes, you go to dubai and see skating rink and ski slopes. david: will that be doing a favor to the three stores left in your mall? should they be closing the stores anyway? with the berkshire example you only have three stores left, probably because of the adjacency, if the department store goes out, the smaller stores can start going out as well. my guess is those our local stores that are in that mall at this point. at some point the mall closes, they turn into office parks space or do something else with it. thank you, steve, for being with us today. coming up next

through all retailing, vendors need -- >> what you are describing makes me think of companies like warby parkervestable. if someone is vertical the margin is richer, you can afford to play in internet. internet is more expensive than operating stores in terms of delivering the bottom line someone who is vertical and controls the price transparency impact that's important sendly f you are the low cost provider, i love costco, i mention it every time i'm on here why? because the low cost provider. they are a retailers retailer, too. they are very good merchants you can still survive if you are a low cost provider. and if you are like arms merchants, you can survive >> toys r us, i'm curious, there is a place for a category leader in physical toy stores with somebody who has young kids there is value to browsing just target and walmart. >> it is a place to take your kid on a sat afternoon you can both have fun. but it is a leveraged company at a time when the cash flows are diminishing. it's not the first or last we will see in this in retailing as a whole. as for the toy manufacturers, they are g