Ken Pilot interviews Peiman Raf, Co-Founder and CEO of Madhappy, for this 50th Flight of The Retail Pilot - Leaders & Legends podcast. This interview was conducted live at The University of Michigan's Ross School of Business at the Michigan Fashion and Multimedia Summit.

Michelle Wlazlo joined JCPenney in March 2019 as executive vice president, chief merchandising officer, reporting to Marc Rosen, chief executive officer. Wlazlo is responsible for leading the Company’s global merchandise strategy and operations including Merchandising, Planning and Allocation, Pricing, Product Design, and Development and Sourcing.

Wlazlo brings more than 30 years of merchandising and stores experience from a variety of retailers. In her three years at JCPenney, she has led the charge in clarifying and defining the positioning of the Company’s private brands to give customers more choice. Wlazlo led the launch of Thereabouts, JCPenney’s most inclusive kid’s brand yet with adaptive apparel for children of all abilities; established JCPenney Beauty’s partnership with hero brand Thirteen Lune, providing a hyper-inclusive beauty experience; and led the introduction of Hope & Wonder, JCPenney’s new purpose-driven private brand, which celebrates festive holidays as well as important cultural moments and gives back to nonprofit partners, to life. Most recently, Wlazlo led the launch of JCPenney’s denim lifestyle brand for men, Mutual Weave.

Prior to joining JCPenney, she served as senior vice president, merchandising over apparel and accessories, baby gear and essentials at Target Corporation. Before Target, Wlazlo spent 19 years at GAP, Inc., in a variety of roles for Gap, Gap Outlet and Old Navy. She began her career at Saks Fifth Avenue, Inc., before assuming roles as store manager and buyer at Bebe Stores, Inc.

Wlazlo attended Lowthian College in Minneapolis and the Executive Education Program at Columbia University’s Graduate School of Business. She currently serves on the board of directors for the National Association for the Education of Young Children.

Key takeaways from this podcast interview include:

1.    Personal Journey to Retail: Michelle Wlazlo's journey into retail stemmed from a fascination and curiosity with shopping. Her experience working in her stepmom's store during high school ignited her passion for the industry, emphasizing the power of fashion and accessories to impact people's lives through simple transactions.

2.    Diverse Career at Gap Inc.: Wlazlo spent 19 years at Gap Inc., where she had the opportunity to work in various areas within the company. She specialized in turning around initiatives, launching new businesses, and bringing fresh perspectives to different divisions, demonstrating adaptability and problem-solving skills.

3.    Product Focus at JCPenney: Upon joining JCPenney, Wlazlo prioritized fixing the product assortment and driving clarity between brands. Recognizing the importance of good product, she emphasized the need to deliver quality and value to customers, focusing on improving the overall product experience.

4.    Partnership with CEO Mark Rosen: Wlazlo highlighted her strong working relationship with CEO Mark Rosen, describing their partnership as complementary and based on trust. They share a passion for product and have a similar taste level, learning from each other and maintaining open communication to drive the company forward.

5.    Inclusion and Private Label Strategy: JCPenney's focus on inclusion extends beyond initiatives like the Make It Count program. The company has a long-standing history of catering to diverse customer needs through private brands, with over 50% of product driven by private labels. This strategy involves carefully curating brands to complement each other and staying true to each brand's ethos and DNA.

6.    Focus on Leadership and Team Building: Michelle Wlazlo emphasizes the importance of building and maintaining a strong leadership team. She takes pride in the tenure and loyalty of her team members, highlighting the significance of having the right people on board.

7.    Transparency and Inspiration: Wlazlo describes her leadership style as transparent and inspiring. She believes in being open about challenges and inspiring her team with a genuine belief in the company's mission and the value it offers to customers.

8.    Customer-Centric Approach: Throughout the discussion, there's a recurring theme of prioritizing the customer experience. Whether it's through store remodeling, website improvements, or expanding beauty offerings, JCPenney's investments are aimed at enhancing customer satisfaction.

9.    Adaptability and Continuous Learning: Wlazlo emphasizes the importance of stepping out of one's comfort zone and embracing new challenges. She encourages her team to take on tasks that may initially seem daunting, as these experiences foster growth and innovation.

10. Team Collaboration and Support: Wlazlo underscores the importance of fostering a supportive and collaborative team environment. She values the camaraderie among team members and their willingness to assist each other, which ultimately contributes to the company's success.

On this flight of The Retail PIlot, Ken Pilot interviews Pete Nordstrom, the President and Chief Brand Officer of Nordstrom. Throughout his career, Pete has helped Nordstrom innovate the customer shopping experience and redefine the role fashion plays in customers’ lives leading major strategic initiatives such as building the designer offering to a $1.5 billion business, evolving Nordstrom’s mix of brands and categories and bringing in limited distribution brands as exclusive partners.  

Since taking over leadership of Nordstrom in 2000, Pete and his brothers grew the business from $5.1 billion to $15.1 billion, increased the number of stores by more than 200 locations and opened Nordstrom’s first flagship store in New York City as an experiential shopping destination. Driven by a Nordstrom principle to “leave it better than we found it,” they also led the organization to achieve 100 percent pay equity for employees, earn a spot on Fortune 100 Best Companies to Work For list for 20 years in a row and set a target to give back more than $50 million in local communities where we do business by 2025.  

Key takeaways from this podcast episode include:

1.    Early Introduction to Retail: Pete Nordstrom's entry into the family business started at a young age, with his father emphasizing the importance of work during summers. He began working at Nordstrom at the age of 12, starting with simple tasks like sweeping and stock work in the shoe department.

2.    Career Progression: Nordstrom's career at the company progressed from selling shoes at age 16 to various managerial roles, including store manager and regional manager. He followed a typical career path within the company, starting from entry-level positions and gradually moving up through the ranks.

3.    Family Business Dynamics: Nordstrom discussed the dynamics of being part of a multi-generational family business. He shared insights into the transition of leadership within the company, including his own experience when he and his brothers were given the opportunity to lead after a change in leadership.

4.    Customer Service and Brand Building: Nordstrom emphasized the importance of customer service and adapting to changes in consumer preferences. He discussed Nordstrom's commitment to providing exceptional service while also recognizing the shift in customer expectations towards speed and convenience, particularly in the digital age. Additionally, Nordstrom highlighted the company's approach to brand partnerships and its focus on amplifying brands' presence through strategic collaborations.

5.    Adaptation to E-commerce: Nordstrom acknowledged the evolution of retail, particularly with the rise of e-commerce. He discussed how Nordstrom adapted to the changing landscape by not only maintaining its renowned customer service but also by embracing online channels and forming partnerships with direct-to-consumer (DTC)brands to reach a broader audience.

6.    Changing Business Models: Pete Nordstrom highlights the evolving nature of business relationships, moving from traditional wholesale models to more flexible arrangements. He emphasizes the importance of solving customer needs while discussing various financial arrangements with brands.

7.    Diversification in Retail: The discussion explores the shift from traditional retail models to omnichannel approaches. Nordstrom discusses the integration of physical stores and online platforms, emphasizing the importance of reaching customers through multiple channels.

8.    Partnerships and Discovery: Nordstrom emphasizes the value of partnerships with brands and the importance of maintaining a spirit of partnership rather than transactional relationships. He also highlights the role of platforms like marketplaces in facilitating brand discovery.

9.    Customer Acquisition and Retail Strategy: The conversation delves into strategies for customer acquisition, with Nordstrom discussing the significance of the Rack stores in introducing new customers to the brand. The discussion also touches upon considerations for store sizes and formats in different markets.

10. Adaptability and Learning: Throughout the interview, Nordstrom emphasizes the importance of adaptability and learning from experiences, such as the challenges faced in the Canadian market. He also discusses the rationale behind starting a podcast as a means of fostering connections with customers.

Ken Pilot interviews Denise Incandela for this flight of The Retail Pilot.

Denise Incandela is Executive Vice President of Fashion and Private Brands for Walmart U.S. In this role, Denise is propelling Walmart’s reputation as a fashion destination, helping democratize access to stylish, quality apparel for Walmart’s 140 million weekly shoppers.

Before joining Walmart, Denise rose through the fashion industry ranks with roles as CEO of Aerosoles, President of Global Digital and Customer Experience for the Ralph Lauren Corporation and before that, EVP and CMO of Saks Fifth Avenue. Denise started her post MBA career at McKinsey & Company, where she was a leader of its retail practice.

Denise is a visionary retail executive and experienced public company board director who has transformed luxury brands and mass retailers for over 20 years, and she is renowned across the industry for her innovation and vision, team leadership and ability to drive results.

Key takeaways from this podcast interview include:

1.    Transformational Leadership: Denise Incandela's career trajectory reflects a commitment to transformational leadership. From her beginnings in investment banking and management consulting to her roles at Saks, Ralph Lauren, and Walmart, she has consistently sought opportunities to drive change and innovation within the retail industry.

2.    Early Adoption of E-commerce: Denise's entry into the retail industry was marked by the nascent stage of e-commerce. Her pivotal role in launching Saks' e-commerce business in 1999 highlights her foresight and willingness to embrace new technologies and trends, even when they were not widely accepted.

3.    Shift from Luxury to Mass Market: Denise's transition from luxury brands like Saks and Ralph Lauren to Walmart represents a significant shift in focus and target demographics. Despite the apparent disparity between luxury and mass-market retail, Denise saw an opportunity to leverage her expertise and drive transformation within Walmart's fashion segment.

4.    Building Strong Private Brands: Walmart's focus on developing private brands with distinct identities and market appeal is evident. Denise highlights the importance of building robust design teams and investing in brand development to create cohesive, desirable offerings exclusive to Walmart.

5.    Innovative Online Experience: Walmart's efforts to enhance the online shopping experience, particularly in the fashion segment, showcase a commitment to innovation. Features such as virtual try-on and social commerce initiatives demonstrate Walmart's willingness to embrace emerging technologies and adapt to evolving consumer preferences.

6.    Transformational Focus: Walmart is heavily focused on transformation, particularly in the fashion sector. They recognize the need to evolve beyond their dominant apparel business and explore new opportunities to grow.

7.    Marketing Evolution: The company acknowledges the changing landscape of consumer behavior and the importance of adapting marketing strategies accordingly. This includes leveraging technology and online platforms to reach consumers where they are.

8.    Marketplace Strategy: Walmart places significant emphasis on its marketplace strategy, which allows third-party sellers to offer products on its platform. This approach enables Walmart to expand its assortment without the need for additional inventory, contributing to growth and customer satisfaction.

9.    Store Reinvention: Walmart is actively reinventing its physical stores to enhance the fashion shopping experience. This involves overhauling assortments, improving visual displays, incorporating digital elements, and creating brand-focused environments to change consumer perception and drive sales.

10. Team Collaboration and Leadership: The success of Walmart's fashion transformation relies heavily on teamwork, leadership, and collaboration. Denise Incandela emphasizes the importance of building relationships, influencing others, and fostering a talented team to drive the company's vision forward. She also highlights the need for continuous innovation and addressing internal challenges to sustain momentum and achieve long-term goals.

Ken interviews Amy Williams, the CEO at Citizens of Humanity Group, for this Flight of The Retail Pilot. Amy joined Citizens of Humanity as the company’s President in 2009 and ultimately assumed the Chief Executive Officer position in 2015, overseeing the business for the company’s family of brands including Citizens of Humanity and AGOLDE. Williams previous experience includes Executive Vice President at Lucky Brand Jeans and Senior Vice President of Product Development and Design for Gap Inc. Williams serves on the board at Girls Inc of Greater Los Angeles and empowerHER. She is an advisor to Every Mother Counts and Bay Area Women’s Sports Initiative. 

Key Takeaways Include:

1.    Bridging Business and Design: Amy's career trajectory highlights the importance of bridging the gap between business strategy and creative design in the retail industry. She emphasized the significance of understanding consumer preferences, maintaining commercial viability, and fostering collaboration between merchandising and design teams. This balance between creativity and business acumen is crucial for successful product development and brand growth.

2.    Entrepreneurial Leadership: Amy's transition from corporate roles to entrepreneurial ventures demonstrates her adaptability and leadership versatility. She thrived in both structured corporate environments, such as at Gap Inc., and in more dynamic, entrepreneurial settings, such as at Lucky Brand and Citizens of Humanity. Her ability to navigate different organizational cultures and drive results underscores the importance of entrepreneurial spirit and strategic vision in leadership roles.

3.    Strategic Distribution Expansion: At Citizens of Humanity, Amy was tasked with developing a distribution strategy to expand beyond traditional wholesale channels. This involved exploring opportunities in specialty retail and e-commerce while working closely with company founders and private equity stakeholders. Amy's focus on diversifying distribution channels and adapting to evolving market trends reflects the agility and foresight required to drive brand expansion and maximize growth potential in the competitive retail landscape.

4.    Sustainable Growth and Brand Integrity: Amy emphasizes the importance of sustainable growth and brand integrity. Citizens of Humanity and A Golde focus on quality products, investing in design, and maintaining high standards in distribution. They prioritize long-term brand development over short-term financial gains, taking inspiration from European brands that prioritize generational development.

5.    Strategic Expansion and Retail Experience: The company aims to expand its retail presence thoughtfully, focusing on creating experiential and lifestyle-oriented stores rather than rapid expansion for the sake of growth. They seek to deepen relationships with existing retail partners, improve retail presentations, and explore opportunities for retail expansion in select locations.

6.    Marketing and Brand Building: Instead of traditional marketing methods, Citizens of Humanity and A Goldie rely on organic brand building and word-of-mouth promotion. They prioritize product quality and strategic partnerships with tastemakers, avoiding paid advertising and focusing on creating a desirable brand image through events, partnerships, and thoughtful product placement.

7.    Focus on Technology and Operations: While the company acknowledges the importance of technology in advancing their business, they admit to being more focused on other aspects due to their smaller team size. However, they recognize the need for technological advancements, particularly in areas such as inventory management and data analytics. Improving inventory accuracy, tracking product performance, and optimizing operational efficiency through technology are seen as key priorities for future growth and scalability.

8.    Commitment to Sustainability: Citizens of Humanity and Agolde have made sustainability a core aspect of their brand identity. They prioritize responsible sourcing practices, including the use of regenerative cotton and recycled materials. This commitment extends beyond product quality to environmental stewardship, reflecting a broader ethos of corporate responsibility and long-term sustainability. Their approach demonstrates a blend of ethical considerations with business strategy, positioning them as leaders in sustainable fashion within the industry.

Ken interviews Simeon Siegel, Managing Director, Senior Analyst of Retail and eCommerce for BMO Capital Markets.

Key takeaways from the interview include:

1.    Role as an Equity Research Analyst: Simeon's job involves assessing publicly traded companies within the retail sector. He emphasizes the importance of being objective in his analysis, even if it means delivering hard truths that may not always be well-received by company stakeholders.

2.    Divergence in Retail Performance: Despite macroeconomic fears and media narratives about the decline of retail, Simeon highlights that many retail companies are performing well. He notes significant revenue growth and improved gross margins in the retail sector, indicating positive consumer behavior.

3.    Impact of Interest Rates: Simeon discusses the potential effects of Federal Reserve decisions on retail performance. While lower interest rates traditionally stimulate spending, he suggests that the impact may not be as significant for retailers, particularly those with strong cash positions and minimal debt.

4.    Segment-Specific Performance: Retail success varies across different sectors and brands. Simeon emphasizes that success in retail requires a compelling story, understanding of the target customer, and execution. He notes that while certain sectors like luxury and teen retail are thriving, success isn't guaranteed solely by being in a favorable sector.

5.    DTC (Direct-to-Consumer) Realities: There's a growing realization that DTC isn't always the golden solution it's made out to be. Removing the middle person doesn't necessarily lead to cost savings for the consumer; instead, the costs are absorbed differently. Brands pivoting to DTC may not see the expected increase in revenue, gross margin, or profit.

6.    The Power of Off-Price Retailing: TJX (T.J. Maxx, Marshalls, HomeGoods) is recognized as a disruptor in the retail sector, despite its minimal e-commerce presence. Their model of selling expensive items at discounted prices has reshaped consumer perceptions and buying habits. Other off-price retailers may also take share from consumers but in different ways.

7.    Reevaluating Growth Strategies: Companies like Under Armour, despite revenue size, may face challenges due to low gross margins. Reevaluating strategies, possibly shifting from over-distribution to focusing on quality over quantity sales, may be necessary for sustained profitability.

8.    Tech Integration in Retail: While technology offers numerous solutions for retail, the challenge lies in identifying the most effective ones amidst the plethora of options. Companies should focus on tech solutions that reduce shrink, automate supply chains, and improve customer targeting, without letting technology overtake the core business.

Ken interviews Nyakio Grieco, Co-founder of Thirteen Lune and Founder of Relevant: Your Skin Seen on this flight of The Retail Pilot - Leaders & Legends.

Nyakio (pronounced Neh-Kay-Oh) Grieco is a beauty entrepreneur and advocate for clean, inclusive beauty that suits all skin types, tones, and needs. As a veteran beauty founder and trusted industry voice, Nyakio has launched successful businesses: her award-winning brand nyakioTM, based on her family’s Kenyan roots and beauty secrets that launched in 2002, and inclusive beauty e-commerce destination, Thirteen Lune, launched with cofounder Patrick Herning in 2020. Thirteen Lune launched as the first of its kind, e-commerce destination designed to inspire the discovery of beauty brands created by BIPOC founders that resonate with people of all colors. Thirteen Lune has since partnered with retailer JC Penney for inclusive beauty shop-in-shop locations in over 600 stores nationwide.

Continuing her commitment to inclusive beauty Nyakio created Relevant: Your Skin Seen, a clean, science-led skincare brand that works for all skin tones and types. Working with top labs to ensure a diverse mix of chemists, Nyakio formulated each product with superfruits and actives in efficacious percentages to create products that truly perform. Most recently, the brand expanded into the cosmetics category with six color and complexion products. All products in the range are formulated with skincare benefits and serve and celebrate every skin tone, while hyper prioritizing consumers who have been underserved.

Most recently, Nyakio Grieco has been honored with the CEW 2023 Female Founder Award, the Beauty Matter 2023 Future50 Award and included on the Inc. Magazine 2023 Female Founders 200 List.

Key takeaways from the interview include:

1.    Cultural Heritage and Beauty: Nyakio Grieco's journey into the beauty space was deeply influenced by her Kenyan heritage, particularly her grandmother's beauty secrets rooted in natural ingredients like coffee beans and sugar cane. This connection to her family's traditions and the use of earth-derived elements shaped her early interest in skincare.

2.    Transition from Entertainment to Beauty: Despite initially pursuing a career in sports and entertainment, Grieco found herself drawn to the beauty industry through her work with actresses and exposure to beauty products. She noticed a gap in the market for products celebrating Africa's rich resources and heritage, leading her to pivot her career towards beauty entrepreneurship.

3.    Challenges of Entrepreneurship: Grieco faced significant challenges as a black female founder, especially in accessing capital and navigating the beauty industry's landscape. Despite setbacks and failures, she persevered, leveraging mentorship, resourcefulness, and industry connections to keep her brand afloat and eventually succeed.

4.    Creation of ThirteenLune: Following the acquisition of her brand by Unilever, Grieco co-founded Thirteen Lune with Patrick Herning, aiming to create an inclusive beauty retail platform highlighting products by black and brown founders. The platform aims to debunk stereotypes and provide visibility for diverse beauty brands, challenging the notion that these products are only for specific demographics.

5.    Expansion and Future Vision: Despite the rapid growth of Thirteen Lune through partnerships with JCPenney and other retailers, Grieco remains focused on expanding the platform's direct-to-consumer presence and nurturing its brand identity. She sees opportunities for standalone stores, global expansion, and further development of their private label brand, Relevant. The goal is to continue championing diversity in the beauty industry while nurturing and growing the brands within the Thirteen Lune ecosystem.

6.    Thirteen Lune’s Business Model: Unlike a typical marketplace, Thirteen Lune takes a physical position on inventory by importing products into the country, owning the goods, and then selling them to customers. They do not drop ship and prioritize owning the customer experience, ensuring consistency and brand representation across channels.

7.    Launch of Relevant: Nyakio discusses launching Relevant as an opportunity to realize her dream brand. With Relevant, she aims to address market gaps and ensure all consumers feel seen at shelf, especially those with melanin-rich skin. The brand focuses on inclusivity, leveraging expertise in formulations and product testing.

8.    Expansion and Distribution: Relevant's expansion into Sephora UK demonstrates growth and opportunity for the brand. Grieco emphasizes the importance of partnerships and distribution channels, such as JCPenney, to reach a wider audience and fulfill the brand's mission of inclusivity.

9.    Marketing Strategies: Authenticity is central to Thirteen Lune and Relevant's marketing approach. Grieco emphasizes telling authentic stories that resonate with underserved consumers. In the early stages, they prioritized organic strategies over paid marketing and leveraged partnerships to amplify their message.

10. Challenges and Opportunities: Grieco highlights the challenges of access to capital for people of color founders, despite the immense potential of diverse businesses. However, she remains optimistic about the shifting landscape and sees opportunities for growth through strategic partnerships, investments, and technological advancements.

On this Flight of The Retail Pilot Ken speaks with LEGEND, Tommy Hilfiger, Principal Designer, Tommy Hilfiger Global.

Uplifting and inspiring consumers since 1985, Tommy Hilfiger has pioneered one of the world’s most recognized premium lifestyle brands. With Hilfiger’s vision and leadership as Principal Designer, his eponymous brand celebrates the essence of classic American style with a modern twist. Tommy Hilfiger offers premium quality and value to consumers worldwide under the TOMMY HILFIGER and TOMMY JEANS lifestyles, with a breadth of collections including men’s, women’s and kids’ sportswear, denim, accessories, and footwear.

Hilfiger’s career in fashion began when he was a high school student in 1969 — opening his first store, People’s Place, in his hometown of Elmira, New York. A decade later, he moved to Manhattan to pursue a career in fashion design, before launching his namesake brand with a single menswear collection. Since then, global retail sales of TOMMY HILFIGER products have grown to reach approximately $9.1 billion in 2022, powered by more than 16,000 associates worldwide — present in 100 countries and more than 2,000 retail stores, including its largest global flagship store at tommy.com.

Hilfiger has a longstanding passion for philanthropy and making the world a better place for future generations. Through the global TommyCares organization, the brand supports various international initiatives and charities like Save the Children, the World Wildlife Fund and Fashion Minority Alliance. Hilfiger currently sits on the Board of Next for Autism. Through the Tommy Hilfiger Fashion Frontier Challenge and People’s Place Program, the brand is also making strides in its ambitious vision to create fashion that Wastes Nothing and Welcomes All – which actively focuses on topics such as social and environmental sustainability, diversity, and inclusivity in fashion and beyond.

Diverse achievements in business and fashion have earned Hilfiger numerous distinguished awards including the CFDA’s prestigious Geoffrey Beene Lifetime Achievement Award in 2012, British GQ’s Design Legend of the Year in 2020, BFC’s Outstanding Achievement Award in 2021 and WWD's John B. Fairchild Honor for Lifetime Achievement in 2022. Hilfiger’s life and career have been chronicled in his memoir, American Dreamer, published in November 2016 — reflecting his experiences in the fashion industry from the last 35-plus years. Recounting his early childhood and formative years, it explores the setbacks, triumphs, and sheer determination that drove him to build a multi-billion-dollar global brand.

Key takeaways from this interview include:

Tommy Hilfiger's Background: Tommy Hilfiger began his journey in retail and design at a young age, starting his own business at 18 years old by opening a retail store -People’s Place - selling jeans in 1969. This venture eventually led him to designing and creating products for his stores, culminating in the establishment of his own brand.

Innovative Store Concepts: Hilfiger's early stores, particularly People's Place, were not just retail outlets but cultural hubs influenced by music and fashion. They offered a variety of products, hosted band practices, and provided an immersive experience for customers, aligning with the youth culture of the time.

Cultural Influences on Brand Identity: Hilfiger aimed to differentiate his brand from traditional preppy styles by infusing it with elements of music, particularly hip-hop, and embracing a more inclusive approach to fashion. This cultural fusion helped establish the personality of the Tommy Hilfiger brand.

Disruptive Advertising Strategy: The Hangman ad campaign, conceived by advertising executive George Lois, was a bold and disruptive move that garnered attention for the brand. Despite initial criticism, the controversial campaign succeeded in sparking conversation and establishing Tommy Hilfiger as a distinctive player in the fashion industry.

Strategic Partnerships and Growth: Strategic partnerships, such as those with Marjani International and later with Silas Chao and Lauren Stroll, played a crucial role in the brand's growth and expansion. These partnerships facilitated strategic decisions like expanding into Europe and launching successful product lines such as fragrances, contributing to the brand's success and eventual IPO.

Archives and Relevance: Both Tommy Hilfiger and Karl Lagerfeld emphasized the importance of going back to fashion archives and making past designs relevant for today's market. This approach ensures a timeless appeal while staying fresh.

Strategic Partnerships: The acquisition by Apex and subsequent sale to PVH provided strategic opportunities for Tommy Hilfiger's brand growth. Apex helped in repositioning the company, while PVH's ownership of other brands like Calvin Klein created synergies beneficial for both.

Brand Positioning: The positioning of Tommy Hilfiger's brand differs between the US and Europe. Understanding regional customer preferences and pricing strategies is crucial for successful brand positioning.

Design Process: Tommy Hilfiger's use of technology, such as 3D design, and the centralization of its design team in Europe contribute to a more efficient and precise design process. This enables faster response to market trends and ensures product quality.

Marketing and Brand Communication: The brand utilizes a mix of influencer collaborations, celebrity endorsements, and unique marketing campaigns to amplify its brand message. Embracing digital technologies like augmented reality and exploring AI's potential are also part of the brand's forward-thinking approach to marketing.

Ken interviews Nick Graham, CEO of SPACEONE Industries and Founder and Chief Underpants Officer of Joe Boxer. Nick Graham changed the face of fashion when he turned his underwear company into one of America¹s most popular lifestyle brands. Graham coined the phrase "The Brand is the Amusement Park, the Product is the Souvenir” and uses this philosophy in everything he does.

Graham was the first clothing designer on the internet in 1992, did the first live-streaming fashion show with Microsoft from an airplane hangar in Iceland and in 1998 installed the world’s largest e-mail in New York’s Times Square. He holds the record for the highest point a pair of underwear has been alone, (120,000 feet by single thrust rocket), and the unofficial record for the Worlds Fastest Fashion Show, (1.2 seconds by Human Cannonball).

He staged the first transatlantic runway show 30,000 feet above Greenland with his friend Richard Branson, and is currently collaborating with Bill Nye the Science Guy.

Currently Graham is the CEO of SPACEONE Industries that designs and produces space inspired consumer products for Men, Women and Children and is distributed through better department stores in the United States. The company also produces products for private space companies including Blue Origin, and Axiom to name a few. Graham has collaborated with many numerous space initiatives over his career including being major sponsor of the 50th Anniversary of Apollo 11 at Kennedy Space Center, launching Virgin Galactic with Richard Branson and having Apollo 11 astronaut Buzz Aldrin and Science Guy Bill Nye walk in his Men’s fashion show called “Life On Mars” at New York Fashion Week.

1.    Building Personal Relationships in Business: The conversation between Ken and Nick highlights the importance of personal connections in business relationships. Despite the professional setting, their banter shows a long-standing friendship, emphasizing the significance of personal rapport in business dealings.

2.    Entrepreneurial Journey: Nick Graham's journey from designing ties to founding Joe Boxer illustrates the entrepreneurial spirit and the unpredictable paths that lead to success. From humble beginnings to significant brand launches, his story underscores the importance of seizing opportunities and embracing creativity.

3.    Branding and Marketing Strategy: Nick Graham's approach to branding emphasizes emotional engagement and storytelling. His philosophy that "the brand is the amusement park and the product is the souvenir" encapsulates the idea of creating an emotional connection with consumers, transcending the mere transactional aspect of purchasing.

4.    Innovation and Adaptation: The evolution of Joe Boxer, from its inception to its collaborations with major retailers like Macy's and Kmart, demonstrates the importance of innovation and adaptation in staying relevant in the market. Nick's willingness to pivot and explore new ventures, such as his foray into fragrance and consulting with JCPenney, underscores the entrepreneurial mindset needed for sustained success.

5.    Community and Brand Loyalty: The discussion touches upon the significance of building a community around a brand and fostering brand loyalty. Nick highlights the importance of understanding and speaking to the target audience, creating a sense of belonging, and fostering brand evangelism among consumers. This underscores the idea that successful brands go beyond selling products; they create a lifestyle and communitythat resonates with their audience.

6.    Humor and Emotional Connection in Branding: Nick Graham emphasizes the importance of incorporating humor, irony, and a sense of fun into brand design to create emotional connections with customers. He believes that this approach sets his brands apart in industries where seriousness is the norm.

7.    Innovative Marketing Strategies: Graham shares examples of unconventional marketing strategies he implemented, such as organizing a fashion show in Iceland to promote Joe Boxer underwear. These bold tactics helped his brands gain attention and differentiate themselves from competitors.

8.    Partnerships and Collaborations: Graham highlights the significance of partnerships and collaborations in business growth. He mentions working with influential figures like Richard Branson and Bill Nye, as well as collaborating with space companies like Blue Origin and NASA for his latest venture, Space One Industries.

9.    Evolution of Career and Business Ventures: From his early days in the garment industry to venturing into space-related businesses, Graham's career trajectory showcases adaptability and a willingness to explore new opportunities. His latest venture, Space One Industries, demonstrates his forward-thinking approach to design and sustainability in the space industry.

10. Reflecting on Past Decisions and Learning from Mistakes: Graham reflects on past decisions, acknowledging that some opportunities may have been missed due to holding onto projects too long. He emphasizes the importance of learning from mistakes and making decisions more thoughtfully in hindsight, showcasing a growth mindset in business.

Ken speaks with Lori Coulter, Co-Founder and CEO of Summersalt, on this Flight of The Retail Pilot - Leaders & Legends.

Lori Coulter is the Co-Founder and CEO of Summersalt, a generation-defining lifestyle brand known for its data-backed fit and designer quality products without the designer price tag. In 2020, she was named one of Inc. Magazine’s Top 100 Female Founders.

Lori and her Co-founder, Reshma Chattaram Chamberlin, launched Summersalt to change the conversation around swimwear and address a true market gap by creating designer swimwear without the designer price tag. Summersalt’s product is data-backed with 1.5 million measurements taken from 10,000 women’s body scans.

From day one, Summersalt knew it wouldn't stop at swimwear. The first challenge was to transform the swimwear shopping experience from being intimidating and vulnerable to fun and empowering. Quickly, Summersalt expanded to include adventure-friendly essentials that help make every aspect of a woman's wardrobe more joyful and comfortable—from sleepwear to intimates to activewear. Named one of the Top 100 Upstarts in the world by CNBC, The Lead’s Breakout Company of the Year, and Fast Company’s Brands That Matter in 2022, the brand has seen exceptional growth and consumer adoption, garnering praise from leading outlets including Vogue, Elle, CNN and Forbes.

Prior to launching Summersalt, Lori, a veteran start-up founder with deep expertise in design, supply chain and ecommerce, launched one of the first mass customization startups at the intersection of technology, fashion and data to incorporate body scanning and made-to-order manufacturing.

Lori holds a Master of Business Administration from Washington University in St. Louis and a Bachelor of Business Administration from Baylor University. She serves on the Board of Trustees at her alma mater Washington University in St. Louis and champions inclusive economic development and entrepreneurship as a member of the University’s Skandalaris Center National Council. Outside of Summersalt, Lori enjoys spending time with her husband and two sons, and exploring the world through her love of travel and adventure.

Key takeaways from this episode are:

1.    Customer-Centric Approach: Lori Coulter emphasizes the importance of understanding and meeting the needs of the consumer. From the early stages, they focused on creating swimwear that empowered women to feel confident and engage with life. Their emphasis on fit, inclusivity, and sustainability reflects their commitment to their customers' values and preferences.

2.    Direct-to-Consumer Success: Summersalt's success largely stems from its direct-to-consumer business model. By bypassing traditional retail channels and selling directly to customers online, they maintain a closer connection with their audience and have more control over their brand experience. This approach allowed them to optimize fit based on real-time feedback and manage returns effectively.

3.    Strategic Partnerships and Collaborations: Summersalt leverages strategic partnerships and collaborations to expand its reach and grow its brand. They've collaborated with major retailers and plan to continue doing so, utilizing physical retail spaces alongside their online presence to reach a wider audience.

4.    Adaptability and Resilience: The company demonstrated adaptability and resilience, particularly during challenging times such as the COVID-19 pandemic. Despite facing a significant drop in revenue, they managed to bounce back and even thrive by tapping into consumer demand for swimwear and leveraging their online presence.

5.    Holistic Marketing Strategy: Summersalt employs a comprehensive marketing strategy that encompasses various channels, including press, influencer partnerships, social media, direct mail, and physical retail. By creating a 360-degree brand experience, they ensure multiple touchpoints with their target audience, enhancing brand visibility and engagement.

6.    AI Integration in Marketing: Coulter highlights the significance of AI in marketing, emphasizing its role in anticipating consumer needs, creating timely content, and optimizing customer acquisition strategies. Companies that quickly adopt and leverage AI technologies are likely to emerge as clear winners in the competitive landscape.

7.    Success with Connected TV: Coulter discusses the success her company has experienced with connected TV advertising, citing efficiency gains and real-time data feedback as key benefits. Leveraging data signals from direct-to-consumer interactions, such as those obtained from connected TV, allows for more targeted and effective marketing efforts.

8.    Influencer Partnerships for Content Creation: Coulter emphasizes the importance of influencer partnerships in content creation, highlighting a Jet Setters program where influencers collaborate with the brand to create authentic and engaging content. Leveraging influencers helps amplify brand messaging and reach a wider audience.

9.    Stage-Appropriate Tech Stack: Coulter shares insights into building a tech stack that aligns with the stage of business growth, emphasizing the importance of prioritizing platforms based on consumer needs and operational efficiency. Continuously evaluating and adjusting the tech stack to eliminate redundancies and streamline operations is crucial for scalability.

10. Challenges in a Post-COVID Retail Landscape: Coulter identifies three major challenges facing her company in the post-COVID retail environment: understanding shifts in consumer behavior and the future of retail, navigating fundraising challenges in a venture capital landscape impacted by COVID, and refining merchandising strategies to adapt to changing consumer preferences and market dynamics. Flexibility, adaptation, and strategic planning are essential for overcoming these challenges and driving future growth.

Ken interviews Co-Founders of Negative, Marissa Vosper and Lauren Schwab.

Lauren Schwab co-founded Negative in 2014 alongside Marissa Vosper with no experience in the fashion and manufacturing industry. With a passionate belief that women deserved to love the garments closest to their skin, Lauren taught herself every stage of developing, fitting and producing beautiful and functional intimate apparel. Prior to Negative, Lauren started her career in finance, working at two globally recognized investment management firms. Lauren was selected as one of WWD's 40 Under 40 list of industry notables who are changing the face of retail, fashion and the beauty industry. She graduated from the University of Pennsylvania with degrees in Art History and Diplomatic History. When she isn't working on Negative, she loves spending time with her husband and 3 little kids.

Marissa Vosper was born and raised in Boulder, CO. She attended the University of Pennsylvania, earning degrees in Political Science and Spanish Language. After establishing her early career in branding, she co-founded Negative in 2014 alongside Lauren Schwab. Within the company, Marissa is focused on all aspects of brand strategy, communications, marketing, web and customer experience. Prior to Negative, she worked at two large branding agencies for a variety of clients, including Fortune 500 corporations, fashion labels, luxury brands and start-up businesses. She was honored as part of the Forbes 30 Under 30 List of Entrepreneurs for Art & Style. Marissa currently resides in New York City with her husband and 3 sons.

Key takeaways from this episode include:

1.    Inspiration Behind Negative Underwear: Marissa and Lauren were inspired to start Negative Underwear after recognizing a gap in the market for high-quality, minimalist lingerie. Dissatisfied with the options available, they embarked on a four-year journey from concept to launch, conducting market research and product development while maintaining full-time jobs.

2.    Differentiation in the Market: Negative Underwear aimed to distinguish itself by offering a product that combined high-quality raw materials sourced from European heritage mills with an accessible price point through a direct-to-consumer model. The founders identified a lack of options between luxurious, but expensive, brands and mass-market, poorly made options, positioning Negative Underwear in a unique space.

3.    Strategic Naming and Branding: The name "Negative" was chosen to reflect the brand's commitment to minimalism and a direct, provocative appeal. The founders wanted to stand out from other lingerie brands that often had French or girly names. The name embodied their vision of creating a straightforward, American brand that challenged existing norms in the lingerie market.

4.    Self-Funding and Growth Philosophy: Negative Underwear has achieved substantial growth without external funding. Marissa and Lauren emphasize the importance of sustainable and thoughtful growth, drawing parallels to iconic brands that built their success over time. They prioritize making a superior product and focus on creating brand allegiance through a methodical and customer-centric approach.

5.    Future Growth Opportunities: While the brand has primarily focused on direct-to-consumer sales, the founders acknowledge the potential for growth in various channels, including wholesale, retail, and even exploring platforms like Amazon. Despite having experimented with pop-ups and partnerships in the past, their lean approach allows themto adapt quickly to new opportunities, leaving the door open for potential expansion.

6.    Lean Team and Profitability: Negative has maintained a lean team with around 15 full-time employees, emphasizing a disciplined and profitable approach. This focus on profitability over top-line growth sets them apart from the trend of driving top-line without regard to the bottom line that was prevalent in the past.

7.    Resourceful Use of Freelance Talent: Negative became proficient in working with freelance talent due to resource constraints in the early years. This flexibility in utilizing fractional roles and determining when a role merits full-time hiring has contributed to their success in doing more with less.

8.    Product-Centric Marketing: The co-founders believe in the product being the best form of marketing. They emphasize creating an exceptional product that outperforms existing options, leading to word-of-mouth growth and strong customer retention. Initially focusing on press coverage, they adapted their marketing strategies as customer behavior shifted to online platforms, particularly social media.

9.    Strategic Growth Initiatives: Negative initially engaged in old-fashioned methods like trunk shows, leveraging personal networks to get hands-on interaction with potential customers. They stress the value of building a customer base before heavily investing in paid advertising. Collaborations with like-minded brands, influencers, or celebrities are considered when they can tell a unique story to a potential audience.

10. Challenges and Lessons Learned: Challenges include finding new profitable channels for customer acquisition, maintaining the brand's core specialness while expanding, and dealing with price competition in the market. Key lessons learned include the difficulty of manufacturing in the intimates sector, the importance of realistic growth expectations when working with partners, and the value of adapting to new challenges while staying true to the brand's identity.

Ken interviews Jeanne Jackson for this Flight of The Retail Pilot.

Jeanne P. Jackson is CEO of a private equity and consulting firm that she founded in 2002, MSP Capital. In 2018, she retired from Nike, Inc. after 16 years, serving first as a Board member for 7 years, then stepping into successive roles inside the Company as President, then Senior Advisor to the CEO. She recently retired from the Board of Directors of McDonalds, Inc., where she served since 1999, holding positions as Chair of the Compensation Committee, Chair of the Finance Committee, and member of the Governance Committee. She also recently retired from the Board of Kraft-Heinz, Inc., having served with Kraft Inc., since 2012, through the sale to a Warren Buffett/3G led Heinz, and staying with the combined Kraft Heinz entity until her retirement in May. She served on the Audit Committee and the Corporate Governance Committee. She serves currently as Director for Monster Beverages, Inc., and Delta Airlines,Inc., on both Finance and the People and Compensation Committees. In the past, Ms. Jackson has also served on the Boards of Nordstrom, Inc., Nike, Inc., Harrah’s Inc., Motorola Mobility Inc. (through its sale to Google), Williams-Sonoma, Inc., CRS Inc., and West Marine, Inc. Ms. Jackson has previously served as the Chief Executive Officer and President of Wal-Mart.com USA, LLC , President and Chief Executive Officer of Banana Republic, a Division of Gap, Inc., while simultaneously as President and Chief Executive Officer for Gap Inc.’s Direct division. Prior to Gap, Inc., Ms. Jackson held various retail and consumer Brand management positions with Victoria’s Secret, The Walt Disney Company, Saks Fifth Avenue, and Federated Department Stores.

Ms. Jackson has served on the Board of Advisors of the Harvard Graduate School of Business, and University of California, Irvine Merage School of Business. She is the Past President of the United States Ski and Snowboard Foundation Board of Trustees, and served on numerous Community Boards. She is currently a member of the International Women's Forum of Las Vegas, and has, in the past, been recognized by Business Week as “One of the Year’s 25 Best Managers,” by Fortune as one of “The Most Powerful Women in Business,” and by Ad Age as one of “The Most Powerful Women in Sports.” Ms. Jackson holds a BS from the University of Colorado, and an MBA from Harvard’s Graduate School of Business Administration.

Key takeaways from the podcast highlight Jeanne Jackson's impactful career in retail, showcasing her leadership skills, strategic thinking, and contributions to transforming and growing iconic brands.

1.    Transformation of Banana Republic: Jeanne Jackson reflects on her leadership at Banana Republic, where she took the brand from being perceived as a stepchild to becoming a formidable brand within the Gap portfolio. This transformation involved assembling a high-quality team and pushing against opposition to lead the brand into the e-commerce space.

2.    Transition to Retail Career: Jeanne's journey into retail wasn't initially planned. She had intended to enter the consumer packaged goods industry but was convinced by someone in the retail sector, Frank Arnone, to explore a career in retail. This encounter shifted her trajectory, leading her to successful roles at various retail companies.

3.    Learning and Leadership Development: Jeanne attributes her leadership skills to lifelong learning and accumulating experiences. From her early exposure to extemporaneous speaking in high school to her experiences in business school, including the Harvard Business School method's case study approach, she developed the ability to assimilate data quickly and make decisions convincingly.

4.    Selecting Board Positions: Jeanne shares her approach to selecting board positions, emphasizing a deep understanding and passion for the brand. She believes in contributing meaningfully to the boards she joins, bringing strategic thinking, leadership, and a clear path to impact. She emphasizes the importance of diversity in the boardroom.

5.    Career Highlights at Banana Republic and Nike: Jeanne expresses pride in her work at Banana Republic and Nike. At Banana Republic, she played a crucial role in turning the brand into a significant player within the Gap portfolio and was an early advocate for embracing e-commerce. Her time at Nike involved joining the company's board and later leading the direct-to-consumer business, significantly impacting the company's trajectoryin that space.

6.    Consumer Focus from Disney: Jeanne Jackson highlights the importance of consumer focus, a core competency she developed during her time at Disney. The strategic work at Disney emphasized understanding how consumers felt about the brand, their interactions, and motivations. This consumer-centric approach became foundational in her subsequent roles at companies like Victoria's Secret, Banana Republic, and Nike.

7.    E-commerce Motivation: Jeanne Jackson explains the motivation behind embracing e-commerce during her time at Nike. She observed the high consumer demand in San Francisco, attributed to the availability of broadband. Recognizing that consumers would want to buy products online, the decision was made to meet consumers where they were and be ready for a broader audience as broadband adoption increased nationwide.

8.    Technology as a Base Level: According to Jackson, technology is a crucial aspect of any business strategy, especially in the realm of e-commerce. She emphasizes that technology is a baseline requirement for running a successful e-commerce business, covering aspects like quick checkout, easy navigation, and efficient inventory management.

9.    AI in Retail: Jeanne Jackson acknowledges the significance of artificial intelligence (AI) in retail. She anticipates that AI will bring another level of capability to the retail industry, and those who neglect its integration may miss out on valuable opportunities. The discussion also touches on the potential impact of AI on job roles, with Jackson suggesting that while some roles may be replaced, there could be opportunities for higher efficiency and smarter use of human resources.

10. Evolution of Retail: The conversation delves into the evolving landscape of retail, with a focus on digitally native brands. Jackson expresses excitement about these brands that have captured consumer attention, especially those that emerged or gained momentum during the pandemic. The discussion highlights the changing strategies of brands, including considerations of omni-channel approaches and the exploration of various channels to reach customers, even mentioning the challenges and uncertainties associated with selling on platforms like Amazon.

Ken interviews Chris Riccobono, Co-Founder and Executive Chairman of Untuckit., one of the fastest-growing men’s retail brands in the U.S.

After earning his Bachelor’s degree from Providence College in 2001, Chris began his career at GE Healthcare and enrolled in Columbia Business School in 2007. While working towards his MBA, Chris thought of the idea for UNTUCKit after speaking with lots of men about their fit problems—especially the length of their collared shirts—and began the business from his apartment in Hoboken. It began as just a side job, but once Chris and his early customers realized that he’d solved a big problem in men’s fashion, the business quickly grew beyond his expectations—with a compound annual growth rate over 100% each year—into the brand we know today with more than 50 retail locations by the end of 2018 and an entrance into the international market.

In addition to furthering his education and growing the brand, Chris dedicated time to sharing his passion for wine through a video blog called Pardon That Vine, traveling the world interviewing winemakers, and teaching beginners about wine. Chris was a winner of the Entrepreneur Of The Year® 2018 Award in New York and in his spare time he works closely with the Cancer Center at Atlantic Health System in New Jersey.

Chris currently lives in New Jersey with his wife and children.

1. Untuckit's Origin and Chris Riccobono's Journey: Chris Riccobono, the co-founder of Untuckit, started the company with the idea of creating a shirt designed to be worn untucked, addressing a common problem in men's fashion. The concept emerged from Chris's frustration with traditional shirts being too long, and he decided to venture into the fashion industry despite having no prior experience in the field.
2. Struggles and Early Challenges: Untuckit faced initial challenges, including the difficulty of finding the right shirt length and manufacturing issues. They encountered setbacks like shirts shrinking and buttons unraveling. Chris and his partner struggled to make a quality product and initially had limited resources, raising a modest amount of money to launch the brand.
3. Marketing Strategies and Growth: Untuckit adopted unconventional marketing strategies, such as radio ads and airline ads, to promote their unique product. The tagline "shirts designed to be worn untucked" resonated well with the audience. Despite the slow initial growth, Untuckit's brand strength and customer satisfaction led to significant success, with a focus on brick-and-mortar stores alongside online presence.
4. Impact of the COVID-19 Pandemic: The podcast covers the unexpected challenges Untuckit faced during the COVID-19 pandemic. The company went from a position of rapid growth to considering bankruptcy within a few months. Chris highlights the importance of resilience and adaptability in overcoming the challenges posed by the pandemic, which significantly impacted the fashion industry.
5. Current and Future Plans: Despite the challenges, Untuckit managed to survive and adapt. Chris discusses their recovery strategy, including negotiating with landlords and factories, raising debt, and ultimately becoming profitable again. Untuckit is optimistic about the future, planning to open 20-25 stores, exploring international markets, and diversifying into wholesale. The company aims to continue its growth trajectory and capitalize on its brand strength.
6. Efficient Store Strategy: Chris emphasizes the importance of efficient store design and operations. He prefers stores in the range of 1,200 to 1,500 square feet, with a focus on cost-effective buildouts. The goal is to provide a productive and efficient shopping experience.
7. Move Away from Large, Expensive Stores: Chris challenges the traditional approach of large, aesthetically pleasing stores, citing the inefficiency and high costs associated with them. He believes in smaller, more cost-effective stores that prioritize customer experience and efficiency.
8. Acquiring Customers Through Stores: Chris sees brick-and-mortar stores as crucial for acquiring customers and marketing. He views them as billboards and advocates for cost-effective store openings, even if they generate less revenue per store.
9. Brand Ambassadors for Credibility: Discussing marketing strategies, Chris highlights the use of brand ambassadors for credibility, even though he acknowledges the challenges in directly measuring their impact. He mentions having ambassadors like Drew Brees and Wayne Gretzky, who were also investors in the brand.
10. Importance of Brick-and-Mortar Despite E-commerce: Contrary to the belief that brick-and-mortar retail is diminishing, Chris argues that it remains an essential and enduring part of the shopping experience for the majority of people. He believes in thecontinued importance of physical stores for various activities and social interactions.
11. Changes in Raising Capital: Chris mentions that the landscape for raising capital has changed, especially post-COVID. Investors are now more cautious and won't engage unless a company is profitable. The era of overvaluing companies without profitability seems to be over, and investors are looking for sustainable business models.
12. Challenges for New Companies: According to Chris, it's currently challenging for new companies, especially pre-revenue ones, to raise money. The competitive environment and caution among investors make it difficult for new brands to secure funding. He emphasizes the importance of having a strong brand and being cautious with spending.
13. Lessons Learned and Advice: Chris reflects on lessons learned from his entrepreneurial journey. He advises being more relaxed and enjoying the challenges. Additionally, he stresses the importance of discipline in spending, citing examples from Untuck It where they were frugal and avoided overspending. Chris also highlights the significance of preserving capital and finding ways to hang around, emphasizing the long-term game for success.

Ken interviews Sharon Price John, President and CEO of Build-A-Bear Workshop since 2013, where she has led the turning around and redefining of the multimillion-dollar company.

Sharon graduated from the University of Tennessee, worked in the ad industry in New York City, earned an MBA from Columbia University, and managed iconic kids’ brands at companies like Mattel and Hasbro before accepting the role of president of the Stride Rite Children’s Group, which led to her taking the helm at Build-A-Bear.

Sharon also serves on the board of directors at Jack in the Box, and on the executive committee of the Toy Industry Association board. She has been named to the University of Tennessee’s Top 100 Alumni of the last 100 years and recognized as a Distinguished Alumni by Columbia Women in Business. In March 2023, she was number six on the Forbes 20 Customer-Centric Companies Led by Women.

Recently, Sharon has authored and published the book "Stories & Heart: Unlock the Power of Personal Stories to Create a Life You Love," which has achieved impressive success since its release in January 2023.

Sharon has three children and lives in St. Louis with her husband, Russ.

Key Takeaways from this episode include:

1.    Turnaround Expertise: Sharon Price John shared her experience in turning around companies, drawing parallels between her work at StrideRite and Build-A-Bear. She emphasized the importance of strategic decisions, cost-cutting measures, and aligning the organization towards a common goal.

2.    Experiential Retail and Adaptability: The discussion highlighted Build-A-Bear's emphasis on experiential retail, with the closure of physical stores during the pandemic presenting a unique challenge. Sharon discussed the company's swift adaptation, leveraging online sales and the fortunate timing of key initiatives, such as the partnership with Salesforce.

3.    Baby Yoda Strategy: The timely identification and retention of the popular character Baby Yoda (from The Mandalorian) became a crucial element in sustaining revenue during the pandemic. Build-A-Bear's decision to hold inventory and focus on online sales, using Baby Yoda as a catalyst, showcased strategic foresight.

4.    Employee Engagement: Sharon shared a motivational approach used during the challenging times, encouraging employees to view financial goals as catching a metaphorical dollar bill. This approach helped instill a sense of responsibility and accountability, creating a positive impact on the organization's financial performance.

5.    Future Initiatives: Looking forward, Build-A-Bear has outlined key initiatives for the future, including the expansion to additional locations, enhancing the digital experience, and reinvesting in the business. These initiatives aim to build on the momentum gained during the pandemic and position the company for continued success.

6.    Diversification of Store Models: Build-A-Bear has evolved its store model significantly. They have various types of stores, including owned and operated, partnership models with companies like Great Wolf Lodge and Carnival Cruise Lines, temporary pop-up shops, and franchise businesses in multiple countries.

7.    Enhancing In-Store Experience: The company has focused on improving the in-store experience by updating store formats, introducing a discovery format, and enhancing the efficiency of the stuffing process. The renegotiation of leases and consideration for turnover dynamics has been part of their strategy.

8.    Adaptation to COVID Challenges: Build-A-Bear did not significantly close stores during the COVID period but focused on renegotiating leases. They navigated the challenges posed by the pandemic, especially in international franchises like India and China.

9.    Omni-Channel Approach: The company is working on being omni-channel by creating a lifetime value between online and in-store experiences. They recognize the importance of appealing to a multi-generational audience and have grown their online business, particularly targeting adults.

10. Investments in Digital Transformation: Build-A-Bear has invested in upgrading its tech stack, including e-commerce platforms, accounting systems, warehouse management, loyalty programs, and CRM. The company acknowledges the constant need to adapt to new technologies and opportunities in the digital space.

Ken interviews three experts in Retail store staffing for the inaugural Tech Talk podcast episode.

Sharonda Weatherspoon is the SVP, Head of Retail Transformation, Client Development, and Operations, as well as the Co-Chair of North America's Diversity and Inclusion ERG. She has spent over 24 years at Ralph Lauren, surviving my tenure, and moving up through the ranks, starting as a General Manager, and in her most recent role, as SVP of retail stores from North America. Sharonda has always worked directly with the stores and fully understands the frontline experience where her focus has been to create the best customer experience and the appropriate staff to support it.

Ron Thurston is the founder of OSSY, a platform that aggregates store employee talent from sales associate to leadership roles, enabling retailers and brands to easily access Aussie's labor pool. Ron is also the author of the Amazon bestseller, Retail Pride, championing joy and success in the service industry. Ron's book draws on his experience and store leadership roles with Intermix, San Laurent, Tory Burch, Apple, West Elm, and Gap. Ron also hosts a podcast, Retail in America.

Mike Myers is the co-founder and CEO of Reflex and has spent the last decade building early stage companies as both a founder and an early stage venture. Reflex works with some of the top brands in retail today and helps brands leverage a flexible labor model to drive store performance. Retailers use Reflex to connect with experienced on-demand retail store associates and to flex their labor models to support the real time needs of the business.

Key Takeaways from this episode are:

1.    Evolution of Retail Staffing Post-COVID: The post-COVID environment has significantly changed the landscape of retail staffing. Retailers have had to adapt rapidly to evolving business models, leading to challenges in finding and retaining talent. Competing for local talent, dealing with the gig economy, upskilling rapidly, and identifying the right candidate profiles have become significant hurdles.

2.    Shift Towards On-Demand Flexible Talent: The emergence of platforms like Reflex has transformed the staffing model. They facilitate connecting retailers with on-demand, experienced retail talent, allowing for real-time staffing adjustments based on business needs rather than fixed hiring plans.

3.    Tech-Driven Recruitment Solutions: Reflex, as a tech platform, streamlines the staffing process. It provides a platform for retailers to access a pool of vetted workers for various roles, from back of house to front of house, offering flexibility in scheduling and facilitating worker-retailer feedback through ratings and reviews.

4.    Challenges and Benefits of Adopting New Staffing Models: Trust remains a significant obstacle for retailers adopting flexible staffing solutions like Reflex. However, the platform's benefits, including reducing turnover costs, addressing immediate staffing needs, and potential cost savings in comparison to traditional hiring and retention methods, make a compelling case for its adoption.

5.    Changing the Perception of Retail Jobs: The introduction of platforms like Ossy seeks to redefine the hiring process, especially for the retail workforce. It aims to replace traditional resumes with dynamic digital profiles, utilizing AI-driven algorithms to match candidates with suitable retail roles, focusing on soft skills, empathy, and curiosity, ultimately changing how individuals perceive and access retail job opportunities.

6.    Industry Insights through Trade Shows and Networking: Sharonda gains industry knowledge and stays updated by attending trade shows like NRF. and various others. Networking through LinkedIn and connections with individuals like Ron and Mike allows her to stay informed about innovative solutions.

7.    Innovative Solutions in Staffing: Both Ossy and Reflex offer platforms that provide accessible solutions through mobile applications and digital platforms, simplifying the staffing process compared to traditional methods like phone calls or emails. These platforms offer an automated and convenient way to connect available staff to positions.

8.    Integration of AI: Both Ossy and Reflex are integrating AI into their platforms. Ossy aims to replace the traditional resume with a more interactive and multimedia-based platform for job seekers, while Reflex employs AI in the background to enhance the operational experience for workers and retailers without overtly marketing it as an AI platform.

9.    Marketing Challenges and Strategies: Both platforms face marketing challenges in a crowded space. They are using strategies like word-of-mouth referrals, industry events (such as Shop Talk and NRF), and social media channels like TikTok and Instagram for worker acquisition. They also emphasize thought leadership, sharing insights, and building a presence within the retail industry.

10. Funding and Business Challenges: Ossy is self-funded with an intention to create a new category, while Reflex has raised $12 million in funding and is focused on delivering for retail partners, launching new markets, and scaling worker experiences. Building the right tech infrastructure and understanding the time investment required has been a significant challenge for both platforms.

Dave Heath is the Co-Founder and Chief Executive Officer of Bombas. Prior to the launch in 2013, Dave dedicated two years to rigorous product testing and refinement to create the best performing and most comfortable sock available, while staying true to their mission of helping those in need. 

Dave holds a BA from Babson College with majors in Marketing, Management, and Entrepreneurship. Previously, he led business development as one of the founding employees at UrbanDaddy followed by joining the new media acquisitions and strategy team at Yucaipa Companies. As a true serial entrepreneur, Dave has founded three companies, with one successful exit, and has invested and consulted on a range of start-up businesses from concept, through launch and continued growth. Dave has been featured on ABC’s Shark Tank, NBC TODAY Show, CBS This Morning, ABC Good Morning America, Bloomberg TV and in The New York Times, and was named EY Entrepreneur of the Year in 2017.

In this episode of The Retail Pilot, Dave Heath joins Ken Pilot and discusses the journey of starting a mission-based sock company and the challenges and successes along the way. He shares insights on the importance of focus, sustainable growth, and using time to your advantage. Dave also talks about the power of partnerships and collaborations that align with Bombas' mission. He emphasizes the need for authenticity and staying true to the brand's values. Additionally, he discusses the role of technology in marketing and the future of the company. In this conversation, Dave Heath discusses the potential of AI in e-commerce and its application in various areas such as asset creation, site updates, and site merchandising. He also introduces Constructor, an AI-powered site merchandising tool. The conversation touches on the use of AI in customer service and the importance of understanding the customer experience. Additionally, Dave shares his favorite streamed shows and provides a promo code for Bombus products.

Key Takeaways from this episode of The Retail Pilot with Dave Heath, CEO of Bombas:

1.    Entrepreneurial Journey and Problem-Solving Approach: Dave Heath's journey began with a desire to work for himself, learning various skills and exploring different industries, always with the intent of eventually starting his own business. His approach was less about the industry and more about identifying and solving problems. He noticed the lack of socks in homeless shelters, leading him to start Bombas with a mission to donate a pair of socks for every pair sold.

2.    Socially Conscious Business Model: Bombas was established with a buy-one-give-one model, similar to TOMS Shoes, to address the significant need for socks in homeless communities. Over time, this model evolved to include not just socks but also underwear and t-shirts, the top three most requested clothing items at homeless shelters.

3.    Founding Team Dynamics: Dave Heath, along with co-founder Randy Goldberg and two others, formed a cohesive team where each member possessed specific skills that complemented one another. Their self-awareness of strengths and weaknesses helped them work effectively together, aligning their shared values and visions for the company's ethical growth.

4.    Sustainable Growth Strategy: Bombas adopted a deliberate, focused growth strategy rather than chasing rapid expansion. They avoided excessive fundraising and maintained profitability from the outset. They prioritized methodical growth, aiming for sustainability and quality over immediate scale. This approach allowed them to retain control and avoid unnecessary stress associated with continuously raising capital.

5.    Multi-Channel Distribution Strategy: Despite primarily being a direct-to-consumer (D2C) brand, Bombas strategically entered the wholesale market after reaching a certain revenue milestone. They carefully selected appropriate retail partners, ensuring the brand fit and maintaining their status as the top-selling sock brand in every store they entered. While primarily D2C-focused, they've recognized the value of being present where customers shop, gradually expanding into various channels without diverting too many resources from their core business.

6.    Product Distribution Strategy: Dave Heath emphasizes a focus on strategic distribution channels like Nordstrom rather than vending machines, as the latter may not significantly impact Bombas' growth due to low sales volume.

7.    Brand Strategy & Collaborations: Bombas values collaborations that align with their mission. Dave highlights partnerships with Sesame Street, Disney princesses, and LGBTQ+ initiatives, showcasing the brand's commitment to giving back and staying mission-driven.

8.    Marketing Approach: Bombas employs a multi-channel marketing strategy, using various platforms like TV (including connected TV), Facebook, Google, and more. They leverage different channels to reach diverse audiences, considering each channel's effectiveness for specific demographics.

9.    Competition Perspective: Bombas sees larger commodity incumbents like Hanes, Fruit of the Loom, and Gildan as primary competitors. They aim to capture market share from these established brands by positioning Bombas as a premium mass-market brand known for comfort and quality.

10. Tech Integration: While Bombas utilizes technology, such as AI tools for customer service and site merchandising, they prioritize being an apparel company that uses technology, not a technology-driven company. They cautiously approach integrating tech, focusing on customer experience and efficiency without compromising their core values.

Ken Pilot interviews Dave Powers, Presidet & CEO of Deckers Brands, a global footwear and apparel company based in Santa Barbara, Calif.

His current role includes prioritizing strategic initiatives and investments to expand the global distribution footprint of Deckers Brands, while also ensuring consumers have a seamless experience when engaging directly with each channel or brand. He focuses on long-term growth and Omni Channel strategies for the company’s five high-performing brands: UGG®, Teva®, Sanuk®, HOKA One One® and Koolaburra®.

Since 2012, Dave has served in various roles at Deckers Brands, including spearheading growth initiatives for the company’s brand portfolio as President of Brands and leading direct-to-consumer strategies as President of Direct-to-Consumer.

Dave is passionate about consumer-led insight and innovation as well as doing great in business and doing good for people and the planet. His passion for innovation as well as improvement led by consumer insight has resulted in gains in operating margin and revenue. Dave also remains committed to sustainability as well as making a positive societal impact and leading a strong company culture.

Under his leadership as President & CEO since 2016, Deckers Brands has received accolades for stellar financial performance and sustainability efforts. In 2019, Deckers was selected by Investor's Business Daily® as one of the 50 Best ESG Companies: A List of Today's Top Stocks For Environmental, Social and Governance Values. The company was also recognized by Footwear News as 2020 Company of the Year for its financial performance and commitment to diversity, equity and inclusion as well as significant charitable giving for COVID-19 relief. Most recently, in 2023, Deckers was named on Newsweek’s list of America’s Greenest Companies and Just Capital’s Most Just Companies list.

In 2020, Dave was named a 2020 Businessperson of the Year by Fortune, ranking number 13 on their list of top executives. Dave also ranked on the list of Barron’s Top CEOs of 2023.

Dave has over twenty years of experience in merchandising, concept development and leadership of global retail operations at some of the industry’s top brands. Prior to joining Deckers Brands, he held executive leadership roles at Converse, including four years as Vice President of Global Direct-to-Consumer where he successfully guided the expansion of the brand globally, and Timberland, where he led worldwide retail merchandising, marketing, visual and store design as well as the creation of a sustainable line of footwear and apparel.

A native of New Hampshire, Dave graduated Cum Laude from Northeastern University with a bachelor’s degree in marketing. Now residing in Santa Barbara, Calif., he enjoys spending time outdoors with his wife and two sons.

Some Key Takeaways of the Podcast Episode are:

1.    Career Evolution: Dave Powers began his career journey with a background in designing apparel and marketing. He transitioned from a rough patch working odd jobs to eventually joining Levi's and later the Gap. His experience ranged from starting in the stores to moving up the ladder, gaining valuable knowledge in merchandising, apparel, and visual marketing.

2.    Transition to Footwear: Despite not considering himself a footwear guru initially, Dave found his passion for brands and discovered his knack for merchandising, apparel, and visual marketing during his tenure at Gap. His journey ultimately led him to Deckers, where he became CEO, transitioning from the apparel side to focus on footwear brands.

3.    Strategic Moves and Career Choices: Dave's career choices were influenced by both the brand and location. He made decisions based on brand appeal, creative aspirations, and opportunities presented, including moving from Timberland to Converse and finally landing at Deckers, overseeing brands like UGG, Teva, and Hoka.

4.    Emphasis on Direct-to-Consumer (DTC): Upon joining Deckers, Dave was tasked with creating a direct-to-consumer function for the company. He highlighted the profitability of e-commerce and UGG stores, focusing on bolstering this aspect of the business, investing in global expansion, and aligning strategies for different brands within Deckers.

5.    Hoka's Rise to Success: Hoka, one of Deckers' brands, experienced a significant turning point around 2018. The brand initially focused on run specialty, establishing authenticity in that market before expanding. Its success was driven by a unique combination of comfort, performance, and a growing fan base that ranged from serious athletes to individuals seeking comfort and style.

6.    Brand Evolution and Staying Relevant: The discussion highlights the evolution of the UGG brand over its 25 years of existence. To keep the brand fresh, relevant, and appealing, the company focused on leveraging the brand's DNA, introducing new products, and diversifying its marketing strategies. They achieved this by introducing various styles beyond the classic UGG boot, embracing diversity in marketing, and repositioning the brand's image.

7.    Marketplace Strategy and Scarcity of Inventory: A significant part of UGG's strategy involves marketplace management and creating scarcity of inventory. By limiting inventory and leveraging the brand's DNA, they've successfully created a demand for their products, ensuring that anything they create with the right UGG DNA and uniqueness sells well.

8.    Transition to Direct-to-Consumer (DTC) Model: There's a shift towards a Direct-to-Consumer model (DTC) away from wholesale. The goal is to achieve a 50-50 balance between the two sales channels, emphasizing the importance of having the right partners in wholesale. They aim to attract customers to DTC if they can't find products through traditional wholesale channels.

9.    International Expansion: International markets, particularly in Europe and Asia, hold significant potential for growth. The company recognizes the growth opportunities in these markets, particularly in China, and is strategically focused on expanding its presence globally.

10. Utilization of PR and Emerging Marketing Trends: The company has found success in PR and authentic marketing strategies, particularly through platforms like TikTok, which has become a significant game-changer, especially for UGG. Additionally, they're exploring innovative marketing techniques like connected TV and sponsorships with events like Ironman and UTMB to gain global reach and authenticity.

Ken Pilot interviews Stephen Yalof, President and CEO of Tanger, Inc.

Stephen Yalof is the President and Chief Executive Officer of Tanger Factory Outlet Centers, Inc., a leading operator of upscale, open-air outlet centers with 37 locations and an additional center currently under development across 20 states and Canada. Steve joined in April 2020 as President and Chief Operating Officer before succeeding Steven B. Tanger as CEO in January 2021, bringing with him over 25 years of experience in the commercial real estate industry, with a primary focus on the retail space. He oversees the operations of the executive and senior leadership teams, emphasizing evolving the customer shopping experience, and sits on the board of directors.

Before joining Tanger Outlets, Steve served as the Chief Executive Officer of Simon Premium Outlets, where he drove forward the expansion and development of their real estate portfolio. He previously served as Senior Vice President of Real Estate for Ralph Lauren and Senior Director of Real Estate for The Gap, Inc.

Steve serves as a Trustee of the International Council of Shopping Centers (ICSC), as well as on the advisory boards of HeadCount and the Center for Real Estate & Urban Analysis (CREUA) at George Washington University, his alma mater, where he earned a B.S. in Business Administration.

Key takeaways from this podcast are:

1.    Holiday Optimism: Yalof expresses optimism about the holiday selling season, citing it as one of the biggest weekends for retail sales. He emphasizes the importance of monitoring traffic, sales, and anecdotes in gauging success.

2.    Career Journey & Industry Connections: Yalof reflects on his career journey, starting from New Plan Realty Trust to working with the Gap and Ralph Lauren. He highlights the growth and accomplishments of individuals he's worked with who are now in influential roles in different companies within the retail industry.

3.    Outlet Centers & Retail Success: He delves into the outlet business model, highlighting how outlet centers differentiate themselves from traditional retail spaces. Yalof emphasizes how retailers in outlet spaces offer lifestyle-focused brand experiences and attract customers seeking brand-specific items.

4.    Tanger's Approach & Evolution: Tanger, now Tanger Inc., has redefined itself to adapt to changing consumer behavior, focusing on the local community and tourism. They've expanded offerings beyond just shopping to include better food options, amenities, and even entertainment to enhance the overall experience.

5.    Team Building & Field-Led Approach: Yalof emphasizes the importance of his team, the changes made to the leasing and operational structures, and the decentralization of the decision-making process. He values field-led management, considering each location's uniqueness and tailoring strategies accordingly.

6.    Leadership Transition and Vision: Steve Yalof has stepped into a prominent leadership role at Tanger Inc. after Steve Tanger's departure. Yalof's leadership, vision, and ability to attract talent are highlighted as crucial factors impacting the company positively.

7.    Challenges Faced: Yalof outlines three significant challenges: talent retention due to increased competition, security concerns related to organized crime affecting shoppers, and the impact of global economic fluctuations on consumer spending and disposable income.

8.    Diverse Growth Opportunities: Beyond organic growth strategies like adding new shopping centers, Tanger Inc. explores various growth avenues. These include expanding food and beverage offerings, integrating community-focused spaces in shopping centers, and considering adjacent properties for development.

9.    Evolution of Shopping Center Experience: Yalof emphasizes the shift in shopping center dynamics towards a balanced mix of retail and amenities, drawing an analogy to sports stadiums. The goal is to offer an experiential blend that encourages people to engage beyond shopping.

10. Reflections on Leadership and Learning: Yalof mentions the importance of managing pace and expectations in implementing changes within the company. He emphasizes the value of a strong board of directors as a crucial support system and learning resource, contributing significantly to Tanger Inc.'s growth trajectory.

Ken interviews Veronica Miele Beard and Veronica Swanson Beard, sisters-in-law and Co-Founders of women's lifestyle brand, Veronica Beard.

Veronica Miele Beard is from North Caldwell, New Jersey, and hails from the world of finance. She worked in sales and trading at multiple investment banks on Wall Street—and did a stint in ad sales at Vogue—before becoming a partner and COO at technology hedge fund, Coatue, where she learned to take risks and build a business. A mother of five, Veronica loves to travel and take her kids off the grid.

Veronica Swanson Beard grew up on both coasts, in San Francisco, California and Naples, Florida. Her career in fashion started at Narciso Rodriguez and Alberta Ferretti, in wholesale, and as a buyer for Marissa Collections in Florida. If not a fashion designer, this mother of three would be flipping real estate and designing interiors.

Key Highlights of The Podcast:

1. Unique Beginnings and Partnership: Veronica Miele Beard and Veronica Swanson Beard met at a wedding and became sisters-in-law. Both shared a passion for fashion and product obsession, leading them to create a fashion line together.

2.Combining Different Skill Sets: Veronica Miele Beard came from a fashion background while Veronica Swanson Beard had a finance background. Their collaboration brought together creativity, fashion connections, business acumen, and an understanding of product, which played crucial roles in their company's formation.

3. Identifying a Market Void: Their vision focused on creating a "uniform" for women, beginning with the iconic Dickie jacket. Recognizing the need for versatile, interchangeable pieces that offered style, functionality, and adaptability for women in various professions and stages of life became their foundation.

4. Bootstrap Business Start: Starting the company required minimal initial funding. They operated from Veronica Miele Beard's apartment, driving around in Veronica Swanson Beard's car, creating samples, and handling everything themselves, emphasizing a hands-on approach and learning experience.

5. Adaptation and Growth: They initially positioned themselves in the opening designer market but repositioned to advanced contemporary, lowering price points by 30% to cater to a broader audience. Their ability to adapt, identify gaps in the market, and create a unique brand around quality products contributed significantly to their success.

6. Denim as a Crucial Component: The founders emphasize the importance of denim in their business. They've honed in on perfecting the fit and style of women's jeans, understanding that jeans are a fundamental aspect of American fashion. Denim is considered the casualization of Veronica Beard and is a key element in keeping customers engaged.

7. Customer-Centric Approach: They extensively study and understand their customers, considering various body shapes, sizes, and preferences. They recognize that women will go to great lengths to find the perfect pair of jeans and focus on ensuring their brand accommodates diverse customer needs.

8. Global Inspiration and Market Adaptation: Travel serves as a significant source of inspiration. They discuss visiting different cultures and markets, observing how women in various parts of the world approach fashion. Adapting their brand to suit different markets, understanding local preferences, colors, and trends, is a key part of their strategy.

9. Transition to Direct-to-Consumer and Retail Experience: The founders discuss their transition from wholesale to direct-to-consumer retail. They highlight the importance of owning the brand's narrative, storytelling, and creating an immersive experience in their stores, which serve as community hubs for their customers.

10. Challenges and Strategy: They mention challenges such as staying true to the brand while navigating competition and external factors like economic or political changes. They emphasize the importance of being authentic as a brand and the significance of in-person experiences in a saturated online marketing environment.

Ken Pilot interviews Terry Lundgren for this flight of The Retail Pilot - Leaders & Legends.

Terry Lundgren served for 14 years as CEO of Macy’s, Inc., operator of Macy’s, Bloomingdale’s, Bluemercury and one of the largest retail ecommerce businesses in America. He retired from Macy’s, Inc. in January 2018 after serving for 10 months as the company’s Executive Chairman. Prior to becoming CEO of the company in February 2003 and Chairman and CEO in January 2004, Lundgren had been President and Chief Merchandising Officer since May 1997. 

He is the founder of the Terry J. Lundgren Center for Retail at the University of Arizona where he hosts an annual conference for retail industry leaders and students interested in a career in retail and related industries.

Lundgren currently serves on the boards of The Procter & Gamble Company, New DataNetwork, and the Economic Club of New York. He is a former board member of Kraft Foods Inc. the Federal Reserve Bank of New York, Carnegie Hall and has participated in numerous charitable and civic efforts. He has served as co-chairman of the Partnership for New York City and the American Heart Association CEO Roundtable, and as chairman of the National Retail Federation (twice), National Minority Supplier Development Council, and the American Society of Corporate Executives. Lundgren also currently serves as an Executive In Residence at Columbia Business School.

Key Takeaways from Ken's conversation with Terry include:

Terry Lundgren's Career Journey: Terry Lundgren started his retail career at Bullocks Department Store, which is now Macy's, and worked his way up to become the CEO of Neiman Marcus at the age of 37. Later, he played a key role in the acquisition and transformation of Federated Department Stores into Macy's Inc.

Mentorship and Influential Figures: Alan Questrom, a prominent figure in the retail industry, was a significant mentor for Terry Lundgren. Questrom's guidance and influence played a crucial role in Lundgren's career decisions, including taking a lower-paying job at Bullocks, which eventually led to his successful career.

Strategic Acquisitions at Macy's: Lundgren orchestrated major acquisitions at Macy's, including the purchase of Marshall Field and the acquisition of May Company. These strategic moves were aimed at expanding Macy's into a national brand and increasing its market presence.

E-commerce Initiatives and Early Adoption: Lundgren recognized the potential of e-commerce early on and supported the development of online platforms at Macy's, leveraging the expertise of teams in Silicon Valley. Despite challenges, including the dot-com bust in 2000, Macy's continued to invest in e-commerce, establishing a significant lead over competitors.

Challenges Facing the Retail Industry Today: Lundgren identifies three major challenges for retailers:

• Overcapacity of Physical Retail Space: There is an excess of physical retail space, and the industry needs to adapt by reducing store numbers.
• Potential Consumer Spending Slowdown: With a potential decline in consumer spending, especially among middle and lower-income households, retailers may face economic headwinds.
• Department Store Positioning: Department stores need to differentiate themselves to stay relevant. Lundgren advises a focus on offering unique products and enhancing the shopping experience to give consumers a reason to choose Macy's over other options.

Department Stores' Future: Terry Lundgren believes that department stores will continue to exist in the future. He emphasizes the importance of adapting to the changing retail landscape by providing differentiated reasons for customers to choose one department store over another.

Merchandising Strategy: Lundgren highlights the significance of uniqueness in assortment and in-store experience. He suggests that the best merchants will understand consumer expectations and deliver products and experiences that differentiate them from competitors.

Collaboration with Brands: Lundgren shares examples of successful collaborations with brands, such as obtaining exclusivity with Tommy Hilfiger. He suggests that aligning with popular brands can attract customers and drive sales of other products within the store.

Shop-in-Shop Model: The discussion touches upon the shop-in-shop model, where department stores collaborate with brands or retailers to create dedicated spaces within the store. Lundgren sees this as an opportunity, especially if the partnering brand can manage and operate the space more effectively than the department store itself.

Technology in Retail: Lundgren discusses the impact of technology on the retail industry, including the use of RFID for inventory management and the potential of AI and generative AI in enhancing various aspects of the business. He emphasizes the importance of utilizing technology to improve inventory turnover and reduce markdowns.