Chit Chat Stocks - Dan Kline | Target (TGT)

Episode Date: December 12, 2020

On the 12th day of Christmas Dan Kline gives to you, Target the retail giant. Target is going through a bit of a transformation and Dan Kline explains to Chit Chat Money why that makes Target his 25 Days of Christmas stock pick. Visit our website: https://www.chitchatmoney.com/ Subscribe to 7 Investing with the code "CCM": https://7investing.com/subscribe/ Follow Chit Chat Money on Twitter: https://twitter.com/chitchatmoney Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to 25 Stocks of Christmas, presented by Chit Chat Money. Today, we have an interview with Dan Klein, and we're talking Target. It's a lot of fun. Target has had a pretty interesting turnaround story. I think the stock was about $62 a share, maybe a year, year and a half ago, and I think today was, what, almost $200? They've done well. They've done well.

It's at $175 now. Obviously, look at the market caps, and yeah, but you see how it's done. It's been an impressive turnaround, but before we get to that, we have a word from our partners. which dan is a part of yeah that's right and we kind of talked about at the end of the interview but uh do you me you go ahead sales pitch okay it's code ccm you get ten dollars off and i think we're going to start tallying who gets more sales the day after the show so if you're in my camp i would go do it today and i'll be able to beat brett i assume my sales pitch is better but it's CCM, you get $10 off. It's $7 for the first month. That's a pretty good deal.

Seven stock picks for $7. Great deal. And I need to win this deal between you and me. So please go ahead and use the code CCM and check it. Welcome to Chit Chat Money. On this show, host Ryan Henderson and Brett Schaefer interview industry experts and riff on the world of investment. As a quick reminder, Chit Chat Money is a CCM Media Group podcast. Ryan and Brett are not financial advisors. Anything discussed on Chit Chat Money by Ryan or Brett or any other podcast guest is not formal advice or a recommendation. Now, please enjoy this episode. Today, we are welcomed by Dan Klein, a lead advisor for 7investing and host of 7investing

Now. You've probably seen the links to that on Twitter. If you're on there, Dan, welcome to the show. Oh, guys, thanks for having me back. Yeah. And so today we are talking Target. And now we typically ask, how did you find this company? But I imagine I know how you found sort of the brand. But how did you find it as an investment? So it's funny. Target was not largely in New York in the Northeast until, you know, 15, 20 years ago. So I do actually remember as a customer, it being a giant deal when, when, where I lived and I forget where in New York, but at some point I lived in New York and we got a target that was like 30 minutes away and it was like a giant deal and it was exciting. So I did discover it in sort of that fashion as an investor. I think it goes

back to their credit card scandal and they fired their CEO. They brought in Brian Cornell, they promoted him as their new CEO. And that's kind of when it got on my radar. They were a company in a lot of trouble. They didn't really, they'd lost some of that. And I hate people who say this, their Target cachet and they were becoming sort of a more pedestrian store. And it sort of looked like they were going to struggle. And then basically Brian Cornell came in and he committed to sort of rebuilding the brand. And maybe there's a failure I don't know about, but it seems like every investment, everything he did has worked dead on perfect. All right. Yeah. And we usually ask what Target does when that makes sense for maybe a complicated software company, but I think

a lot of people know what they do. So maybe talk about some of their newer initiatives, e-commerce, things like that, something that investors may not know about. Yeah. So really, you know, there's two types of retailers. There's most of them and there's the top tier. What gets you in the top tier? It's infrastructure. It's investing in getting people stuff quickly, however they want it. So you look at Target buying shipped and that was kind of an under the radar purchase when it happened. Nobody really knew what it was, but what it was about was Target wants to have same-day delivery on first groceries and then more and more items. What does that do? It puts them in the same playing field as Amazon. It sounds silly, but making curbside

pickup part of how they've revamped their store, that seems pretty smart given the pandemic where that's become a really common thing. We know Target, the retailer. The reality is there's a bunch of Targets. There is Target, the brands. They've invested heavily in owned and operated brands why is that important so if you go to target and you buy like their soap and you're loyal to it there's no middleman that has leverage to say well we want three cents more per bar of soap they control the entire chain there and their products are generally very good and they have a massive advantage amazon has a lot of owned and operated brands too you know it's hard to do it's hard to look at something on amazon and decide like hey i'm gonna buy these amazon yoga pants or

or underwear or even cleaning products. Whereas in Target, you can walk by, and again, I'm not buying a lot of yoga pants, but you can walk by the yoga pants and go, oh, those look good. You can touch them. You can stretch them. You can look at the food, the cleaning supplies, the partnership with Magnolia, like all the different areas and go, okay, that's what that product looks like. It's good. And then once you've seen it, maybe you can buy it online. So they're a really complicated company that has spent billions of dollars improving the in-store experience, improving the e-commerce experience and making sure they can get you stuff and that's really really important right now right and it's there's like a it's almost like a shopper's hurdle when

it comes to amazon because uh it's that first experience of buying something uh like if you're buying clothes online it's hard to do it the first time whereas if i go into a target and and i've done this before i'm a big fan of some of their athleisure wear and i've bought some of stuff in the store and I felt I'm like all right I really like this it's a lot easier for me to order it online than it would be to just do it a first-time purchase on Amazon or something like that yeah it's actually I think a big problem Amazon may has I don't understand they already are partners with Kohl's why isn't there a section in Kohl's needs some some new brands so I don't understand why they haven't put some of those clothing brands but like some things like

Amazon has furniture brands you're really gonna buy a couch like that you couldn't sit on it that's my whole Wayfair argument. I'm not a fan of this business model. But back to Target here, yeah, you touch it, you feel it, and you can order it again. Same thing. I've bought bathing suits and swim shirts from Target. And if I needed another one, and again, I'm going to live literally in the parking lot of Target when we move in a couple of weeks. But if it wasn't so convenient, I just go online, get an order, have it show up. I've ordered everything from taco shells to close on Target because they actually have a better selection when it comes to grocery than Amazon does, unless you live someplace that has the specific Amazon grocery. So there's been

a lot of stuff that's just sold out due to the pandemic. That's, you know, not important, but hey, if you want the brand of rice you use or the brand of taco shells you use, Target's done a really good job fulfilling that. And have you used the curbside pickup? How was that experience? I know some people get a little wary where, you know, oh, I don't know if they're going to get the right avocado or produce or things like that how's the experience been so i've used uh home delivery for grocery from target from everybody frankly and it's always not a hundred percent and i don't care if you're talking whole foods you're talking instacart which will deliver from public such as our grocery chain here generally you get like 95 and i i know with instacart and i forget

how it works exactly with shipped if you watch them pick your order there's some ability to say oh, no, no, no. It happened with me. They substituted gluten-free pasta for that same shape of the regular pasta. Well, the important part was the gluten-free, not the shape of the pasta. So if I'd been paying attention, I could have said, no, no, no, just get a different shape. I don't care that much about that part. I'm going to expect that Shipt and Target will have all those same problems. I don't care about curbside pickup because, and maybe this is wrong in the pandemic. I like shopping and I'm perfectly happy to put my mask on and grab my hand sanitizer and walk through a relatively empty Target. I'll say I was at Target at two o'clock on Black Friday

because I needed some paper towels at the other house at our vacation place. And it wasn't a problem. There was no one in there. The protocols were well adhered to. And I live in Florida. Right. Okay. Okay. And you mentioned Brian Cornell, who is he still the acting CEO, right? He is still the active CEO, absolutely. And so what do you think about him and then the rest of the management team as well? Yeah, so I don't know much about the rest of the management team.

This has always been a CEO-driven company. It's a very powerful CEO. I'm gonna assume he has top-notch people in place. Target is a promote-from-within company. So most of their executives have been there for a very long time, Brian Cornell included. And what I like is that he's made some very bold initiatives.

He made the decision to spend billions of dollars on infrastructure well that doesn't seem that daring but it means you have quarter after quarter where you say well we didn't really have a lot of profit because we spent all this money on like trucks and warehouses and things that aren't very sexy and he committed to redoing their stores now not all at once it's kind of a rolling redo but it was a really smart redo but then things like let's look at the disney partnership they put and they're really nice like disney store within a store is in locations where that makes sense that's a great deal but the the biggest home run I think is going to be their Ulta Beauty deal. Beauty is obviously a big driver for Target,

but there's nothing special about the Target Beauty section. In the 800 to 1,000 or whatever the number is they're going to have with Ulta, that's a driver. Ulta has fans. And I used to joke like for real estate, Ulta is always too cheap to go in the Target complex. They're always like two crummier plazas down the road. Well, that's not going to be a problem now. So I don't think they're going to cannibalize all that much of their existing customer base. This is going to be new customers for Ulta and dedicated Ulta fans that maybe it was inconvenient. Now it's going to be convenient. Every move they make seems to be the right move. Again, I'm sure there's some moves I've forgotten about that weren't the right move, but all the big ones have worked for me and you

haven't seen any sort of scandal and that's pretty difficult in retail right now. Do you think Ulta would have done this deal, say four years ago? No. So I think the pandemic, you know, I don't want to say caused a cash crunch because they're in a good financial position, but it did slow their expansion plans. It also made it a little harder to make bets on which plazas you go into. And my cat is making a cameo here on the show. So it's one of those situations where previously you could have said, okay, this plaza is growing and I can see the tenants that are going to go in. it makes sense to go there now those bets are harder so deciding to move into a target that makes a lot more sense yeah and i would you could also say uh because there are a lot of companies

that are like well we're investing a lot back in the businesses we're investing a lot in the infrastructure and stuff like that but as a customer or a regular customer of target you were really able to notice it um in the store yeah you you can see it and as a customer i mean when you get the total store revamp it feels like a very refreshed very new store but even something like when they added the magnolia section which is their partner with uh chip and joanna gains who you know every person my age is aware of from you know from their television show and all their other thousands of things that classes up the joint you know and when they do things like they did a a one day uh special event with uh the one with the whale i'm completely forgetting the brand

name here um oh uh vineyard vine vineyard vines well they weren't selling clothes they were selling like beach towels and whatever that sold out those got sold on ebay that got them a ton of attention so yeah you notice these things and like when's the last time a retailer of targets level had an event that people would like light up outside the stores well we know you can't do that right now but in the past uh they were pulling off those moves correctly and again an association with Chip and Joanna Gaines or Vineyard Vines, that's a big step up from what you're getting at Walmart. Yeah, right. Those promotional things, you'd say, all right, that's not going to happen at Walmart in a million years. So that's maybe something where Target has some

differentiation there. Let's move, you've talked about this a bit. Is there any other part of the Target thesis that you like? You know, why do you like Target as an investment as a whole? Is it, does valuation come into play? Does capital, you know, allocation come into play that, you know, they do return a lot of capital to shareholders. Why do you like holding target shares, you know, for the long run? Because I think retail is a consolidating game. I think you're going to get more winners and more losers where the big, the big players are generally going to win. Now that doesn't mean there won't be niches. Ulta Beauty is going to do very well. Five Below is going to do very well. But for the most part, good companies are going to be, and

when it comes to infrastructure, if tomorrow, you know, I don't know, JCPenney saw the light, how many years and how many billions of dollars that they don't have would it take for them to build out all the shipping necessary? Now, for some small companies, Shopify is going to fill that niche and you're going to be able to buy those services. But there's nothing a big company like Target can do other than go through the pain of building all that out. And the same thing with revamping your stores. Like, look, we saw McDonald's have to do it and it wasn't a fun rollout, at least in their case, franchisees are paying for it. But in the terms of Target, investing steadily and their eye was clearly off the prize for a few years and they let things

languish. They didn't have the right deals. And now when you look at something, you know, we talked owned and operated brands. You can refresh those. You can get rid of some. You can add others. But once you have it, you're simply making more money while also charging less. That is a pretty good scenario for investors, for anybody involved. Yeah. Anything else, Ryan? No, nothing else. I'm just, we like Target. And we also liked it three years ago. I'm curious, sort of, they had really good comp store sales this year. I'm wondering what you think that's going to look like next year. Do you think they got sort of a boost? this is something that every not very good at retail analyst has talked about with all the successful retailers oh the comps next year yeah but the expenses next year too are going to be way lower so i i used to be in my family's ladder and scaffolding business and a couple of times a

year you know and we weren't public so we didn't report on the level of publicly traded company does but internally we shared a lot of metrics and twice a year i made a special sale to electric boat. They bought about a million dollars in scaffolding that had to get thrown away after to retrofit nuclear submarines or clean them or who knows what. That was like a 7% margin. But I got the check the day they got the delivery. It was basically just a pass along. So it was good money. Well, we explained it in our sales report saying, hey, here's where 70 grand came from. And here's why we only made 70 grand on a million dollars. Well, that's what Target's going to do. They're going to say, yep, same store sales are down, but margins and profitability are up.

The stock will go down for a day or two, and then actual investors that understand the business will go, all right, they didn't sell quite as many rolls of paper towels at low margin. They didn't sell, you know, you might not get as many groceries from Target in a normal world where you're, you know, going to go to the grocery store and not necessarily say, okay, I'm in Target. I'm just gonna do all my shopping. So you're going to see some numbers go down, but how many customers did they add that weren't aware of all these things they sold that now when they go to target to buy a toy or a sweater or a television or whatever it is you know okay like i don't normally shop here but i'll go over and i'll get some salmon for dinner i'll get uh you know

some sauces and some kombucha or whatever else it is so i i think nobody's comparables are going to make any sense next year and the reality is the day one analysts are going to do a bad job reporting it. But in the long run, you know, quality will win out and people will understand what good results are versus what bad results are. I was going to ask, what do you think sort of their logistics or sort of their infrastructure, where they're at now with how many stores they have? How much of a competitive advantage do you think that is? I think they're pretty maxed out in terms of full-size stores. They're not planning on opening, you know, more than, I forget the number but 10 to 20 full-size stores per year and that's really like here in Florida

where they just like open up new towns like okay maybe when when three towns get open they'll open one big target but what they are doing that I really like is they're opening 25 to 50 smaller format stores and these are really targeted like there are ones that are near like college campuses well they don't sell a lot of 65 inch televisions because you know that's probably not what you're buying when you're in a dorm room they don't sell a lot of 12 packs of paper towels like so they can really target the inventory. And that also helps them from a shipping point of view, because you can walk into the target. They don't have what you want. You can order it sent to the store because it's not always easy. I don't know how it works, but back when I was in a dorm room, we didn't

really have easy access to like package delivery. That's probably changed now, but there's a lot of expansion opportunity. And as they grow their infrastructure, it obviously grows their ability with their website. I think the other thing we don't talk about is they're partnered with other retailers through shipped. So Costco and CVS are, for example, shipped customers. Now, CVS has the pharmacy operation within a Target, but when someone places a shipped order through CVS, Target would know, oh, hey, they also bought these five over-the-counter items. Makes it a lot easier for Target to send them an email saying, hey, I see you have contact lenses. Do you want a coupon on contact lens solution. I'm not saying they're doing that the way everyone else is doing it

online because it's a little underhanded. But my guess is on an aggregate level, not on a personal level, they are using that sort of data. And, you know, look, I wouldn't be a partner with Shipt if I wasn't Target. I don't understand why you would do that. It's like why Amazon didn't succeed with Amazon Pay on other platforms. Nobody wants Amazon to know what they're buying. That said, shipped has great partners and that's going to help target as well yeah as long as amazon's the evil empire right then uh then target kind of get away with maybe some of this stuff you know shipped oh it's just a small little thing well no in reality they might have a huge advantage there yeah it's the uh it very much is the fedex making the strategic decision of of hey screw you amazon

will be the shipping company for everybody else that is kind of what's happening with shipped where it's like, all right, like they'll get some info, but that's target. Like I like going to target. They won't take my customers. It's fairly devious. And again, I have no idea what those agreements look like, but certainly shipped people are delivering those orders. There is some sense of what they're delivering on those orders and that data will benefit target in a, you know, not to mention they make money or they will make money on those ship partnerships as, as that platform grows. So it's a really, you know, again, I don't think it's going to be a massive profit driver for the business, but it's going to be a part of the business that makes people happy

that keeps them coming back. All right. I think that's all we have for the first half. We're going to hit a quick break and then we'll try to poke some holes in Dan's thesis. Cox Panoramic Wi-Fi includes advanced security to help protect all your connected devices. You'll get real-time alerts. Oh, like this one. So you don't have to worry about malware or when your kid downloads a song from a shady link. And now all your computer can play is Red color, red color, where are you? All blocked, thanks to Advanced Security,

included with Cox Panoramic Wi-Fi. Advanced Security must be enabled in the Panoramic Wi-Fi app. Restrictions apply. Welcome back in. Next, we have Devil's Advocate. Most of our listeners know how this works, but we have some counterpoints that we're going to let Dan try to refute here. I'll go first.

One counterpoint would be that target is going to lose market share to a lot of the DTC brands. So the direct consumer think Lululemon, Nike, some of the gaming publishers. I know people buy, you know, games software only downloads target as well. Does that seem like a concern to you? No, it doesn't bother me because here's the reality. All of those brands you just mentioned are upscale compared to target. so if i am a person who wears lululemon when i go to the yoga studio there's a decent chance when

i'm lounging around on my couch i'm wearing target yoga pants that are similarly good but a third the price again i'm not buying sneakers at target you know maybe maybe if i had young kids i would be like i own plenty of nike because there's a nike outlet down you know down the road for me so i buy nike t-shirts on the cheap that being said if i need a cheap you know workout shirt i'm probably going to Target. I'm probably not going to Nike first. So I think those companies have their customers. Yeah. The gaming business, physical selling of games is going to go away at some point, but I don't think it's going to go away all that fast because the reality is, you know, it's a little bit faster. It's not dramatically faster, but if you have the disc, there's less

hours of downloading before you can play the game you bought. I don't know when that happened, when you started getting a disc and needing like six hours of downloads before you could play anything but you do have an xbox in the current cycle that doesn't have a disc player but that's just kind of like cds going away target will just fill that space with more electronics more toys or or categories that are emerging like uh you know like video doorbells and all the home automation stuff i don't think they're gonna have a lot of trouble filling that shelf space and again i'm not sure like i own a couple of pairs of nike sneakers i own zero pairs of target sneakers i own some flip-flops from target uh you know that are the ones you buy that you know you're going to lose

at the beach i think that's their market you know they're not an upscale company but they sell like stuff that's not embarrassing so i think that's you know it's like you don't want to buy your suit jacket at target because they only have one so if you wear it like everyone knows you're wearing the target suit jacket yeah that's not a growth business for them what is a growth business is you know we talked about athleisure that their owned and operated brands are nice quality and lower price so again even if you're not wearing them where you're out to be seen you can still wear them for your actual workout or when you're working out with a pint of ice cream on the couch exactly all right uh mine we discussed earlier was going to be the comps thing but we discussed

that in the first half so i'll i guess ask a question about this there's been a lot of talk about raising the minimum wage for these retailers i know amazon um has been the aggressive player on that. They bumped up to 15. I think maybe they're going a little higher. Costco has always been at 20 and above, which they're kind of just way above everyone else. And then Target just recently announced a $15 minimum wage, I believe. How do you think about that? Is it like a positive in the long run because they're going to be able to use it or is it a negative and going to hurt margins? No, I think it's a positive. So Target has been doing this slowly all along. So this isn't like they were like a local grocery store that was paying $8.15 an hour that all of a sudden

wages double uh for the most part this gets them a better pick of worker if you're someone who's you know you could go work at mcdonald's or dunkin donuts which are always near target uh you know even starbucks which doesn't pay a 15 minimum wage you go work at starbucks or you could go work at target and they also have things like college programs there's all sorts of benefits this gives them a chance to hold workers longer that saves you money now you know i'm not a big fan of like a mandated $15 minimum wage, because I used to run a toy store that had lots of two and three hour a week for fun employees that it was kind of made, you know, didn't make sense to pay them that much. That being said, I think for Target, they knew they had to get to 15 just to

be competitive with Costco with the other players in their space. And they promote largely from within. So if you're getting people, you know, I'm hoping my son will go to work at Target when we when we move and we're walking distance and I don't have to drive him there. He's 16. And in theory, if you come up through that system, you know, you go work in the back, then you're a cashier, then who knows what, maybe you'll decide you want to run a department or you want to work in logistics and they'll help you get a degree. And I think that model of education where it's much more tied directly to what you do, I think that's going to be really growing. Obviously Walmart has a college for a dollar a day system as well. And Starbucks has its deal.

So, you know, you're going to see more of that. And they were paying, I forget the number, but it was like 13 something anyway before they went to 15. So it's not like a giant increase. yeah there's like i guess you just touched on all this but there's like second order benefits to doing that that shareholders don't always realize of because like the first thing you see is increased costs but you don't see sort of the benefits on the back end like well there's lower employee turnover and all that stuff so yeah and one of the things target has been a pioneer in and it's funny i did a story on this a couple years ago that i never ran because Target wouldn't sign off on it. Because I needed them to verify that they use this piece of software. But they use a piece of software that allows employees to do things like trade shifts

and manipulate their schedule. And the more employee friendly you are, the more likely you are to hold on to people or have your seasonal workers want to come back. And it's really expensive, like a couple thousand dollars to hire someone new and to onboard them and to train them. and think of it this way if you go to target and you just flag down a person in the red shirt and let's hope it's a person who works there not just a person wearing a red shirt and you flag you flag them down and you say hey where do i find and it's something ridiculous i needed light bulbs for my studio lights which they didn't sell um but you ask and it's someone who's first day well they're gonna go like i don't know and then they'll call somebody and it takes forever if it's someone

who's been there for three years who's filled in in every department and been cross-trained and they're going to know with really specific detail where stuff is. That just makes the experience better. So I'm a huge fan of companies holding on to their workers because it's really hard to train people to be good at their job. Yeah. Okay. Flip side, what would have to happen for you to say, maybe I don't like Target so much anymore? Yeah. I think if there's a CEO change, that's always a time you look at what the new CEO's priorities are. I don't particularly worry about online. I don't, I mean, Target's not Amazon. They're not Walmart when it comes to pure online. They're more of a same day delivery curbside pickup. I mean, obviously they have a website

and they've improved that dramatically. But if we saw like a retail sales move to 30, 40% ahead of what's without a pandemic probably would have been about 15%. That to me would be something i'm i'm wary of i don't expect that i actually think target is benefiting from the let's call it population shift that some of which is going to be permanent you know people who left the city because they wanted a bigger place to live that don't have to go back to work five days a week i think look you can't rent or buy anything in west palm beach like we i mentioned earlier we're moving i literally had to look at the listings every hour and the second something came up i would, and I liked it, I would email my real estate agent and try to see it that hour. So

there's obviously more people who live here and that's going to benefit Target. Cause while there are targets, I mean, West Palm beach is a city, but, but Target is in the more suburban part of it. That's going to benefit them because it is going to take more people and put them in their footprint. And then there are small stores, which tend to be targeted in neighborhoods. Like look, New York is down something like 14,000 apartments, 14,000 apartments across all of New York is not going to change the thesis for like a target that was built in a Brooklyn neighborhood or a target that was built near a college campus. Obviously there's going to be outliers. Like right now, there are colleges that didn't go back to college. So that target's probably not doing so well.

But in the long run, they'd have to make a pretty big pivot for me to be upset or like, you know, announce they were investing in something ridiculous. And it's going to take them two or three more years to sort of play out this store redo. And then who knows how long it's going to take to get all the altas installed and i would expect more store within a store deals to be coming okay that's interesting uh yeah anything else on that right before i get the last question yeah i mean i was just sort of playing through it in my head is like what could go wrong that i would sort of think differently of target do you ever get worried about maybe saturation like they just can't grow much more um i would worry about it if i thought there were a lot of players in

retail is doing a great job. So what's going to happen? You know, we've seen a lot of closures, you know, Circuit City, Linens and things like all of those companies went away. And there's a list a mile long. Those are weird examples. You know, Pier 1 closed recently. All of those sales are going to go somewhere. I don't think we're anywhere close to the end of the retail shakeout. You know, like JCPenney and Dillard's, I'd bet against them. Like, I'm not saying that maybe they won't exist in some fashion because simon property group will will keep them alive but those are sales that are going to go to target so i think you're going to see a lot of retail sales go to five or six players and target will be one of those players you know along with amazon walmart i would argue best buy

and i would say probably dick sporting goods but it's hard to know how much of that is this weird we're all going to go camping let me give you a tip here folks if you're not a camping person don't go camping it's not fun at all and certainly don't go buy like a 400 tent so that's my only caveat on dicks yeah all right i'm a big camera so i might disagree but uh if you like it that's great but that would be like me saying you know what like we're not allowed to be with other people right now i'm gonna take up scuba diving like that's solo like that that is a bad idea like again if you always wanted to surf now's a great time to learn how to surf but don't just go surfing because you're bored that is a poor poor choice that is that is correct

All right. You talked about earlier, the last four or five years, Target has made a lot of good choices. There's really no complaints on any of their decisions. But if there was anything you'd like to see Target do, say you were a CEO for the day, what change could Target make where you'd be like, all right, this is good? So back over at Motley Fool, when I worked there, we actually did a show. Usually Tim Byers and I called CEO for a day. And I'm trying to remember if we did Target, I would improve the website experience. I would work really hard on making it at least comparable to Amazon. I actually don't think shipping speed is nearly as important as Amazon thinks it is, but I would make ease of use and ease of reorder very, very simple,

organize the website really well, because you guys talked about it before. Once I bought a shirt at Target, how great would it be if I could look up something I bought physically in the store and buy it online so if you could give me the choice of integrating those things because i know it's something i do i buy like three things on amazon every day so like if i go like what was that shirt i bought on amazon two years ago it takes me like nine months to go to go find that because i have to dig through all all the sales and i actually think they only go back six months so you wouldn't get it anyway i think there's some opportunity to grow there i'd also like to see them continue to be a pioneer and throw more things at the wall i think walmart does a better

job of like we're going to try in-store pickup kiosks we're going to try a robot who walks around the floors and takes inventory we're going to buy tiktok that kind of thing yeah don't buy tiktok that seems like a terrible idea um but i would like to see more of that i i would also like to see i think um and you know and i've said this for jc penny as well but they're clearly not doing it well there is a hesitation of some of the digital pure brands about expanding their physical spaces so your warby parkers your untuckets um you know a dormy some of those like they're a little hesitant for the reasons i talked about earlier about going into malls because you don't know which malls are going to make it in a lot of cases or which shopping plazas are going

to be driving the traffic i think there's a lot of room for target to say like you know hey warby parker you want to take over you know instead of target optical you're going to come into our store or maybe you keep target optical as the cheap option i think you're going to see more of that you're also going to see more pop-up shops obviously during a pandemic they're not going to do things designed to drive one day traffic they don't want us standing in line right all right i think that's all the questions we have right that's all for me okay dan thank you for joining us uh had a fun discussion thanks guys i uh i look forward to listen to listening and uh wait last one before uh good before we go where should we or yeah we gotta where should we find

Yeah. Where should people find you? Oh, I am easy to find. So I am at Worst Ideas 7 on Twitter. I am a very active person on Twitter. Of course, you can watch 7 Investing Now, Monday, Wednesday, and Friday live at noon. We're doing a really exciting show there. And that's also archived on YouTube. You can find it on our Twitter. You can find it theoretically on our website, but you can't find it on our website all that well. We are working on that uh so certainly i go to seven investing uh we are you know well you guys tweet out an affiliate link because you'll if you make money if people join through you that's good for all of us so that is perfect code ccm ten dollars off there we go yeah yeah that's the only way we do discounts

on our 17 a month subscription which is something we're really proud of good yeah all right we love it uh i think that's gonna do it thank you guys for listening we are not financial advisors anything we say or discuss here on Chit Chat Money. It's not formal advice or recommendation. Thank you guys for listening. We'll see you next time.