Chapter 1: What is the main topic discussed in this episode?
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The U.S. consumer remains resilient. Data from MasterCard showing retail sales rose 4.1% on Black Friday. That surpasses last year's 3.4% growth. So better than last year and better growth as well. For a boots on the ground look at the consumer, we welcome Mark Rosenthal.
Catalyst Brands CEO, Catalyst is the parent company of retailers like JCPenney, Brooks Brothers, Eddie Bauer, Aeropostale, Lucky Brand, Nautica, you know all the names. Mark, welcome to the program, thanks for joining us here in studio. How was Black Friday and how is Cyber Monday shaping up?
Yeah, thank you for having me. So Black Friday was as it always is. I think it's just a super exciting day for all of us in the retail business. I was out in stores that morning and we had lines around the store at our JCPenney stores that morning of customers coming in for our 5 a.m. deals.
They were waiting to get a snow globe, which is one of our historic nostalgic giveaways, but also a coupon book. I think consumers were really focused on value and deals this holiday and I will say the other big thing that we noted on Black Friday was Gen Z was fully in on Black Friday this year. And it was really exciting to see Gen Z shoppers out in the malls.
Our Aeropostale brand did really, really well with strong sales and a really strong presence of Gen Z coming out.
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Chapter 2: What insights does Marc Rosen provide about the US consumer after Black Friday?
And the thing that brings them together is it's also incredible fashion at a really affordable price. So if you look at Aeropostale for the teen customer, All the trends, Y2K is actually the trend right now, right? It's the wide leg, the baggy, the low rise denim, and that's doing really well. And so we're seeing consumers really come in for that.
Brooks Brothers, which I know you're a shopper of. It's near and dear to my heart. Exactly, right? So Brooks Brothers also had a great Black Friday and we're moving into Cyber Monday, but there it was all about sweaters.
So merino wool sweaters, cashmere sweaters, and the quarter zip is actually, we have a quilted quarter zip that was our number one selling item on Black Friday as consumers are coming in for that.
What are the common themes among the brands? You've had significant growth over the past few years and you've developed a great portfolio of brands. What are the common threads behind all of these businesses that you've put together?
I think the common theme, if you put it all together, is really accessible. fashion for the American consumer with brands that they know and love.
And that's really the thing is we've been able, as we put the whole portfolio together, if you think across JCPenney, if you think about Lucky Brand, and if you think about Aeropostale just as the primary brands for denim, and you think about the amount of denim That we source and buy for consumers across all of those brands.
What the combination, which was just formed in January, has allowed us to do is put together all of that sourcing and really make sure that we're bringing the best value for the consumer by finding the best prices on denim and really giving that to the consumer on days like Black Friday.
And, you know, in this time where the consumer is really value focused, that is what's making the difference right now.
So how have you navigated what's been a volatile year in terms of policy? Tariffs, I imagine, must have a huge effect on the amount you pay for textiles. How do you equal the hit of that in margins?
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Chapter 3: How did Black Friday shopping trends change this year?
And we mix that out across the total portfolio. And so we are really focused on making sure that the key items that our customers are looking for at the big moments like Black Friday and throughout the year, like back to school, that we are delivering like item at like value.
In terms of 26, what do you expect for next year? Because the consumer has been resilient. The U.S. consumer is always resilient, right? Don't count out the U.S. consumer. But consumer confidence numbers were low. There's real worry about the labor market. And I was surprised to see such growth in this season. So what do you expect for next year?
I think the interesting thing about the consumer is we definitely see that the consumer has stretch wallets right now. But we also know that the consumer is going to make sure that those moments that matter for their families and the ones that they care about, that they are going to make the most for those moments. And so the consumer is going to have holiday and Christmas this year.
What they're searching for is really more for value. And that's where we really win. At JCPenney, for example, this was the fourth year that WalletHub named us as the best place to find Black Friday deals.
So we're making sure that we have the deals, that we're showing the value, and that is what's really important to the consumer because although the wallet's stretched, they're also committed to taking care of their families.
All right, Mark, great having you here in studio. Thanks so much for joining us on this Cyber Monday. Mark Rosen there of Catalyst Brands.
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