Fmr. Toys ‘R’ Us CEO: ‘If Walmart Has to Raise Praises, Everyone’s Going to Raise Prices’

COLLINS My source tonight ░░░░░░░░ the former CEO of ░░░░░░░░ R Us Gerry Storch ░░░░░░░░ me And it s ░░░░░░░░ to have you here ░░░░░░░░ Because you know very ░░░░░░░░ Walmart counts 90 percent ░░░░░░░░ American households as its ░░░░░░░░ I wonder how you ░░░░░░░░ they re going to ░░░░░░░░ to this news coming ░░░░░░░░ the CEO today STORCH ░░░░░░░░ look I think this ░░░░░░░░ one of those cases ░░░░░░░░ there s a little ░░░░░░░░ of truth in what ░░░░░░░░ is saying So let ░░░░░░░░ take Walmart About two ░░░░░░░░ or three quarters of ░░░░░░░░ sales are groceries and ░░░░░░░░ oil products that are ░░░░░░░░ sourced right here in ░░░░░░░░ U S Some groceries ░░░░░░░░ from outside the U ░░░░░░░░ things like avocados or ░░░░░░░░ or coffee cut flowers ░░░░░░░░ most grocery products really ░░░░░░░░ come right here from ░░░░░░░░ U S that are ░░░░░░░░ by the tariffs Meanwhile ░░░░░░░░ are other categories let ░░░░░░░░ take toys something I ░░░░░░░░ a lot about that ░░░░░░░░ almost entirely sourced from ░░░░░░░░ and very heavily from ░░░░░░░░ which is the headquarters ░░░░░░░░ the toy industry So ░░░░░░░░ re going to see ░░░░░░░░ increases for some products ░░░░░░░░ products the cost increase ░░░░░░░░ be absorbed at the ░░░░░░░░ Others the tariff is ░░░░░░░░ too high and manufacturers ░░░░░░░░ already raising prices Toys ░░░░░░░░ one where Mattel said ░░░░░░░░ re raising prices I ░░░░░░░░ that s happening in ░░░░░░░░ other categories firsthand So ░░░░░░░░ prices will go up ░░░░░░░░ Walmart will pass some ░░░░░░░░ that on to consumers ░░░░░░░░ what everyone says is ░░░░░░░░ in a way here ░░░░░░░░ are increases for sure ░░░░░░░░ How much We have ░░░░░░░░ see where the tariffs ░░░░░░░░ shake out COLLINS Well ░░░░░░░░ terms of what these ░░░░░░░░ look like and how ░░░░░░░░ start to feel this ░░░░░░░░ mean they have not ░░░░░░░░ a degree felt it ░░░░░░░░ a way that we ░░░░░░░░ seen so far But ░░░░░░░░ the CEO is essentially ░░░░░░░░ today is starting next ░░░░░░░░ they re going to ░░░░░░░░ this And I wonder ░░░░░░░░ you think customers will ░░░░░░░░ to this as someone ░░░░░░░░ had to deal with ░░░░░░░░ in your time leading ░░░░░░░░ R Us STORCH Well ░░░░░░░░ Walmart has to raise ░░░░░░░░ everyone s going to ░░░░░░░░ prices So they re ░░░░░░░░ to see higher prices ░░░░░░░░ those items that don ░░░░░░░░ have domestic substitutes or ░░░░░░░░ products that can be ░░░░░░░░ Again heavily toys consumer ░░░░░░░░ a lot of home ░░░░░░░░ hardlines types of products ░░░░░░░░ ll see price increases ░░░░░░░░ just want to emphasize ░░░░░░░░ that s a percentage ░░░░░░░░ the basket Most of ░░░░░░░░ food products won t ░░░░░░░░ that and that s ░░░░░░░░ some of what President ░░░░░░░░ was saying was correct ░░░░░░░░ that regard So some ░░░░░░░░ this and some of ░░░░░░░░ there will be increases ░░░░░░░░ in other products Meanwhile ░░░░░░░░ take a look at ░░░░░░░░ s retail sales report ░░░░░░░░ it was actually fine ░░░░░░░░ for the month of ░░░░░░░░ were up 5 percent ░░░░░░░░ over year versus April ░░░░░░░░ year exactly the same ░░░░░░░░ they were in March ░░░░░░░░ 5 percent That s ░░░░░░░░ very high number for ░░░░░░░░ sales and it s ░░░░░░░░ the highest that it ░░░░░░░░ been in years Consumers ░░░░░░░░ spending Some of it ░░░░░░░░ probably in advance of ░░░░░░░░ trying to get that ░░░░░░░░ purchase in before the ░░░░░░░░ come up COLLINS Yes ░░░░░░░░ But some of it ░░░░░░░░ reflects a consumer that ░░░░░░░░ spending the money they ░░░░░░░░ in their pocket whatever ░░░░░░░░ is.”