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

RUSH TRANSCRIPT My source ░░░░░░░░ is the former CEO ░░░░░░░░ toys r us Jerry ░░░░░░░░ joins me And it ░░░░░░░░ great to have you ░░░░░░░░ sir because you know ░░░░░░░░ well Walmart counts 90 ░░░░░░░░ American households as its ░░░░░░░░ I wonder how you ░░░░░░░░ they re going to ░░░░░░░░ to this news coming ░░░░░░░░ the CEO today Well ░░░░░░░░ I think this is ░░░░░░░░ of those cases where ░░░░░░░░ s a little bit ░░░░░░░░ truth in what everyone ░░░░░░░░ saying So let s ░░░░░░░░ Walmart about two thirds ░░░░░░░░ three quarters of Walmart ░░░░░░░░ sales are groceries and ░░░░░░░░ products that are primarily ░░░░░░░░ right here in the ░░░░░░░░ S some groceries come ░░░░░░░░ outside the U S ░░░░░░░░ like avocados or bananas ░░░░░░░░ coffee cut flowers but ░░░░░░░░ grocery products really do ░░░░░░░░ right here from the ░░░░░░░░ S and are unaffected ░░░░░░░░ the tariffs Meanwhile there ░░░░░░░░ other categories Let s ░░░░░░░░ toys Something I know ░░░░░░░░ lot about that are ░░░░░░░░ entirely sourced from overseas ░░░░░░░░ very heavily from China ░░░░░░░░ is the headquarters of ░░░░░░░░ toy industry So you ░░░░░░░░ going to see price ░░░░░░░░ for some 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 ░░░░░░░░ is true in a ░░░░░░░░ here there are increases ░░░░░░░░ sure coming How much ░░░░░░░░ have to see where ░░░░░░░░ tariffs really shake out ░░░░░░░░ in terms of what ░░░░░░░░ tariffs look like and ░░░░░░░░ Americans start to feel ░░░░░░░░ I mean they have ░░░░░░░░ to a degree felt ░░░░░░░░ in a way that ░░░░░░░░ ve seen so far ░░░░░░░░ what the CEO is ░░░░░░░░ arguing today is starting ░░░░░░░░ month they re going ░░░░░░░░ feel this And I ░░░░░░░░ how you think customers ░░░░░░░░ respond to this As ░░░░░░░░ who had to deal ░░░░░░░░ consumers in your time ░░░░░░░░ toys r us Well ░░░░░░░░ know if Walmart has ░░░░░░░░ raise prices everyone s ░░░░░░░░ to raise prices So ░░░░░░░░ re going to see ░░░░░░░░ prices on those items ░░░░░░░░ don t have domestic ░░░░░░░░ or other products that ░░░░░░░░ be substitutes again heavily ░░░░░░░░ consumer electronics a lot ░░░░░░░░ home goods you know ░░░░░░░░ line 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 a ░░░░░░░░ over year versus April ░░░░░░░░ last year exactly the ░░░░░░░░ as they were in ░░░░░░░░ up 5 That s ░░░░░░░░ very high number for ░░░░░░░░ sales and it s ░░░░░░░░ the highest that it ░░░░░░░░ been in years because ░░░░░░░░ are spending some of ░░░░░░░░ s probably in advance ░░░░░░░░ tariffs trying to get ░░░░░░░░ automobile purchase in before ░░░░░░░░ prices come up But ░░░░░░░░ of it just reflects ░░░░░░░░ consumer that s spending ░░░░░░░░ money they have in ░░░░░░░░ pocket, whatever that is.