Amazon Not a Threat to Retail Traffic: Hurwitz

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Dec. 11 (Bloomberg) -- Daniel Hurwitz, CEO at DDR Corp. and Robert Nardelli, senior advisor at Cerberus Capital Management, discuss the threat to retail posed by Amazon on Bloomberg Television’s “Bloomberg Surveillance.”

To your world?

I think not a threat at all.

They rationalized some of the business.

They are more of a distribution channel than anything else.

Amazon has made retailers rethink how they distribute their goods to their customers.

They have made everyone sharper, everyone better.

That i still got to go to the store and look at the item -- and 94% of the business is still being done on bricks -- at bricks and mortar.

How is traffic, x teenagers?

Traffic is better without the majors teenagers has been pretty tough.

Teenagers hang out in the hallways looking up the wi-fi.

Dan, when you look at how retailers are doing, operable store sales still the best metric to gauge the health of the retail industry.

I actually think that is the worst number.

Comp store sales are interesting but very controllable.

You can always raise come store sales, just lower your price.

We look at margins.

We talked to retailers.

Not necessarily comp store sales to understand whether they will make money or not.

They pay their rent with a margin.

I tried forever at home depot to get them off the analog measurement of same-store sales to digital.

We were growing 20% a year and they were still fixated on same- store sales.

Dan is exactly right.

It is an archaic measurement.

It is an easy measurement but not the right one.

So, who is doing well on the margin measurement?

Any retailer selling branded goods off price.

You look at ross, tj maxx, marshall'ss, nordstrom rack.

Value, not sheep.

Down the line, will those players get margin versus revenue?

I think that will get margins.

One reason is they are taking advantage of the dislocation in the department store business where department stores have to cancel orders already in the country.

They are buying the goods and

This text has been automatically generated. It may not be 100% accurate.

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