>>> FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY NJCU SCHOOL OF BUSINESS, A GAME-CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY, OR BUSINESS ANALYTICS AND DATA SCIENCE.

WE'RE STEPS AWAY FROM THE EXCHANGE PLACE PATH TRAIN IN WALL STREET.

LEARN MORE AT NJCU.EDU/GAMECHANGER.

>> THIS WEEK ON "NJ BUSINESS BEAT."

WHO STANDS TO BENEFIT FROM HUNDREDS OF MILLIONS OF FEDERAL DOLLARS BEING PUMPED INTO NEW JERSEY'S ECONOMY?

AND WHY OPPONENTS SAY THE PROCESS WAS TOO RUSHED.

PLUS, AS NEW JERSEY'S MAIN TOURISM SEASON CLOSES, WE LOOK AT THE HEALTH OF THE INDUSTRY AND WHAT COULD CHANGE DURING THE 2022 SEASON.

AND AS HOLIDAY SHOPPERS HIT THE STORES, WE PUT RETAIL IN FOCUS, HIGHLIGHTING THE CHALLENGES PLAGUING THE INDUSTRY AND HOW CHANGING SHOPPER HABITS ARE IMPACTING STORE OPERATIONS FROM BIG BOX TO THE SMALLEST BUSINESS.

THAT'S STRAIGHT AHEAD ON "NJ BUSINESS BEAT."

♪♪ ♪♪ >>> THIS IS "NJ BUSINESS BEAT."

WITH RHONDA SCHAFFLER.

>> HELLO I'M RHONDA SCHAFFLER.

THANKS FOR JOINING US ON "NJ BUSINESS BEAT."

IF YOU ARE WATCHING ON YOUTUBE, MAKE SURE YOU SUBSCRIBE TO OUR NJ SPOTLIGHT NEWS YOUTUBE CHANNEL TO GET ALERTS WHEN WE POST NEW EPISODES AND CLIPS.

JUST AS COVID-19 CASE NUMBERS BEGIN RISING IN NEW JERSEY, OUR STATE'S HOSPITALS ARE GETTING MORE FINANCIAL HELP.

THIS WEEK STATE LAWMAKERS APPROVED A TOTAL OF $700 MILLION IN STATE AND FEDERAL FUNDS FOR HOSPITAL, PANDEMIC RECOVERY PROGRAMS, AS WELL AS ECONOMIC DEVELOPMENT PROJECTS.

NJ SPOTLIGHT'S JOHN WRIGHT MEYER REPORTS THE SPENDING WAS APPROVED OVER THE OBJECTIONS OF REPUBLICAN LAWMAKERS WHO WANTED TO KNOW WHY CERTAIN PROJECTS WERE RECEIVING FUNDING AND OTHERS WERE NOT.

>> A LITTLE BIT ABOUT THE SPEED, YOU KNOW, THAT WE SAW THIS MOVE THROUGH.

AND ALSO, YOU KNOW, ASKING FOR MORE DETAILS ABOUT WHY SPECIFIC ITEMS THAT WERE PUT ON THE AGENDA MADE IT TO THE FINISH LINE FOR FUNDING PERHAPS AGAINST MAYBE OTHER ONES THAT MAYBE THEY WANTED TO SEE ALSO ON THE AND NO ONE FROM THE MURPHY ADMINISTRATION ATTENDED THE HEARING TO ANSWER ANY QUESTIONS.

AND THERE REALLY WASN'T ANY INFORMATION ABOUT, YOU KNOW, CRITERIA THAT WAS USED TO EVALUATE THESE SPENDING ITEMS.

>> THROUGHOUT THE PANDEMIC THERE HAVE BEEN NUMEROUS STATE AND FEDERAL ASSISTANCE PROGRAMS FOR THE BUSINESS COMMUNITY.

BUT THE ROAD AHEAD IS BUMPY.

AND AN ANNUAL OUTLOOK SURVEY CONDUCTED BY THE NEW JERSEY BUSINESS AND INDUSTRY ASSOCIATION POINTS TO NEW DIFFICULTIES.

NEARLY 3 OUT OF EVERY 4 BUSINESS OWNERS SAY THEY CAN'T FIND ADEQUATE STAFFING.

ON TOP OF THAT, PANDEMIC-RELATED RESTRICTIONS AND MANDATES HAVE DENTED REVENUE.

AND MORE BUSINESS OWNERS ARE READY TO CALL IT QUITS.

THE NJ BIA SAYS NEARLY 60% OF EMPLOYERS SAY THEY ARE EITHER LOOKING TO END THEIR BUSINESSES SOONER OR THINKING ABOUT IT.

>> SO OUR BUSINESSES ARE TELLING US THAT, YOU KNOW, BECAUSE OF THE STRUGGLES, THAT THEY ARE UNCERTAIN OF THEIR FUTURE MOVING FORWARD.

SO WILL THEY CONSIDER SELLING?

MERGING?

OR JUST SHUTTING DOWN SHOP?

AND THAT'S REALLY DISAPPOINTING.

WE ALL KNOW THAT OUR BUSINESS COMMUNITY IS THE KEY ECONOMIC DRIVER IN THE STATE.

AND WHEN THEY DON'T WANT TO CONTINUE, THAT'S REALLY VERY CHALLENGING FOR US TO HEAR.

WHAT WE'RE TRYING TO STRESS IS LET'S NOT PILE ON AND ADD ANYMORE.

WE'VE ALWAYS BEEN TALKING ABOUT THAT KEY FOR BALANCE.

LET'S MAKE SURE THAT OUR BUSINESSES ARE ABLE TO RECOVER.

>> WE DON'T YET KNOW HOW BUSINESSES AND THE ECONOMY WILL BE IMPACTED BY THE LATEST COVID-19 VARIANT.

OMICRON HAS BEEN DETECTED IN THE U.S., AND THERE ARE A LOT OF UNANSWERED QUESTIONS THIS WEEKEND.

THE CHAIRMAN OF THE U.S. FEDERAL RESERVE JEROME POWELL MENTIONED THE ECONOMIC RISK FROM THE VARIANT DURING CONGRESSIONAL TESTIMONY A FEW DAYS AGO.

>> THE RECENT RISE IN COVID-19 CASES AND THE EMERGENCE OF THE OMICRON VARIANT POSED DOWNWARDS RISKS TO EMPLOYMENT AND ECONOMIC ACTIVITY AND INCREASED UNCERTAINTY FOR INFLATION.

GREATER CONCERNS ABOUT THE VIRUS COULD REDUCE WILLINGNESS TO WORK IN PERSON WHICH WOULD SLOW PROGRESS IN LABOR MARKET AND INTENSIFY SUPPLY CHAIN DISRUPTIONS.

>> THE VARIANT COULD ALSO PUT THE BRAKES ON THE REBOUND IN THE TOURISM INDUSTRY.

THIS WEEK THE NEW JERSEY TOURISM INDUSTRY ASSOCIATION HELD ITS ANNUAL CONFERENCE IN ATLANTIC CITY.

THE INDUSTRY WAS BATTERED DURING COVID AND THERE IS A PUSH IN TRENTON TO PROVIDE MORE FUNDING.

WE TALKED ABOUT THE STATE OF INDUSTRY'S RECOVERY AND WHETHER OMICRON WOULD DERAIL IT.

ADAM HOW WOULD YOU CHARACTERIZE THE SUMMER SEASON IN TERMS OF HOW NEW JERSEY WAS ABLE TO REBOUND?

>> WELL, WE'RE VERY LUCKY IN THE RESPECT THAT NEW JERSEY IS CLOSE TO A LOT OF AMERICANS.

WITHIN A TANK OF GAS OF OVER 40 MILLION MILES PER HOURENS.

AMERICANS.

WE WERE VERY HAPPY WITH THE RESPONSE AS IT IS THE FIRST STEP IN THE LONG ROAD TO RECOVERY FOR THE TOURISM INDUSTRY.

SO WE'LL SEE WHAT THE NUMBERS REALLY COME OUT TO BY THE END OF THE FULL YEAR OF 2021.

BUT WE ARE VERY HOPEFUL THAT WE'RE TRENDING BACK IN THE RIGHT DIRECTION AFTER A TOUGH HIT DURING THE >> UNFORTUNATELY THERE ARE STILL CONCERNS ABOUT THE PANDEMIC.

THE NEW VARIANT, NEWS ABOUT THAT A FEW DAYS AGO.

AND IT SEEMS THAT JUST WHEN WE THINK WE'VE TURNED THE CORNER, THERE IS STILL SOME CONCERN.

HOW DO PEOPLE IN THE TOURISM INDUSTRY AT THIS POINT EVEN KIND OF PLEA PREPARE AND PLAN WHEN WE HAVE THESE VERY UNCERTAIN TIMES STILL.

>> FOLKS ARE READY, EAGER AND WILLING TO TRAVEL AND WE ARE READY, AND WILLING AND EAGER TO ACCEPT THEM SAFELY AND TO DO THINGS THAT VISITORS EXPECT, WHETHER THAT BE CLEANING, MASKING, SOCIAL DISTANCING, ONLINE ORDERING, YOU KNOW, MOBILE ORDERING WHEN YOU ARE AT ATTRACTIONS.

ALL OF THAT.

THOSE ARE THE INNOVATIONS THAT HAVE BEEN IMPLEMENTED.

>> HOW IS THE INDUSTRY DOING IN TERMS OF HIRING?

BECAUSE OF COURSE THAT WAS AN INDUSTRY HIT VERY HARD DURING THE PANDEMIC.

AND WHILE SOME OF THE EMPLOYEES ARE GETTING HIRED BACK WHEN YOU LOOK AT THE NUMBERS, WE KNOW NOT EVERYONE HAS BEEN HIRED BACK.

SO WHERE DOES THE INDUSTRY STAND ON THE LABOR MARKET?

>> SO THE LABOR IS DEFINITELY IMPROVED.

AND ABSOLUTELY THE PANDEMIC HIT US HARD.

THERE WERE OVER 106,000 JOBS LOST IN NEW JERSEY.

AND AND THE TOURISM/HOSPITALITY INDUSTRY.

PRE PANDEMIC TALKING ABOUT 1 IN EVERY 10 EMPLOYEES.

AND THEN IN THE MIDDLE OF THE JERSEYANS EMPLOYED IN THE HOSPITALITY INDUSTRY.

AND THAT DROPPED SIGNIFICANTLY.

AND THAT NUMBER STARTED TO REBOUND.

BUT IT IS A ROAD AHEAD.

IT IS A ROAD WHERE WE UNDERSTAND TO GET BACK TO PRE PANDEMIC LEVELS MIGHT BE 2023.

IT MIGHT BE 2024.

BUT WE HAVE TO START THAT WORK NOW.

WE HAVE TO PROMOTE NEW JERSEY.

WE HAVE TO PROMOTE OUR ATTRACTIONS.

WE HAVE TO WELCOME BACK VISITORS AND ADAPT, BRING THEM IN SAFELY.

>> HOW COULD BUSINESSES IN THE TOURISM INDUSTRY CHANGE DURING THE PANDEMIC IN WAYS THAT MIGHT BE CARRIED FORWARD WHEN THE PANDEMIC IS OVER?

>> WELL, I DEFINITELY THINK THE CHANGE TO MOBILE IS SOMETHING THAT MOST HAVE EMBRACED FOR A LONG TIME.

OUR SMALL BUSINESS OWNERS, WHICH MOST OF THE TOURISM BUSINESSES IN NEW JERSEY ARE SMALL BUSINESS OWNERS.

AND, YOU KNOW, THEY ARE TOUGH TO CHANGE.

THEY ARE SET IN THEIR WAYS IN TERMS OF TRADITION.

BUT THEY WERE INNOVATIVE.

AND SO I THINK THAT IS ONE OF THE KEY THINGS THAT I SEE AS BEING SORT OF HERE TO STAY MOVING FORWARD.

AND I DO THINK AN ATTENTION TO SAFETY, NOT IN TERMS OF THAT PEOPLE WEREN'T BEFOREHAND BUT AN EXTRA SPECIAL ATTENTION TO CLEANLINESS AND PURIFIED AIR AND INSIDE SPACES, SOME OF THOSE THINGS I THINK WILL BE HERE TO STAY.

THE OTHER THING THAT I THINK IS REALLY SOMETHING THAT WE'LL SEE WILL BE THE DEVELOPMENT THAT IS GOING TO HAPPEN IN THE NEXT FIVE, TEN YEARS.

THE FOCUS ON OUTSIDE SPACES AS NEW ATTRACTIONS, NEW HOTEL, NEW RESTAURANTS ARE BUILT HERE IN NJSZ.

I THINK THAT IS REALLY GOING TO BE PART OF THE ARCHITECTURE FOR THE LOCATIONS MOVING FORWARDEW I THINK THAT IS REALLY GOING TO BE PART OF THE ARCHITECTURE FOR THE LOCATIONS MOVING FORWARD.

>>> BEEN GREAT TALKING TO YOU.

THANK YOU SO MUCH FOR THE UPDATE.

>> THANK YOU SO MUCH FOR HAVING ME.

REALLY APPRECIATE IT.

>>> BEYOND TOURISM THERE IS ANOTHER INDUSTRY THAT DESERVES ATTENTION THIS WEEK.

AND THAT IS RETAIL.

NEARLY 20% OF RETAILERS TOTAL ANNUAL SALES COME IN THE MONTHS OF NOVEMBER AND DECEMBER.

THE HOLIDAY SEASON IS UPON US, AND THIS IS RETAIL'S BIG MOMENT, WHICH IS WHY WE'RE PUTTING IT IN FOCUS THIS WEEK.

FIRST WE WANT TO TAKE A LOOK ANOTHER THE SIZE OF THE RETAIL INDUSTRY HERE IN NEW JERSEY.

ACCORDING TO DATA FROM THE STATE, THERE ARE WELL OVER 29,000 RETAILERS OPERATING, GENERATING 35 1/2 BILLION DOLLARS IN SALES.

RETAIL ESTABLISHMENTS WHICH INCLUDE FOOD AND BEVERAGE STORES EMPLOY MORE THAN 437,000 NEW JERSEYANS OR 12.7% OF THE STATE'S TOTAL WORKFORCE.

THESE ARE THE LATEST AVAILABLE FIGURES AND DO REPRESENT PRE PANDEMIC NUMBERS.

THE UNOFFICIAL KICKOFF TO THE HOLIDAY SHOPPING SEASON WAS LAST WEEKEND.

AND MORE SHOPPERS DID HEAD OUT TO THE STORES.

THE NATIONAL RETAIL FEDERATION SAYS BETWEEN THANKSGIVING DAY AND CYBER MONDAY, 104.9 MILLION SHOPPERS VISITED STORES COMPARED TO 92.3 MILLION A YEAR AGO.

FEWER PEOPLE SHOPPED ONLINE.

NOW, THANKS TO EARLY PROMOTIONS AND WORRIES ABOUT THE SUPPLY CHAIN, 49% OF SHOPPERS SAID THEY HIT THE STORES EVEN EARLIER THAN THE HOLIDAY WEEKEND.

THE AVERAGE AMOUNT SPENT ON HOLIDAY PURCHASES THIS YEAR WAS JUST OVER $301, ABOUT 10 DOLLARS LESS THAN LAST YEAR.

WE GOT AN UPDATE ON WHETHER RETAILERS WERE ABLE TO GET AND KEEP GOODS IN STOCK WITH THE NATIONAL RETAIL FEDERATION SUPPLY CHAIN EXPERT JONATHAN GOAL.

THE HOLIDAY SHOPPING SEASON IS UPON US AND THERE WAS SO MUCH CONCERN ABOUT SUPPLY CHAIN HEADING INTO THE SEASON.

WHAT ARE YOU FINDING IN TERMS OF IF RETAILERS ARE ABLE TO GET GOODS ON THE SHELF.

>> THE SHOPPING SEASON IS IN FULL EFFECT AND TO BE HONEST CONSUMERS HAVE BEEN SHOPPING EARLIER THAN NORMAL BECAUSE OF SUPPLY CHAIN CHALLENGES RETAILERS HAVE BEEN DEALING WITH.

THROUGHOUT THE PANDEMIC THE SUPPLY CHAIN CERTAINLY HAS BEEN A CHALLENGE WITH ON GOING INCREASED CONSUMER DEMAND, THE DEMAND FOR PRODUCTS AND MATERIALS HAS FAR OUTPACED WHAT'S AVAILABLE TO SUPPLY TO MOVE GOODS AND PRODUCT THUS THE SUPPLY CHAIN AND THAT'S CONTINUED THROUGH TODAY.

BUT RETAILERS HAVE BEEN WORKING AROUND THE CLOCK TO ENSURE PRODUCT ON THE STORE SHELF AND THE RETAILSER ARE THERE WHEN THE CONSUMERS THERE.

>> WHAT ARE SOME THINGS THE RETAILERS ARE DOING TO MAKE SURE THEY ARE FULLY STOCKED.

>> THE RETAILERS THIS YEAR CERTAINLY WERE WELL AWARE OF THE INCREASED DEMAND THEY ARE GOING TO SEE.

AND WELL AWARE OF THE SUPPLY CHAIN CHALLENGES THAT ARE CONTINUING.

MANY TOOK STEPS INCLUDING SHIPPING PRODUCT EARLIER THAN NORMAL.

LOOKING AT ALTERNATE PORTS AND NOT JUST RELYING ON WEST COAST PORTS.

USING AIR CARRIERS AS POSED TO JUST OCEAN CARRIERS AND LARGER RETAILERS CHARTED THEIR OWN VESSELS.

UNFORTUNATELY WE STILL SAW ISSUES OF POOR CONGESTION, WHICH CONTINUE TODAY.

>> WHAT ABOUT PEOPLE ONCE THEY ARE ORDERING SOMETHING ONLINE?

I ASSUME THERE ARE STILL SOME DELAYS IN GETTING PRODUCT.

I JUST KNOW FROM PERSONAL EXPERIENCE THAT I'VE GOTTEN E-MAILS SAYING THAT THINGS WERE DELAYED.

>> I THINK IT DEPENDS UPON THE PRODUCT AND THE RETAILER.

OBVIOUSLY THE SUPPLY CHAIN CHALLENGES AREN'T LIMITED TO JUST BRICK AND MORTAR.

THEY APPLY TO ONLINE RETAILERS AS WELL.

AND RETAILERS THROUGHOUT THE PANDEMIC HAVE BEEN DOING A GOOD JOB TO EDUCATE CONSUMERS ON DELAYS THAT HAVE BEEN HAPPENING BECAUSE OF THE SUPPLY CHAIN CHALLENGES WE'RE SEEING.

>> JOHN, CAN YOU SPEAK TO THE ISSUE THAT RETAILERS HAVE IN RECENT YEARS KIND OF TRIMMED THEIR INVENTORY OVERALL, BECAUSE A LOT OF RETAILERS HAD BLOATED INVENTORY, THEN HAD TO MARK THEM DOWN AND THAT HURT THEIR PROFITS.

SO RETAILERS HAVE GONE INTO THE SEASON WITH LEANER INVENTORY THAN PERHAPS FIVE YEARS AGO.

HOW DOES THAT IMPACT THE CONSUMER?

FOR INSTANCE, IF YOU SEE IT, DO YOU BUY IT BECAUSE IT MIGHT NOT BE THERE NEXT WEEK?

>> YEAH, I THINK FIRST AND FOREMOST IF YOU KNOW WHAT YOU WANT TO GUY FOR THE HOLIDAYS AND YOU SEE IT, DEFINITELY BUY IT NOW AND DON'T WAIT BECAUSE INVENTORIES ARE VERY LEAN AS YOU NOTED.

AND NOT JUST RETAIL BUT EVERY INDUSTRY HAS BEEN WORKING WITH LEANER INVENTORIES OVER THE YEARS.

>> ANY SENSE WHEN THE SUPPLY CHAIN ISSUES MIGHT NORMALIZE A BIT?

OR IS THIS REALLY THE NORMAL THAT WE HAVE TO LIVE WITH FOR A WHILE?

>> I THINK THE CHANGES WE'RE SEEING TODAY DID APPLY DURING COVID JUST NOT TO THIS SCALE AND I THINK THAT IS ONE O OF THE THINGS WE'RE TRYING TO FIGURE OUT GOING FORWARD IS WHAT THE QUOTE UNQUOTE NEW NORMAL IS GOING TO BE.

AS CONSUMER DEMAND REMAINS STRONG WE'RE GOING TO SEE IMPORTS CONTINUE AT A HIGHER LEVEL THAN IN THE PAST.

MIDDLE OF 2022 YOU COULD START TO SEE THINGS GET BACK TO NORMAL BUT STILL A LOT OF UNCERTAINLY ABOUT WHAT'S HAPPENING WITH COVID.

>> THIS THANK YOU SO MUCH FOR YOUR TIME.

>> THANK YOU VERY MUCH.

>>> IN BETWEEN BLACK FRIDAY AND CYBER MONDAY THERE IS ALSO SMALL BUSINESS SATURDAY.

AN ANNUAL EVENT THAT ENCOURAGES PEOPLE TO SHOP LOCAL.

WE CHECKED IN WITH TWO OF NEW JERSEY'S SMALL BUSINESS OWNERS TO SEE HOW THEY ARE FARING.

I SPENT TIME WITH HALLE OWNER OF LITTLE WHIMSY AND SCOTT CHAMBERS OF ZIP'S BIKES.

YOU TOOK THE VERY UNUSUAL STEP OF STARTING A BUSINESS IN THE MIDDLE OF A PANDEMIC.

HERE YOU ARE NOW MORE THAN A YEAR LATER.

HOW ARE THINGS GOING FOR YOU?

HOW IS LIFE ON MAIN STREET IN TERMS OF GENERATING SALES?

>> YOU KNOW, I HAVE NOTHING TO COMPARE IT TO.

SO I CAN ONLY SAY IT IS GOING GREAT.

YOU KNOW, I DON'T HAVE THAT PRE PANDEMIC MEASURING TAPE OR MEASURING TOOL IF, YOU KNOW, IT IS BETTER OR WORSE.

BUT I'M HAPPILY SURPRISED AND EXCITED ABOUT THE SUPPORT WE GET HERE IN DOWNTOWN HADDEN FIELD.

>> SCOTT, YOUR BUSINESS HAS BEEN AROUND FOR A WHILE.

HOW DOES THE SEASON LOOK IN TERMS OF SALES AND WHAT ARE SOME OF THE CHALLENGES YOU FACE POSTPANDEMIC?

>> WELL, IT BEEN DEFINITELY A ROLLER COASTER FOR THE PAST YEAR AND A HALF, GOING ON ALMOST TWO YEARS.

SUPPLY CHAIN ISSUES HAVE BEEN EXTREMELY DIFFICULT.

BUT AS OF LATELY THE COST OF GOODS JUST AS WELL WITH EVERYONE ELSE IS GOING UP EXTREMELY.

>> HALLE, WHEN YOU SEE CUSTOMERS WANDER INTO THE STORE, HOW ARE YOU GETTING THE SUPPORT THAT IS GOING TO HELP YOUR BUSINESS THRIVE?

WHAT IS IT ABOUT BEING A SMALL BUSINESS OWNER THAT IS ATTRACTING ENOUGH NEW JERSEY RESIDENTS THAT YOU KNOW THAT YOU ARE GOING TO BE ABLE TO STAY OPEN?

>> WHEN YOU CAN WALK INTO A LOCAL STORE AND WHAT'S ON THE SHELF YOU GET TO TAKE HOME WITH YOU, I THINK THAT IS QUITE ALLURING TO PEOPLE WHO ARE WORRIED ABOUT IF THEY'RE GIFTS ARE GOING MAKE IT ON TIME.

THEY CAN WALK IN.

THEY HAVE A GREAT SELECTION AND THEY ARE WALKING BACK OUT WITH WHATEVER IT IS THEY NEEDED OR WANTED TO GET THIS HOLIDAY SEASON.

>> HALLE, HOW HAVE YOU HAD TO MAYBE SHIFT YOUR BUSINESS OR PIVOT AT ALL IN THE PAST YEAR TO SOME OF THE CHANGES IN CONSUMER DEMAND?

>> I'VE HAD TO FIND SOME LOCAL MAKERS TO STOCK MY TREE INSTEAD OF RELYING ON OTHER -- INSTEAD OF RELYING ON OUR BIG BOX SUPPLIERS.

AND I THINK THAT IS SOMETHING THAT LOCAL SHOPPERS WANT.

IT IS IMPORTANT TO THEM IF THEY ARE SHOPPING LOCAL AND TO KNOW WHAT THEY ARE GRABBING FROM MY SHELVES IS ALSO LOCAL AND ALSO FROM A SMALL SHOP I THINK MAKES THEM FEEL EXTRA GOOD ABOUT THEIR PURCHASE THIS IS YEAR.

>> SCOTT, YOU HAVE BEEN IN BUSINESS FOR A WHILE.

HOW DOES WHAT YOU ARE GOING THROUGH NOW COMPARE TO OTHER CHALLENGES IN THE PAST?

>> IT WAS ALL ABOUT PRICE BEFORE.

BUT WE WERE COMPETING WITH THE BOX STORES.

NOW WE'RE NOT AS MUCH COMPETING WITH THE BOX STORES BECAUSE THEY DON'T HAVE'EM EITHER.

AND THE AMOUNT OF REPAIRS HAVE DRAMATICALLY INCREASED THROUGH COVID.

AND ITS BEEN CHALLENGING WITH STAFFING.

>> I'M JUST CURIOSITY, WE'VE SPOKEN ABOUT THE CHALLENGES.

WHAT ARE YOU OPPOSITE INNING ABOUT HEADING INTO THE NEW YEAR.

>> THE ECONOMY'S BEEN DOING VERY CREATED LOT OF NEW CUSTOMER BASE IN THE PAST TWO YEARS.

>> HALLE, THE SAME QUESTION.

WHAT ARE YOU OPTIMISTIC ABOUT AS YOU LOOK AHEAD TO THE NEW YEAR WITH YOUR BUSINESS?

>> I'M OPTIMISTIC THAT WE SEEM TO BE REALLY WELL-RECEIVED WITH THE COMMUNITY THAT WE'RE IN.

I'M OPTIMISTIC THAT WE WILL CONTINUE TO REACH NEW CUSTOMERS WHO UNDERSTAND THE IMPORTANCE OF SHOPPING LOCAL.

>> HALLE, AND SCOTT, IT'S BEEN GREAT HEARING YOUR STORIES I AND WISH YOU THE WEST OF LUCK.

THANK YOU FOR YOUR TIME.

>> THANK YOU VERY MUCH.

>> MANY OF US STILL PREFER TO SHOP ONLINE FROM THE COMFORT OF OUR HOME AND COLLECTIVELY.

WE SPENT $10.7 BILLION ON CYBER MONDAY BUT A DROP OF 1 37B9 4% COMPARED TO LAST YEAR.

SHOPPING TRENDS THIS YEAR WE SPOKE WITH VIFIC PANDIA.

WHAT DO YOU THINK WAS BEHIND THE DROP?

>> THE LARGEST SEASON IS DRIVING EARLIER MOMENTUM.

SO WE'RE SEEING ALREADY ABOUT $100 BILLION IN SPEND.

ONLINE.

AND THAT'S REALLY KIND OF SUBTRACTING AND DETRACTING FROM THE MOMENTUM THAT THESE OTHER DAYS LIKE CYBER MONDAY AND BLACK FRIDAY HAVE SEEN.

>> SO THAT $100 BILLION, HOW DOES THAT COMPARE TO PRE PANDEMIC?

>> WHEN WE THINK ABOUT PRE PANDEMIC NORMS WE SAW MUCH STRONGER LIFT COMING PAST INTO THE PANDEMIC.

SO WHEN WE THINK ABOUT THE GROWTH THAT WE SAW THIS TIME LAST YEAR, IT WAS IN THE RANGE OF 20-30% BECAUSE THERE WAS SO MUCH PURCHASING OF GOODS ONLINE AS PEOPLE WERE MANAGING THE PANDEMIC DURING THAT PARTICULAR STAGE LAST YEAR.

SO THE BIG QUESTION WAS HOW WE WOULD DO THIS YEAR, ESPECIALLY BECAUSE WE'D SEEN SUCH A STRONG PUSH FORWARD.

SO THAT WAS -- WE'RE ON THE TRACK FOR ABOUT 10% GROWTH FOR THE SEASON.

SO THAT IS ABOUT $207 BILLION.

>> YOU ARE RIGHT THAT SO MUCH FOCUS IS ON A HANDFUL OF DAYS.

AND IT IS IMPORTANT TO KIND OF LOOK AT THE BIG PICTURE.

AND YOU HAVE DONE THAT BEYOND JUST DAILY SALES NUMBERS.

ONE OF YOUR FINDINGS IN YOUR MOST RECENT ARE REPORT WHICH WAS RATHER INTERESTING IS THAT THERE WEREN'T THE SAME KIND OF BIG DISCOUNTS THAT PERHAPS SOME CONSUMERS WERE USED TO.

>> THAT'S RIGHT.

SO DURING THIS TIME OF THE YEAR, WE USUALLY EXPECT DISCOUNTS TO FALL IN THE RANGE OF 10-30% ACROSS MOST CATEGORIES.

HOWEVER THIS YEAR WE'VE SEEN INFLATIONARY FORCES IMPACTING ONLINE PRICES.

AND SO THIS SEASON T DISCOUNTS WERE WEAKER IN THE RANGE OF 5-25%, EVEN SOME CASES 5-20%.

>> ANY IDEA HOW MANY CONSUMERS WERE GOING ONLINE AND FINDING OUT THAT THE GOOD THEY -- THE PRODUCT THEY WANTED PERHAPS WASN'T THERE OR WAS BACK ORDERED?

AND DO WE KNOW IF THAT IMPACTED ONLINE SALES?

>> NOW CONSUMERS ARE SEEING MORE OUT OF STOCK NOTIFICATIONS THAN EVER BEFORE.

ESPECIALLY COMPARED TO PRE PANDEMIC.

THOSE ARE UP ABOUT 200 PERCENT AND REALLY SPEAKING TO THE NATURE OF CONSUMERS TRYING TO GET CERTAIN TYPES OF PRODUCTS AND SEEING OUT OF STOCK NOTIFICATIONS.

SO IN SOME CASES IT IS A OPTION THAT IS NOT AVAILABLE FOR THEM.

INSTEAD OF HAVING A RED JACKET, THEY ARE GOING TO HAVE TO SETTLE SENIOR A BROWN JACKET.

BUT SOME CASES THAT JACKET MIGHT NOT BE AVAILABLE AT ALL.

>> GIVEN WHAT YOU MENTION ABOUT THE FACT THAT RETAILERS ARE UNABLE TO OFFER THE KIND OF DEEP DISCOUNTS THAT THEY DID IN PRIOR YEARS, WHAT ELSE ARE THEY DOING TO TRY TO LURE DOLLARS AWAY FROM CONSUMERS?

>> SO THE FACT THAT SOME RETAILERS ARE EVEN ABLE TO DO SOME LEVEL OF DISCOUNTING IS DRIVING MOMENTUM FOR THEM.

WE ALSO FIND THAT MAKING IT MORE FLEXIBLE AND POSSIBLE FOR CONSUMERS TO SHOP IN DIFFERENT WAYS IS APPEALING AND DRIVING DOLLARS THEIR WAY.

SO RETAILERS THAT ARE OFFERING THINGS LIKE CURBSIDE PICKUP AND ALLOWING CONSUMERS TO AVOID SHIPPING COSTS AND DELAYS, THAT'S HELPING A LOT.

WE'RE ALSO SEEING ONLINE RETAILERS OFFER BUY NOW/PAY LATER.

SORT OF A NEW INCARNATION OF THE LAY AWAY MODEL AND THAT'S SEEN LOT OF ADOPTION, ESPECIALLY FROM YOUNGER CONSUMERS.

>> AND CRUNCHING NUMBERS EVERY SEASON, WHAT SURPRISED YOU MOST?

WHAT WAS THE ONE NUMBER THAT REALLY SURPRISE YOUDS?

>> CYBER MONDAY, BLACK FRIDAY HAVE BEEN STALWARTS THROUGH THE YEAR.

AND THAT'S BEEN THE CASE AFTER MANY DECADES OF JUST CONSUMERS BEING PROMOTED THESE DAYS.

AND NOW WE'RE STARTING TO SEE THESE DAYS SEE EITHER NEGATIVE GROWTH OR FLAT GROWTH RELATIVE TO THE LARGER SEASON.

>> GREAT SPEAKING WITH YOU.

THANK YOU SO MUCH.

>>> ONE RISK TO SHOPPING ONLINE IS THE POSSIBILITY OF PURCHASING COUNTERFEIT GOODS.

THE U.S. CHAMBER OF COMMERCE SAYS WORLDWIDE TRADE IN FAKE GOODS AMOUNTS TO MORE THAN $500 BILLION EACH YEAR.

THE CHAMBER HAS TEAMED UP WITH AMAZON TO GET THE WORD OUT ABOUT ONLINE FRAUD.

WE SPOKE WITH MARY BEST WESTMORELAND, THE VICE PRESIDENT OF FRAUD PROTECTION AT AMAZON.

AS WE HEAD INTO THE HOLIDAY SEASON WHAT SHOULD CONSUMERS AND OTHERS KNOW ABOUT THE POTENTIAL FOR BUYING COUNTERFEIT GOODS?

>> WELL AMAZON HAS A ZERO TOLERANCE FOR COUNTERFEITS IN OUR STORES AND WE INVEST SIGNIFICANTLY TO PROTECT OUR CUSTOMERS.

2020 ALONE WE INVESTED OVER 700 MILLION DOLLARS AND DEDICATED MORE THAN 10,000 EMPLOYEES TO STOPPING FRAUD COUNTERFEIT AND ABUSE AND OUR INVESTMENTS ARE WORKING.

LAST YEAR LESS THAN 0.01% OF ALL PRODUCTS SOLD AN AMAZON RECEIVED A PRODUCT COMPLAINT FROM A CUSTOMER AND WHEN WE DO RECEIVE A COMPLAINT WE INVESTIGATE IT AND TAKE ACTION ON THE BAD ACTOR.

CLOSING ACCOUNTS, WITHHOLDING FUND, REFERRING THEM TO LAW ENFORCEMENT.

AND WITH OUR A TO Z.

GUARANTEE AMAZON STANDS BEHIND EVERY PRODUCT WE SELL SO CUSTOMERS WITH SHOP WITH CONFIDENCE.

>> OBVIOUSLY AMAZON IS FOCUSING A LOT OF ATTENTION ON WHAT YOU CONTROL.

IF YOU STEP BACK BEYOND THE COMPANY, HOW BIG OF A PROBLEM IS THIS GENERALLY IN RETAIL?

AND SHOULD IT JUST BE UP TO THE RETAILER TO TRY TO GO AFTER THE COUNTERFEITERS?

>> YEAH, THAT IS A GREAT QUESTION.

LOOK, COUNTERFEITING IS A GLOBAL ISSUE AND ADDRESSING THE PROBLEM REQUIRES COOPERATION.

AND INFORMS SHARING BETWEEN LAW ENFORCEMENT AND BRANDS AND RETAILERS.

LIKE THE MORE INFORMATION THAT WE CAN SHARE ABOUT COUNTERFEITERS THE HARDER IT IS FOR THESE BAD ACTORS TO HIDE.

AMAZON REGULARLY SHARES INFORMATION WITH COUNTERFEITERS WITH LAW ENFORCEMENT AGENCIES AROUND THE WORLD.

>> WHAT ARE COME OF THE TRENDS YOU SAW OVER THE PAST YEAR ABOUT HOW, YOU KNOW, WITH ANY BAD ACTOR THEY TRY TO ALWAYS OUTSMART, YOU KNOW, A COMPANY OR LAW ENFORCEMENT.

HOW HAVE THE TRENDS CHANGED OVER THE PAST YEAR?

>> WELL, ON AMAZON'S STORE SPECIFICALLY WE'VE SEEN THINGS LIKE BAD ACTORS FALSIFYING NAMES AND CONTACT INFORMATION TO HIDE THEIR IDENTITY.

THEY MANUFACTURE FRAUDULENT INVOICES, INFRINGING PACKAGING.

THEY OPEN AND CLOSE THEIR ACCOUNTS IN AN EFFORT TO DETECT, TO EVADE OUR DETECTION EFFORTS AND THEN THEY COLLUDE WITH EACH OTHER.

WE'VE ALSO SEEN A PRETTY BIG INCREASE IN THE USE OF SOCIAL MEDIA TO PROMOTE AND DISTRIBUTE COUNTERFEIT PRODUCTS.

>> AND ARE THERE ANY RED FLAGS THAT CONSUMERS SHOULD LOOK FOR THAT MIGHT TIP THEM OFF THAT A GOOD THEY COULD BE INTERESTED IN IS POSSIBLY COUNTERFEIT?

WHETHER THEY ARE BUYING IT ON AMAZON OR LOOKING SOMEWHERE ELSE?

>> YEAH IT IS A GOOD QUESTION.

WHEN I THINK ABOUT BUYING ONLINE, I APPLY THE SAME RIGGER TO HOW I SHOP IN A STORE.

I WANT TO READ THE PRODUCT PASSAGING, THAT IT COMES HIGHLY RECOMMENDED.

I WANT TO MAKE SURE I BUY IT FROM A REPRESENTABLE SELLER AND AT THE END OF THE DAY I WANT TO MAKE SURE I BUY IT FROM A PLACE THAT STANDS BEHIND THE PRODUCT.

AND I THINK THAT IS THE MOST IMPORTANT THING.

>> THANK YOU VERY MUCH.

WE APPRECIATE IT.

>> IT WAS A PLEASURE TO BE WITH YOU.

THANK YOU.

>> AND THAT WRAPS UP OUR SHOW FOR THIS WEEK.

THANK YOU FOR WATCHING "NJ BUSINESS BEAT."

I'M RHONDA SLAFRL.

AND WE'LL SEE YOU NEXT WEEK AND WE'LL SEE YOU NEXT WEEK.

>>> FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY NJCU SCHOOL OF BUSINESS, A GAME-CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY, OR BUSINESS ANALYTICS AND DATA SCIENCE.

WE'RE STEPS AWAY FROM THE EXCHANGE PLACE PATH TRAIN IN JERSEY CITY, AND MINUTES FROM WALL STREET.

LEARN MORE AT NJCU.EDU/GAMECHANGER.