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It is the name that brings joy to most American Consumers and fear to most american retailers. But now theres a new game in town. A competitor who is also promising low prices and quick delivery. Does amazon have anything to fear . That is our cover story today. 60 of americans made a purchase through amazon in the last 12 months buying everything from groceries to books and electronics. According to shulman research. The printer came from amazon, Computer Speakers here and here. Yoga mats, this kindle, radio. A lot of cds. Tv came from amazon. One in seven americans is a member of amazon prime. The 41 million prime members get unlimited 2 day shipping plus access to streaming music and video. These members spent 50 more a year than primetime customers. According to Consumer Intelligence Research partners. And sales are continuing to grow. In the Second Quarter of 2015, amazon sales rose 20 to 23. 2 billion. No wonder theyre a success. What started in jeff baeses garage. Could amazon be beat at its own game . Last night, shoppingclub. Com opened for business promising lower prices for half the price of amazon primes membership fee. Mark lawrie joins us. Thank you. I look at this like a competitor to not just amazon but costco. How does it work . We dont think about it competing directly with amazon or costco but a kond wit fcondu customers. This technology pulls the pie chain cost out of the system. We built this engine that processes in realtime as consumers shop to reflect the true marginal cost of getting it to you based on what in your basket. Part of it is luring shoppers almost like a gaming aspect of it. I can watch my prices go down as i add more to the basket. As you shop in a smarter way, it comes down, so you see that in realtime the prices going down. Youve had success in the past. Youve founded diapers. Com eventually bought by amazon. What got to this strategy . I see that the market is in the early stages. Were about 300 billion online. We see the market going to 1. 2 trillion in the u. S. Alone and a lot of participants are focused on convenience and people that are willing to pay a premium for service and nobodys really focused on innovating around price. Thats where were focused. I think that jet. Com is going to be a huge one for consumers. When you look at some of the prices, its kind of phenomenal. In fact, we had a producer playing around with stuff and ordering things. He actually ordered a toothbrush for 2. 11. It was part of a larger order but the toothbrush when it showed up was shipped by itself from walmart. Com and on the receipt you sent, it said it cost 8. 10. Thats a loss of six bucks. How do you sustain things like that . We are simply bridging, startups, the early days. The toothbrush will eventually be in the warehouse. We stock the allday Everyday Essentials in the warehouse. The toothbrush will be in the warehouse and put into the box and the incremental cost is how we priced it. The fact we went out and bought it at walmart. Com in this case is a temporary bridge. How soon will you have we have 25,000 products in the warehouse today and the end of 12 months, we have just about everyday essential product you can imagine in the warehouses. But still, thats the only stuff we sell. Everything else is from third party merchants. Were not competing. Were a conduit for retailers to drive for profitable traffic. We can drive instore traffic, instore pickup and give them a back in exit to set rules about controlling profitability by avoiding. Part of the problem, it was costing so much money to bring in new customers every time. I know you have 225 million in funding money thats already there. How long will that last though . How quickly will you burn through it . We have a lot of cash in the Balance Sheet and well be super aggressive about marketing. This is really a scale game and weve put out there the goal is 20 billion in five years. At which point, wed be at scale and have a long road ahead of us. Would you sell . Could you imagine selling to amazon. Com or somebody else . Were not obviously thinking about that now. We think theres an opportunity to create a large business. Okay. And whats been the most exciting thing youve done so far . I think its just been exciting to have a decade of experience in ecommerce and being able to do this again from scratch. All the learnings, build the right culture from scratch and bring in great people. All right. Mark, thank you so much for joining us. Thank you. We appreciate it. I bet. Now heres a look at whats making news as we head into a new week on the money. Picking up steam. The broadest measurement of the size and scope of the u. S. Economy grew at 3. 3 in the Second Quarter. Consumers spending and exports strong. So thats below expectations, but it is better than last quarters dismal showing. Stocks snapped the fiveday losing streak earlier in the week after Global Market stabilized. Those stocks fell on friday. The federal reserves open Market Committee kept Interest Rates steady near zero and a hike could come this year. The fed meets in september, october, and december. There could be a new window opening if you have a pc. Microsoft introducing windows 10 that combines desktop and tablet features and best of all, its free for most windows 7 and 8 users. Up next, were on the money. With football just around the corner, why is the nfl fighting with itself and can it score when it comes to a hightech future . And later, everybody wants to be financial lly well off. Whats one of the signs youre successful . Take a look at the stock market end of the week. Hush my darling. Dont fear my darling. The lion sleeps tonight. [snoring. ] hush my darling. [snoring. ] dont fear my darling. The lion sleeps tonight. [snoring. ] take the roar out of snore. Yet another innovation only at a sleep number store. I want to apologize to the fans of the new England Patriots and tom brady. I was wrong to put my faith in the league. That was new England Patriots owner robert. Upset that Roger Goodell upheld the four game suspension for accusation that brady and others tampered with the football. Brady and the patriots deny wrongdoing. Micha michael zaniana and michelle, thank you for being with us today. Mike, lets talk about whats happening. This is almost the best of times and the worst of times for football. You couldnt think of a Better Business youd like to be in but its amazing to watch these blow up time after time. 10 billion industry. Extremely fat profit margins, new deals coming all the time in the market and the tv side. Now you have the court case coming to new york which i think is bad for brady and i think it will make things easier for the nfl to get the fourgame suspension upheld. You think its bad because its a new york jurisdiction and the jets and giants fans here . I think minnesota is more favorable to the nfl players union. We saw that in the Adrian Peterson case, for example. I think thats why they wanted it there as opposed to new york which i think is more unchartered territory for the nfl p. A. Do you think at any point this impacts the business of the nfl . Its amazing the fans still show up and certainly Television Ratings have never been stronger. The nfl is teflon and i think we saw that as another demonstration with the far more serious issue last year, the nfl with ray rice and the video and there being more general awareness of some of the Domestic Violence incidents in the league and when week one game, everybody was back to the game. Theres a pattern of only helping the nfl and maybe drawn in, i dont know who the people are considering how popular the sport is, theyre drawn into the game because of the drama and the story line. I guess thats the question. Janelle points out its been teflon to this point. Great point too. If you look at what the number one jersey sale has been for any player, its tom brady. To his point, you have a rallying around. People have somebody they love and you get new england rallying around and then a lot of those sort of like tired of this golden boy image of tom brady saying, you know what . Well take the other side and going to latch on to this and despise him. Its this extension of the competitiveness we feel when we watch these things, watch it play out. The passion of the nfl, to what you said, one of the reasons the ratings are so high. What does it mean for Roger Goodell though . This has been scandal after scandal. Ho wow, its been a tough couple of years for him. I think with ray rice, he largely has the public on his side regardless of how this turns out in court. I think roger won the Public Relations battle. Tom brady and the patriots are a polarizing team. They win a lot. Theyve been successful. Brady has a golden boy image. Because of spygate, the perception of the patriots have theyre cheaters. Youre not going to find people condemning Roger Goodell for coming down on a team with people a negative perception of anyway. Mike, lets talk about the business of football. Its amazing to watch what you can get contentwise online and what you can see for the comfort of your own home. The problem for teams that arent in the leadership position. You know what, becky, i think you make a great point. You have almost sort of the stadium experience and the athome experience. With the league, its done a great job of on the margin managing to increase the new verizon deal that kicked in last year for handheld devices which is great. On the other hand, i mean, you still have sort of a problem, a little bit of a challenge selling tickets. So even lowered the requirement of sold seats last year for blackouts and now theyre not going to black out any games this year but on the margin, theyre still going to grow at a high single digit rate in terms of revenue and the profit will be fat because they have the cap on player salaries. Janelle, lets talk about the three teams that could wind up threatening to move to los angeles. You think any one of them goes there . I guess right now, im sort of eyeballing the raiders a little bit. Theres been a relationship with los angeles and certainly people have as a team thats loaded the jaguars forever. Some think they might go to london. I would be eyeballing that team because it depends what happens between them and the city. I know now or recently they had talks. Its just hard to imagine in this day and age period of a team moving. Because that tends to have very, the negative consequences and the reaction from that. Just curious as to how that would be handled especially with the day and age of social media. We saw a long time ago with the colts in baltimore and obviously saw it in cleveland. I just dont know if there is an upside. The owners tend to hold cities hostage. I dont know if the upside in leaving the city like before. Janelle and mike, thank you both for being with us today. Up next, we are on the money. How to tell if your Financial Fitness is fit. They may not be. The majority of americans say they feel good about Financial Health and ability to manage and invest their own money but many left confidence in times of market turbulence according to a new wells fargo survey. There are times to let you know if you are financially healthy. How to find out if youre on the right track when it comes to your money and future. What are signs youre in Good Financial Health . One of the things you should do is give yourself a financial checkup. The first place to start is know whats going on and whats coming out. Know what you owe and own. Thats really key. If you can tell folks and tell yourself what your liabilities are, what your assets are, youre in good shape. How often should you be doing that . Once a year . Definitely every year. One thing the know, when you look at what you owe and own, you get a better sense of your net worth and knowing your net worth and comparing it to your income, thats a key point. If your net income is higher, net worth, rather, is higher than your income, youre definitely financially healthier and great shape. Living within your means and thats another point. When i look at a house, you may owe but an asset or liability because i have equity in the house. Is that your asset . The equity would be your asset but you definitely owe the money, youve got to count that. Thats another point that comes in. You want to make sure the mortgage payments you have to make, the debt you owe. All of that adds up to less than a third of your income. And thats sign youre financially healthy. What are the signs you need to get more financially in shape here . Not practical about your spending. Spend whatever you want, whenever you want. From celebrities to people without money. Thats something. You need a spending plan, a budget. The other thing people do, they dont have Emergency Savings. How many people might have some savings automated for Retirement Savings but when it comes to having liquid cash on hand when something happens to your house or car, they dont have that ready and also, folks arent planning for Financial Security for the future and have enough Retirement Savings. So having adequate Retirement Savings and a strategy to make sure that you have enough, thats another sign that you need to do some work. If i see one of the red flags that pops up, what do i need to do to try and address those warning signs . The first thing is to sit down and think about it and create a plan and then a lot of apps out there, a lot of online tools to create a budget. The basic thing, how much youre spending on committed expenses or saving for the longterm, your Financial Security, your retirement and college. How much money is also going into Emergency Savings shortterm . And then you dont want to never have fun. You want to have some money on your want. You want a budget to allow you to do those things and when you need help, dont be afraid to ask. Theres nonprofit credit counselors, Financial Advisors willing to help you create the plan that you need to get to where you want to go. Thank you. My pleasure. Up next on the money, news for the week ahead and bottoms up. Sparkling summer wines to fit your budget. Well put them to the taste test when we come back. Because 100 whole grain oats are incredibly good for you. Because theyre heart healthy because theyre good for kids. And granddads and everyone else in the family. Everything we do is because of what really matters most. The goodness of oats and the people we love. For more on our show and guests, otm. Cnbc. Com or on twitter onthemoney. Media and entertainment giant disney, cbs time warner, 21st century fox and viacom report their earnings. Monday, auto sales are released for june and happy birthday mr. President. Barack obama turns 54 on tuesday. On thursday, the Buckeye State hosts the first republican president ial debate. It will take place in cleveland. And on friday, the big number of the week, well find out how many jobs were created when the unemployment report for the month of july comes out. U. S. Beer sales are flat, wine is bubbling. Uncorking 7 more sparkling wines this year than last. Food and wine magazines executive editor wine editor ray is here to tell us about whats behind the sales. And open bottles for us as well. Cant come without the bottles. Thats why we invite you back. Its the strangest thing. 40 increase in sales. Why do we like sparkling wine so much more . I think whats happening is it started to branch out from being just a special occasion thing to just, it used to be weddings, events. That was the only place people drank sparkling wine and now its for dinner, brunch, anywhere. Like for dinner for somebody. Yeah. Sparkling wine goes great with food. People forget that. Cheers, by the way. Cheers, thank you for bringing this. This is one of the huge success stories. Its from italy and verseco has been growth for years straight. Its taken off like crazy. And thats kind of classic. It is light. And i dont even like champagne but fewer bubbles. Its a little less overtly bubbly than champagne. Its done in tanks as opposed to the bottle creation part and softer, sweeter usually than champagne and kind of more of an apple flavor to it. Definitely get some of those notes. This is spanish rose. Rose has gone crazy. I make fun of guys who drink rose. People say brose. Which is kind of, whether you buy it or not, someone out there trying to believe that frat guys drink rose. But this is spanish rose from the kava region with a compa compacompan compancompany company blanc. Its a steal of a wine. Fancy event . Then theres champagne from the region in france. This is a 2008 louis brute vintage. A small percentage of the champagne market. 1. 3 . Not counting things like don r perignon. Thats a long glass. Very smooth. Its very elegant. Its got complexity. Its about 80 a bottle. But i like the vintage wines because theyre lower than the perignons. How much . About 80 and above the yellow label zone and a lot of bang for your buck, i think. And its just lovely wine. What do you think about wine cocktails . Are you a wine purist . Do you think its good or bad . I dont think its a bad thing. People should drink what they like. Im not out here to tell people, if you drink this, youre wrong, you know . But i think porseco, dont use something expensive in a cocktail because youll lose what made it expensive. Its fantastic my moe imosamimo. I had one the other day, terrific. So perfectly fine to experiment, do what you want. Just do it with the cheaper bottles. Exactly. Thanks for being here. Thanks for having me. That does it for us today. Im becky quick. Thank you so much for joining us. Next week, making sure you can pay for your golden years. Well have the top retirement of mistakes list to avoid. Keep it here each week on the money. See you next week. Hey foster farms looks like you left these two west coast birds behind foster farms chickens california grown. You guys arent from here. Wrong we love yoga and sunshine and stuff. Well foster farms chicken has no added hormones. Well i wish you didnt have any added negativity ha high five yeah hes not going far. Theyre local. Introducing fresh and natural chicken. California grown with no added hormones. From foster farms. Simply better. The drought is affecting at pg e weve definitely put a focus on helping our agricultural customers through the drought. When they do an Energy Efficiency project and save that money they feel it right in their pocket book. Its exciting to help a customer with an Energy Efficiency project because not only are they saving energy but they are saving water. We have a lot of projects at pg e that can help them with that and thats extremely important while were in a drought. Its a win for the customer and its a win for california. Together, were building a better california. Terry 2shot and im ter sweeney. Terrcu were llowingseveral good evening to you. Im peggy bunker. And im terry mcsweeney. Take a live look at the bay bridge which is seeing a lot more trsk than usual this weekend because of the b. A. R. T. Closure. Theyre on track to reopen the tube for mondays commute. Tens of thousands of riders are counting on it. Another dead whale has washed up on shore. The humpback is the third whale to land on the same stretch of the beach in the past few months. No

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