Transcripts For WTVJ On The Money 20160214

But how we celebrate is also changing, and its not just chocolate and roses. While the percentage of americans buying candy has remained relatively stable over the last decade, the number of consumers buying greeting cards has fallen off nearly 15 and the number buying clothing has increased by more than 5 . Many couplpl now celebrate the couple with a night out, which may include dinner to a restaurant or tickets to a show. 30 years ago, jim mccann was a disrupter before we ever knew what that term meant. He changed the name of his flower stores to a 1800 number. Toda he leads the company with more than 1 billion in sales. Jim mccann is 1800flowers. Com founder and ceo, and jim, thank you for joining us. Good to see you. Good to see u, becky. Jim, ive known you for a lot of years, and ive never really known how you got started in the flower business. Is it true you were moonlighting as a bartender and heard about a it was across the street from the place i worked at here in manhattan on friday and saturday nights. One of my cheers who would stay later into the evening owned the flower shop and said he was going to be selling it. I thought, thats an interesting business. I was a social worker during the anytime. I thought, retail, working at people with nice times in their life, maybe ill give it a try. So i bought that flower shopnd another and another and another. That was a long time ago, as you say. W wre calling you a disrupter, because you were the original disrupter to the flower industry category, but youve reinvented yourself several times over. First it was the tollfree number, 1800, and added dotcom to the end when it came to online. Now youre into mobile. How do you keep changes with the times and whats the next wave . Its a multiheaded wave. Everything about local, everything about social. I think the best way for us to stay connected is to be, is to be paranoid about whats going to come next, the change. If you look at the essence, becky, of why we embrace all the ing convenient, and its all about being accessible. And if we do that, we can really help our customers toct on their thoughtfulness. The more convenient and accessible you are, the more likely when you have that good thought like, oh, its valentines weekend, and geez, i ordered in my case, i want to make sure im sending those boxes of butter cream cookies to my grandkids for valentines wqekend, im more likely to act on that if its as convenient as picking up my smartphone and placing an order in just a minute or so. And we still have stores, we still have the internet, we still have telephone accessshen its appropriate. And most of our customers are multichannel or omnichannel. They come to us whichever way is convenient or appropriate for them a a the time. I know your Company Earned more than 1 billion in revenue last year, but less than half of that came from flowers. I think it was 55 or something came from gourmet food and gift baskets that were out there. Is that the trend that you expect is going to continue . What were seeing, becky, is our flower business continues to grow. Our food business is actually growing at a faster base. And now, more and more thoughtful, nonperishable gifts as well. Valentines day falls on a sunday this year. Is the delivery business, is that theorst time it could fall for you . From a delivery point of view, its actually a little easisi for us, because we have a network of florists around the country, around the world who are set up to make those deliveries. More people are going to be home friday, saturday, and sunday than they normally would be during a workweek. So it retards demand a little bit, butt gives us a better delivery opportunity. So business on the topline will be challenged a little bit. But on the bottom line, in terms of being able to deliver a lot of gifts, a lot of smiles, and do it more conveniently than we can on a busy friday, so its a balance. We actually dont mind it fallinin on a sunday. Jim, thank you. 1800 flowers and ftd are the estaished online players, but new startups are also shaking up the industry. And joins us now with more. Kate . Reporter hi, becky, thats right. If youre in a panic over lastminute flowers for valentines day, its not too little. Theres a whole new crop of ondemand flower startups that are promising to make your lover happy in two hours or less. Rachel ciao is busy fulfilling sameday orders for the booth company. Theyre sourcing flowers from ecofriendly farms in south america and the states for nextday delivery, and theyve recently added Sameday Service to artisans like rachel. Their leaner supply chain cutting out the middle man leads to lower costs. One of the things youll see thats very different for us versus competetors is that pricing, especially this time of year, around valentines day. Armed with sleek apps, vc dollars, and a focus on sustainability, competitors in the ondemand ecofriendly space include bloom that, which wraps its flowers in compostable its own inhouse bike couriers for delivery. While spending on flowers for valentines day has remained stable in the past two years at about billion, the more traditional florist industry has taken a hit over the past decade, going from more than 9 billionn 2006 to less than 6 billion last year, as Grocery Stores and online players have increased their market share. Which is why savvy florists like rachels are turning to the booths. As a booth customer, they keep growing, because they retain their customers, as well asasheyre reaching out to, you know, many different people, and the demographic. Its not only valentines day, theres birthdays,nd anniversaries, and gifts for their parents and things like that. So theres a lot of opportunity to keep buying flowers and just making somebody happ rachel is expecting a very busy weekend with some very happy valentines. Kate, why are these companies so heavily marketing the becky, when i talked to john tabt, hes saying a lot of people that work for him and a lot of the customers he currently has and hopes to have areillennials and they wont stand for anything less than a company thats committed to that ecofriendly sustainable product. And if you go on those website and those apps, its a really seamless user interface, and thats something that speaks to the millennial generation and it seems to bsomething that all three of those companies are trying to market heavily towards. Kate, thank you very much. Up next, we are on the money. A year ago, cvs quit smoking, removing all cigarettes from its drugstore shelves. Has it hurt the bottom line and does the chain have other changes in store . And later, your money, your marriage. What you need to ask before popping the question. And as we go to a break, take a ended the week. Your path to retirement. May not always be clear. But at t. We price, we can help guide your retirement savings. For over 75 years, investors have relied on our disciplined approach to find long term value. So wherever your Retirement Journey takes you, we can help you reach your goals. Call a t. Rowe price retirement specialist or your advisor. To see how we can help make the most of your retirement savings. T. Rowe price. Now heres a look at whats making news. As we head into a new week on the money. If youv never heard of negative Interest Rates, well, you are not alone. The Federal Reserve chair janet yellen says that they are not off the table. In her semiannual testimony before the house and congress. Negative Interest Rates means that the central bank would charge banks interest for some of the money that they keep at the fed. That could encourage the banks to actually lend more money, instead of paying the fed to keep it. Itit never been tried before in the united states, but it is being used right now in japan and o oer countries around the world. That did stocks no favors. The dow falling 250 points on thursday, after an incredibly volatile and negative week. The s p 5000 touched the lowest level its seen in nearly two years. Stocks rebounded on friday. But all is not lost. Burger king is aoing to start selling hot dogs right along side the whopper, flame grilled and everything. Menu in decades, and it comes amid increased strength in mcdonalds with its all Day Breakfast menu. There are changes ahead at your corner drugstore. Cvs, the nations second largest chain recentl changed its name to cvs health. Part of the move to add that word was removing all tobacco from its stores. David doorman is cvs healths executive of the board. Great to see you. Thank you. I know this change went through a year ago, and some experts say it probably cost you about 2 billion to remove tobacco from the stores. Was it worth it . Absolutely. It was just inconsistent with our mission to be a Health Care Provider to sell tobacco. What we didnt expect, frankly, is to get as much credit as we have. Peopleave responded, the view of the brand is better than its ever been, because they said, heres a company that made a decision to affect their sales and bottom line, and move forward with the right answer. Lets talk a little bit about one of theeadlines that we and that is the high cost of drugs. Its back, front and center in the media at this point. Largely because of Martin Shkreli being called in front of congress. Is that representative of the drug industry, overall . So to generalize it, based on the behavior of a few bad actors is not fair. But at the same time, drug costs have gone up. And theres a cycle here, generic drugs, which have been a huge benefit toonsumers the last three years, Something Like 90 billion of previously Ethical Pharmaceuticals on patent have come off, and those prices have fallen 60 or 70 . So for consumers, thats a 50 billion to 70 billion windfall. But at the same time, new drugs come on that are narrow in application, you know, they affect a fewer number of people than, say, statins have done and the prices are higher. But if youre someone who benefits from that drug, lifesaving drug,he price is, you know, less material to you. We have a situation where pocket for their drugs and for their health care at this point, too. So maybe its something thats hitting the consumer a lot more in the face than it used to. Well, as obamacare evolves and people make their own Health Care Insurance decisions, less made by their company and more about individuals, there is more choice. And sometimes those choices have higher costs than people ever realize, because their employer was payin for it, or the government. How has it changed your business from the care prescription side of the situation to realize that mor and more people are selfinsuring and going hrough the Affordable Care act, obamacare . In our business, we see increases in Medicare Part d medicaidfilled prescriptions, which are negotiated very rd. Right. And tend to be very at the very bottom of the pricing stack. And individuals, at least, who are selfinsured, you know, who have not just copay, but total shock. Cvs also just bought 1,600 pharmacies inside target. Hows that Partnership Working out . Target is a terrific brand. Our brand will bring more foot traffic into target stores, so they win, and our Health Partners who look for convenience, they have 1,600 more locations where they can pick up prescriptions. And with our maintenance choice product, we allow our Health Care Consumers to pick up in store, mailedo their home, or to a pharmacy within the network of chair choice. You not only sit on the board of cvs, but several othej boards, including yum brands. Where do you think we stand right now . How are americans feeling . With Energy Prices as low as they are, everyone whohoas a car feels this directly. So theres been a gas price dividend. Its hard to find where its shown up, you know, ive heard so people say that, you know, casual dining and dining in general i maybe up a little bit. Its hard to see that from where clearly, auto sales were up. So certain durables benefited, i think, from that dividend. But on the other hand, you know, were not in a robust economy, in this country, you know, given the recent economic numbers. Its a confusing time, because you wouldnt think we would be as linked to chinas problems as we are as a consumer of their goods, which theoretically should be going down in price, based on supply and demamd. David, thank you so much for your time today. P you bet. Up next, were on the money. Planning to tie the knot . Have before you say i this is a body of proof. Proof of less joint pain. And clearer skin. This is my body of proof that i can fight pspsiatic arthritis with humira. Humira works by targeting and helping to block a specific source of inflammation that contributes to both joint and skin symptoms. Its proven to help relieve pain, stop further joint damage and clear skin in many adults. Doctors have been prescribing humira for 10 years. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal infections and cancers, including lymphomama have happened, as have blood, liver and nervous syem problems, serious allergic reactions, and new or worsening heart failure. Beforereatment, get tested for tb. Tell your doctor if youve been to areas where certaia fungal infections are common, and if youve had tb, hepatitis b, are one to infections, or have flulike symptoms or sores. Dont start humira if you have an infection. Want more proof . Humira. This is my body y proof . 9 million americans are expected to get engaged this weekend. It will be valentines day, after all. But before you get a ring on it, you better get financially intimate. I spoke to Sharon Epperson about what questions you should ask before you committo someone else. So you really want to have an idea of what you want in the future. What is your vision for the future. What will your financial future look like . Anderes a really key point. And its hard to kind of have this conversation. But you need to know this. What do you owe and what do you own . You know, thats a conversation thats hard to have, but first, you have to see for yourself where you stand financially. And then, what is your style . How do you address money . Do you pay all your bills as soon as they come . Do you wait untililhe due date . Or do you pay them late . What is your style and kind ofof style is will help you then have th talk with your partner. What sort of questions should you be asking your spouse or your future spouse about money . Well, its not romantic, but you need to be a bit vulnerable. Explain what your worries are. What are your concerns about money and being able to reach your financial goals. What is holding you up in getting there. What do you think may be a challenge for both of you going forward. And every question that youve asked yourself about money, y y need to ask your spouse or your partner about that. And then, also, think about what their responses are, and lten carefully. Respect their positions. Dont just jump on them, because they said something that you dont agree with. U want to really respect where they stand. And specially where theyve come from. A lot of people have reasons the way they are. Theres a reason why theres a lot of student loan debt. You have two graduate degrees, sosotimes thats going to happen. You need to understand where theyve come from, and what the potential is then to get on solid financial footing in the future. What are some of the dos and donts when it comes to one of the big things you want to hide debt, you dont want to keep secrets, and you really want to make sure that you dont label each other as a spender or a saver, but you want to make sure that you dont just automatically say, you know, youre no goooo with money, youre a total spender all the time. Or youre a cheapskate. The main thing you really want to do with your partner is have that conversation. You want to make sure that you have the conversation and that you are open about having that money talk. You want to make sure that, also, when youre having it, youre talking about what your goals are, what your dreams are, and that youre also being very realistic in reaching those. There are going to be some pitfalls along the way. How are you going to planor those emergencies . Thats a very important conversation to have. And make se you both get where you want to go in the future . Sharon,thank you. My pleasure. Up next on the money, a look at the newspfor t t week ahead. And rock n rolls huey lewis. Well talk about the music business and how he turned down millions of dollars. Why . I dont know. Get simply ageless makeup from covergirl and olay. With b vitamins, and spf. It floats over lines and you lolo beautiful and now theres simply ageless liquid makeup it helps you look younger in three ways. So in the future when youre older you look younger. Simply ageless from olay. And easy, breezy beautiful covergirl why are you singing the end . Tpis bale of hay almost derailed the ranch. When a wildfire raged through elkhorn ranch, the sudden loss of pasture became a serious problememfor a family business. Faced with horsese that needed feeding the owners were forced to place an emergency order of hay. And with a complete view of her finances, she could control her cash flow, and keep the ranch running. Chase for business. So you can own it. Didou know theres a cough liquid that lasts for twelve hours . Try delsym twelve hour cough liquid. Its advanced formula releases powerful medicine that acts fast while its extended release medicine lasts for 12 hours. For more on our show and on our guests, you can go to our website, otm. Cnbc. Com and you can follow us on Twitter Twitter onthemoney. Here are the stories coming up that may impact your money this week. On monday, the markets are closed for president s day. And the 58th annual grammys on wednesy, well be getting a report on inflation with the producer of price index. Well also hear about whether theres any improvement in the Manufacturing Sector from the Industrial Production numbers. And the federal r rerve will release its minutes from januarys meeting. On friday, the consumerrice index for january comes out. Huey lew and the news are entering their 36th year ago as a band. Theyre set to go on tour this spring. Earlier, i spoko to huey about the changing nature of the Music Industry and about how being on the road drove his love for golf. Golf is a great complement to rock n roll touring, because, you know, we spend a lot of time in the midwest, for example. And whats in the well, if you play golf and youre in ohio, youre in mecca. There are great golf courses everywhere. You get out of the hotel, no cell phones, no peop, fantastic. You know, i read a little bit about when you did sports, when you did the algorithms. Every song on that you wanted to thats the way it worked with the radio stations. But how has music changed since then . Well, immeasurably. You kn, whats really interesting is to watch the going to have. And im not sure its good. When musics free, whos we just lost glenn frei this year, which is a sad deal. What a greatat talent. But the eagles, look at a band like the eagles, who made these wonderful records, but they were notoriously meticulous, those records. Spent a lot of money on those records, making hotel california. Spent a lot of time and a lot of money. Whos going to do that when records are free . Its also a very worrisome free. I know that cocacola pursued you pretty heavily at one point, after Michael Jackson got signed by pepsi and they wanted you and were throwing millions of dollars your way. Wh did you say no . I dont know, i was an idiot, frankly. Id never done anything. I still havent ever done anything for money, you know . Concerts and making more money than wed ever made and i ththght, why would i do this for money . You know, im an tist. Would you change your mind today . Oh, yeah. I a blues fanatic. Where do we hear real blues music. Muddy water blues music. Where do we hear it . On ads, toyota ads. The corporate world, which was sort of we our influences were bohemian in those days, but now people who are my age in the corporate world, theyre more bourgeois, can but their tastes are rooted in those 60s bohemia, and thats where we get all the a lot of its corporate driven. Even bob dillen. Exactly, exactly. Its okay to do. Yeah. Bob evevething bob does is cool. I know that youre an investor and have you been kind of watching the stock market this year with the horrific start to the year yeah. What do you think . I think its looking for a im an investor, im not a speculator. So, you know, i just sit tight, but i think we had an amazing run, so this is a correction off sorts. And i think if you just buy, you know, blue chip stocks and the paid dividends and hang on, youre going to be fine. What kind of stocks do you buy . Well, i buy funds. I buy funds. I cant i cant watch if i was a stock if i watched the market every day, i cant do that. Im out playing harmonica and golf so i just buy funds. A nice little blend of funds and let it go. Huey, thank you so much for your time. Thank you. Thats the show for today. Im becky quick. Thank you so much for joining me. Next week, how to can out your closet and make some money. The company that will take you gently used clothes and cut you a check. Each week, keep it right here. Were on the money. You next weekend. Sara gore im sara gore and this is open house. This week were shining a spotlight on sports fanatics dream homes. Well take you inside a contemporary estate in pasadena designed to let you play in a big way. And a connecticut compound complete with a golf course, tennis courts, basketball court, and so much more. Plus a long island home with a sports bar and putting green. But first, the ultimate sports playground that was once home to actor mark wahlberg. Sara gore welcome to open house. Right now im coming to you from a truly unique penthouse on the Upper East Side of manhattan. This prewar takes up the 17th and 18th floors. One of the most exceptional features is this gorgeous solarium. Each bedroom features an onsuite bathroom. And some of my favorite spaces include this custom closet and the private terraces. Now over the years, weve featured plenty of opulent homes with overthetop amenities, but the ones were showing you today are designed for the stuff of dreams for the sports enthusiast. Im talking sports complexes, golf simulators, bowling alleys, and so much more. We begin with the california compound that was once home to mark wahlberg. The actor built an airport hanger on the property and turn it into a sports mecca with ties to his boston roots. We dubbed this one the ultimate sports fan paradise. Valerie fitzgerald theres only one way to drive