Telsey Advisory Group Founder Dana Telsey Talks GLP-1s

SPEAKER_1 (0:02)

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Tom Keene (0:07)

Right now, Dr. Telsey is with us. Dana Telsey of the Telsey Advisory Group. And it's a special report, Paul. You've done much better at this than me. This is this earth-changing way that I see people losing 40 pounds or 30 pounds in stow.

Paul Sweeney (0:23)

Yeah, and it's changing lifestyles. I can see that in my household as well here. Dana, I know you're looking at the retail. That is your area of remit here. Talk to us about what you're seeing. As people's habits change, how's it changing how they impact at the retail level?

Dana Telsey (0:39)

Amazing. What we've been seeing from GLP-1s, and thank you for having me, what we've been seeing from GLP-1s, whether it's food, whether it's protein, whether it's clothing and size changes, whether it's health and beauty with skincare and more moisturizers, whether it's gym workouts. So it's going across the lifestyle spectrum. And that also brings us with around 11% of the adult population using it now, more women than men, and continuing to increase given the health benefits that it's shown to have.

It's going to be a stimulant for holidays. And we came out with our holiday sales forecast of 5 to 5.5%, which is a good forecast showing good growth versus last year over 6%.

You have some normalization of promotions. You have inflation. But you know what? GLP-1s is also accelerating what consumers are going to buy for gifts for those people that are on it.

Paul Sweeney (1:36)

In what way, for example?

Dana Telsey (1:38)

Clothing. You're seeing new styles of clothing. You're seeing the size changes. You're seeing are they going to go buy anything for dinners out and the experiences that they have. You'll see them go and buy beauty treatments. So, all the different ways, GLP-1s are definitely a consumer accelerant in terms of spending.

Paul Sweeney (1:59)

And I would think that we're still kind of in an early stage here because now we've gone from the injections to now more and more oral dosage. And I would think that would open up the market to a whole ton of people that maybe did not want to inject.

Dana Telsey (2:14)

Yep, it's definitely oral dosage, but you know what else it's doing? It's getting cheaper. The cost of GLP-1s is coming down. Health benefits increasing, costs decreasing. What is it doing? You gotta buy clothes. You have to buy new skin care. You've gotta go out and eat differently, whether bringing back lunch for work or going out to eat with your friends and family at restaurants.

Tom Keene (2:38)

Dana Telsey with us here with an important report on GLP-1. Look for that from the Telsey Advisory Group. Can't say enough about it. You mentioned the holiday season. I was at the Met last night and on the third beverage ball. I was out of control.

Paul Sweeney (2:51)

Sure.

Tom Keene (2:52)

And the American way with the Tiffany stuff all around. Thank you Tiffany for having me and Mrs. Keene there. And I did a toast to 57th Street and Fifth Avenue.

You more than anyone I know, the Four Corners there, even with the Louis Vuitton construction site. How's the Tiffany merger gone from an American institution over to the are no family and then the stumbling forward? How do you perceive that merger?

Dana Telsey (3:20)

I think it's going well so far. You think about the growth rates that it's had, it's growing faster than it did when it was its own public company.

You think about the icons that it has, whether it's hardware or not, the Elsa Peretti collections, they're being accepted by younger generations also. Look at the remodels of the stores. They've done at least 40% of the stores and they're getting a sales lift. And Blue Box Cafe, reservation is hard to get. You look at remodels that have gone on, they just did South Coast Plaza in Orange County in California. They put in a Blue Box Cafe there. And watches and jewelry is an overall category.

Gaining share, two reasons, bridal, improving a little bit. Now that you're past COVID, people are getting engaged because they didn't date during the years of COVID.

Tom Keene (4:09)

John, there's hope.

Paul Sweeney (4:11)

Yeah, the three of us should give some advice on that. Yeah, exactly.

Dana Telsey (4:15)

And also, fashion jewelry. Women are buying jewelry for themselves as ornaments and as decorative pieces, and it's an attachment to your new clothing.

Paul Sweeney (4:25)

How does jewelry, does jewelry have a digital component? Like, do people buy jewelry online?

Dana Telsey (4:32)