"What quick action from Clemenza!"
Walt glanced at the rearview mirror, where the crowd still surrounded the lobbyist's body, and sighed.
Leo nodded, his tone filled with approval:
"Clemenza is different from Mike. As an old-school mafioso, killing is as easy as eating or drinking for him. If the times weren't changing—if the value of force was declining and the value of money was rising—Mike wouldn't be able to keep him in line at all. But I heard he's been in poor health lately. After dropping me off, buy some gifts and go visit him on my behalf. Tell him: if he's thinking of stepping back from the front lines, I'll arrange a comfortable place for him in the West to thank him for his service to me these days."
"Got it, boss. While you were negotiating with Jack from Macy's just now, Walker sent word that Hills seems to have agreed to those people's invitation," Walt said.
Upon hearing this, Leo's face showed no disappointment—instead, he looked quite satisfied:
"That saves us the trouble of first being polite before taking tough action."
"Boss, I don't get it. Hills is a public company, so why did you choose Macy's instead?" Walt asked.
"Because Hills is worthless," Leo replied, flipping through the documents about Hills Department Store in his hand.
"But its market value is $200 million, boss. You can't call that worthless," Walt protested.
"Without Valentino Retail, it's worth $200 million. With Valentino Retail, it's worthless. Before we establish absolute dominance in the retail sector, it's unwise to dive into the department store business and compete directly with Macy's. On the contrary, acquiring Macy's will help us complete the integration of the entire retail industry ahead of schedule. Besides, Jack Strauss is a talent," Leo explained.
Walt nodded, as if beginning to understand. Then he opened his mouth, wanting to remind Leo of the promise to let him go out and make a name for himself—but remembering he had already brought it up not long ago, he closed his mouth again.
Leo happened to catch Walt's hesitant expression. He said in a slightly annoyed tone:
"I haven't forgotten your matter. Noodles has already returned from the West."
"Really, boss? What do you need me to do?" Walt asked eagerly.
"You've been involved in all aspects of the retail business lately. Let me test you: what's the most crucial link in my retail layout?" Leo said.
Walt answered without hesitation:
"Definitely the W Supply Chain Company that Harley is in charge of."
"Good—you have a clear understanding. W Supply Chain controls all retail endpoints. It's far too important for me to feel at ease entrusting such a critical task to an outsider like Harley. You'll go to the supply chain company as his deputy. Remember: talk less, learn more; observe more, do more."
Seeing he had a new assignment, Walt nodded excitedly:
"Don't worry, boss."
That night, Dewey learned that George—the lobbyist who had always followed him—had been hit and killed in the street. He immediately called Wallace, the leader of the Progressive Party, who was now isolated and alone. In a rage, he shouted:
"How can you let someone so reckless continue to break the rules like this!"
"Calm down, Dewey. Don't take any unnecessary actions—otherwise, you'll be putting yourself in danger too," Wallace tried to soothe him.
"How dare he!" Dewey roared.
"Why wouldn't he? You're no longer a presidential candidate protected by the Secret Service—you're just an ordinary governor. And it's not like he's never killed a governor before… in fact, he's killed more than one! I asked Jesse, the Governor of Virginia, who's clashed with him multiple times but still remains unharmed. As the only one who escaped Leo's reckoning, Jesse told me: as long as you respect Leo's rules, he won't overstep. "
"What rules? Rules that let him keep growing stronger?" Dewey questioned.
"No, Dewey. Through what happened to your lobbyist, he's already told us the bottom line of this war: no more loss of life! The war will be confined to the business field only!"
The day after the negotiation with Jack Strauss ended, to avoid any unexpected complications, the two parties signed the acquisition agreement. The Strauss family owned 88% of Macy's shares; the remaining shares belonged to other shareholders, but management was still in the Strauss family's hands. With absolute control, Jack alone had the final say on ceding majority control.
At the signing ceremony, as they shook hands after signing, Jack Strauss looked worried and asked Leo:
"Do I need to hire bodyguards?"
Leo shook his head:
"No. Those people know very well that getting rid of you would only anger me, making things even worse—and that would be of no benefit to them at all."
"I heard Hills agreed to those people's terms and also launched a tiered membership system. They say their business has grown rapidly these past two days, dealing a 不小 blow to your Valentino Urban Retail business?" Though they operated in different market segments, both were in retail, so Jack paid close attention to the movements of his old rival Hills. Now that he had joined Leo's camp, he naturally hoped Leo would win—so his question was a subtle way of asking if Leo needed help.
"Thank you for your concern, but Valentino Retail represents a revolutionary change in the retail industry. The tiered membership system is just the tip of the iceberg. They might be able to copy the surface, but the real core—ultimate customer experience—is something they can never replicate. And that's the key to how we attract customers," Leo explained.
To Jack, this explanation seemed a bit far-fetched. After all, having worked in retail for so many years, he knew all marketing tactics were more or less similar. He was curious what kind of disruptive difference Leo could really bring. While Jack admired Leo's insight, he thought the young retail newcomer might still be a bit too idealistic. But now that Leo was his new boss, if Leo was unwilling to listen to the advice of a seasoned retail veteran like him for the time being, Jack decided he would step in to turn the tide when Leo encountered setbacks.
"Since Macy's has now become part of the Valentino Retail family, it's only natural that Macy's should enjoy the benefits of the family directly," Leo said.
Jack's heart immediately tensed up at these words. A voice kept echoing in his mind: Here it comes. Here it comes. This young man just couldn't hold back from interfering in Macy's operations after all!
Jack asked cautiously:
"Mr. Valentino, what exactly do you mean by 'benefits'?"
Leo gestured for Harley behind him to step forward, then introduced him to Jack:
"This is Harley, the CEO of W Supply Chain Company. Perhaps you two can have an in-depth discussion. Don't worry—I promised you earlier: if you think it's not suitable, you have every right to refuse."
Jack knew Harley. As an executive at Franklin Retail Company, they had crossed paths before—they weren't complete strangers.
While Leo mingled with others, clinking glasses, Jack whispered to Harley:
"Harley, you're an old hand in this industry. It's always been the endpoints that control the supply chain. This is the first time I've ever heard of a separate supply chain company. Did you run the last company, Franklin, into the ground, and now you're here to fool this young billionaire?"
"You overestimate me, Mr. Strauss. Franklin collapsed because of the management's aggressive stock market strategies—not because of a peripheral figure like me. As for establishing W Supply Chain Company, that was entirely Mr. Valentino's idea," Harley explained.
"That makes even less sense. As an employee, it's your responsibility to tell your employer: as long as the endpoints hold the pricing power, there's no need for a separate supply chain company at all," Jack said, annoyed. He was now afraid Leo would lose, so he was deeply dissatisfied with Harley's apparent inaction despite drawing a salary.
Harley didn't get angry at Jack's accusation. If he hadn't seen the magic of computers with his own eyes, he wouldn't have supported the idea of a dedicated supply chain company either.
"Mr. Strauss, an era of change in retail is coming. The supply chain will no longer be a subsidiary of the endpoints, but a partner to them. Close cooperation between the two will bring huge profits. And it's our boss who's driving this change," Harley said.
Jack scoffed at Harley's words:
"Harley, from what I remember, you've never been the kind of crook who tricks people out of money. How can you say something like that? Only the endpoints can accurately judge customers' preferences and thus source the right goods. That's a problem the supply chain can never solve."
"I don't deny that. But there are indeed things the supply chain can do that the endpoints struggle with. For example, improving profit margins by optimizing product inventory, shortening procurement cycles, and optimizing logistics and distribution—so that both the endpoints and the supply chain can make more money," Harley replied.
After hearing this, Jack had completely written Harley off as a fraud trying to deceive Leo. He sneered:
"Macy's has its own supply chain system too. I've been adjusting and optimizing the things you mentioned this whole time. As one of the retail companies with the most product categories, I'd say I'm doing the best job in these three areas. But human effort has its limits. No matter how much you optimize management, the costs saved by the supply chain will always fluctuate—especially inventory management, which is like a gamble. That's why most people in our industry don't want to waste time optimizing the supply chain. The consensus is: instead of messing with the supply chain, it's better to focus on launching a hit product at the endpoints—that way, you can make much more money."
Harley understood Jack's stubbornness. In his view, it was hard for ordinary people to comprehend the huge changes brought by advanced tools—and in the end, facts would have to speak for themselves. Harley said:
"Jack, let me guess. With Macy's own supply chain, your net profit margin is around 8%, right?"
"You seem to be ignoring Macy's brand effect. Our actual net profit margin is 10%," Jack said, tilting his chin proudly. This profit margin was among the highest in the U.S. retail industry, and he always took pride in mentioning it.
"Wow—no wonder the boss said you're a genius. That number is indeed impressive. But Jack, if you switch to W Supply Chain, I'm confident we can increase your current 10% net profit margin by an additional 2.5%—and that's a conservative estimate," Harley said.
As soon as Harley finished speaking, Jack stood up abruptly, his voice trembling with anger:
"You fraud! It's bad enough you're fooling an outsider like Mr. Valentino, but you dare to come and fool me too? Come on—let's go find Mr. Valentino right now. I'm going to expose your true colors!"
It was easy to understand Jack's anger. After all, his previous 10% net profit margin was truly something to be proud of. By comparison, Hills Department Store only had an 8% margin, and other retail stores had margins as low as 5%. Even Franklin Department Store, where Harley had worked before, had a net profit margin of just 3% due to the proliferation of franchise stores. Jack's 10% margin was undoubtedly the peak of the industry in that era—and he was confident this figure had already reached its limit, with no room for further improvement. Yet Harley had casually claimed he could increase it by another 2.5%, calling it a "conservative estimate." To Jack, this was nothing short of a fantasy. He couldn't accept that there was a "fraud" in his team before the battle even began.
Their argument caught Leo's attention. After understanding what the dispute was about, Leo smiled and invited Jack to visit W Supply Chain Company with him. Though Leo was the chairman of the largest real estate company in the U.S. and owned numerous properties in Manhattan—a place where every inch of land was worth its weight in gold—he had decided to locate W Supply Chain's headquarters in Brooklyn, New York's largest logistics hub, given the company's business nature. The company was situated in the riverside port area, where more than twenty warehouses were managed by W Supply Chain.
In the CEO's office on the top floor, Jack wore an expression that said "you can't fool me." He snatched the account books of Valentino Urban Retail from Harley's hand and flipped through them quickly. He turned the pages faster and faster, then slammed the books on the desk and said to Leo, who was sitting on the sofa:
"Mr. Valentino, I regret to tell you that there's a problem with these account books—they're probably fake. The inventory records and retail sales data seem to match on the surface, but in practice, this kind of perfect, waste-free situation is almost impossible. So I'm certain these are fake accounts."
Looking at the resolute Jack, Harley couldn't help but laugh and cry. He turned to Leo and asked:
"Boss, should we show Mr. Strauss our secret weapon?"
Upon hearing this, Leo looked at Jack—who was sincerely looking out for him—and nodded approvingly:
"All right. But after seeing it, remember to tell Jack he'll have to wait two months if he wants our secret weapon."
A secret weapon? It sounded more like something out of a fairy tale. Jack followed Harley downstairs, confused. They passed through the busy, sweat-filled inventory counting area—familiar territory for him—then through the relatively clean but still improvable data entry area. Next, they walked through a quiet section where the staff looked like intellectuals; a sign on the door read "Data Analysis Area." Finally, they put on dust-free suits and entered a spacious, bright room with a sign that said "Core · Computers."
Inside, ten large rectangular machines—unfamiliar to Jack—were neatly arranged. Next to each machine stood two or three people with the same refined demeanor as the staff in the data analysis area; some were operating the machines, while others were organizing the paper sheets the machines spat out. Everyone looked extremely busy.
Harley stepped forward and handed a stack of data to Jack. Watching Jack's jaw drop in shock, Harley smiled confidently:
"With these machines and the boss's financial support, W Supply Chain is expanding at an extremely fast pace. Right now, all retail companies in the southeastern U.S. have signed betting agreements with us. Like you, they have rigid stereotypes about supply chains. They're greedily eyeing the compensation they'll get if we lose the bet, but they don't realize: in the face of the precise calculations of computers, they're destined to be the losers. We have three months left until we unify the supply chain in the southeastern United States."
Facts spoke louder than words. Jack was now fully convinced that W Supply Chain had the ability to increase the net profit margin by 2.5 percentage points. At the same time, he also agreed with Leo's earlier point of view. As Hills' old rival, Jack knew that the precise supply allocation of W Supply Chain would be an overwhelming blow to Hills' shoddy supply chain.
Wait—this wasn't the time to think about that. Jack suddenly realized that such data analysis machines could also be used in his own Macy's. He immediately turned to Harley beside him and asked:
"What time does Mr. Valentino get off work?"
Harley replied instinctively:
"Five o'clock."
Upon hearing this, Jack immediately tossed the documents back to Harley and ran downstairs as fast as he could.
5:00 p.m. As a super-rich man, this was his quitting time. At his home in New York, the "Sicilian Beauty" had already changed into a figure-hugging custom maid's outfit and prepared a table of hearty Italian dishes, waiting for his return. And the young blonde girl had even specially prepared angel wings as a surprise.
Well, Leo's tastes were just that tacky—and right now, he was heading home to enjoy life.
Noodles, who was just as beaming as Leo after returning from Hollywood, opened the car door for him. He waited until Leo was comfortably seated before walking around to the driver's seat. Every movement of his betrayed familiarity and respect—a respect earned after Leo helped him avenge his grievances and reunite with his first love.
"Mr. Valentino, wait a minute!"
The voice arrived first, followed by the man himself. Still wearing a dust-free suit, Jack panted as he waited for Leo to roll down the car window:
"Mr. Valentino, about that computer—can Macy's purchase one ahead of schedule? With it, I'm confident Macy's 1949 revenue will double that of 1948."
Leo turned his head to look at Jack and said:
"There's no such thing as a free lunch, Jack. If you want that computer, Macy's must abandon its existing supply chain."
Leo's words made Jack freeze. Though he had seemed dismissive of supply chains earlier that day, the truth was: if Macy's gave up its in-house supply chain, it would be handing over its lifeline to someone else.
Watching Jack hesitate, Leo said slowly:
"Macy's is my company now, you know."
Jack suddenly had an epiphany. Right—he was just a minority shareholder now. Whether he held control of the company didn't matter; what mattered was that if the company made more profits, he'd get a bigger share of the dividends at the end of the year.
With that thought, Jack nodded firmly.
"Good. But to make the computer fit Macy's needs, we'll need to create a custom version. Harley, take Jack to WLI R&D Company. If everything goes smoothly, Macy's will have its own computer in two months," Leo said.
Then he turned to Hans in the passenger seat—a man who had accelerated through college in three years and once been the third-in-command of the Lynchburg faction—and said:
"Hans, keep an eye on Jack. Make sure he smoothly integrates Macy's supply chain operations into W Supply Chain Company."
Controlling numerous retail firms by seizing control of their supply chains was a crucial step in Leo's plan to build Valentino Retail Group. He would never allow anyone to pretend to comply while secretly undermining him on this matter.
That night, while enjoying a delicious meal, Leo also indulged in a feast for both the senses and the body. He felt like a god, freely "punishing" the nun and angel who had dared to "offend" him. In the end, the nun and angel's faces were covered with the "holy light" bestowed by their "god."
However, not everyone was celebrating.
Hutton LeBoeuf, CEO of Hills Department Store, frowned tightly as he examined the tiered membership report handed to him by a senior executive. He picked up a pencil from his desk and drew lines connecting several core figures on the report—revealing a curve that plummeted almost straight downward.
He looked up at the executive and demanded, his voice sharp with dissatisfaction:
"Why has the tiered membership recharge business dropped so drastically all of a sudden?"
"Sir, I only noticed this issue today. I've already arranged for an investigation," the executive replied.
Hills Department Store had been around for years, and as it grew in size, it had inevitably fallen prey to the "big company syndrome." Most senior executives preferred to stay in their offices, signing documents and handling business, while avoiding frontline work like the plague.
But Hutton, who had worked his way up from the frontlines, knew full well that a business war had already begun quietly. After all, he and Chairman Claude had only just returned from Governor Dewey's mansion.
"I want you to come with me to the nearest Valentino Urban Retail store first thing tomorrow. We're going to find out what's causing this," he said, a hint of anger in his voice.
A worried Hutton got into his car to head home. The driver drove steadily, and the dim yellow streetlights on both sides made Hutton feel drowsy. Suddenly, a blinding white light jolted him awake. He looked up instinctively toward the source of the light—and saw the iconic bright sign and glowing lights of a Valentino Urban Retail store on the street, standing out sharply against the darkened, closed shops around it.
Squinting, Hutton watched as many ordinary-looking people lined up at the checkout counter inside. He checked his watch—it was already 10 p.m. In the retail industry of that era, any time after 7 p.m. was called "dead time."
It earned that name because by then, the number of shoppers dropped sharply, while staff wages still had to be paid—making it hard for stores to turn a profit, and easy for them to lose money instead.
"Stop the car!" Hutton said. He had a hunch he might find the reason for the drop in tiered membership recharges here.
The tinkle of a wind chime sounded as Hutton walked into the Valentino Urban Retail store. As soon as he entered, a staff member busy at the checkout counter reminded him:
"Sir, after 7 p.m., Valentino Urban Retail is for members only. If you're not a member, you can come back tomorrow to shop."
Member-only hours? Hutton thought. That's a smart strategy—Hills could learn from that.
While thinking, he replied:
"I'm a Diamond Member."
To gain an in-depth understanding of his competitor's tiered membership system, Hutton had specially recharged his account to become a Diamond Member.
Hearing that a Diamond Member had visited, the staff quickly finished their current transaction, then took a small, delicate shopping basket from behind the counter and handed it to Hutton:
"Sir, after 7 p.m., Diamond Members get an additional 10% discount on top of the 20% off regular prices. Bakery items are even 50% off. Though we do have designated shopping areas for these discounts," the staff explained, pointing Hutton toward the shelf area.
Hutton had already decided to adopt Valentino Urban Retail's single checkout counter and shelf layout when Hills opened new stores—it was clearly a cost-saving design. Why hadn't they used it in existing stores? Because Chairman Claude had rejected the proposal, citing the high cost of renovations.
Three lights hung above the shelf area, each corresponding to different sets of shelves. The staff directed Hutton to the only area where the light was on. That's another thing worth learning from, Hutton thought to himself.
When he approached the shelves, the goods there made Hutton narrow his eyes. He quickly picked up a few items to check—and sure enough, there was a reason for the low prices. The store had clearly gathered all its near-expiration products here.
Hutton then walked to another set of shelves, which were filled with instant foods. The third set was stacked with all kinds of bread.
Hutton watched the people lining up to check out—most of them were tired-looking workers. Even though exhaustion was written all over their faces, they smiled happily when they got their discounted bread and goods.
Hutton stayed in the store, pretending to shop, until it closed. When he got back in the car, he quickly estimated the profit margin of this retail store based on the foot traffic he'd observed. The result shocked him—it was as high as 9%. To have such a profit margin during dead time was nothing short of a miracle.
This area was a working-class neighborhood that Hutton passed through on his way home. Soon, the car left Brooklyn and entered Manhattan. During the drive, Hutton didn't close his eyes to rest; instead, he paid attention to the Valentino Urban Retail stores on both sides of the street.
He noticed that some had clearly closed early, while others had just shut their doors like the one he'd visited—and the store near his home was still lit up. Several luxury cars were parked outside, and many well-dressed, successful-looking people were still shopping inside.
Hutton got out of the car again. After just a moment of observation, he suddenly understood. He walked into the store and picked out two dolls, a toy car, and a bouquet of flowers—all of which were the store's special evening offerings.
For people who were busy with work all day, being able to bring home toys for their kids and flowers for their wives on their way back undoubtedly eased the guilt in their hearts.
What confused Hutton, though, was just how many top market analysts Valentino Urban Retail had hired to create such sophisticated dead-time sales strategies tailored to each store.
Even after saying goodnight and kissing his wife, Hutton still tossed and turned in bed, wondering if the meager profits earned during dead time were really enough to cover the high salaries of those top analysts. Was that young billionaire once again putting on a brave front with his own money?
Furthermore, behind such personalized product selections for each store, how many complex supply chains would they need to build? And how much money would that cost?
A jumble of questions swirled in his mind, keeping Hutton awake all night.