HOWARD SCHULTZ: 'We Are Witness To A Seismic Change In Consumer Behavior

He talked about the future of brick-and-mortar with a sense of serious urgency.

"It has never been more challenging for a brick-and-mortar retail merchant to succeed in an enduring way," he said.

"We are witness to a seismic change in consumer behavior," said Schultz. "And that seismic change is linked to technology."

Social, digital, and mobile are fundamentally changing the way consumers buy things. Most companies already know this, but have been slow to act.

And now, we're at the point that retailers have no choice but to play catch up. It's a race against the clock.

"Any company sitting here today that embraces the status quo as a business proposition … is literally facing a collision course with time," said Schultz.