Shownotes
In this week’s Omni Talk Retail Fast Five, sponsored by the A&M Consumer and Retail Group, Mirakl, Ocampo Capital, Infios, and Quorso, Chris and Anne discussed:
- Doug McMillon retiring as Walmart CEO, with John Furner taking over in February (Source)
- Grocery Dealz integrating with Instacart’s Developer Platform for on-demand delivery (Source)
- Primark introducing Buy Now, Pay Later options with Klarna and Clearpay (Source)
- Google launching new AI shopping features including conversational search and agentic checkout (Source)
- Target and Starbucks debuting an exclusive Frozen Peppermint Hot Chocolate (Source)
And A&M’s Chad Lusk stopped by for Five Insightful Minutes to share takeaways from their latest consumer sentiment survey.
There’s all that, plus SantaGPT, Dick Van Dyke turning 100, the perfect hot cocoa recipe, and whether Sizzler’s comeback is rare, medium, or well done.
Music by hooksounds.com
#RetailNews #WalmartCEO #JohnFurner #DougMcMillon #BNPL #GoogleAI #TargetStarbucks #InstacartIntegration #RetailPodcast #OmniTalk #GroceryDealz #Primark
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Transcripts
This episode of the OMNITALK Retail Fast 5 is brought to you by the A and M Consumer and Retail Group.
Speaker A:The A and M Consumer and Retail Group is a management consulting firm that tackles the most complex challenges and advances its clients, people and communities towards their maximum potential.
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Speaker A:That's M I R A K L.com and Corso.
Speaker A:Your stores are full of data, but are your teams acting on it?
Speaker A:Corso turns retail data into personalized daily to dos that drive sales, reduce waste and improve execution.
Speaker A:No fluff, just action.
Speaker A:Help your managers focus on what matters most.
Speaker A:Visit corso.com to see Intelligent management in motion and Infios.
Speaker A:At Infios, they unite warehousing, transportation and order management into a seamless, adaptable network.
Speaker A:Infios helps you stay ahead from promise to delivery and every step in between.
Speaker A:To learn more, visit infios.com and finally, Ocampo Capital.
Speaker A:Ocampo Capital is a venture capital firm founded by retail executives with the aim of helping early stage consumer businesses succeed through investment and operational support.
Speaker A:Learn more@ocampo capital.com hello, you are listening to Omnitalk's Retail Fast Five, ranked in the top 10% of all podcasts globally and currently the only retail podcast ranked in the top 100 of all business podcasts on Apple Podcasts.
Speaker A:The Retail Fast Five is the podcast that we hope makes you feel a little smarter, but most importantly, a little happier each week too.
Speaker A:And the Fast 5 is just one of the many great podcasts you can find from the Omnitalk Retail Podcast Network alongside our Retail Daily Minute, which brings you a curated selection of the most important retail headlines every morning and our Retail Technology Spotlight series, which goes deep each week on the latest retail technology Trends.
Speaker A: ,: Speaker A:I'm one of your hosts, Anne Mazinga.
Speaker B:And I'm one of your other hosts, Chris Walton.
Speaker A:And we're here once again to discuss all the top headlines from the past week making waves in the world of Omni Channel retailing.
Speaker A:Chris though, before we get into the show, even though Black Friday Even though Black Friday is just a week away, it seems like it's already started.
Speaker A:I don't know if you've getting the notifications, but Walmart plus started their pre Black Friday last week.
Speaker A:We've got other retailers doing the same thing.
Speaker A:I have to ask you, I think I ask you this every year, but what is on your list for the holiday sale season this year?
Speaker A:What are you going to be buying on Black Friday and Cyber Monday?
Speaker B:Oh yeah, and I've jumped into the pre sales for sure.
Speaker B:There's some good deals on those pre sales.
Speaker B:Like I was, I was all in on Adidas.
Speaker B:Like Adidas was given like 50% off.
Speaker B:So I got some new workout gear for very, very inexpensive prices and I was pretty pumped about that.
Speaker B:But.
Speaker B:But yeah, and I'm kind of, I'm kind of canary in the coal mine now.
Speaker B:I'm kind of freaking out about this.
Speaker B:Like, you got Home Depot reporting poorly yesterday.
Speaker B:Target this morning opening, you know, reporting very poorly as well.
Speaker B:You've got all these pre sales going on too where like you're given 50% off before it's even Black Friday.
Speaker B:Like this was like last weekend, this is like two weeks before Black Friday that I was buying this stuff.
Speaker B:So like, yeah.
Speaker B:Oh, oh, danger.
Speaker B:Will Rob is in danger.
Speaker B:I don't know what to do here.
Speaker B:But I mean, do you have your eye on anything?
Speaker B:Have you, have you bitten into the Black Friday presale apple yet?
Speaker B:And I'm curious.
Speaker A:We haven't, but I'm getting, we're skiing, we're going skiing for Christmas with my kids.
Speaker A:And so I did make my husband call and see if they were doing Black Friday Cyber Monday sale on our ski passes.
Speaker A:And they are.
Speaker A:And she was so great.
Speaker A:She was like, they're going to be just hold on, next week they're going down in price.
Speaker A:So, so that's like, that's pretty much the only thing that's on our, our and that is a gift.
Speaker A:So that's going on our, our list for Black Friday.
Speaker A:Cyber Monday.
Speaker B:You're timing Black Friday is what you're telling.
Speaker B:Yes, timing.
Speaker B:You're not getting alarm sets.
Speaker A:We've got alarms set for the day that those, those discounted ski tickets are, are going to be available and we are going to snap them up.
Speaker A:But other than that, no.
Speaker A:I mean just getting discounts on, you know, cheaper toilet paper and stuff I guess from the sales.
Speaker A:Like just the essentials.
Speaker B:Yeah, yeah.
Speaker B:Opportunistic buying.
Speaker B:Although I did cave and buy a full price hat yesterday because I caught this hat in my Facebook feed and I was like, oh my God, I kind of have that hat.
Speaker B:It's awesome.
Speaker B:So I'll wear it on the show.
Speaker B:Hopefully it comes next week.
Speaker B:I'll wear it for, for Black Friday for our Black Friday show.
Speaker B:So.
Speaker B:And God, I can't wait to see what Walmart reports to.
Speaker B:It's going to be, this is going to be a crazy few months in retail, without a doubt.
Speaker B:And, and to that point in today's Fast5, we've got news on grocery deals, Instacart integration, Primark giving in to bnpl, Google launching some interesting new AI shopping features, Target and Starbucks, sweet new collab and A and M's.
Speaker B:Chad Lusk stops by for five inside four minutes to share the takeaways from their latest consumer sentiment survey, which goes into everything Ann and I were just talking about.
Speaker B:But we begin today with what will more than likely be a fitting homage to start the show.
Speaker A:And that's right, headline number one, Doug McMillan is retiring and he's turning over the reins to your man crush, John Furner this upcoming February.
Speaker A:According to the Wall street journal, under McMillan's tenure, Walmart shares have risen more than 400% on a total return basis and the company has gained 560, $76 billion in market capitalization.
Speaker A:This also grown to more than $680 billion in annual revenue.
Speaker A: ed as CEO of Walmart US since: Speaker A: time role in a local store in: Speaker A:He has held leadership roles across merchandising operations and sourcing internationally, as well as Walmart's warehouse chain, Sam's Club.
Speaker A:Chris, I know you're going to have a lot of these, so let's begin with your thoughts on Doug McMillan as well as his successor, John Furner.
Speaker A:And we are putting a timer on you for the.
Speaker B:John, are you okay?
Speaker B:Okay.
Speaker B:All right.
Speaker B:All right.
Speaker B:Well, I'll take Doug first and I'm going to share a couple anecdotes about both of them because I think there's some personal things that I want to get into here.
Speaker B:But so first, Doug, I don't know if I've ever shared this story on the podcast.
Speaker B:I think, Anne, you've heard it before.
Speaker B: reer was back in, it was like: Speaker B:I was running baby for Target at the time, and I was out with the Dorel Juvenile Group, and a guy named Ted Kelly was there.
Speaker B:He was.
Speaker B:He was part of their team.
Speaker B:And he said to me, he said, God, Chris, you remind me of Doug McMillan.
Speaker B:And at the time, like, I didn't know who Doug McMillan was.
Speaker B:You know, I had heard him a little bit.
Speaker B:He was like, I think CEO of Walmart International.
Speaker B:He wasn't CEO yet.
Speaker B:And then a few years later, he gets named CEO.
Speaker B:And.
Speaker B:And for that reason, like, I am absolutely humbled by what Ted Kelly said to me that day, because there is no way I hold a candle to Doug McMillan, because Doug McMillan, in my opinion, Anne, is going to go down as the second greatest CEO in the history of Walmart.
Speaker B:And when the first.
Speaker B:The person at the top of that list is the founder, Sam Walton, that's.
Speaker B:That's saying something, right?
Speaker B:Like, he's hard.
Speaker B:He's hard to, you know, to get in front of.
Speaker B:So.
Speaker B:So that's my thoughts on Doug.
Speaker B:Doug is just done an amazing, amazing job, and he's going to be a retail icon forever, and he's going out on top.
Speaker B:Now, John Furner, you mentioned it.
Speaker B:Man crush.
Speaker B:He's my single favorite person in retail.
Speaker B: Club strategy back in, like,: Speaker B:And it was, like, right in advance at grocery shop.
Speaker B:And all of a sudden, I get this email out of the blue saying, hey, Chris, John Furner would like to meet you and talk to you at grocery shop.
Speaker B:And no one has ever done that since.
Speaker B:Like, in that way, he's the only person that's done that.
Speaker B:And I sat down with him at that show for 45 minutes.
Speaker B:You and I both did.
Speaker B:And we just rapped with him about retail and got a sense of how he's thinking about the future.
Speaker B: And this was back in: Speaker B:Almost six years ago.
Speaker B:And to see it play out exactly as he was talking about shows me that he has a strategic understanding of where retail is going and he is the right man for the job, particularly when you look at what he's done on the US side, the business, too.
Speaker B:So kudos to him.
Speaker B:He was the architect of Sam's Club success.
Speaker B:He's been the architect of Walmart US's recent success.
Speaker B:And so the only thing I can say to him is, John, John, please don't screw it up because then I got to start talking about, you know, the fact of what you're, what you're not getting.
Speaker B:Right.
Speaker B:And I want to keep talking about all the things you guys are continuing to do right at Walmart.
Speaker A:Yeah, I mean, I, I think the other part that you didn't mention both about McMillan and Furner is their leadership styles and the culture that they're creating at Walmart to make things go the way that they have for Walmart in the last several years.
Speaker A:I think it's important to Note that under McMillan's leadership, we heard from almost, we were very close with the teams at Walmart.
Speaker A:We interview them often.
Speaker A:And one of the things that we hear all the time is that McMillan created a culture that really diminished the politics that can happen.
Speaker A:And he really made it an environment where there was a fail fast mentality.
Speaker A:It was not about presenting to the, your boss's boss's boss's boss.
Speaker A:It was how do we get something that can be launched quickly, get ahead of our competitors and really focus on making sure that we're doing the best so that we can make sure that our customers are living better and that they're in an experience where they can live better and save money.
Speaker A:He took Walmart from People of Walmart, the meme to Walmart for the people.
Speaker A:And I think that's something, as you mentioned, will go down in Doug McMillan's In remembrance of Doug McMillan's Tenure.
Speaker A:I think the second thing too is about Furner's leadership, John, as you mentioned, how he reached out to you, he's approachable and he's empathetic.
Speaker A:He grew.
Speaker A:He has grown up, as we mentioned in the company, literally.
Speaker A:He started his own podcast at Walmart so that the people that work there could understand the people who are working in all areas of the business and made sure that people develop that empathy that he's so well known for, so that you're, you're talking to your colleagues differently.
Speaker A:I think the, the last thing about Ferner that will be so important as we look at the next 10 years of Walmart is that when you lead with empathy and curiosity, like furniture does, he doesn't have to be the smartest person in the room.
Speaker A:He's the most curious.
Speaker A:And I think that's what will be so important, especially when you think about how much AI is impacting the future of everyone's businesses, but especially Walmart.
Speaker A:So I think they, they have a great, great years ahead with ferner and Doug McMillan.
Speaker B:Yeah, yeah, yeah.
Speaker B:You bring up some great points there too.
Speaker B:And like one thing I haven't thought about is like they've taken some big swings on some strategies too.
Speaker B:Like I think of Walmart Commerce Technologies, you know, that that's kind of gone away, you know, like, but they were af, they went after it.
Speaker B:So they've had, they've had some misses too.
Speaker B:But those misses don't detract from the overall success.
Speaker B:And when you're taking, you know, at bats, that's the most important thing here as you think about the future of retail instead of just, you know, staying doing what you've always tried to do.
Speaker B:All right, headline number two Grocery Deals has integrated with Instacart's developer platform to power on demand delivery for its shoppers.
Speaker B:According to a press release, Grocery Deal users can now access Instacart's trusted same day delivery service directly from the Grocery Deals app, with delivery in as fast as one hour.
Speaker B:The integration also expands reach for participating retailers, connecting them to motivated deal seeking shoppers ready to complete purchases online.
Speaker B:Quote Utilizing Instacart's broad reach will provide rapid expansion for Grocery Deals and help integrate our app into the purchase habits of online grocery shoppers.
Speaker B:End quote, said Matt Goins, co founder and co CEO of Grocery Deals and recent Omnitok Retail Technology Spotlight series guest and on a scale of 1 to 10, how intrigued are you by the partnership between Instacart and Grocery Deals?
Speaker A:I would say an 8 because I still want to leave some room for what's possible partnership.
Speaker A:I see that I see much opportunity with this.
Speaker A:I mean number one, what they've just done is justified me having Instacart deliver my groceries for me because of the cost savings that I'm able to get from using the comparison app to just make sure, okay, I can get the majority of my groceries from this retailer and save this amount of money.
Speaker A:And now I, I have that added convenience which is going to make me come back time and time again.
Speaker A:And for Instacart it's great because it's getting me funneled into an Instacart relationship when I may not have had one before.
Speaker A:I imagine we're going to see a lot of the other retailers on the Grocery Deals platform want to kind of follow that lead because Walmart delivery isn't available yet.
Speaker A:Like there's some still some other ones that I imagine will, will get tied in in the future.
Speaker A:But I, I think there's so much potential especially, especially if I can start doing multiple Instacart offers based on where I'm Getting different items.
Speaker A:So, you know, if three, if there's three grocery stores, I'm not personally going to go to three grocery stores to get the best deals on my products, but now I can justify Instacart going to three places and that, that is the big unlock for me.
Speaker A:But where do you rate it?
Speaker A:What's your number on one, A scale of one to ten?
Speaker B:Yeah, it's funny we're sharing a brain this morning because, like, I was the same way.
Speaker B:I'm like, you know, I'm pretty intrigued by this.
Speaker B:I didn't want to go 10 because I didn't want to be, you know, hyperbolic.
Speaker B:But, like, I'm like an eight and a half or a nine for sure.
Speaker B:Like, this is really, really interesting.
Speaker B:And the other thing, when you step back 30,000 foot level, like, like this is the second time grocery deals has made our fast five in the last like, like four or five months, which is just a new startup out of Texas.
Speaker B:So they're doing some really cool things down there.
Speaker B:The founders, Matt and, and Michael.
Speaker B:So I'm very intrigued.
Speaker B:I think it's a brilliant move by those guys to give access to the shoppers quickly and easily, to provide them price transparency and also to provide them price transparency in the process.
Speaker B:And I think you said it.
Speaker B:But the thing I love most about this, though, is what it does for the consumer.
Speaker B:Because you can see here why Instacart's new CEO, Chris Rogers, like, back in September, because I remember they, they said this when we were out at NRF in Paris.
Speaker B:He said he was urging retailers to calibrate their pricing with Instacart.
Speaker B:And if that continues to happen, and this is one showcase of that or one form of that, and we haven't even brought the agentic AI into this conversation yet, margins are going to compress across the industry.
Speaker B:This type of stuff is still going to happen.
Speaker B:And so technology is forcing the playing field to level here when we step back and the grocer is going to have to find new ways to compete via loyalty programs or via their quality service, to set their quality of service to stay relevant.
Speaker B:So, yeah, I just think this is a really, really interesting move to think about.
Speaker B:Okay, where do I want to do my grocery shopping?
Speaker B:How do I want to do it?
Speaker B:How do I want to save money?
Speaker B:It hits the Venn diagram of everything happening in the industry right now, particularly macroeconomically as well.
Speaker A:Yeah.
Speaker A:Congratulations, grocery deals team.
Speaker A:This is a big, big announcement.
Speaker A:And, and when do we get the next one?
Speaker A:I mean, we need it it's four to five months, two showings.
Speaker A:I feel like that means by January there should be more.
Speaker B:More to the national rollout, boys.
Speaker B:National rollout.
Speaker A:All right, let's move on to headline number three.
Speaker A:Primark has introduced Buy Now, Pay later options with Klarna and Clearpay.
Speaker A:According to the industry fashion Primark has been historically absent from this type of payment model and now the high street retailer is offering customers the ability to split payments.
Speaker A:Reflecting the growing popularity of BNPL services in the UK to use Klarna in store, reports suggest consumers need to download the app, register for the service, search for Primark and create a one time card that can be added to Apple Pay or other digital wallets.
Speaker A:Shoppers can then top up the card to their chosen amount and use it to pay for items instead.
Speaker A:Store spreading the cost over time.
Speaker A:Chris, is Primark's Buy Now Pay later announcement this week, a sign that we have officially crossed the chasm on BNPL.
Speaker B:Oh, 100%.
Speaker B:Indeed it is an.
Speaker B:Indeed it is.
Speaker B:I mean if you're keeping score at home.
Speaker B: we were in LA@shop.org it was: Speaker B:Give you the precise month, one of those two months.
Speaker B:And now we're seven years from that.
Speaker B:So that's how long this takes.
Speaker B:You know, the adoption curve.
Speaker B:That's the adoption curve we're talking about here.
Speaker B:7 years from BNPL to go from idea to pretty much mass adoption now.
Speaker B:Because at this point now I think it's going to spread like wildfires in the US like you talked about it at what you learned about it at grocery shop.
Speaker B:But I mean now you have Primark basically allowing you to buy $4 shirts on installments.
Speaker B:I mean we just need to stop and think about that.
Speaker B:I'm buying $4 shirts on installments, so there's no stopping it.
Speaker B:And given the economy again, I have to think the growth in BNPL this year, this is really interesting me, the growth in BNPL this year could even surpass last year in terms of holiday spending, which is kind of crazy when you think about it because usually you start to see those growth rates decline.
Speaker B:I'm actually wondering if it'll be higher this year.
Speaker A: was done just this summer in: Speaker A:And that's, that's just this summer.
Speaker A:So I think, you know, if they're doing that with food, it should come as no surprise to us that people are using that for seasonal clothing purchases, holidays from places that already have low prices like Primark or like Walmart.
Speaker A:It seems like this is a necessity for all retailers to truly think about having as an option one because it comes as little to no risk to them and it could end up, based on the data that we're seeing and what Primark just reported in the UK that it could be the difference between someone shopping there or not.
Speaker A:So I think this is definitely something that even retailers who are adding this late to the game like Primark need to be, need to be considering and need to have on the table.
Speaker A:Dollar dollar Stores like all these things.
Speaker B:Yeah, right.
Speaker B:Stores.
Speaker A:Yeah.
Speaker B:It's a great question.
Speaker B:Great question.
Speaker B:All right.
Speaker B:Well, let's bring Chad Lusk onto today's show.
Speaker B:Joining us now for five insightful minutes is longtime friend of the show and a frequent recurring guest and partner and managing director at the A and M Consumer and Retail group, Chad Lusk.
Speaker B:Chad will be discussing with us the results of A&M CRG's most recent biannual consumer sentiment survey report.
Speaker B: t draws from a survey of over: Speaker B:Chad, let's start with this.
Speaker B:In the latest report, I was, I was quite frankly shocked.
Speaker B:Your report says that consumers are indicating an intent to spend more money in the upcoming six month period.
Speaker B:How should we look at this apparent increase in optimism?
Speaker C:Yeah, let's be careful about using that word, optimism.
Speaker B:Okay.
Speaker C:It's cautious at best.
Speaker C:As you said, Chris, we did see a bump in consumers intend to spend more this fall to the tune of 800bps.
Speaker C:Actually, that's the single largest cycle to cycle jump we've had since spring of 23.
Speaker C:However, however, a few things to note about that.
Speaker C:It's heavily, heavily driven by higher household income earners.
Speaker C:As under $100,000 income households still have a -9 net intent to spend more this period.
Speaker C:In spring of 23 it was similar, but those higher earners had what I'd call recession fatigue.
Speaker C:Right.
Speaker C:A bit of enough is enough and a need to get back to accustomed lifestyles despite economic concerns.
Speaker C:Then it snapped right back, actually lower.
Speaker C:So it's a different flavor this time.
Speaker C:Right.
Speaker C:So first of all, across all consumers, food and beverage is actually the only positive category on a net intend to spend more where consumers plan to spend Less in every other category with our higher earners there's a few more positive categories, but still a very strong bias to prioritize basic needs.
Speaker C:Back in 23 we saw some discretionary areas, pop experiences indulgences.
Speaker C:This cycle the message is clear.
Speaker C:Keep discretionary spending down.
Speaker C:And further to that, just because consumers expect to spend more doesn't mean they're going to buy more.
Speaker B:Right.
Speaker C:So even in food and grocery right, nearly 60% of consumers believe tariffs have contributed double digit price increases on food.
Speaker C:Actually over 20% say 30 plus percent price increases and over 40% of respondents say that they've decreased grocery purchases because of them.
Speaker C:Right.
Speaker C:So are spend expectations only up because price expectations are up?
Speaker C:Likely as consumers are changing a lot of behaviors and finding ways to counteract inflation to spend less.
Speaker A:So then Chad, if consumers are still trying to stretch their wallets as you're suggesting, how are we expecting that they'll plan to do that?
Speaker C:Cheaper brands, cheaper stores, buying less.
Speaker A:Right.
Speaker C:So across beauty and personal care, about 40% of those who plan to spend less on the category say they're planning to switch to cheaper brands.
Speaker C:That gets over 50% for grocery skews higher income.
Speaker C:Over 80% of higher income earners told us that they buy private label somewhat or very often.
Speaker C:Then the other big factor is about 30% of those planning to spend less on a category are doing it by switching to lower priced stores across beauty, personal care, grocery, perhaps disrupting their entire ingrained routines at this point.
Speaker C:Yet still get this, 58% of our respondents reported that they've increased trips to lower priced stores somewhat or more often this past cycle alone.
Speaker C:Again that also over indexes in higher income earners.
Speaker C:So maybe it was initially reluctant, maybe they were uncomfortable doing so.
Speaker C:But we have a bunch of data in the report to show how lower priced retailers are performing compared to traditional.
Speaker C:It's actually quite impressive.
Speaker C:Maybe good enough to change consumers behavior permanently.
Speaker B:So Chad, I'm curious for the retailers and the CPGs in the audience, what lessons should we take overall from the report?
Speaker C:I think one of the biggest things unfolding right now is the strength of private label for both retailers who can invest behind these programs and CPGs who need to strengthen and defend against them.
Speaker C:Private labels are brands, right?
Speaker C:They no longer stand for generic, they stand for strength.
Speaker C:One of the most interesting charts that we have in the report compares consumer perceptions of store brands.
Speaker C:So private label against national brands and food and beverage.
Speaker C:Yeah, they're more affordable of course, but consumers recognize their quality, right?
Speaker C:Like 68% said store brands offer quality that is as good or better.
Speaker C:60% said they provide unique and preferable flavors and offerings.
Speaker C:66% said that they meet their dietary or lifestyle needs.
Speaker A:Right.
Speaker C:Those are all the reasons why consumers switch brands to save money to experiment and have something unique and because of the ingredient panel.
Speaker A:Right.
Speaker C:So the gap is closed and consumers don't have to make those same kind of sacrifices.
Speaker C:So lesson you know, brands that are doing well offer tremendous value at an opening price point or have tangible benefits that the consumers will spend up to get.
Speaker C:It's that very large middle tier that's getting squeezed.
Speaker A:Chad, I have to ask then, what, what does this mean for holiday?
Speaker A:We talked a lot about food and beverage, but like what, where, where should we net out?
Speaker A:Where should we expect that consumers will net out this holiday season?
Speaker A:Yeah.
Speaker C:Overall our respondents are saying about flat to last year.
Speaker C:The last few years have been up 3 to 4%.
Speaker C:NRF's projecting that as well.
Speaker C:I'd say that's likely to be the case since retail sales are tracking about 4% up on the year, about flat to 1% in real growth with the latest PCE report at 3% inflation.
Speaker C:Listen, holiday in a lot of ways falls into these kind of routinely budgeted essentials category at this point.
Speaker C:In a way like I need to buy for my kids, my partner, my family, whomever consumers are telling us they want to spend a little less in doing so.
Speaker C:Keep it reasonable, a little down on things like holiday decorations and entertainment.
Speaker C:But as it plays out, the holiday season is a little impulsive too.
Speaker B:Right.
Speaker C:It's like candy at the checkout aisle.
Speaker C:You didn't plan to buy that candy bar, but you're there, it looks good and it's going to make someone happy, in that case yourself.
Speaker C:That might even be why our respondents are saying they plan to spend a little net more on gifts to their self this year because of that behavior.
Speaker C:But listen, it's November.
Speaker C:Most orders have been made and shipments sent.
Speaker C:So keep on top of your sales signals, manage your inventory promos and markdowns, and hopefully we cross that trillion dollar mark for holiday retail sales this year.
Speaker B:Hopefully.
Speaker B:All right, thanks, Chad.
Speaker B:Okay, headline number four.
Speaker B:Google is augmenting AI shopping with conversational search, agentic checkout and an AI that will call stores for you.
Speaker B:Oh my gosh.
Speaker B:According to TechCrunch, one of the updates will allow consumers to ask shopping questions in AI mode, Google's conversational search feature that lets you use natural language queries in a chatbot style interface.
Speaker B:The responses will Be tailored to your question.
Speaker B:And the chatbot will provide images when you need visual inspiration alongside other details like price reviews and available inventory.
Speaker B:Notably.
Speaker B:And Google is also rolling out agentic checkout within Google Search in the US including in AI mode.
Speaker B:The feature is currently compatible with merchants like Wayfair, Chewy and Select Shopify stores.
Speaker B:And finally, another AI feature that I'm sure all of you have been waiting for is that the AI will also call businesses on your behalf to find out if a store carries a product, how much it costs, and whether there are any promotions.
Speaker B:The feature is rolling out in the US for specific categories like toys, health and beauty products, and electronics.
Speaker B:And to use the feature, you can search for products near me and then use the option let Google call oh my God.
Speaker B:And I'm, I have no doubt you are buying these new features versus selling them because you are the biggest Google fan that I know.
Speaker B:I mean you talk about it all the time on this show.
Speaker B:So instead of asking you that question, I'm going to put you on the spot this week because this is the put you on the spot question.
Speaker B:Here it is.
Speaker B:As Google AI expands its capabilities into conversational shopping, agentic checkout, and even calling stores for the customer.
Speaker B:How does this reshape the role of traditional human led e commerce models for consumers?
Speaker B:And how should retailers rethink their platform strategies accordingly?
Speaker A:Whoa.
Speaker A:Well I, I don't know that they have to rethink their platform strategies.
Speaker A:I, I feel for retailers because they still on top of Google which they have to make sure that they're, they're set up to support that search still where the majority of people are going.
Speaker A:They now have to also figure out how they're going to appear on these other large language search platforms as well and how they're going to facilitate buying through these platforms.
Speaker A:So I think retailers need to, need to pause and look at this the same way that when E commerce came online they started approaching their strategy.
Speaker A:It requires a complete all, it requires new teams, it requires new thinking.
Speaker A:We just talked last week about having a chief AI officer or, or you know, how you're going to have one, right?
Speaker A:Or not having one and integrating that into all of the positions within your organization.
Speaker A:So I think, I think it really is time for retailers to think about that total shopping journey and how that's going to shift.
Speaker A:But Google is still a go to destination that has the best cumulative information about who we are as people inside and outside of our shopping.
Speaker A:They still have data about us from our emails, from our maps, from our calendars from all these other places.
Speaker A:And so I think that actually Google is just, has just kind of surpassed some of the other search platforms because they still, if anyone's going to be that really true personal assistant for us, I think that these new tactics that Google is adding to their platform are just going to further continue people using Google the same way that they're using Google for just regular search today.
Speaker A:People are familiar with Google again.
Speaker A:They're already interacting with it in so many places in their lives that I actually think that we could see Google take a pretty big leap here over OpenAI's ChatGPT with the addition of some of these things.
Speaker A:I will say the calling feature, however, that's one that I'm not, I'm not buying.
Speaker A:If you've ever worked in a retail store, you barely get to the people searching for products who are human beings calling from other stores to see if you have a product in stock.
Speaker A:So I don't think that they're going to get the participation from the retailers that, that they're pitching in this.
Speaker A:But, but everything else, the, the large language search, being able to, you know, have and buy things directly in your search results, that kind of stuff, to me, I think is really going to continue to solidify Google as a player in this space in direct competition with Perplexity and OpenAI.
Speaker A:But Chris, you're, you're the Google skeptic sometimes.
Speaker A:So I'm prepared for a good rebuttal from you on this one.
Speaker A:What are your thoughts?
Speaker B:Are you okay?
Speaker B:Because I am, I am actually going to rebut you.
Speaker B:You know, there's always a but and you know, you know, and make go a little bit long here too, but.
Speaker B:Because there was a lot to read in that, in that headline, you know, the point that you made, two points, one of which was like, you know, Google and its position in this landscape.
Speaker B:And then two was the call feature, which I got to talk about the call feature too.
Speaker B:Like.
Speaker B:But the Google and the landscape.
Speaker B:I don't know if I agree with you because for two reasons.
Speaker B:History and where our minds already understand Google to be.
Speaker B:So history.
Speaker B:Google shopping tried to get off the ground for a long time and it never did.
Speaker B:So there is some evidence to say that Google, can they figure this out?
Speaker B:I don't know.
Speaker B:The second part of this is our mind is anchored as consumers on the Google experience that we know today, which I think can be a hindrance in terms of trying to design the interface of the future for how agentic AI should work.
Speaker B:So that's why I give the other platforms more of a leg up on that because they're not encumbered by their current business model and trying to figure out that and how to meld those experiences together.
Speaker B:And so that's why I'm not sure that I buy into them having the upper hand on this.
Speaker B:But I honestly don't know.
Speaker B:But that's just my inclination, you know, from studying the things that we've studied for the past, you know, 25 plus years in retail.
Speaker B:Now the call feature.
Speaker B:I think the call feature's absolutely ridiculous.
Speaker B:I mean I hated taking calls in the store like, and most of the time like you couldn't find the product, but that didn't mean it wasn't in your store.
Speaker B:You have no idea.
Speaker B:And the thing I don't like about it too, because it feels like it's a marketing hook, is it goes against, it's antithetical to everything good omnichannel retailing is about.
Speaker B:And what Google should be trying to do with Agentix Shopping, because it should be about your data serving this up without you needing to even take that step.
Speaker B:So like, that's the part I don't understand.
Speaker B:So I think it's a feature that is kind of silly and it's not going to be useful and it's going to sunset over time anyway.
Speaker B:But you get the last word here.
Speaker B:What do you think?
Speaker A:Yeah, I mean I would say especially with this last rollout of Gemini that they just put out.
Speaker A:I don't know if you saw this, but a group of reporters asked Chat GPT which is the better, most more effective search platform and ChatGPT actually said Gemini is better.
Speaker A:So it's, it's interesting.
Speaker A:I think that yes, there, there is a way that we as humans know and have used Google for a lot of years.
Speaker A:But, but I do think that there's still an opportunity when it comes to the convenience that can be offered with Google for us to start to see some, some shopping behaviors and patterns change in the same way that, you know, we're seeing some of those patterns change now as we're starting to search for, for products in new ways using using ChatGPT or using perplexity or others.
Speaker A:So I have more hope for it.
Speaker A:But I 100% agree.
Speaker A:The call feature, that part put to bed.
Speaker A:Maybe they were trying to work it as like they have more connections with local businesses and they're trying to be a more of a proponent of shopping locally and showing you what's nearest to you because they know your location.
Speaker A:But I, I just, I don't, I don't know that the mom and pops still on Main street and the independent boutiques are going to be like, yes, let me talk to this Google, this Google chat bot right now and, and take away from my, my limited time on the floor with customers.
Speaker A:Yeah, so, so that Google, I think that's going to be a fail fast.
Speaker A:Let's, let's put that one to bed.
Speaker A:All right, let's go to headline number five.
Speaker A:Starting November 18, Target and Starbucks are giving guests a brand new way to enjoy the season with a frozen peppermint hot chocolate available exclusively at Starbucks cafes inside Target stores nationwide.
Speaker A:According to a Target press release, it's the first ever holiday exclusive drink created just for the millions of guests who already enjoy Starbucks while shopping at Target, making it easier than ever to sip, shop and celebrate.
Speaker A:And for an extra sprinkle of joy, target360 or target circle three.
Speaker A:60 members, part of the paid membership program at Target, will get 24 hour early access to the drink on November 17th.
Speaker A:This festive drink is a twist on a holiday classic.
Speaker A:A cream Frappuccino with a blend of mocha sauce, milk and ice cream poured over a layer of peppermint flavored whipped cream and red and green sprinkles.
Speaker A:Chris, your, your thoughts on Target have, have been here and there, hit or miss as of late.
Speaker A:What do you think of this particular Starbucks and Target collaboration?
Speaker B:Well, and I'd say they've been pretty consistent of late, but counter to that, actually, you know, believe it or not, I actually like this now.
Speaker B:I don't love the results this morning.
Speaker B:And you know, on a scale of impact, I think I want to be very careful in how I describe this because like, this is still small potatoes in terms of what Target needs to do to turn its ship around.
Speaker B:But I love this idea.
Speaker B:I freaking love it.
Speaker B:I think it's great merchandising and kudos to Lisa Roth and the team for coming up with it.
Speaker B:And you know, it gets me wondering if Target's getting its mojo back on the merchandising side because this is the type of thing they used to do really well.
Speaker B:And the reason I like it is because it gives people a reason to go to Target store.
Speaker B:And the Starbucks in a Target store is one reason you choose to shop at Target over another place, in fact.
Speaker B:And this idea is so good that my litmus test for whether or not, whether or not an idea is good is like, wow, why haven't they done this before?
Speaker B:Because it just seems that straightforward.
Speaker B:So, you know, worst case, to me it doesn't work.
Speaker B:And best, and no one's worse off.
Speaker B:But best case, you've got another pumpkin spice latte on your hands that you can go back to year after year or you can refine it for next year to try to do it again.
Speaker B:So I think it's just really smart merchandising that leverages what is truly one of your differentiation.
Speaker B:Differentiation points at Target.
Speaker A:Yeah, I, I think it's a great, it's like you said, it's a great use of existing assets that are already in your store.
Speaker A:The only concern that I have is will the Starbucks teams be ready for this?
Speaker A:Should we have a Starbucks glass bear cup situation on our hands where this becomes so popular?
Speaker A:I guess that's a problem.
Speaker A:That's a good problem to have for Target to have and they'll have to figure that out.
Speaker A:But, but the other thing that they didn't mention in this press release, which I think is a very nice compliment to that, is that a lot of the Starbucks or sorry, a lot of the Target stores this year are doing a hot cocoa bar when they go, when you go in.
Speaker A:So on the weekends you'll be be able to, in select Target stores go in and you get to, they're giving away hot cocoa and you can add different ingredients and then it'll be merchandised around it so that you can make your own hot cocoa bar at home.
Speaker A:So I think while the Starbucks angle is great for mom, I think that this hot cocoa bar is also a really like leveled up luxury retail experience in a mass retailer that gets the kids in.
Speaker A:That makes it a memory.
Speaker A:It makes it an experience experience of going to the store and maybe will drive you there time and time again to like have this during the holiday shopping season.
Speaker A:So that's something I think I would have like added as an aside, like and in select Target stores, dot dot, dot.
Speaker A:Here's this other experience too.
Speaker A:So, so yeah, I think, I think this is a great step forward and a great kickoff to the holiday season from Target and in multiple different ways here, not just the partnership with Starbucks.
Speaker B:Wow, Ansel, cancel Christmas.
Speaker B:You're talking.
Speaker B:There's going to be cocoa cannibalization in Target stores this holiday season.
Speaker A:I guess so.
Speaker A:I mean that's there.
Speaker A:They were already putting up the structure for the hot cocoa bar in our local Target the day after Halloween.
Speaker A:So it's, it's ready.
Speaker A:If you're in select Target stores, I'm sure they'll have More details on their other sites.
Speaker A:But, but I love it.
Speaker A:I think that's a great, a great thing.
Speaker A:And again, creating that memory, not something that you're expecting.
Speaker A:It's definitely the expect more part of the expect more, pay less moniker at Target.
Speaker B:So Target all in on the cocoa this holiday season.
Speaker B:Wow.
Speaker A:Yes.
Speaker A:All right, let's go to the lightning round.
Speaker A:Question number one.
Speaker A:Santa GPT is a new name for using Chat GPT as a search tool for holiday shopping.
Speaker A:Chris, who are you most likely to use Santa GPT for this holiday?
Speaker B:Oh, and you'll be, you'll be excited about this?
Speaker B:You know, probably my mom.
Speaker B:Although my mom already told me what she wants.
Speaker B:She wants a Brita water pitcher.
Speaker B:Yeah, she's got, she's got big aspirations, my mom.
Speaker B:So yeah, I went on Walmart plus yesterday, got one delivered in three hours, was great.
Speaker B:You know, she's heading home soon, so I want to get it before she leaves, but.
Speaker B:Yeah, but I'm probably going to look for something else for her too and probably, you know, see, maybe Chat she CPT will help me out or maybe, you know, I'll just be the, the good son and pay attention to what she wants throughout the year and, and you know, go back down the memory bank and find something that'll be memorable for her.
Speaker B:That's my hope anyway.
Speaker B:All right, and on December 13th, Dick Van Dyke is set to turn 100 years old.
Speaker B:What do you remember?
Speaker B:Old DVD for the most?
Speaker A:Mary Poppins probably.
Speaker A:I loved his character, Mary Poppins the Chimney Sweep.
Speaker A:Yeah, he was just that he was so endearing.
Speaker A:I really liked him.
Speaker A:Not, he's not gone, he's just turning 100.
Speaker A:But I, I really liked him in that role in Mary Poppins.
Speaker A:So that, that would be my, my most prized Dick Van Dyke memory.
Speaker A:All right, let's go to question number three.
Speaker A:Starbucks and Target, as we just mentioned, announced that they are releasing an exclusive frozen peppermint chocolate beverage.
Speaker A:And being that we are coming up on hot cocoa season, we've already talked about it a lot.
Speaker A:This podcast explain the ingredients, Chris, in your perfect hot or frozen chocolate.
Speaker B:Oh, yeah.
Speaker B:I'm a basic kind of guy and you know, I really am.
Speaker B:You know, when you get right down to it, I like my, my hot chocolate pretty basic.
Speaker B:No whipped cream, some mini marshmallows.
Speaker B:Mini marshmallows for sure.
Speaker B:You know, like kind of the Swiss Miss.
Speaker B:I'm kind of the Swiss Miss of hot chocolate.
Speaker A:Okay.
Speaker A:Okay.
Speaker A:Real mini marshmallows are the freeze dried ones that come in the packet Ooh.
Speaker B:I think real mini marshmallows, though.
Speaker B:Yeah, yeah, yeah.
Speaker B:There's a big difference between quality of marshmallow, you know, that can.
Speaker B:I can make or break my hot chocolate for sure, but the base has got to be what's right.
Speaker B:I think, you know, ultimately, fundamentally, at the end of the day.
Speaker B:All right, last one.
Speaker B:This one's fun.
Speaker B:Restaurant brand Sizzler is plotting a comeback.
Speaker B:How would you rate the prospect of it being successful, and more importantly, of you and your family dining at a Sizzler?
Speaker B:Would you give the chances a rare rating, a medium rating, or a very likely well done rating?
Speaker A:Well, there's only one rating when it comes to steak, and that is rare or medium rare.
Speaker A:And I think that's the same answer I would give to the prospect of my family dining at a Sizzler.
Speaker A:We didn't have them growing up.
Speaker A:They weren't a thing in the Midwest.
Speaker B:But in the Midwest.
Speaker B:Yeah.
Speaker A:But I. I would say that if the chichis come back has.
Speaker A:Is any indication, we just got a chichis that is revamped here in the Twin Cities, and that place has been busting down the doors, busy ever since it opened several months ago.
Speaker A:So I think there is this draw for nostalgia.
Speaker A:So, yes, I think they'll probably see a great influx of people coming back to the Sizzler for that experience.
Speaker A:My question, though, is like, will this last once the nostalgia wears off and you went back there for, you know, your first time, are you going to go again?
Speaker B:But, yeah, I agree.
Speaker B:I don't think the nostalgia for Sizzlers the same as she.
Speaker B:But I got to ask you, you got into chi Cheese like I've been trying to get.
Speaker B:We get in, and it's good.
Speaker A:Get into chi cheese.
Speaker A:You know, I will say the chips and salsa still slap, but the rest of it is just expensive Mexican food, which I think is like, I wanted grits to my chi cheese.
Speaker A:Like, I don't know about the chi cheese that the rest of everybody listening went to.
Speaker A:But, like, my chichis growing up was, like, dirty, real, like, real good Mexican food.
Speaker A:It wasn't, like, fancy, like, there was no chopped, like, southwest salad on the recipe.
Speaker A:It was like you got the taco salad bowl, and that was it.
Speaker A:And, like, now it's more elevated.
Speaker A:So it's yupified.
Speaker B:Yeah.
Speaker A:Except for the chips and salsa.
Speaker A:Those are still the same.
Speaker A:And yeah, when I went there with a girlfriend, we had multiple baskets of chips and didn't need to eat anything else.
Speaker A:So that's my.
Speaker B:The Burritos.
Speaker B:Are the burritos wet and enchilada style?
Speaker B:And do they have wet burritos?
Speaker B:I'm curious.
Speaker A:We didn't get burritos.
Speaker A:We didn't even get the.
Speaker B:Look at the menu.
Speaker A:We got no idea.
Speaker A:Yeah, we ate that.
Speaker A:We ate there, but we ate.
Speaker A:We had enchiladas and a salad and tacos.
Speaker A:So it was.
Speaker A:That was it.
Speaker A:It was okay.
Speaker A:It was just.
Speaker B:The operational research was not up to par is what you're telling me here.
Speaker B:You, you, you did not fully scope out the menu to understand.
Speaker A:Yeah, but a burrito was never my thing there.
Speaker A:I always like the enchiladas so that the enchiladas were fine.
Speaker A:They're fancy, though.
Speaker A:Like, this is not gritty, raw, true chichis of the 80s and 90s.
Speaker A:This is like fancified chichis.
Speaker A:So don't expect the same chi Chi's experience except for the chips and salsa.
Speaker B:And I'm not sure if that's good or bad because she just had to come back.
Speaker B:When you get right down to it.
Speaker B:All right, today's podcast was produced, of course, the help and support of producer Ella Sirjord.
Speaker B:Ella, come on in here and tell us which headline won this week for you.
Speaker D:Yeah, no, this is a no brainer.
Speaker D:The Starbucks X Target exclusive is just brilliant.
Speaker D:Do I wish it was a different drink?
Speaker A:Yes.
Speaker D:I'm not a huge fan of the peppermint and the chocolate combination, but personally, I already browse for a very long time and you add a Starbucks drink to my hand, I'm gonna browse even longer.
Speaker D:Which is why I think this collab already is brilliant.
Speaker D:Having Starbucks in stores.
Speaker D:I'm not always planning to get a Starbucks or I'm not always planning to go shopping, but when you mix the two together, I always, almost always do both.
Speaker D:But I agree with you, Chris.
Speaker D:I can't believe this hasn't been done before.
Speaker D:So I'm super excited to try this out for myself this holiday season.
Speaker D:I'm a huge fan of the holidays.
Speaker D:I'm a huge fan of shopping.
Speaker D:This is by far my favorite headline.
Speaker B:That's a good point.
Speaker B:Peppermint is kind of a unique taste.
Speaker B:It's not.
Speaker B:Doesn't hit the mass demographic flavor profile when you think about it.
Speaker B:That's a really good point, Ellen.
Speaker B:All right, happy birthday today to Meg Ryan, Adam driver, and to Mrs. Lovell in Apollo 13, the great Kathleen Quinlan.
Speaker B:And remember, if you can only read or listen to one retail blog of the business, make it Omnitok only retail media outlet run by two former executives from a current top 10 US retailer.
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Speaker B:You can follow us today by simply going to YouTube.com omnitalkretail so until next week, and on behalf of all of us at Omnitoc Retail, on behalf of Anne, producer Ella and myself, as always, be careful out there.