Shownotes
In this week’s Omni Talk Retail Fast Five news roundup, sponsored by the A&M Consumer and Retail Group, Ownit AI, Avalara, Mirakl, and Ocampo Capital, Chris and Anne discuss:
- Amazon setting aggressive price targets for its rival online store to Temu and Shein (Source)
- 7-Eleven’s “New Standard” format which it plans open across 600 new stores (Source)
- Simbe’s $50 million Series C funding round led by Goldman Sachs Alternatives (Source)
- Wayfair’s new paid subscription loyalty program (Source)
- And closed with a discussion inspired by Marks & Spencer around the now, next, and future of self-checkout within the fitting room (Source)
There’s all that, plus Doug Tiffan from AWS stops by for 5 Insightful Minutes about AI investments in the fashion & apparel space, along with pre-fab housing, waltzing, and basketball stories from when Chris was a strapping young lad.
Music by hooksounds.com
This podcast uses the following third-party services for analysis:
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Transcripts
The OmniTalk Fast5 is brought to you in association with the A and M Consumer and Retail Group.
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Speaker B:Learn more@ocampo capital.com hello, you are listening.
Speaker A: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 a 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 and mazinga.
Chris Walton:And I'm Chris Walton and we are.
Speaker A:Here once again to discuss all the top headlines from the past week making waves in the world of omnichannel retailing.
Speaker A:Now, Chris, it's spooky season.
Speaker A:Apparently we say spooky season now.
Speaker A:We don't say Halloween anymore.
Speaker A:I don't know if oh do we?
Speaker A:Why is that?
Speaker A:I have no idea.
Speaker A:Probably Halloween has got some negative connotation, but I've noticed that all my favorite retailers are calling it spooky season instead of Halloween.
Speaker A:But we're gonna stick with Halloween because it's your favorite holiday of all holidays.
Speaker A:One of maybe after 4th of July.
Chris Walton:No, no, not at all.
Chris Walton:Not Halloween doesn't even make the top five for me.
Speaker A:I thought you loved it.
Speaker A:You dress up like Darth Vader.
Speaker A:You could do all your stuff like.
Chris Walton:Yeah, but I still don't love it.
Chris Walton:I still get into it, but it's not, it's not in my top five for sure.
Chris Walton:No.
Chris Walton:No way.
Chris Walton:No way.
Speaker A:How do you distinguish this?
Speaker A:You, how do you distinguish?
Speaker A:I get into it versus top holidays.
Chris Walton:Oh, because, because it's all, it's all about the family interaction, the eating, the whole nine yards.
Chris Walton:You know, I put fourth of July and Thanksgiving at the top of the list.
Chris Walton:Christmas, New Year's, those all trump Halloween for me.
Chris Walton:I don't know.
Chris Walton:We got to do a whole segment on what are the best five holidays.
Chris Walton:That's what, that's what I'm hearing from this conversation.
Speaker A:I feel like I don't even know you anymore.
Speaker A:Like you're profile picture was you as Darth Vader for a long time because of Darth Vader.
Chris Walton:Not because of Halloween though.
Chris Walton:You know, like that's the thing, you know, it's, it's like, it's like, it's like, it's like a totally different vibe, you know, for me with Halloween and Darth Vader.
Chris Walton:Anytime I can dress up as Darth Vader, it's a win for me and my family and.
Chris Walton:Come on, for you.
Chris Walton:Well, maybe not for my family.
Chris Walton:That's a good point.
Chris Walton:That's why I thought, I thought we've had this conversation before too.
Speaker A:Hey.
Speaker A:Although I did meet my husband on Halloween night.
Speaker A:Guess What?
Speaker A:It's our 10 year anniversary of our, of then fateful night that we met tomorrow.
Speaker A:So we are.
Speaker A:Yes.
Speaker A:So that's a good, that's a good part of Halloween.
Speaker A:But it's so stressful.
Speaker A:Like I already lost.
Speaker A:It is next week, so I think my kids costume got packed somewhere so now we're like an emergency costume finding mode.
Speaker A:It's just.
Speaker A:Oh, it's terrible.
Chris Walton:Yeah, I agree.
Chris Walton:Like after, after Christmas, Halloween probably puts the most pressure on the parent.
Chris Walton:You got to get the pumpkins carved, you got to get the candy out, you got to get the costume going.
Chris Walton:Lots of kids things to coordinate.
Chris Walton:Yeah, I'm with you but.
Speaker A:And let's talk about the decor.
Speaker A:Like Sarah Post from Home Depot is talking about the Giants now.
Speaker A:Like, since when does everybody have massive skeletons coming out of their yard?
Speaker A:Like, this is bigger than Christmas, I think.
Chris Walton:Yeah, see, I'm big into that, though.
Chris Walton:Like, if I could do that, Like, I'm big into that as well.
Chris Walton:Like a giant Darth Vader.
Chris Walton:Like those skeletons.
Chris Walton:That would be huge to put out there.
Chris Walton:Like a Darth Vader.
Chris Walton:Darth Vader.
Chris Walton:Like Halloween dressed up.
Speaker A:But it's not your favorite holiday.
Speaker A:But you don't.
Chris Walton:It's not my favorite holiday.
Chris Walton:It's not my favorite top five.
Chris Walton:We're gonna come back to this.
Chris Walton:We're gonna do a special segment because we've already lost track of this.
Chris Walton:We've already lost track of the show from a timing standpoint.
Chris Walton:We're gonna come back to this.
Chris Walton:We're gonna do.
Chris Walton:Okay, we're gonna do Omnitox five favorite Holidays.
Chris Walton:And we should do that for Chris for December.
Chris Walton:Let's do that.
Chris Walton:Let's put that on the list.
Chris Walton:All right, five favorite holidays.
Chris Walton:Let's debate them, the merits of them all, pros and cons.
Speaker A:All right.
Chris Walton:All right, let's get to today's headlines.
Chris Walton:What a great show.
Chris Walton:All right, today's Fast 5.
Chris Walton:We've got news on Seven Eleven's plans to open up 600 new stores with a new design format.
Chris Walton:Simi Robotics raising $50 million in Series C funding.
Chris Walton:Wayfair launching a paid loyalty program.
Chris Walton:Marks and Spencer's adding self checkout to, of all places, their dressing rooms.
Chris Walton:And Doug Tiffin from AWS stops by to talk about AI investments in the fashion and apparel space.
Chris Walton:But we begin today with big ultra low pricing news out of Amazon.
Speaker A:And there were more headlines out of Amazon this last week than I think have ever happened.
Speaker A:Chris.
Speaker A:There were a lot.
Speaker A:But this one is of particular interest that we picked headline number one.
Speaker A:Amazon appears to be going aggressively after Shein and Temu on price.
Speaker A:According to Reuters.
Speaker A:By way of the information, Amazon is imposing severe price caps on what merchants can charge for their products on a new low cost storefront that the e commerce giant is preparing to launch.
Speaker A:The company's price limits include $8 for jewelry, $13 for guitars, and this one blows my mind, $20 for sofas.
Speaker A:Not sure what that sofa is made out of.
Chris Walton:That's a great point.
Speaker A:The croissant lamp sofa that we were talking about a few weeks ago on the lightning round.
Speaker A:Okay, but anyway, according to the information's report, which cited messages from Amazon to merchants and included a list of 700 items, Amazon plans to ship orders to US customers directly from a facility In Guangdong, China.
Speaker A:Did I say that right?
Speaker A:Guangdong?
Chris Walton:Yeah, you did.
Chris Walton:You nailed it.
Speaker A:Okay.
Chris Walton:All right, Good enough is what I'd say.
Speaker A:All right.
Speaker A:Adding that it was also planning to charge sellers lower fulfillment fees for items sold through the new storefront.
Speaker A:Chris, why do you think Amazon is getting so aggressive on price against Temu and Shein?
Chris Walton:Ooh, starting off hot and all right, I am, I think, yeah, I think because they're eating, I think they're eating into Amazon's business.
Chris Walton:They, I mean, they have to be.
Chris Walton:You've seen the, all the recent numbers bear that out.
Chris Walton:You see the number of app downloads in the US like, the number of them is insane.
Chris Walton:Amazon's online store sales rose just 5% in the last quarter, which slowed down from a 7% increase in the previous quarter.
Chris Walton:So in the first quarter of this year.
Chris Walton:So.
Chris Walton:But you know, more importantly, I think the other piece of this is it's actually a strategic assault on Amazon's E commerce turf.
Chris Walton:Like Amazon has been, has been known as the low price leader.
Chris Walton:And like we've talked about on this show, consumers gravitate to the, to the offering that gives them the lowest price, which Temu and Shein are now effectively doing.
Chris Walton:So then I have to ask, the question for me is what are the implications of this?
Chris Walton:The question I have to ask then, Anne, is can they actually win this pricing war in this way?
Chris Walton:I don't know that they can at this point because she and Tim are pretty entrenched with consumers.
Chris Walton:Amazon's just trying to start up this new, you know, kind of format in this vein or this storefront in this vein.
Chris Walton:So I don't know that they're going to make, make a lot of inroads here.
Chris Walton:I think, I think this part of the business might be lost forever, especially until we know how regulation is going to continue to impact this, this direct to factory way of doing E commerce as well.
Chris Walton:But what do you think?
Speaker A:Well, Chris, but I guess my question too is like, I assume we're talking the same manufacturers.
Speaker A:I mean, from my experience, ordering, I would assume, like, yeah, are the, are, is Amazon asking these manufacturers to make further concessions for Amazon than they are for Temu and Shein?
Speaker A:Or is this like this is just standard across the board?
Speaker A:Like they're already doing this, so it's going to be fine like that.
Speaker A:That to me doesn't make sense.
Speaker A:Like they've already, these factories already have these longstanding relationships with Sheen and Temu and who, you know, just because Amazon comes in, do they have the same clout that they might have in the US Market when we're talking about, you know, what their relationships are over in China.
Speaker A:But I disagree with you a little bit and I'm curious what you think about this.
Chris Walton:Let's get it going.
Speaker A:So I think this could be a massive opportunity for Amazon.
Speaker A:Like huge.
Speaker A:Because I think if you look at the brands, I was even shocked by this.
Speaker A:But if you look at the brands that are most beloved by Gen Z, again, the generation that's holding the most buying power that any of any generation at this existing age, Amazon is consistently ranked among their favorites and in some cases even in the top 10 of their favorite brands.
Speaker A:So I have to ask you, Chris.
Chris Walton:If you're another question.
Speaker A:I do I have to ask you this question.
Speaker A:So if you're going to order, let's talk, let's say like shoe organizers for your closet or something, something like that.
Speaker A:Are you more comfortable ordering that from Amazon as a US Consumer?
Speaker A:Are you more comfortable ordering that from Amazon or from temu?
Chris Walton:It's a good question.
Chris Walton:Yeah, it's a, it's a really good question.
Chris Walton:So I, that's what's tough for me on this.
Chris Walton:It's, it depends on the user experience because I talked to the folks at temu for like 30, 45 minutes one day.
Speaker A:Yeah.
Chris Walton:And they say while the direct to factory model is part of it, it's also the gamification and the user interface is also part of this.
Speaker A:True.
Chris Walton:So the Amazon experience, as you' describing it, operates and behaves differently.
Chris Walton:But with that said, like, could I as a young consumer be browsing Amazon and looking for storage organization solutions that are cheap?
Chris Walton:Yes, I could.
Chris Walton:So maybe they get some of this business, you know, that they've been losing to TEU and Sheen.
Chris Walton:But, but I don't know that they can ever get the total amount.
Chris Walton:I don't know that they can ever just like shut them out of the market at this point.
Chris Walton:I think that that's the point I'm trying to make here is like, yeah, true.
Chris Walton:They, they, it just seems like this is a hard game for Amazon to stand up and play.
Chris Walton:Entirely new.
Chris Walton:Because it, it's a different way of doing E commerce.
Chris Walton:I don't know.
Speaker A:It totally is.
Speaker A:But, but I, but answer the question.
Speaker A:Who would you rather order from Amazon or team?
Speaker A:As a US Consumer?
Chris Walton:Probably Amazon.
Chris Walton:Yeah, I think, I think that I would concede to you.
Speaker A:I would agree if, if all things are equal, like price is comparable.
Chris Walton:You.
Speaker A:I mean everything else, the quality of the product, it looks the same.
Speaker A:The images are the same.
Speaker A:I would also go with Amazon and my hunch is there's a lot of people in the US that would also go to Amazon before ordering something from Temu or from Shein if it's the same thing.
Speaker A:So you make a great point.
Speaker A:I think about making sure that the gamification and the shopping experience is there, but I think if they can do it, there's a huge opportunity in the US for them.
Speaker A:Yeah.
Chris Walton:The other part about this though you got me think about is seller ratings are also really important on Amazon and so Amazon's always very transparent of that.
Chris Walton:So like, if customers start to get dissatisfied with that, Amazon's going to probably showcase that a little bit more too.
Chris Walton:So.
Chris Walton:So yeah, this is a really great conversation.
Chris Walton:I have no idea which way it's going to play, but you can tell that Amazon is definitely, definitely focused on trying to figure this out.
Chris Walton: stores under a new design by: Chris Walton: n North America by the end of: Chris Walton:These locations will showc prototype the company internally calls its standard its new Standard stores.
Chris Walton:They are, quote, more contemporary facilities, end quote, that offer quote, a large product assortment and expanded food and beverage offerings, end quote.
Chris Walton: lution store concept in March: Chris Walton:Those locations featured Seven Elevens, Mexican QSR Laredo Taco, as well as made to order specialty beverages, self serve specialty coffee, a cold treats bar, mobile checkout and delivery capabilities.
Chris Walton:Seven Eleven CEO and Omnitalk fan Joseph DiPinto said on Thursday that Seven Eleven has, quote, leveraged key learnings from its Evolution stores over the past few years and that beyond the increased food and beverage offerings, the new Standard C stores feature, quote, many of the same elements of the Evolution stores as well as in store seating and electric vehicle charging stations.
Chris Walton:And this is also the A and M put you on the spot question this week.
Chris Walton:Oh boy, better you than me on this one.
Chris Walton:All right.
Chris Walton:Will Seven Eleven's new format be the move the convenience store industry needs to lessen Its dependent on historically declining fuel and tobacco volumes?
Chris Walton:And how much should QSR players be looking over their shoulder to see what happens?
Chris Walton:God, they're so good.
Speaker A:They are.
Speaker A:I mean this reminds me of like when we left the nacs the national association of Convenience Stores Conference last year, Chris.
Speaker A:I mean, Chad and the team at A and M are hitting on the exact question that I think was on top of everyone's minds when we left that show.
Speaker A:Because these, these fueling stations are definitely doubling down on these QSR concepts and really making that their growth opportunity to, like, make sure that they have a reason for you to come to their location time and time again, whether you're filling up with gas or it's just the most convenient option.
Speaker A:So, I mean, I'm really.
Speaker A:I think this story is important, and I'm really going based off of what we saw five years ago, Chris.
Speaker A:We went to this Evolution store in Dallas five years ago.
Speaker A:They have five years of learning that they've put into these new concepts, and they're scaling this to 600 stores.
Speaker A:So I think it's absolutely something that the convenience and QSR industries need to be paying attention to.
Speaker A:I mean, they are making massive investments here.
Speaker A:We are seeing investments in like, full kitchen buildouts to support the Laredo Tacos.
Speaker A:They are putting in new fixturing and infrastructure to support things like mobile checkout and scan and go and in the future, possibly even entry and exit that would be controlled.
Speaker A:They're doing, you know, setting up better throughput for the delivery of fresh food items and then the supplies for the restaurant.
Speaker A:And then finally they have to really be thinking, and they did in the store that we visited in Dallas, about accommodating seating and an environment where people can stay.
Speaker A:Now that EV chargers are a component of this, and we're really not seeing that with many other C store retailers yet, with the exception of maybe Gelson's that's piloting this out in California.
Speaker A:But I think that what this investment, the pure investment that seven Eleven is making here is a reason for us to be paying attention to this, both in the C store space and in the QSR space, because I think that there's a lot of room and seven Eleven is betting on this being their growth engine for the future.
Speaker A:But where do you land?
Speaker A:I mean, what were your thoughts when we were in that store in Dallas?
Chris Walton:Yeah, I think my thoughts are similar.
Chris Walton:And honestly, I'm dying to ask Chad Lusk, who potentially is the originator of this A and M question and a former C store operator, what his take is on his question.
Chris Walton:But, you know, I think it's something that everyone has to be paying attention to.
Chris Walton:And the key, the reason I say that is I think the key here lies in the names that 711 is using they're going from evolution, taking the lessons learned from that.
Chris Walton:Which, by the way, learnings is not a word.
Chris Walton:I hate when people say that.
Chris Walton:It's lessons.
Speaker A:Sorry, Learning.
Chris Walton:No, it wasn't you.
Chris Walton:It was in the article.
Chris Walton:The article said learnings.
Chris Walton:And then we all do it.
Chris Walton:I do it all the time, too.
Chris Walton:So it's no big deal, but it's just a little pet peeve of mine.
Chris Walton:But they're taking the lessons learned from that and now calling this new format the new standard, which tells me this store is actually just an evolution against the trends 711 is seeing, like what you named, like, EV charging, expanded food and beverage offerings, which, as you said, we heard it.
Chris Walton:Next we shot a video of their evolution store.
Chris Walton:It was really impressive.
Chris Walton:We'll try to include it in the show notes as well.
Chris Walton:But.
Chris Walton:And the other point that I'd make is it seems like the right way to experiment when you're talking about retail.
Chris Walton:Physical footprints, design big and bold and then work backwards.
Chris Walton:Which is an interesting approach when you compare it.
Chris Walton:In contrast to, like, how Wayfair tried to experiment with their stores, how Amazon's been trying to experiment with their stores in grocery.
Chris Walton:I actually like this approach a lot better because you spend a little bit more upfront, but you get better answers in the long term and you see what's possible.
Chris Walton:So.
Chris Walton:And then the other point about this is they must have the confidence that it works, right?
Chris Walton:They're thinking this is going to work if they're going out publicly and saying 600 stores.
Chris Walton:We're going to build 600 stores with this in a pretty short time horizon, too.
Chris Walton:This is not like targets.
Chris Walton:We're going to build X number of stores in 10 years baloney that they're putting out there.
Chris Walton:So.
Chris Walton:So that.
Chris Walton:That's my take, I think.
Chris Walton:I think the whole.
Chris Walton:I think QSR and the convenience store industry both have to take a close look at this to see how.
Chris Walton:How things are still evolving.
Speaker A:Now you got me craving a Laredo Taco, Chris early in the radio.
Chris Walton:Or a Del Taco.
Speaker A:Oh, God, no.
Chris Walton:Or Jack in the Box Taco.
Speaker A:Oh, my God.
Speaker A:Now you're just spouting off QSRs.
Speaker A:I was, like, sticking with the 711 one.
Chris Walton:Whatever I am, I am a big QSR fan.
Chris Walton:Ed, that is.
Chris Walton:You know that.
Chris Walton:Oh, my God.
Speaker A:All right, headline number three.
Speaker A:Simby has raised $50 million in its latest funding round, according to Grocery Dive Simbi, the robotics company whose aisle scanning bots are in several U.S.
Speaker A:grocery chains, announced last Thursday.
Speaker A:It has raised $50 million in a Series C round led by Growth Equity at Goldman Sachs.
Speaker A:The robotics company said it plans to use the new funding to expand into product areas, scale its solutions with global deployments and, quote, pursue strategic growth opportunities, end quote.
Speaker A:The company also plans to expand its team, which it has doubled in the past year.
Speaker A:Simby noted in the Thursday announcement that it unveiled this year new and expanded partnerships with retailers including Spartan, Nash, Shoprite, Northeast Grocery, Care4and3 Albertsons banners, Market Street, United Supermarkets and Albertsons Market.
Speaker A:The technology company also counts BJ Whole, BJ's Wholesale Club and Schnook Markets among its current clients.
Speaker A:Chris, what do you think that Simby's $50 million Series C signals about the trajectory of retail technology investments?
Chris Walton:Man, and I love this headline.
Chris Walton:This is one where we were like unanimous on this week.
Chris Walton:You know, which, you know, which tends, which tends to happen.
Chris Walton:There's usually two or three a week like that.
Chris Walton:But, but I love this, I love this announcement because it tells all of our listeners, like, why you should listen and tune into us each week because we are trying to stay on top of the trends.
Chris Walton:We are trying to predict where things are going.
Chris Walton:And I feel like we had, we, you know, we had some insight, insight into this based on the retailers we're talking to regularly, because I think it shines light on what we've been saying for the past few years now.
Chris Walton:And it's very validating of our overall thesis that money, number one, money is still flowing to tech that will show a return.
Chris Walton:Because what's the one thing, what's the one thing the grocers have told us that have deployed the robots?
Chris Walton:And what's the one thing they've all.
Speaker A:Said they won't let them go.
Speaker A:Like they're just a part of the whole team at the grocery store.
Speaker A:Like, no one wants them to walk.
Chris Walton:Out of the door 100%.
Chris Walton:Like they basically say.
Chris Walton:They basically say to us every time we ask them, you can take anything you want, but you cannot take my robot.
Chris Walton:And that's pretty telling.
Chris Walton:And the reason is because they work, you get inventory, you get pricing accuracy, you get planogram compliance, plus you get all the operational offshoots you can when you combine them with ESLs.
Chris Walton: hy I think all signs point to: Chris Walton:And by that I mean the reach of the robot not just continuing in grocery, but starting to extend deeper like traditional grocery, but starting to extend deeper into other verticals in retail as well.
Chris Walton:And Goldman Sachs alternatives seems like they tend to agree with that sentiment, at least from this, from the size of the investment here and the round.
Speaker A:Yes.
Speaker A:And Simby's strategic growth opportunities that they're working on.
Speaker A:We'll be excited to see what, what kind of retailers they land in next.
Speaker A:And yeah, I don't have much to add, Chris.
Speaker A:I mean, I think anecdotally, I will say that since we released that Schnooks video with the robot last year about this time, and even just after talking to the Schnooks team and I'm still getting emails and direct messages via LinkedIn today where people are asking to get connected with them from other retailers so that they can find out more about why, like the why and the how related to the robots.
Speaker A:Because this is an area that people are seriously considering and seriously investing money in right now, like you said.
Chris Walton:Yeah, and we got it.
Chris Walton:We got to talk to like BJ's too, and see how they're working this thing, see how they're doing the robot too, now that I think about it.
Chris Walton:We got to get on the horn with them and see what they're learning from this as well.
Chris Walton:All right, now let's take a break and welcome Doug to the show.
Chris Walton:ANN Joining us now for five insightful minutes is Doug Tiffin.
Chris Walton:Doug is the head of solutions strategy for fashion and apparel at Amazon Web Services.
Chris Walton:Doug, first question, what is taking place in the fashion and apparel space right now?
Chris Walton:And how are you seeing retailers invest in cloud technologies?
Doug Tiffin:So the rapid growth of E commerce that was spurred by the pandemic is mostly stabilized right now.
Doug Tiffin:But what has changed is consumer behavior and I believe it's going to continue to change.
Doug Tiffin:And the expectations now are kind of higher than level for the retailers and brands.
Doug Tiffin:So customers today, they're, they're less loyal to brands and they're expecting great shopping experiences that are connected no matter where they interact with the retailer, whether it be online or in an app, in the store or in social media.
Doug Tiffin:So retailers must rapidly adapt and change investing in technology to meet their customers, changing expectations.
Doug Tiffin:So this includes investing in AI and cloud technologies that power better shopping experiences like personalization or improving business processes like leveraging AI to create product images or product descriptions and then using AI to create the next level of customer services that involve all these things before personalization, product data, all into one great customer experience.
Speaker A:Doug Inflation has eased.
Speaker A:Certainly the industry has not yet recovered though to pre pandemic levels.
Speaker A:For example, we're seeing supply chain disruptions, high interest rates, geopolitical uncertainties and all this may lead executives to be a little bit more cautious about their technology investments.
Speaker A:So I'm curious, what AI investments you think are going to have the biggest impact on profitability and customer loyalty within the fashion and apparel space?
Doug Tiffin:Yeah, fashion brands and retailers are concerned about customer acquisition, but mostly about customer retention.
Doug Tiffin:They're constant things like personalization and enhancing digital engagement, next level customer service, all with the intent of creating delightful shopping experiences.
Doug Tiffin:So the AI behind that can be in things like personalization.
Doug Tiffin:For example, AI can understand vast amounts of data like shopping history, browsing history, and pull all that together to give relevant product recommendations in session for each customer as they shop.
Doug Tiffin:Personalization can even reach into marketing.
Doug Tiffin:And instead of marketing to giant segments like we've done in the past, we can literally cater marketing messaging to the individual.
Doug Tiffin:Another area that I see investment in is product search and discovery.
Doug Tiffin:60% of, yeah, 60% of shoppers will go straight to the search bar when they hit a retailer site.
Doug Tiffin:And if they don't find what they're looking for within a few clicks, 80% of the time they're going to bolt for another website.
Doug Tiffin:So AI technologies can help by letting customers search by using product images and statements instead of just keywords.
Doug Tiffin:They can ask a question and AI can identify items in that retailer's assortment that meet the need of that consumer and then give them that offering.
Doug Tiffin:Shoppers can find exactly what they're looking for and then walk away with a great customer experience.
Doug Tiffin:And then finally, the last place I see, AI investments are really in the customer service space.
Doug Tiffin:So AI powered chatbots can offer 24 hours customer help and customers can come in and the AI can understand their intent and give them the answers they need to get to what they're looking for.
Doug Tiffin:That would be help with a problem or finding a product.
Doug Tiffin:And another version of a AI chatbot is personal stylus that I see happening a lot where either in an app or in a website, a customer go in and ask questions on like what to wear.
Doug Tiffin:Like, for example, you know, if you want to find a dress for New Year's Eve in Manhattan, which I buy in, AI can not only give you the dress, but also round it out with the handbag and the shoes to go with it.
Chris Walton:So let's get you out of here on this.
Chris Walton:If we consider a long term or take a longer term view, what do retailers need to take action on now to drive more value in the future?
Chris Walton:Right now, right this second, Doug, what would you tell retailers?
Doug Tiffin:Top of my mind is develop and enforce a complete data strategy.
Doug Tiffin:All the cool AI in the world won't help you if the foundational data is not in good shape.
Doug Tiffin:The second thing would be take your vision for a differentiated customer experience and invest in the technology that you need to support that vision.
Doug Tiffin:Anticipate that your customers demands and expectations are going to continue to change and so you want to make sure that you're positioned to be able to meet those changes.
Doug Tiffin:And then also think of AI as a member of your team.
Doug Tiffin:There are highly potential a team member that is capable of great things, but they need time and training to get up to speed.
Doug Tiffin:So start now.
Doug Tiffin:You know, if your team is new to AI, get them started on internal projects, then some short ones to get some quick wins and build that muscle memory so then they can turn around and work on some longer term strategic projects that could really deliver big value.
Doug Tiffin:And then finally plan for the long term.
Doug Tiffin:Clearly define and communicate the vision for your organization to focus on.
Doug Tiffin:So as AI projects come up, you can make everybody knows they need to be aligned to those goals and help drive them.
Doug Tiffin:And just know that you're not alone in this AWS and our partners are here to help to give you the technology and solutions that you need to power your success.
Speaker A:Thanks.
Chris Walton:Great stuff, Doug.
Chris Walton:Thank you.
Chris Walton:Headline number four.
Chris Walton:Wayfair has launched a new paid loyalty program.
Chris Walton:According to retail Dive, Wayfair has launched a new membership loyalty program across all of its banners, including Wayfair, All Modern, Birch Lane, Jocelyn Main and Paragould.
Chris Walton:I think, I think, I think Wayfair ascribes too, too much value to all those brands.
Chris Walton:But I don't know.
Chris Walton:That's just my opinion.
Chris Walton:The program costs 29 per year.
Chris Walton:They put them in every press release.
Chris Walton:The program costs 29 per year with rewards that never expire as long as subscriptions do not lapse.
Chris Walton:According to a company press Release, members get 5% back in rewards on all purchases, early access to major sales events and free shipping on orders of any size, among other perks.
Chris Walton:Ann?
Speaker A:Yes.
Chris Walton:Are you buying?
Chris Walton:I have no idea which way you're gonna go on this.
Chris Walton:Are you buying or selling Wayfair's new paid subscription program?
Chris Walton:Because as you mentioned at the outset, you are in the middle of a home move.
Speaker A:Yes, I'm selling.
Speaker A:I'm not interested in.
Chris Walton:You're selling.
Speaker A:I.
Speaker A:Well, let me clarify.
Speaker A:Okay.
Chris Walton:Okay.
Speaker A:As we've said with just about three.
Chris Walton:Weeks, you're not signing up.
Chris Walton:You're not signing up.
Speaker A:I'm definitely not signing up.
Chris Walton:Okay.
Speaker A:As we've said though, with just about every subscription program like this, it costs you absolutely nothing but time and probably not that much time to try something like this.
Speaker A:So if you want to put it out there and see who's willing to pay you for it and just get the data about how they're using it, like go for it, be my guest.
Chris Walton:But great point with subscription programs, great point.
Speaker A:Yeah.
Speaker A:But you get free shipping right now on Wayfair for anything you order over $35.
Speaker A:And my guess is that the majority of people who are ordering things from Wayfair are at least spending $35.
Speaker A:So that $30 a year is really of no value.
Speaker A:And I, you know, I looked in specifically, I went to Wayfair, I do have the tab open, but I went in there and I checked like price low to high even.
Speaker A:They're like under $20 section, which wouldn't qualify for the, you know, free shipping.
Speaker A:And it's just basic stuff like mugs, shower organizers, reed diffuse, like, you know, that kind of stuff.
Speaker A:And I think that if I'm shopping for that stuff, like I can get that faster and cheaper using Amazon, going to Walmart or going to Target to get all that stuff because it's really basic, nondescript stuff.
Speaker A:But pretty much everything else that you're ordering from Wayfair is going to be above that $35 threshold.
Speaker A:And I just, I don't see the 5% cash back as like something that you're going to use all that often because Wayfair to me is so much more of like a one or once or twice a year time, purchase time.
Speaker A:It's not like something consistent that I'm going to time and time again like Walmart or like Amazon.
Speaker A:But you, you probably, I don't know, you love this, I think, right.
Speaker A:This is your.
Speaker A:You're in.
Speaker A:I kind of do explain to you why I'm wrong.
Speaker A:Yeah, I don't.
Speaker A:Okay, all right.
Speaker A:Why?
Chris Walton:I don't know.
Chris Walton:I don't know that you're wrong.
Chris Walton:I think it's just perspective.
Chris Walton:I think, I think the audience they're trying to hit is exactly the audience that they're trying to hit.
Chris Walton:I mean, I, I mean, what do.
Speaker A:You mean by that?
Chris Walton:Well, so, okay, if I step back, I think, I think this announcement or this headline in particular, it shows just how left brained Wayfair's management is.
Chris Walton:Which, and this type of idea works in instances where you're talking about things related to E commerce.
Chris Walton:Like this is a great E commerce idea.
Chris Walton:So first off, and right Wayfair knows that everyone has subscription fatigue so there's no way they're going to get someone to pay like $99 like people are for Walmart plus or something comparable for Amazon Prime.
Chris Walton:So they have smartly just computed the inflection point of where the customer sees value and hopefully they're going to get the incremental revenue.
Chris Walton:So there's some portion of their customers that are probably not hitting the free shipping threshold and the value is relatively equivalent to them signing up for this.
Chris Walton:And therefore they're going to sign up for it because it just makes sense economically.
Chris Walton:And therefore they're going to get more loyalty too in the long run because you get the 5% discount and then people generally are.
Chris Walton:The general concept around a loyalty program is you pay for it, you're going to shop there more often.
Chris Walton:That's just kind of tried and true.
Chris Walton:A tried and true axiom.
Chris Walton:But so you know, net net.
Chris Walton:I think it's a very smart, analytical left brain move from a retail company run by the most left brain CEO in the industry, Nerd Shaw.
Chris Walton:And you know I throw a lot of at them but you know, when it comes to E commerce they just get it and they understand how the economics of it work and how to drive incremental profit from thinking in this manner.
Speaker A:Am I just in the, in like the outsider group?
Speaker A:Like how much are, how often are you buying home decor?
Speaker A:Stuff like that just seems so crazy to me.
Chris Walton:It's all incremental.
Chris Walton:Well, you're the one.
Chris Walton:Yeah, I mean I remember back when I made the, I made the argument on this show, if we played back the tape where I said like home furnishings is generally speaking about big purchases moments in your life, like having a new kid, moving a second home, retiring, going to college, it's generally about that.
Chris Walton:But there are the top up purchases.
Chris Walton:You know, that's what Target has made its bread, bread and butter on.
Chris Walton:There's like the throw pillows, the decorative things that you add.
Speaker A:Those throw pillows are all over $35.
Speaker A:Like you're not going to get out of Wayfair.
Speaker A:Like that's what doesn't make sense to me.
Speaker A:Like I guess you have consumers.
Speaker A:Like I just would want to see the data of like how many people are paying for.
Chris Walton:Well the other point of this, if you're saving 5% on your purchases, the 29 gets to be a pretty, pretty economically advantageous thing to sign up for because 5% is $29 is not 5% of all that much too.
Chris Walton:I think that's another Point of this, which I think we probably didn't give.
Chris Walton:It's just due here now that I'm thinking about it as well.
Chris Walton:It's more than the 29 year, I guess I just.
Chris Walton:Or the free, you know, getting past the shipping costs.
Speaker A:It's.
Chris Walton:All right, let's close up.
Chris Walton:It's not your.
Chris Walton:You're not, you're just not into it.
Chris Walton:Yeah, you're not into it.
Chris Walton:But.
Chris Walton:But Wafer is happy to know that you're.
Chris Walton:You're shopping at their.
Speaker A:I am shopping.
Speaker A:I am check out their house with all their wares, but I am not buying your subscription program.
Speaker A:All right.
Chris Walton:Speaking of, speaking of this.
Chris Walton:So, Ann, before we move on, random aside, we're going to talk about this next week, but Walmart+ half off right now.
Speaker A:Oh, my God.
Chris Walton:We're official Walmart+ members.
Chris Walton:I'm going to do all my shopping from Walmart this holiday.
Speaker A:I, I like.
Speaker A:We, like watched Paramount plus last night, Chris.
Speaker A:We were like in it and I was started.
Speaker A:I already placed a grocery order.
Speaker A:It was amazing.
Speaker A:I'm like super into it.
Speaker A:So, yes, Walmart plus, big deal, big.
Chris Walton:Time and fun tip too.
Chris Walton:All of those brands you're probably shopping on Wayfair are also available on Walmart most likely.
Speaker A:So I would check them out as second.
Speaker A:I know you have told me, you have told me to use Google Lens to look at the furniture that I'm interested in and then see where I can find it for the best price.
Speaker A:Just a little shout out to Google Lens again.
Speaker A:Okay, let's move on to headline number five.
Speaker A:Marks and Spencer is adding self checkouts in the dressing rooms, according to Chain Storage, the British apparel and food giant is adding self checkouts to fitting rooms in its 180 clothing stores.
Speaker A:The move is to prevent shoppers from having to get in line twice during the shopping experience.
Speaker A: stores by early: Speaker A:The initial plan is to add one of the checkouts per changing room area with a number to increase depending on consumer demand to protect against shoplifting.
Speaker A:The stores would have staff quote, hosting, end quote, the changing room areas to make sure customers did not leave without paying.
Speaker A:Chris, do you think we're going to see other apparel retail retailers follow Marks and Spencer's lead in trying self checkout in the fitting rooms?
Chris Walton:Ooh, that's.
Chris Walton:That's also a good question.
Chris Walton:I think.
Chris Walton:Sadly, no.
Chris Walton:But I'd say that I think they should.
Speaker A:Right.
Chris Walton:There's a tell for me.
Chris Walton:There's A tell for me that that Marks and Spencer's doesn't have this all figured out yet.
Chris Walton:And it's the 20.
Chris Walton: What is the: Chris Walton:That's four years away.
Chris Walton:So that's kind of nuts.
Chris Walton:And, and the idea in general an raises so many questions like how do you take off the security tags?
Chris Walton:How do you handle bagging?
Chris Walton:But if we step beyond all of those, like what do you have to figure out things and think about the possible, particularly in a world with RFID and overhead sensors.
Chris Walton:I wonder if this setup doesn't actually help to thwart theft more in the long run because you can better monitor the garments going in and out of the fitting room and you have controlled exit and entry points that can be monitored by a single sales associate.
Chris Walton:And then of course you don't have the double queuing either.
Chris Walton:So, so as an idea, I, I love where, I love that they're doing this and I think we're going to see more experimentation of how ultimately it should work best in a fashionable apparel.
Chris Walton:Fashion.
Chris Walton:Apparel setting.
Chris Walton:That's my take.
Speaker A:Yeah, I mean we did the, the like security tag removal and begging at the Zara in Madrid.
Speaker A:And I think that it, and especially if you have an associate right there, I mean Uniqlo is doing this too where you have to remove tags for their RFID based checkout.
Speaker A:I mean it can be done.
Chris Walton:And with RFID you don't even really need the security tags anymore.
Speaker A:True.
Chris Walton:That's the other point of this.
Chris Walton:Right?
Speaker A:Yes, yes.
Speaker A:And you know, in talking with rfid, we just, you know, we tested this out, you know, in H and M when we were in New York and being able to like order.
Speaker A:That's something that they're working on too at H and M is how the, how they can have transactions happen from the fitting room and you just walk out.
Speaker A:Because that is still the biggest frustration in all these apparel stores that have invested so much money in technology.
Speaker A:You still end up sitting in a line and it's one of the most frustrating experiences alive.
Speaker A: more stores more quickly than: Speaker A:And I just give a shout out to.
Speaker A:We just interviewed Troy Cywick from Gray Orange who talks about G store and how stores like H M have used the, some of the RFID overhead arrays like you were talking about, Chris, to help enable this kind of stuff in stores, I think we can get there.
Speaker A:But that's a great podcast to just learn more about the how of it.
Speaker A:And then finally we're going to be going out to Lumen Field in a few weeks to shoot the Just Walk out technology with apparel in in Seattle.
Speaker A:And I'm really excited to see how that plays out as well because I think that hits on this, this theft issue of, you know, if there's a controlled entry and exit and then you can just walk out with that stuff.
Speaker A:I think that's another way that we could start to see some of this apparel shopping experience changing for consumers for.
Chris Walton:The better, which is all done with RFID too.
Chris Walton:That's why this story is so important to pay attention to.
Chris Walton:All right, and let's close this show up and let's go to the lightning round.
Speaker A:All right, Chris, question number one goes to you.
Speaker A:Walmart is doing a series of parodies on popular TV series like Yellowstone Bridgerton, Real Housewives, Friday Night Lights and more for their Black Friday deals campaign.
Speaker A:Which one are you most excited to watch or which series do you wish they would have parodied and didn't?
Chris Walton:Oh my God.
Chris Walton:The one I.
Chris Walton:The Bridgerton one looks classic.
Chris Walton:Like, I can't wait to see what they do.
Chris Walton:That one is now selling a tiny house online for $15,900.
Chris Walton:The 19 by 20 foot expandable prefab prefab house is delivered by flatbed truck and requires a forklift for unloading.
Chris Walton:According to the online listing.
Chris Walton:Were you to purchase said prefab house, what name would you give it?
Speaker A:Alone time.
Chris Walton:Nicely done.
Speaker A:Nicely done for me or somebody.
Speaker A:But I would definitely take that thing and put it in my backyard and it would be time for myself, me, myself and I.
Chris Walton:No, I literally, I literally just thought of this.
Chris Walton:Mine would be absolutely pretty fabulous.
Speaker A:Oh my God.
Speaker A:We went in two very different directions with.
Chris Walton:Right.
Chris Walton:I literally just came up with that.
Chris Walton:I did not know that beforehand.
Speaker A:Question number three.
Speaker A:Game changer owned by Dick's Sporting Goods, launched Film Room, an app that helps tap AI to help coaches analyze game footage for youth basketball and volleyball games and shares those highlights with team members.
Speaker A:Chris, what would Film Room call out as one of a strapping young Chris Walton's greatest basketball highlights?
Chris Walton:Well, I'm not sure that anyone in my history of my 47 year old life has ever called me Strapping Ann, but thank you for at least.
Chris Walton:Yes, thinking that that's what I look like in high school.
Chris Walton:But the answer for me is freshman year against North High basketball Came, got sent into the game just to shoot the technical free throws to ice the game.
Chris Walton:That was.
Chris Walton:That was my crowning, crowning high school basketball achievement.
Speaker A:So proud of you.
Chris Walton:All right.
Speaker A:It would be just everyone on the.
Speaker A:Everyone on the team would get that footage.
Chris Walton:Yeah, right.
Chris Walton:And no one would watch it.
Chris Walton:Just like my basketball career.
Chris Walton:All right, and headline number or lightning round, Question number four.
Chris Walton:A museum owner recently uncovered a previously unknown waltz composed by Frederick Chopin.
Chris Walton:When was the last time you waltzed?
Speaker A:Does playing a waltz on the piano count?
Chris Walton:Yeah, sure.
Speaker A:Why not actually dance?
Speaker A:Okay.
Chris Walton:You're dancing in your head.
Chris Walton:I was curious about more when you danced.
Speaker A:Oh, I don't think I've ever.
Chris Walton:Because you gotta, like, you know, you gotta put your hand out like this for those watching and like, all that kind of stuff.
Chris Walton:Yeah, you never waltz.
Speaker A:I don't think I've ever waltzed, but I did have to learn one on the piano.
Speaker A:I think I was in fifth grade with my piano teacher, Virginia Schmidt, whose perfume I can still smell to this day.
Chris Walton:Virginia Schmidt sounds exactly like the name of a piano teacher.
Speaker A:Like, you know, piano teacher.
Speaker A:Yep.
Chris Walton:He couldn't even make that up.
Chris Walton:Piano Virginia Schmidt and her fancy smells.
Chris Walton:All right, happy birthday today to Harry Winkler.
Chris Walton:Nia Long.
Speaker A:And.
Chris Walton:And to the man who is the real reason Mrs.
Chris Walton:Omnitok was a huge Glee fan, Matthew Morrison.
Chris Walton:Huge Glee fan Matthew Morrison.
Chris Walton:And remember, if you can only read or listen to one retail blog in the business, Make It Omnietalk, the only retail media outlet run by two former executives from a current top 10 US retailer.
Chris Walton:Our Fast Five podcast is the quickest, fastest rundown of all the week's top news.
Chris Walton:And our daily newsletter, the Retail Daily Minute, tells you all you need to know each day to stay on top of your game as a retail executive, and also regularly features special content that is exclusive to us and that Ann and I take a heck of a lot of pride in doing just for you.
Chris Walton:Thanks as always, for listening in.
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Chris Walton:So until next week, on behalf of all of us at Omnitalk Retail, as always, be careful out there.