Anne 0:06
Hello everyone, we are live. Doing the first five live delivery world.
Chris 0:11
First five live Yes.
Anne 0:13
You are listening to the Fast Five that is still today even at the trade show brought to you in partnership with Microsoft the a&m consumer and retail group, takeoff and sezzle.
Chris 0:24
Right
Anne 0:25
As you know and love the Omni talk Fast Five podcast is the podcast that we hope makes you feel a little smarter, but most importantly a little happier each week.
Chris 0:33
Yes it does even from Philadelphia
Anne 0:35
Today. It’s uh oh, I this is
Chris 0:38
I know, right?
Anne 0:38
It’s the first of the month, wake up, wake up, wake up. It’s the first of the month.
Chris 0:43
Totally off the beat probably.
Anne 0:45
It is September 1 2022. I’m your host, Anne Mezzenga.
Chris 0:48
And I’m Chris Walton.
Anne 0:49
And we are live from home delivery world in Philadelphia. And here once again to discuss all the top headlines making waves in the world of omni channel and perhaps big and bulky delivery.
Chris 0:59
That’s right. Anne yes, as you can see in the background, as we’ve talked about incessantly for the past week, we’re at home delivery world, it’s the last day of the show. And we’re ready to go like it’s we’re here. We’re live for you, our audience. Thank you for so much for tuning in to anyone that’s watching live as well as to anyone that happens to listen to the podcast recording after the fact. But Anne what do you think? What do you think of the show real quick?
Anne 1:21
Oh, man
Chris 1:21
Quick take quick. Hot take hot take Anne
Anne 1:23
Hot take? I Well, I would say the show has been a little hectic. Like
Chris 1:29
Yeah, lots going on. Yeah
Anne 1:31
There’s so much to see. But I’ve had some really good takeaways, some really good revelations. I think some acceptance overall of like, maybe the way that I think things should be delivered
Chris 1:42
Broadening our minds
Anne 1:44
are not the only ways. There are other ways to experiment. We talked a drone up yesterday.
Chris 1:48
Drone up. Yeah, that’s good.
Anne 1:49
Being a prime case for listeners of the show, they’ll realise.
Chris 1:52
Yeah, yeah. walk the tightrope on that one, too. Like in that conversation. The little I’m talking fans will pick up my subtle cues that I was dropping throughout the course of that interview. But But yeah, let’s get to the show, and no reviews to read this week, because we’re out of the show. But please do leave us a review. If you get a second tell us how much you like or even also important even dislike the show. If you’re listening and you’re like I hated that episode. I don’t agree with you at all. Let us know. Just rant incessantly on Apple podcasts wherever you want to leave. Leave us a review.
Anne 2:20
Yes, hi, Cami. But it’s great to have you on you know, since this is a live show you can also leave a comment in the comment section and tell us what you think. We’ll be taking those too throughout the show. But if you are listening to this after the fact, do leave a review on Apple podcasts, heart, the podcast if you’re on Spotify, or Google Amazon music, etc. We really appreciate you taking the time to do that, because we will read it one day for all the listeners to hear and it helps us bring you the most amazing retail content possible
Chris 2:53
And helps us keep moving up those ranks and helps us keep moving up those ranks and bringing that content to you. And every difference makes a difference as we always say.
Anne 3:01
Oh my god we are definitely doing a telethon
Chris 3:03
Alright should do the show? I know it feels so different because we’ve got people flying by behind us.
Anne 3:07
Yeah
Chris 3:07
Some people get really close. Yesterday actually. We had Ben Franklin show up like legitimately a dude in a Ben Franklin costumes.
Anne 3:13
And the grinch like ben franklin makes sense we’re in Philly. But like the Grinch. Where was that coming from?
Chris 3:20
That I think was associated with the show The Grinch? I’m not so sure but but today’s Fast Five is brought to you with the help and support of our good friends at grocery shop. Are you a retailer or brand thinking about attending grocery shop this year? Well don’t even think about it without using our promo code. Specifically for OMNI talk listeners. Just go to grocery shop.com and enter promo code RBOT1950. My favourite promo code of all time, that’s RBOT195. O for your special discounted rate. All right. Today we’ve got headlines from Bloomingdale’s opening a second store under its new blue means banner Instacart is launch of a new what it’s calling big and bulky product delivery service,
Anne 4:01
The theme of home delivery world that’s for sure
Chris 4:03
I’ve been moderating a panel on that very topic yesterday, meta and geo teaming up to launch grocery delivery via WhatsApp in India. Alta announced introducing a new store layout. But first we take off with Walmart’s new rewards programme for Walmart plus members Anne
Anne 4:19
Yes, all right, Chris. According to retail dive, Walmart has launched Walmart rewards as a new benefit to its Walmart Plus membership. Is this going to happen every week or like and now
Chris 4:30
I kinda feel like it that’s a great point.
Anne 4:33
Okay, shoppers can earn and redeem rewards both in store and online. For online shoppers, customers can tap the Add reward option under eligible items on Walmart site or app to claim the savings and then apply their rewards balance to their purchase at checkout. And when you’re redeeming rewards in store, shoppers have to use a QR code that they scan that we generated through the Walmart pay app, and they can add those benefits when they use the checkout at payment. Walmart plus members can track their rewards accumulation through the reward centre on the retailer, site and app. And all save rewards or item rewards will have expiration dates, key notes, meaning customers must buy the item before the reward expires. Chris?
Chris 5:17
Yes, you are just started me off again, aren’t you. Every time you do. that I am like Alright, here we go.
Anne 5:23
Also choosing this question of all the topics for this week to put you on the spot.
Chris 5:27
All right, let’s do it. Because I got a lot to say about this.
Anne 5:29
Because just two weeks ago, we had David Brown and Abhinav Chandra of a&m, on the show. We were talking at that point again about them. Walmart, including paramount, as part of the Walmart pops up Paramount plus, as part of the Walmart plus benefits. They’re wondering if, if, let me start this question over again, here. They are wondering,
Chris 5:29
The beauty of going live Anne,
Anne 5:32
Was it enough to create subscription adoption and ask what’s next for Walmart Plus, which impact will be bigger for Walmart with this rewards programme? Boost to Walmart plus members or CPG participation in its retail retail media platform?
Chris 6:10
Oh, I love what a&m CRG is insinuating there. I love that question. Oh, my God, it’s so good. Um, yeah, I love it because it gets to the heart of the possible motivation behind this whole thing too, which I think is really important. And to me, this is a play for the CPG is like it like nm is alluding to versus being customer first.
Anne 6:33
Yes.
Chris 6:33
Right. Like, Sam, I’ve said this before around this programme. But Sam Walton is now officially turning over in his grave, in my opinion, because you’re creating two strata of stratas of customers here. Yeah, most most definitely. You are those that want to those who want to reward that have higher incomes and are willing to pay $100 a year to get Walmart plus, and those who don’t.
Anne 6:53
Yeah
Chris 6:54
Right. And that smacks full in the face of EDLP as a concept at Walmart. And like, why should I have to pay $100 To get these rewards? Like, there’s a part of me when I read this headline, I was kind of like, Wait, Walmart doesn’t already do this. Like there are plenty of other perks programmes that you don’t have to pay for at competing retailers that do the same thing,
Anne 7:15
Right
Chris 7:15
Why am I making my Walmart plus customers pay for this? Or my Walmart customers pay for that?
Anne 7:20
I agree
Chris 7:20
Which just makes no sense. So that’s why a&m’s question is so brilliant, because that’s the motivation here is the retail media network to try to unlock the dollars through this by talking to your most advantageous consumer in your Walmart portfolio for those CPGs I think it just reeks. I don’t like this at all.
Anne 7:37
Yeah, I completely agree. I mean, I think, especially when when your customers have the option to download apps, like upside, like fetch rewards, for free, they’re getting great cash that they can deposit into their account that day, that’s not limited to the Walmart universe, like you can obviously you know, you get cashback on rewards no matter where you’re shopping. And I just I think that makes so much more sense. Like, there’s just so many better options for the customer. So I totally agree that
Chris 8:07
How is this a thing.
Anne 8:07
This is not a customer thing. I want somebody listening or if you’re listening live. Tell us what we’re missing here, though. Because I feel like Yeah, somebody at Walmart had to like pitch this at some kind of like, they’re going at it as a customer benefit. They’re definitely we know the CPG angle that a&m is bringing up which is a smart one. But like, what what is the customer supposed to take? How PR teams at Walmart? Like what what is the plan here? To make sense of this for the customer?
I just I also think you bring up the point about how it’s, you’re getting the most valuable customer here and you’re giving access to the CPG to the CPGs to that customer. But wouldn’t it be more valuable to open this up to all customers and have a wider data set? Like it’s the biggest retailer, the physical retailer in the country? Like
Chris 8:55
Which it sounds like they’re going to do when you read between the lines like of how they’re positioning this like they I think they know this is going to be a criticism is what I read.
Anne 9:02
Yeah
Chris 9:02
In it, but but the point that you bring me back to is when they debuted Walmart plus
Anne 9:09
Yeah
Chris 9:09
This came under fire to like you’re creating a new strata.
Anne 9:12
Yeah.
Chris 9:12
And now you’re saying we’re gonna do it even more
Anne 9:15
Right.
Chris 9:16
It’s unfathomable to me.
Anne 9:17
Yeah, it clearly it’s showing that the way that Walmart is trying is going to try to make money from Walmart plus is by developing a stream of revenue from CPGs to make Walmart plus a profitable programme, not from actually having customers on the Walmart plus platform.
Chris 9:33
And at the end of the day, like if that’s what you’re saying, like it’s not going to drive consumer adoption, like I can get these benefits somewhere else and not pay for them.
Anne 9:40
Yeah, exactly. Okay Chris.
Chris 9:42
Just AnotherOh, go ahead.
Anne 9:43
Good morning to Calvin C
Chris 9:44
Calvin C
Anne 9:45
Calvin C, would like you to take us to the next headline.
Chris 9:48
All right. We’ll do it. All right. Hey, Calvin C, I like your name. It’s so hot. Get it? Calvin. Got it, you know? Yeah. All right.
Anne 9:55
Oh, my God. I can’t edit out the jokes for
Chris 9:57
Meteorology jokes. Alright.
Anne 9:59
I Apologise in advance.
Chris 10:00
I hope I didn’t offend Calvin but, you know, live here in the moment. All right, Macy’s is about to get some rare Chris love on today’s podcast. Bloomingdale’s, which is owned by Macy’s plans open its second store under the blue music banner. According to chain storeges the upscale department store retail and second Bloom is location at Westfield Oak Orchard in Skokie, Illinois, Skokie, Anne. Blooming is in Skokie.
Anne 10:09
Oh My god.
Chris 10:26
The existing Bloomingdale’s store at Old Orchard will close upon the opening of blooms, which is expected to take place at the end of October and the new 50,000 square foot blooming store I can’t get over saying blooming as I just love saying blooming
Anne 10:38
You’re gonna you like are doing that George loves that. You just didn’t
Chris 10:41
I know I did that. I did that. Totally, totally. That might have been a bunch of editing pre show, but but the blooming store will open at a new location at the mall. Anne what do you think of this news?
Anne 10:52
Okay, I don’t know, Chris.
Chris 10:54
Really? I Okay. Well, you go first.
Anne 10:57
I think that this makes sense, in a way, because to me, it reminds me of like the model that’s worked for Nordstrom. And Bloomingdale’s, I think is much more comparable to a Nordstrom in terms of like brand offering,
Chris 11:09
Oh, 100%
Anne 11:09
And service offerings. I mean, it’s just a higher end concept than doing this at like a Macy’s, for example. So I think it makes sense to explore this. But I just still missing like how bloomie is like nothing that’s coming out here. It’s just sounds like smaller format, like they’re taking, you know, what was 120,003 storey mall store. And they’re condensing it into 50,000 square feet. But there’s still no like, talk about how they’re going to enhance omni channel capabilities, rather, investing in the overall customer experience. But you know, just being good at service is not going to pay off anymore. Clearly, we’re seeing that with Nordstrom and what their numbers are coming in right now. Like, I think that 50,000 square feet, also still is big.
Chris 11:56
Right
Anne 11:56
Like I the closest thing I think of now, and I’m thinking about like this reinvention of the department store, is Amazon style, like Amazon style is only 30,000 square feet like blooming is if you’re going to really invest in this, how do you really get down to a significant sizing, decrease. And use the technology that you have at your fingertips so that the industry has at their fingertips to really improve the overall shopping experience. And keep that in a small footprint, keep your square footage down, so that you can be functional and have that that impact immediately to your bottom line by not having as much real estate. But
Chris 12:34
Yeah, that’s
Anne 12:35
Why do you love it?
Chris 12:36
That’s an interesting point. Oh, so you know, I love this. Yeah.
Anne 12:39
You said that in the beginning.
Chris 12:40
Yeah. You know, I kind of personally see it right. Yeah, it is it right. Yeah. I mean, I think I think you’re bringing up good points, though. Like your your points about, hey, you’re making these new stores? Why don’t you make them as advanced from an omni channel technology perspective as you can.
Anne 12:53
Right
Chris 12:54
Because I think you’re right, like, You’re what you read between the lines. And what you’re saying is like, it’s a real estate strategy at the end of the day, but I still like it for that reason.
Anne 13:00
Okay
Chris 13:02
And I’d say like, not all horses are of the same colour. So like it’s a smaller version of Bloomingdale’s, in my mind is not the same thing as a smaller version of a Macy’s or a Kohl’s.
Anne 13:11
Why?
Chris 13:12
And I’ll tell you, why couldn’t it goes back to real estate? There are damn near 1000 stores under each of those brands, Macy’s and Kohl’s. How many Bloomingdale’s stores are Anne?
Anne 13:21
I don’t
Chris 13:21
I looked this up. It’s really interesting. It’s far less than I thought,
Anne 13:24
Yeah
Chris 13:25
According to change the age 33.
Anne 13:27
Okay
Chris 13:28
So 33 throughout the country, so a smaller version of an upscale experience. Makes sense, because most of the nation likely aspires to shop there and honestly can’t. But Kohl’s and Macy’s, if you have a larger one in your backyard, when you’re that ubiquitously throughout the country,
Anne 13:42
Yeah
Chris 13:43
That’s not a desirable thing to then go to a smaller auction, you’re gonna want to go to the place with the largest selection. And so you have the risk of cannibalization there too. So, you know, so I like this. Because if you don’t have the cannibalization risk, you’re gonna get a pretty high return on your assets, relative to your existing store base with this strategy that Bloomingdale’s is incorporating. So I gotta give Jeff Garnett and Macy’s a thumbs up on this one, which I have never done, I think in the history of this show. But I think this makes sense. And to your point, I think I think it’s a good criticism. But I think you can also still do that over time.
Anne 14:14
Yeah, absolutely.
Chris 14:15
As you meet this way, the second one, so they can try to fortify them hopefully they take that approach as they go forward. to fortify them technology technologically Yeah, I
Anne 14:24
Guess I just have concerns about I forget who you’re interviewing the other day, but it was like when do you get to phase two? Like is this gonna get killed because it wasn’t successful in its first rollout because it was still too big people like even having the opportunity to shop at this blue means that they they haven’t had the opportunity to shop at because the closest one is 150 miles away like you still have to be investing the equivalent of you know, the new store format and design in technology I think for this to truly be successful, so I don’t know.
Chris 14:56
Yeah, I don’t Yeah, I got a I got a hunch that first one’s working I just got a hunch. Okay, got a hunch that
Anne 15:02
We’re gonna be down we’re gonna be down and it’s in Dallas right or Oh no, I’m thinking of a small.
Chris 15:07
Yeah, the small Macy’s store. Definitely do that for sure but Skokie is not far actually we could probably hit that in a day. Stay tuned folks
Anne 15:15
your friend Calvin said it is really hot
Chris 15:18
Nice. Yes, Calvin gets the joke I love it.
Anne 15:21
I always appreciate when people pander to Chris’s
Chris 15:25
Calvin you’re my new few. I’m now your biggest fan Calvin . Alright.
Anne 15:29
Alright, let’s go to headline number three. So according to chain store age, again Instacart is launching big and bulky a new fulfilment compute capability that enables same day and scheduled delivery for large items that are big and bulky nationwide. Big Lots The Container Store. Office Depot and staples are just a few of the retailers who have already signed up to use this service. These retailers and others are now offering same day delivery of large items such as outdoor furniture, home office supplies and electronics via the Instacart app. In some cases, big and bulky is even offered your retailers own Instacart powered websites. That was interesting.
It should also be noted that the fulfilment technology behind big and bulky runs on Instacart carrot delivery an enterprise solution from Instacart that provides end to end fulfilment for retailers. Chris, I think you are a resident big and bulky expert now after yesterday’s panel. So please, pontificate on what you think of this new headline from from Instacart.
Chris 16:30
Instacart. Oh my god, two words that have never been said about me in my life big and bulky. Yeah, but so backstory that Angelina to I moderated a panel with two cool companies actually yesterday on big and bulky delivery and how it’s transforming the industry, which I think is important. I learned a lot from that discussion. And here’s what I’d say about this headline and then want to hear what you’ve got to say as well. Like, I think it makes sense strategically if I’m Instacart. Especially as they’re trying to add revenue to boost their IPO Right.
Anne 17:01
Yeah,
Chris 17:01
I think that’s kind of potentially what’s going on here.
Anne 17:03
I think that’s 100%. Right. Thanks.
Chris 17:05
So okay. But I would also say that this is really hard to do well, and as I know
Anne 17:12
Exactly
Chris 17:13
The former head of home furnishings for target.com, which is all about big and bulky delivery, you’re talking sofas, couch,
Anne 17:18
You are the resident expert. I’m big and bulky I joke but you actually have experience.
Chris 17:23
I know relatively more about back some of the things we talk about on a weekly basis. But But yeah, but I mean, some of the issues that come up, right you have, for example, you have products that are harder to ship, right? They’re big and bulky. That goes without saying the other thing you have is customers typically need to be home to take these orders, which is an important factor. And then the other part that’s really hard with this is when a product arrives, and it’s not in the condition that the customer expects, oh, yeah, return process is a nightmare.
Anne 17:48
Yeah, you don’t want to be that delivery person.
Chris 17:50
No. And so So the other part of it I met one of the companies interviewed yesterday was called Dolly, I interviewed their CEO. They’ve been trying to basically nationally brand LTL delivery for the past seven years.
Anne 18:04
What’s LTL delivery for the listeners who might not know that?
Chris 18:06
It means like when you need a non, you have a non standard product that you need to deliver in a bigger truck.
Anne 18:11
Okay
Chris 18:12
Right, then a car or a trunk like the Instacart DoorDash story, we are the DoorDash Facebook story we covered a couple weeks ago, this is different. And so they’re trying to build a national brand around that. But it shows you that it’s really hard. They’ve been doing it for seven years, and they still haven’t accomplished that. And now Instacart saying, Oh, we’re suddenly going to do this with all these new complexities. So to me if I was Instacart well, it makes maybe make sense strategically, it wouldn’t be where I would focus my revenue and profit driving efforts to Goosen IPO right now.
Anne 18:39
Okay
Chris 18:39
because it’s going to take a hell of a long time.
Anne 18:41
Yeah, I mean, okay, I, we said, we’ve been hearing tonnes at this conference at home delivery, about the challenges of what you’re talking about of shipping, large items, big and bulky delivery, you’ve been shipping these products for the last 10 years since you were at Target, as you mentioned, but I get and I get the IPO like upcoming and how you expand your offerings and everything. But like, this is really hard to do,
Chris 19:09
Right That’s exactly my point.
Anne 19:11
Why Instacart is taking this on with all of the other things that are out there. Like, even if even if Instacart just said, like, hey, Meta, we see you’re partnering with DoorDash, do you want to partner with us too like just finding other ways because it’s not just about like, I don’t know, the the gig drivers that they’re talking about here? Like that was another thing that occurred to me like Do you remember the early days of Uber, and like how much longer it took to get an Uber XL?
Like now you need the gig workers for Instacart who have larger vehicles to be able to sign up for this kind of thing. And I just don’t see that happening like with gas prices being what they are like the average gig worker, I imagine is like using their most fuel efficient like fastest smallest car that they can to like run as many deliveries as they can to make as much money as possible within that hour like who’s signing up for this service offering as as your gig worker? So I just I think it’s going to be a challenge for Instacart to make this profitable
Chris 20:10
100% I think you’re hitting on the head, like, actually, what it actually makes me think about too is like, if you’re actually Office Depot or staples in this headline, I’d actually be questioning your judgement here. Because you’re right, this is going to be harder than the garden variety thing. Instacart does day in and day out, you don’t have the muscle memory to do it. There’s already profit questions around Instacart this is gonna be a less profitable activity at startup than what you’re doing before it makes it has to be right?
Anne 20:33
Right.
Chris 20:34
And so it just, fundamentally, it just doesn’t necessarily make sense. It seems like another stretch or a reach and probably an indictment on on those companies too. Because like I said, this company Dali, they’ve been doing this for seven years
Anne 20:45
Right
Chris 20:46
And he talked all about the train the intense train, they put their drivers through to get the gig workers to make sure that the truck is up to standard, like Instacart is gonna have to learn how to do all of that.
Anne 20:55
Yes. Yeah, there’s a reason that nobody’s touching this with a 10 foot big and bulky delivery.
Chris 21:01
Yeah, it’s really hard and most of the deliveries are done very decentralised. It’s like, it’s like Joe and Joe and John in their truck, right that are just happened to be contracted by a given retailer to do the delivery. It’s crazy. It’s a crazy space. All right, let’s keep moving. According to TechCrunch. Meta, and an E commerce venture between India’s Reliance retail and Jio platforms are bringing grocery shopping to WhatsApp. And what they said is the first end to end shopping experience on the popular instant messaging platform. The launch of Jio Mart on WhatsApp follows meta and Jio Mart beginning to test an integration with select Users two years ago. I think I remember talking about that.
Anne 21:38
Yeah, I do, too. It sounds familiar.
Chris 21:39
Customers in India will be able to browse geo Mart’s entire grocery catalogue on WhatsApp, add items to a cart and make payments via local payments rail UPI without ever leaving instant messaging service. The company’s both said WhatsApp, it should also be noted is used by about half a billion Indians each month. Anne
Anne 21:59
Crazy.
Chris 21:59
I know that’s not I put that in there. Because I thought that was an important context. For US market. Yeah. And do you think this is a sign of the future? Do you think we’ll all be shopping via text messaging? I you know, at some point
Anne 22:11
I don’t know. I’m gonna I’m gonna go back to what I said at the beginning of this podcast in that I’m trying not to, like remove the possibility that some people will want to shop that way. Do I think it’s going to be like, you know, grocery ordered, like pickup in store, buy online pick up in store right away? I don’t know. But I do think that it’s important. Like you noted half a billion, or, yeah, half a billion Indians are already using WhatsApp as a day to day behaviour. And I think that what’s most what I’m most curious about is, will they start to shift behaviour then of going to, you know, like, bell peppers?
Like, where can I get bell peppers going from Google and now doing that behaviour if they can inside WhatsApp, right where it you know, what they have open already on their tablet? If you can start search behaviours. Now in WhatsApp, I don’t think it’s too far fetched to say like, yes, this could now be an opportunity for me to build a basket to to, I think, especially if you can connect this to other friends or family members in that same order to be able to like just execute that those ones and two’s, like in a quick pickup order for the week, I definitely think that this could be a viable option.
And I think this is a great way for the pickers to be communicating then inside WhatsApp as well, like you again, you already have that open. So instead of having to go to, you know, the geo Mart app in order to communicate with them, yeah, it’s like you’re all everything staying all within that one space. And you know, Asia in general is much more familiar with one app, the super app to control like, all of your your day to day activities. So I don’t think it’s too far fetched. I don’t know that we’ll see this like happening in the US right away. But I do like this. I think it’s really cool. And something that we should be watching really closely.
Chris 23:59
Yeah, I like how you think about that. I like how I like how you set it to, I think what you make me think of is kind of like the live streaming conversation that we’ve had of like, why it works in Asia, but doesn’t necessarily work in the same way over here. I think the context of the country matters, right? Like, right. And so for me, like I used to, I used to think that we’d all be doing the shopping by text message.
But now I’m not I’m not so sure. Because, you know, it’s so prevalent in India. It’s it’s, it’s it’s prevalent here, but there are other options here that aren’t necessarily as ingrained over in India. So for example, for me, Amazon here, it’s going to be really hard to thwart the Amazon, find what I want one click buy, like that’s just such an easy experience.
Anne 24:38
Yep.
Chris 24:39
So for text messaging to work long term, it’s going to come down to the UX. Like it has to be a really different vision, which I can’t even fathom what that is, in my mind. But if someone can come up with it, it could happen. But I think it’s more likely to happen there than I think it is in the States. And so therefore, from my perspective, as I was thinking about this last night, I wouldn’t I wouldn’t be investing on the commerce side of it. If I was a retailer.
Anne 25:03
Okay
Chris 25:03
I’d be investing in more on the point you brought up, which is, how do I create that one to one communication connection with my customer on the customer service side of things,
Anne 25:11
Right
Chris 25:11
Once I’ve placed an order or keeping an ongoing conversation with, with my customers as well, that’s that’s how I would think about this.
Anne 25:18
In a platform that they already have open. Yeah
Chris 25:20
I’d be watching it. I’d be investigating, Hey, what are they doing with the UX in India as it comes about? And can we learn from that right? Yeah, that’s how I’d be thinking about it.
Anne 25:28
All right, Chris. Let’s go to our last headline. Number five Ulta plans to introduce a new layout and its stores coming this fall. I love this headline.
Chris 25:38
I know Yeah.
Anne 25:39
So according
Chris 25:39
Get spicy
Anne 25:40
So according to retail dive, the company plans to introduce a new front of store presentation in September that will focus on editorial storytelling around trends, events and new products. Altos currently out is organised for you Chris, who I think we’ve been into an Ulta store together a couple of times. But if you don’t remember they currently organised by price point with prestige makeup brands and other skincare on one side of the store. And then mass makeup and skincare on the other kind of goes down the centre aisle, right. fragrances in the middle of the stores and haircare is in the back,
Chris 26:13
Right
Anne 26:14
This new vision involves consolidating categories, meaning it plans to place mass and prestige together, still with clear brand delineations how they’re going to do that specifically will yet to be seen
Chris 26:29
So still to be determined.
Anne 26:32
Yes. still to be determined. But why are you a little? Huh?
Chris 26:36
Oh, you can tell already Huh?
Anne 26:38
Yes.
Chris 26:38
Yeah. Because I think this is a big nothing burger. This story is absolute nothing burger. The reason I say that, especially in the realm of like, you know, Omni channel evolution, like, it’s your job to merchandise the store to the trends in how people shop. So okay. I mean, at the end of the day, like if I put my merchant hat on, it just sounds to me like good, better best merchandising to me, like, that’s all it is. And I don’t I don’t, I don’t get it. But but I’m not the beauty consumer. So this resonated with you. So as you have been, as the theme of this podcast is just trying to keep an open mind.
Anne 27:10
Yes.
Chris 27:11
You did love this. So why did you love it?
Anne 27:14
I mean, isn’t. Isn’t this what what retail merchants are supposed to be doing?
Chris 27:19
Yeah, exactly my point.
Anne 27:20
Yeah. I mean, I think we agree. So following trends is right. I think that’s it’s, it’s following how we’re shopping online. And what the what the physical equivalent of that is in the store. It doesn’t have to be the exact same thing. But like, we should be merchants should be testing new ways of doing this. So yes, Alta. Let’s continue that. I think, though, that this allows for other products to be entered into the universe of consideration. So like, say, for example, like green, green is a trend colour, it’s like the Pantone colour of 2023. I don’t know that for sure. But let’s just play along with that theory. Like I think from a shoppers perspective, it’s really cool to be able to go in and instead of just seeing the NARS and cap that shows what the NARS green trends look like, and that that, yeah, and then you know, Kylie or, you know, the Ulta Beauty own brand.
Like, I would love to see one display where it’s like, here are all the coolest green to the top 10 Green Trent makeup trends that we have in the store, and giving the opportunity for the associates in the auto store to be able to speak to that to take people to it and be like, you know, hey, if you want the the budget buy for the NARS eyeshadow, here’s the version right here, like you have that at your disposal, all in one centralised place.
Plus, I think once as we’ve been talking about supply chain at this conference a lot too. I think it allows when out of stocks happen to quickly be able to, to put other products in to still capture that sale, where like if if which frequently happens with some of the makeup palettes and limited time offers, like if that’s gone, if that end cap display is gone, like how can you put in and still keep it this theme? That’s true to how your customers are shopping online is is a great way to do this.
Chris 29:04
Yeah, it’s interesting. I hear your points, I think I think you’re over attributing it a little too much in terms of what’s happening here. I think all those things could be done in a traditional merchandising setting, especially the reorganising, but you know, at the end of the day, like if you want to play up a trend story, and you think as alto you need to play up your Trend stories more in a new way. Kudos you for doing it. I just I don’t think it’s I don’t think it’s that big of a deal. I think it’s
Anne 29:29
Do you, let me ask you this as a former merchant, do you think that it will encourage the retailers Oh, God. Do you think that it will encourage retailers to work differently with the brands that they the like just to be thinking about these displays differently instead of like, brands typically, like executing an end cap again, we’ll use the NARS example where it’s like, this is our holiday palette. This is what’s coming what is included in that boom, we just ship this out to every single retailer. Versus like now How trying to work with the creative team like truly creative better.
Chris 30:03
Yeah, that’s that’s a good point. And I think that’s the point that I like about this the most is and especially in the beauty category, it’s always seemed to me that the beauty categories is at the behest of the brands and they are kind of merchandising to what the brands want, which is good and bad in the sense of you get a lot of dollars that way but you’re not always merchandising it to what the customer your customer wants, or how your customer wants it to be presented your merchandise into what your brand expects you but there’s that’s a middle person that’s not you as the brand so so I think this does free up more creative approach does potentially free up more creativity and merchandising free to tap into what your customers want day in and day out.
Which is just an axiom that I think every retailer should believe in and figure out the right balance of that mix between you know, how it’s traditionally been done and how it is going forward. But I think that’s a great point.
Anne 30:51
All right, well also we’ll be checking out the the new displays in store
Chris 30:55
Watch, we’ll go into like, okay, yeah, who knows.
Anne 30:57
All right, so we’re gonna get to the lightning round now Chris. Question number one is for you. If you find yourself in New York, not too far, a hop skip and a jump from here in Philly. Which of the following items require that you now be 21 to purchase?
Chris 31:12
Okay
Anne 31:12
Franzia box wine
Chris 31:13
Franzia box wine
Anne 31:15
Pabst Blue Ribbon
Chris 31:15
Pabst Blue Ribbon
Anne 31:16
Reddi wip
Chris 31:17
Reddi wip. Okay, well I’m gonna guess it’s Reddi wip because one of those is not like the other
Anne 31:23
You are right you now need to show an ID that you are 21 or older to consume reddi wip to purchase and consume Reddi wip
Chris 31:30
How does How does one actually consume whip it By the way? I actually don’t know the answer to that
Anne 31:33
We are not legally able to talk
Chris 31:35
we’re not able to talk about that on that podcast. Okay, can you tell me later because I don’t know. I feel like very naive right now
Anne 31:41
We’ll have a will have a little heart to heart.
Chris 31:43
I don’t know why I’m assuming you know that but um alright, let’s keep going. New Jersey recently banned shopping bags, both paper and plastic. I’ve heard a lot about this at the conference actually like people in the halls talking about this. So people are resorting to stealing the little plastic hand baskets like legitimately like it’s causing a tonne of problems for these retailers. Anne my question to you is what percent of your grocery shopping trips are hand baskets versus carts?
Anne 32:09
Oh, I would say 90% hand basket
Chris 32:11
Really? I am so shocked
Anne 32:13
Because I only do the infield trips like quick like we need these sort of things. Mr.
Chris 32:17
Mr. Omni talk does the Costco run
Anne 32:18
He does the Costco stock up weekly. So I’m just going for like the the the things that Costco doesn’t have basically, which usually fit in a handbasket.
Chris 32:27
Yeah
Anne 32:28
But I’m not stealing them.
Chris 32:29
Yeah, right. No, you’re not Yeah, that’s true. Mine are probably like 50 handbasket 50 Nothing I think actually
Anne 32:36
You’re just juggling them?
Chris 32:37
Right it’s usually like Hey kids, you take this I take this we’re going in quick.
Anne 32:41
Oh my God don’e drop the melon
Chris 32:41
Get her done.
Anne 32:42
All right. Chris. Panera is piloting voice AI ordering tech called Tori that will now take orders at its Select New York locations again in New York. What’s the last thing you ordered at Panera? And when was that?
Chris 32:56
First of all? Why do all these things need names? Like
Anne 32:58
I don’t know It makes them more human
Chris 33:02
Catchy for marketing? I don’t know I just don’t get it. That’s really the answer right. You know you’re not gonna believe this. But back in 2009-2010 when I was running the baby department in target.
Anne 33:11
Sounds like anappropriate timeline.
Chris 33:11
Yeah. I religiously ate at Panera every day
Anne 33:15
That does not surprise me t all.
Chris 33:16
Tuna tuna sandwich every single day. And then someday wants to just stopped and I never went back. Never went back.
Anne 33:24
So
Chris 33:24
Overrated.
Anne 33:25
Okay, good. I’m gonna remember that when we have our next discussion about the Panera coffee subscription. And the fact that you haven’t been there since 2000.
Chris 33:32
Good dig Anne damn that one burn. All right, a man aptly named Cinder fella. So that never thought I’d say of this podcast plans to set a Guinness world record by paddling an 846 pound pumpkin down the Missouri River for a total of 38 miles.
Anne 33:50
We gotta do a deep dive on gourd density and how like it’s possible for a pumpkin that heavy
Chris 33:56
there’s actually pictures of him in the pumpkin.
Anne 33:58
God I just don’t understand the physics
Chris 34:00
down the river? Yeah,
Anne 34:01
I gotta Okay,
Chris 34:02
So my question to you is what is the most memorable thing you have ever done with a pumpkin?
Anne 34:07
Okay, Chris is coming up with all kinds of ideas he I’m sure like based on your you’re ready whip whip it question that you’re expecting me to say something totally inappropriate that I’ve done with a pumpkin. But I’m actually but I’m actually going to say something very sweet and my most memorable pumpkin memory is going to a cook cooking class with my now deceased grandmother who I loved and adored and we made a pumpkin lentil soup that was her favourite so that’s the best thing I’ve done with the pumpkin
Chris 34:33
That is amazing. I know. I can’t even use your out of the out of your gourd joke that I was gonna use this just didn’t work
Anne 34:40
Well send your fellas out of his gourd
Chris 34:46
will be stays in his gourd. Alright, so it looks like we got some questions from the audience too. Let’s get some audience participation.
Anne 34:51
Cami. Cami wants to say that we’re right on about the text messaging question that we’re talking about with with Jio Mart and She said that when when in the US using we in the US are using text iMessage more comparing to people and in Asian cultures or countries she said my most of my family and friends in Southeast Asia are using WhatsApp and line to communicate which I think plays into that earlier question of like, you know, does this become more collaborative in an ordering and communication with with your, your shopper?
Chris 35:27
Yeah.
Anne 35:27
And then Calvin also
Chris 35:29
Calvin back again,
Anne 35:30
Just dropping back in to say, related to the ultra story. Just read the article, NARS drops and FTS two markets 20th anniversary in Hong Kong retail. So we got We got to dig into that a little bit
Chris 35:43
Dig into that.
Anne 35:44
Thank you so much to everybody for participating in the show today. Please leave your comments again and reviews in Apple podcasts and wherever you’re listening to this today.
Chris 35:55
Yeah, that wraps us up and we gotta give our Happy Birthday today to Zen Daya.
Anne 35:59
Yeah, Oh,
Chris 36:00
glorious Stefan ah, and Anne, Anne believe it or not the woman who can take all of me Lily Tomlin I remember you can only read or listen to one
Anne 36:10
The like Lily Tomlin from the giant chair or are we talking like recent
Chris 36:14
The movie, she’s in the movie all of me?
Anne 36:15
Oh whichLily Tomlin I’m saying like,
Chris 36:18
No, it’s the the joke is lost. She’s in the movie all of me. It’s like my favourite movie. It’s like my second favourite movie.
Anne 36:25
You don’t really want Lily Tomlin to take all of you just clarifying.
Chris 36:29
No, I don’t.
Anne 36:30
Okay
Chris 36:30
But she can take all of me in that movie. Does that make sense?
Anne 36:34
It does to people who understand the movie All of me. Yeah
Chris 36:36
We are crashing and burning as we speak. All right. Remember if you can read only read or listen to one retail blog in the business make it Omni talk. Our Fast Five podcasts is the quickest fastest rundown of all the week’s top news and our twice weekly newsletter tells you the top five things you need to know each day and also features special content exclusive to us. And, and it’s just for you, we try really hard to make it fit within the preview pane of your inbox. You can sign up today at http://www.omnitalk.blog. Thanks as always for listening in. Please remember to like and leave us review wherever you happen. Listen to your podcasts or on YouTube. And remember to use our promo code RBOT1950 To register for grocery shop which is only two weeks away is that’s RBOT1950. Anne and I will be there we are now moderating multiple panels on stage and doing live streams throughout the show.
Anne 37:22
You’re gonna be sick of hearing us from grocery shop because
Chris 37:24
Yeah, probably Yeah,
Anne 37:25
It’s really exciting. We can’t wait.
Chris 37:27
So from all of us at Omni talk retail as always, be careful out there. Live from home delivery world.
Anne 37:34
The omni talk Fast Five is a Microsoft sponsored podcast Microsoft club for retail connects your customers your people and your data across the shopper journey delivering personalised experiences and operational excellence is also brought to you in association with the a&m consumer and retail group. The a&m consumer retail group is a management consulting firm that tackles the most complex challenges and advances its clients people and communities towards their maximum potential. CRG brings the experience tools and operator like pragmatism to help retailers and consumer products companies be on the right side of disruption. And takeoff, takeoff is transforming grocery by empowering grocers to thrive online. The key is micro fulfilment, small robotic fulfilment centres that can be leveraged at a hyperlocal scale. Takeoff also offers a robust software suite so brochures can seamlessly integrate the robotic solution into their existing businesses. To learn more visit takeoff.com. And sezzle, sezzle is an innovative Buy now pay later solution that allows shoppers to split purchases into four interest repayments over six weeks. To learn more, visit sezzle.com
Omni Talk is the retail blog for retailers, written by retailers. Chris Walton and Anne Mezzenga founded Omni Talk in 2017 and have quickly turned it into one of the fastest growing blogs in retail. 