Anne 0:09
Hello, you’re listening to the Omnitalk Fast Five podcast brought to you in partnership with Microsoft, the a&m consumer and retail group, takeoff, sezzle and silk. The Omnitalk Fast Five Podcast is the podcast that we hope makes you feel a little smarter. But most importantly, a little happier each week too. Today is December 8 2022. I’m your host, Dan Mazinga.
Chris 0:30
And I’m Chris Walton.
Anne 0:31
And we are here once again to discuss all the headlines making waves in the world of omni channel retailing.
Chris 0:37
Yeah Anne, and normally, this is where we do the review part of the show. And this week, we’ve got a really, really unique review. Probably the most unique review of all time because you went down an AI rabbit hole.
Anne 0:48
Oh, yeah.
Chris 0:48
With this new thing called the chat. GPT bot. Yeah, that I guess you told me has gone viral this week.
Anne 0:53
Yeah. There’s like a million downloads that happened this week. I’m sure everybody listening is familiar and has read all the like memes on Twitter and like all the other stuff that’s out there, but
Chris 1:03
Yeah, but I hadn’t heard about it. You texted me about it this morning. And I was like, and you and I both were like we got to talk about this because you asked the AI bot one specific questions.
Anne 1:04
Yes.
Chris 1:05
And then what you got back kind of blew your mind and mine as well.
Anne 1:16
Yeah, I mean, I was I’ve seen like, do a haiku all these other things like minimal things, but I was like, Alright, I want you chat AI bot to create a rap lyric based on an Mazinga and Chris Walton.
Chris 1:31
Yeah.
Anne 1:32
What will what will it do? This, Chris is what I said. And I think we need to record this track. Not me. But I think we need somebody to record this track for our new intro music.
Chris 1:41
Like a cameo or something.
Anne 1:43
Yeah,
Chris 1:43
Yes. That’s a good idea.
Anne 1:44
Absolutely. So here omnitalk listeners is what the chat bot said back. Anne Mezzenga and Chris Walton on the mic, spitting fire making hits what a sight. They’re the retail experts giving us the lowdown on the latest trends and how to turn your business around. The dynamic duo always on the grind, giving us the insights we need to stay ahead of the times. From e-commerce to brick and mortar. They’ve got it all. Anne and Chris, they’re the real MVPs y’all. So if you want to stay on top of the game, make sure to tune in to Omnitalk retail fame. Anne and Chris they’re the ones to beat. In the world of retail they’re the elite.
Chris 2:21
That is so awesome. I got it.
A robot came up robot wit that
In how long
Anne 2:25
In three seconds,
Chris 2:26
Three seconds, that’s insane.
Anne 2:27
Beep beep beep beep like the little dots that you’re waiting for with for a text back and boom, they spit that hot fire
Chris 2:33
That is nuts. I love your idea too, about getting that somehow recorded for us because that’s that’s the bomb and now everyone’s gonna go do this exact same thing
Anne 2:41
We got a few hip hop artists in Minneapolis. I mean, like we could maybe convince one of them to like
Chris 2:47
Or get some like 80s wannabe that’s like had a one hit wonder on cameo to do it too, which is totally our brand
Anne 2:52
Perhaps
Chris 2:53
We’llfigured out
Anne 2:53
Yeah, well, we’ll work it out. We’ll we’ll figure it out. Stay tuned. You have any ideas? Or do you have anything else we should look up like Do yourself a favour this weekend or for the holidays? Can you imagine what a fun like party trick this is going to be for the holidays? I love it.
Chris 3:06
You know what else happened to me real quick, real fun story because we’re like last shows of the year we’re coming to the homestretch. We put the video of Starbucks or Tarbox, our target Starbucks pickup experience on YouTube this week. And it was really fascinating because one person in social media commented, oh my god, I’m in the exact parking stall watching your video, as I’m trying to get my target pickup order. Like that is like the most meta thing that’s ever happened like in your life. Yeah, it was crazy.
Anne 3:06
Yeah oh my god.
Chris 3:08
So shout out to that person. And
Anne 3:14
Who was it Chris?
Chris 3:39
It was Michelle monoshock, former colleague at Target shout out to Michelle. It was great. It was such a cool experience. Like that’s something that just doesn’t happen. So I wanted to talk about it.
Anne 3:47
Michelle, you are the Leo DiCaprio of our Omnitalk retail Inception right now. We love it so much. Keep keep it coming.
Chris 3:55
Keep bringing it and keep writing us those reviews. We love it. We love reading them. It makes us feel so good each and every week. All right, and let’s get to the headlines today. All right, today’s Fast Five headlines are brought to you with the help and support of manifest manifest the who’s whose conference and supply chain is January 31. To February 2 in Las Vegas, and Amitabh fans, don’t forget you can still save $200 on your registration by heading to manife.st/omnitalk that’s manife.st/omnitalk. In today’s Fast Five we’ve got news on Macy’s launching fit matches mobile fit technology in 10 stores. Walmart CEO Doug McMillon claiming theft is a big coming a big problem at Walmart.
The Houston Galleria Mall partnering with a company called Drop it so that you never have to carry another shopping bag with you while you shop at the mall. McDonald’s new test or concept that puts mobile order ahead front and centre of its design. But first we take off with what could be could be emphasis on could be big news out of Amazon this week. Anne what are your thoughts? What’s the headline?
Anne 4:54
Yes. All right. headline number one Chris. According to progressive grocer community groceries out of Kansas City has recently We agreed to licence both Amazon’s just walk out technology along with the Amazon one POM payment system. The store is set to open on December 16. Next week, and marks the first time any US grocer has licenced either one of the two technologies from Amazon, Chris.
Chris 5:17
Yes.
Anne 5:17
Big news. I mean, I thought so
Chris 5:20
You thinks it’s big news.
Anne 5:20
Yeah,
Chris 5:21
I think it’s potentially big news. I think I still think it’s like, it’s important. It’s it registers on the Richter scale,
okay
of the evolution of checkout, free retail, by way of just walk out or computer vision technology. But I think you have to ask two questions. First, understand how big it is.
Anne 5:36
Yep.
Chris 5:36
One How big is the store? And two, was the store retrofit or was it like a phone new build or something like that? Right? Even like a new build versus a phone new build? Like, did they shut it down? So according to retail dive, it sounds like the store existed previously, and was closed with plans to reopen on the 16th.
Anne 5:54
Yeah,
Chris 5:54
and my sources have confirmed that that’s exactly what happened.
Anne 5:57
Okay.
Chris 5:57
The bigger question me is, how big is the store? Yeah, actually, now my sources telling me that the store is about 2000 square feet as well. So roughly, that’s the size of a quick trip convenience style operation where Amazon is already licencing, this tech as well. So to me, the announcement isn’t as big when you put that lens on it.
Anne 6:13
Yeah, that was missing from the headline.
Chris 6:15
Yeah. But it’s the first step right of going 10,000 square feet plus,
Anne 6:20
right.
Chris 6:20
And doing a retrofit, like we know some of the other providers are able to do in the marketplace. That’s what I still want to see from Amazon. That’s what’s missing relative to some of the competitors in the space. So it’s important, it’s the first question to sign up, but I’m not gonna get carried away with this, as some of the headlines were having me tried to do.
Anne 6:37
Yeah, I completely agree. I think that those are all very smart and important points to be looking for, like any of these stories. Like we say this every time I just walk out technology or cashierless, checkout technology store launches, like those are the key things you have to look at how long did it hit store have to shut down for if it did, if it was retrofit? Like what are the implications of installing that? I think that this could be a win win for some of these smaller grocers, I think that Amazon’s technology is tried and true, it’s going to be easy to plug in, you know, you have the backing of Amazon, I think it’s kind of like comparable to like the days of Amazon, just bringing small business, small businesses onto their their e commerce site where, you know, they make it relatively easy to offer this. And you have a lot of these small town grocers who are plagued with, you know, labour issues more so than others operating hours. Like they just they they need support to help and run their business. And this makes it really easy for them to do.
Also, like if you’re a small town grocer, or convenience store provider, like you’re not going out and sourcing, like who has the best checkout free technology, like you have to spend every day like these are mom and pop businesses, you’re spending every day trying to figure out just how to keep the store open. So I think that like it or not, Amazon has an easy option for them to go with. They don’t have to do like an RFP process or be an expert in this area. It’s like plug and play, we can do it. We’re seeing some other retailers to start to do this aisle 24. In Canada, Catherine Douglas Miranda and I were talking about this from grocery dive that and they’re It’s a family business like they’re a family owned a family convenience store. And they’re the next generation is trying to figure out like, how do we automate this entire experience? What are the options?
So I think that, again, this is going to be something that we started to see a lot of those smaller grocers express interest in, I don’t think we’re gonna see it at the larger regional levels, or certainly not from any larger retailers.
Chris 8:34
That’s huge. And yeah, it’ll take more time for sure. That’s fine, too, because it brings up something we’ll probably talk about in the last last headline with McDonald’s too, which is like you’re seeing innovation now start to happen out of necessity for how the business models are working. And that’s, that’s your point about the small businesses needing it more so than ever.
Anne 8:49
Yeah,
Chris 8:50
Is really key. So Amazon smartly, well positioned as always to play that game relative to other people. All right, headline number two fit match has launched its patented shape based fit solution in 10, high volume stores. According to a company press release, and those that follow Omni talk closely will know this because we’ve had the CEO and Chief Brown on our podcast, and that is to experience fit match. A shopper completes a body scan with the assistance of a store colleague using a device equipped with LIDAR technology. entire process is private and the resulting avatar is completely anonymized.
Yes, fit matches patented algorithm that analyses the shoppers unique body shape to precisely match them with product matches and recommended sizes and styles that have proven to fit their digital twin. And, yes, I’m gonna play this headline a little bit differently this week.
Anne 9:35
Oh
Chris 9:35
Because you have actually tried the Fit match technology in person in Las Vegas.
Anne 9:40
I sure did, Yeah
Chris 9:41
So I have a number of questions for you today.
Anne 9:42
Okay, let’s do it
Chris 9:43
Not just one. But first, I want to know, do you like this move from Macy’s.
Anne 9:47
Okay
Chris 9:48
And then to if you compare it to other fit technologies that you’ve tried, yes. What do you think are the watch outs for both Macy’s and for fit match in order for this deployment to be successful in the long Run.
Anne 10:00
Okay, so first question, do I like this move for Macy’s? I do think that this is going to provide a more positive experience for Macy’s customers. If Big If
Chris 10:10
okay big if. All right.
Anne 10:13
The store associate can be staffing that like that’s, that’s I think the number one problem again, it’s like with every Macy stories we’ve we’ve covered in the last few weeks. It’s like Macy’s good idea. But like, do you have the backbone to support this technology being successful in your stores? And so this will require, I mean, when I was at savage by Fenty, they had, you know, six associates in the fitting room who are on you like it’s a small store. I mean, the Macy’s bra department is large. So I think it’s like one, you don’t have to worry about as much about the training, which is nice, like so they don’t have to be like expertly trained, it’s really easy to pick up and use, but like, are you going to have enough associates to man the counter the checkout counter to be in the fitting rooms like that’s going to require an overhaul and staffing for this to be successful,
Chris 10:59
Which is a great point, because they’ve tested this so far in 10, high volume stores that was specifically called out in the news reports on this.
Anne 11:06
Yes.
Chris 11:07
And your staffing in a high volume store is very different than your average run the mill other 500 stores throughout the country.
Anne 11:12
100%. And that’s where I think that what Hanif talked about when I interviewed him at savage by Fendi will come into play where the next step for this technology is for you know, the individual you and I to be able to take it to our homes like you can do with a Victoria’s Secret fit technology where I can do it in my own fitting room inside Macy’s like that’s I think we’re we’ll have to get to for this to scale to the rest of the Macy’s and to be successful. But the other important thing that I think is important is it also requires that Macy’s inventory is like well organised that they know exactly what’s in the store. Because that’s something that again, it’s much easier to do in a smaller you know, specialty retail store like savage by Fenty, where you know exactly what you have, like you don’t have hundreds of stores across the country.
Chris 11:59
Or online experience with pics from one warehouse.
Anne 12:01
Exactly, exactly. And I think that’s another thing where like, I don’t want to have to dig through Racks on racks on racks in the Macy’s lingerie department once I know like that, that’s not helping the experience. So there’s a lot of ifs around this for me nice and fit match. I think it’s the technology is solid I think it’s just the execution will be really critical here for for me
Chris 12:22
interesting. I’m glad to ask those questions. I went I was really great. Like I you know, for me when I hear you talk like that, to me, it’s almost a deal breaker to me, for Macy’s for this in the long run if the employee has to be involved for those reasons, their inventory part is brilliant, like never even thought of that, like that’s a really potential hang up for this as it goes out potentially nationally. So I know Hanif listens to the show, too. So I hope he’s treading carefully here. That’d be my one word of caution, not putting too many eggs in the basket on the Macy’s roll out and he’s still focusing on situations that are more ideal for this to work in the long run as it’s currently devised and concocted.
Anne 12:54
But we’ll check out those Macy’s stores I gotta go check it out. That’s another I love I love me a fit match situation. So like I’ll go into what will be happening to those stores.
Chris 13:03
I think we need more work at NRF. But that actually is one we should put on our watch list.
Anne 13:08
For sure. All right, headline number three. According to CNBC, Walmart CEO Doug McMillon recently said that rising theft at Walmart could lead to price increases and store closures. Speaking on Squawk Box McMillon said theft is an issue it’s higher than what it has historically been and quote, McMillan’s remarks also came on the heels of target reporting last month that shoplifting has jumped about 50% year over year, leading to more than $400 million dollars in losses in just this fiscal year alone. Chris, this is also a&m’s put you on the spot question going to you again for the second week in a row
Chris 13:44
Good pick.
Anne 13:45
They want to know, they say it’s interesting, though, perhaps not surprising, giving tighter consumer wallets nowadays that we’re seeing retailers use theft as a key driver of economic performance. Other than increased law enforcement, what do you see, which is what Doug McMillon said in the interview multiple times we partner with local law enforcement, what do you see as some progressive actions and potential tech investments that retailers should be considering to reduce the potential impact of theft?
Chris 14:11
Wow, that’s that’s a really awesome question. Again, consistently bringing it every week. We thank a&m team so much for that. Before I answer that question, though, I want to say first, a couple of things just about the announcement in general. That one I’m a little sceptical here because I think Macmillan is trying to seed some down news about a holiday potentially with this announcement. I’m curious about that. Yes, my ears are ringing, but because it seems like it could be a page out of the new retailers, Wall Street set expectations low playbook, particularly because Target, as you said, did the very same thing. And also there was a report this week from pacer AI that interestingly Walmart store traffic was down 5% on Black Friday.
And there’s also been a lot of questions in the media, then people we’ve been talking to you about the whole report that they won Black Friday searches too. That’s starting to sound a little dubious as well. And so, for me, the question I have is, what is actually driving the theft? Is it smash and grabs Anne, is it more self checkout activity, which is more prone to like theft, which could be intentional theft or non intentional theft? And yet, you know, we just we just don’t know. So without more detail to me, it’s kind of careless to make statements like this, in my opinion. So it’s tough to going as you probably Sure. But is it a reason to raise prices in close stores across full size Walmart’s
Anne 15:29
Yeah
Chris 15:30
I kind of doubt that I guessing that you do too. So back to the question.
Anne 15:33
Yeah.
Chris 15:34
All right.
Anne 15:34
What do you think about A&M’s question?
Chris 15:36
So back to the question, what would I do about it? If I if I believe all the smoke and mirrors here and I say, Okay, what am I gonna do about it? Here’s what I do. Number one, I’m a big believer in controlled entry and exit points, the cost and the math, it would take and I did it this morning to staff one or two people at the entrances of say a target or a Walmart during peak hours would be worth it. If you believe the numbers being thrown around like $400 million incremental, that’s incremental dollars, right? Say nothing to the fact that I think it can lead to better consumer experiences down the road via scanning go checkout situations. Yeah. So ask the question, like, Why can’t every Target or Walmart be designed like a Costco or Sam’s at entry and exit? Especially if already Walmart has Walmart plus starting to come into play? Is that really a reason for me to shop somewhere else? Because I have a controlled entry and exit point. I think it’s worth the thought exercise. Like, yeah, how much does that experience change your opinion of a Walmart, Target? I mean, walmart has greeters for years? I agree. I don’t think it changes mind at all.
Anne 16:28
I mean, Costco is not having any issue. Sam’s Club is not having any issue like, what what could be what could you possibly have a problem with it that like, maybe, I guess there’s the shorter the longer distance to an entrance or exit or parking or something. But,
Chris 16:42
I mean, you have to wait to get out, I guess. But like, come on. I mean, I think it’s worth experiment, especially if you have a store in an area where this is an issue. Yeah. And then the second thing I’d say is computer vision.
Anne 16:52
Yep.
Chris 16:53
I think people should be at least looking at it for monitoring self checkouts. And your high theft items on shelf immediately. Like call the likes of the ever scenes of the world to working with Kroger on that, you know, look, deploying computer vision at self checkout to alert people when there is theft. Both incidental, yep. And intentional.
Anne 17:11
Yep.
Chris 17:12
And you know, who we haven’t heard anyone complain about? Who hasn’t complained about theft?
Anne 17:15
Who?
Chris 17:16
Kroger I haven’t heard one word from Kroger complaining about theft, at least from my memory not saying they
Anne 17:20
And they still sell razors and other liquor and all the other locked items.
Chris 17:23
Just like everyone else. So those are my two things controlled entry and exits computer vision, that’s what I would do. But what do you think?
Anne 17:29
I do think the numbers that are being reported are startling, like targets up 50 Theft is up. 50%. But the other question that I have about this reporting and the Squawk Box interview, I’m sorry, but Doug McMillon that that was this. This is being blown up into such a big headline from like, basically two sound bites from Doug McMillon, where he said the same thing over and over again. But I guess I’m curious, like, Does this also include online theft? Because we haven’t heard it like remember when we interviewed signified Bennett he was talking to us just about like the curbside pickup and like all the stuff that’s happening there and like, is that inclusive of this? Or is it just the smashing grabs that you’re talking about? Like I feel like we have to get more granular on my point,
Chris 18:10
I’m assuming it doesn’t but I don’t know
Anne 18:12
Which areas we’re talking about here. But I totally agree with you to answer a numbs question. I think single entry and exit points more RFID tagging on products. I think more showrooming like looking at what Best Buy’s doing in some of these other stores like does it make sense for you to showroom or also to have more locker pickup like how are you Is there is there ways that you can still make a convenient shopping experience for people but like it doesn’t have to be going into the store and like you just have more control over who and what is happening in the stores?
Chris 18:43
Yeah
Anne 18:44
And last point I’ll make
Chris 18:46
Yeah
Anne 18:46
I went to our local Walmart because I tried to test Walmart curbside pickup this week
Chris 18:51
Curbside pickup and returns
Anne 18:52
And returns sorry yes Walmart returns I did curbside pickup that work
Chris 18:56
Yeah,
Anne 18:57
Returns did not
Chris 18:58
Did not for those listening, She tried very hard
Anne 19:03
In the line at the Walmart which was right across from the Walmart has a fully staffed police department they’re like a satellite police officers there was four officers that were fully staffed their two squads parked outside like and they are there all the time. So how do I have a hard time when Doug McMillon is like we just got to increase law enforcement like you got a police station in your store like how much more can you be doing
Chris 19:28
Yeah the marginal effort of that’s not gonna work very much I hear what you’re saying. But again, it goes a point like why wouldn’t you start experimenting with these things in those areas? At least in my
Anne 19:36
It’s got to be less expensive than having a police station in front of the store. I don’t know.
Chris 19:40
Although who’s footing the bill for that question. All right.
Anne 19:43
Now we went down a rabbit hole
Chris 19:45
That’s why Walmart while he got on the political stump for that, too.
Anne 19:47
All right.
Chris 19:47
All right. Number four, headline number four, believe it or not, we’re at headline number four. The Houston Galleria is now offering a hands free shopping service that will allow customers to shop bag free at participating stores within its Mall. According to KPRC, two out of Houston
Anne 20:05
I feel like we need a ding like ding ding ding KPRC Houston
Chris 20:11
I love doing this show with you. The service is powered by drop it and it can be downloaded through that drop it app or request also requested with an associate to collect their bags for delivery to their home or to their hotel. shoppers can also request to pick up their bags before they leave the gallery up a number of retailers including Aveda Lululemon Chico’s, Arrow post on about 20 or so others have already signed up to be part of this service. And my question to you is, what do you think of this idea? would you love to be able to shop them all? Without ever carrying a single bag from one store to another? I may be leading the witness on that question. But I’m curious what your thoughts are.
Anne 20:46
Yeah, of course. But this is not new. Like Package pickup has been around since the days I was a child going down to town with my grandma to Dayton’s and we would shop and she was the queen of package pickup. She was like the OG and she would just be like, alright, we’re getting you this dress, we got your shoes, send it to package pickup, you pull out like this, what’s old is new again, making. But I do like to see more momentum in this category. When we saw Sam’s Club doing this within the last year where you’re shipping from, like, you can scan and store and ship directly to your home. So I think it makes sense for those large and bulky items, especially for people shopping in the holidays. I would love to actually see this in grocery, which doesn’t make a lot of logistical sense. It’s never gonna happen.
But like for those people who do want to pick their avocados, like if you could just go to the grocery store, and then they deliver it to your house, like you shop and do all that stuff. Instead of just driving around the corner to pick up your groceries like you’re seeing if I could be like, I still want to do my grocery shopping. But I have like 10 more errands to run, can you just store this and then deliver it to my house from like two to four this afternoon. And then I’ll meet you there. I don’t have to unload it from my car. Like, especially for like elderly people. I think that could make a lot of sense. So that’s interesting. I like the idea.
I think it’s just you have to make sure that it’s going to be easy for people to do like downloading another app I think is is probably this still the test phase, the drop in app, but I think once it starts to get integrated more into like the malls general like, here’s, I’m going to the Galleria here. All the things.
Chris 22:14
Yeah.
Anne 22:15
Like just gotta be worked into that whole, like interaction with the space that you’re shopping.
Chris 22:20
Those are really great points you and Jesus. Like, yeah, the whole oldest new theme like yeah, you’re right. Like it’s existed before. Why can it exist Again, especially the pickup side of this. That’s my thing, too, is like, I don’t even know why I’d focus on delivery right now just be focused on pickup, because that’s so much easier to do from a cost perspective. Probably easier to pull off logistically, right. And your point about grocery like, why don’t you do that? Like we have a store right here in town where yeah, they like, go to the check lane. They’ll bag my stuff up, and then I’ll pick it up my car because it’s freezing in Minnesota. But what can they just deliver it?
Anne 22:50
Yeah.
Chris 22:50
And then your part about the apps really great, too, because we’re starting to see this. And we’ve already talked to some cool companies that are doing some interesting things in the loyalty space.
Anne 22:57
Yeah
Chris 22:57
For malls where, you know, by way of things like the Apple wallet being like the way to pay for a mall, like you could light up all these things through that type of philosophy.
Anne 23:08
Yeah
Chris 23:08
Where you white label this, you know, technology, so to speak for the mall. And there’s just this way you pay and interact with the mall in general, which we’ve talked about a lot. So, I mean, I love it. I mean, to me anything that breeds innovation from a point that is a pain point or a friction point.
Anne 23:23
Yeah
Chris 23:24
Makes sense. Like I hate going to the mall. And carrying bags.
Anne 23:28
Yeah.
Chris 23:28
And it limits how many stores I can go to you because you come to a point where you can’t carry anymore. And so you have to go home so I have to think if you get people to adopt this, it’s going to be beneficial for all the retailers involved, right?
Anne 23:41
For sure. And it seems like such to your point like I think it seems like such a baseline thing that the malls could do to bring joy to the consumers like you could it is possible to do this pretty simply I would think and you know, help people get people to your mall over another Mall.
Chris 23:57
I like how you said that bringing joy to people at the mall. It’s kind of what we do here on the Fast Five podcast Anne bring joy
Anne 24:04
Bringing joy. There’s a there’s like a holiday term for that. I can’t remember of what it is like,
Chris 24:10
You know who I want. I want to get Anna Taylor Johanna podcast.
Anne 24:12
I don’t know who that is.
Chris 24:13
She’s the Queen’s gambit. You remember that show.
Anne 24:15
Oh yeah. Oh my God. Are you going to see that movie, Amsterdam?
Chris 24:18
Probably I dunno what it is.
Anne 24:20
I am gonna watch it this week. Oh, we’re getting
Chris 24:22
Oh yeah, with with Brad Pitt.
Anne 24:23
Everyone and their mom is in that movie. I don’t know if Brad Pitt’s in that movie. But anyway, like, there’s like Robert De Niro’s in that thing, like, I don’t know, it’s so what’s the girl? Oh my god. We’re going to unwrap, go check out Amsterdam. I’m gonna watch it this week. Catch up. Yeah, Margot Robbie. That’s what I think. Okay, headline number five. McDonald’s is testing a new draft concept in Texas. Chris, according to restaurant business, we’re going to have to go back down to Dallas Fort Worth area
Chris 24:50
I know right? Everything’s in Dallas. I told that to someone yesterday.
Anne 24:53
The centrepiece of the new McDonald’s store concept is a conveyor system that delivers food to a mobile order ahead lane that concepts are also includes a pickup shell for customers who want to come in and get their takeout orders, designated spaces in and out of the restaurant for delivery drivers and self order kiosks that accept both cash and credit. And of course, Chris it still has the old fashioned one of a kind drive thru Lane also. Chris, what do you think about this new McDonald’s? Are you going to be like hitting up the golden arches in textile now? Or what’s what’s going on?
Chris 25:27
Well, for those wondering before I answer that question. It’s the David O. Russell movie and it stars Christian Bale. Sorry, but so to answer your question, well, you know, and for this story, this story, I had a big aha this week.
Anne 25:37
Okay.
Chris 25:38
Honestly, like, I think concepts like this are going to make more and more sense. We talked about them a lot on the show already. And because many of these operations, particularly the quick serve restaurants, and I would lump groceries into this is why I thought your point in the beginning was right on, because they have to innovate macroeconomic challenges around staffing and wage inflation are so high right now that they’re not going to leave outs for the business model, especially if you’re trying to give people ecommerce like options, which are more expensive.
Anne 26:04
Yep.
Chris 26:05
So companies like McDonald’s and others need and have to make these concepts work. They aren’t just flash in the pan ideas anymore from the innovation teams that sit off the site and just play with and experiment with stuff. Sorry for the for the S drop, boil, listeners cover yours, earmuffs. They’re designed to have real operational benefits here and I think that’s important. So net net. I love it and I hope we start to see more of it because I think consumers will gravitate to them over time just have to keep doing it.
Anne 26:30
Yeah, I mean, I Ricardo Belmar posted on this, and I was thinking the exact same thing too. But like, I don’t know about you. But I’ve been surprised by how long the drive thru lane lines are like they’ve been Yeah, astronomical the last couple of years. Like there’s no reason to not why like we need to make fast food fast again, and this is the way to do it. You also need to be careful about you know, margins in in these food environments. And then I mean, look at we saw at Starbucks, we’re seeing Taco Bell we’re we’re seeing now McDonald’s.
The more automation I’m I am convinced in this area, the better like the more you can port automation and and then focus on who’s handing off the bags who like Expo people who are like getting the right things to the right people to make it a positive experience. I also don’t think that, you know, we’re seeing a lot of like, Well, are you going to build a mobile first store? Or are you going to build a dining store like McDonald’s trying to make this decision?
Like, I wonder if in the long run, like, do you have to? Do you have to do one or the other? Could you just have like a very small satellite in the parking lot that’s doing the mobile orders? And then, you know, you have a separate? You know, I know McDonald’s mix is an important part of community is places to so it makes sense to have the restaurant as well. But I don’t know, I think this is just like, we’re gonna see this blow up in the next year,
Chris 27:46
the hard question to answer your, the point that you’re making there is really, the new store versus the retrofit always comes back to the retrofit solution. But you’re not going to know that until you do the experimentation on the new builds, which, which is important. The other point I’d bring up here too, which gets back to your high. I think there’s an important lesson on innovation here and how organisations try to go about innovation, the wrong approach. And you and I are victims of this from our days at Target is having an innovation team, I kind of alluded to it before but having an innovation team and they’re just off doing experiments.
Anne 28:15
Yep.
Chris 28:16
And every experiment is great, right? But it’s not. And the key is actually the right approach is to devote your innovation to the problems that you need to solve and organising your resources around them. So like we’ve talked about in the show, theft, how are you going to solve the theft problem? How are you gonna solve rising wage rates, how you gonna solve staffing issues, you can get a hell of a lot of innovation that actually works in the long run when you devote your resources that way?
Anne 28:39
Yeah
Chris 28:40
And you create tiger teams like that to solve those problems. So that’s my soapbox here. To close out the show.
Anne 28:45
Yeah, I agree, Chris. Great point. All right. Let’s move to the lightning round. Chris. Question number one for you
Chris 28:51
Yes
Anne 28:51
Which is larger.
Chris 28:53
Okay, where’s this going?
Anne 28:55
The Memphis pyramid which is home to Bass Pro Shops largest store Hotel Indoor swamp. That’s right. I said indoor swamp and bowling alley, or
Chris 29:05
Yeah,
Anne 29:06
The Luxor hotel current home and future mausoleum of Carrot Top
Chris 29:09
Is that really true? It’s going to be the future moslem of Carrot Top when he dies.
Anne 29:13
He’s he’s been at the Luxor for at least 20 years. I think he’s just going to be buried in the top of the pyramid.
Chris 29:19
That’s so creepy. If it’s true. I have no idea Anne I have no idea. I’m gonna go with the Luxor Hotel. Is that true?
Anne 29:26
The Luxor hotel is correct. But only by a few feet. I think it’s like the I think Bass Pro Shops like the Memphis pyramid is like 97 feet.
Chris 29:34
Shop isn’t to measure that.
Anne 29:36
I don’t know. It’s 97 feet. It’s gotta be more than that.
Chris 29:39
I have no idea.
Anne 29:40
I don’t know.
Chris 29:40
All right. All right. Next one mark. Lori’s new kitchen on wheels. Startup wonder has reportedly cut back on staff and scaled back its operations after just recently receiving an astronomical evaluation. No surprise there. But are you surprised Anne
Anne 29:53
No, I’m not surprised at all. I think that he should focus all of his time and energy on the Timberwolves because I went to a game last week and it was electric Come on, bro. Focus on the team
Chris 30:05
But they aren’t doing well. They’re not having a good season.
Anne 30:07
Well, that’s what I’m focused on the team. It can be so good. It can be so good.
Chris 30:12
Yeah.
Anne 30:12
And he’s like an animal.
Chris 30:14
It’s hard not to enjoy an NBA game.
Anne 30:15
It is it is. Alright Chris, question number three Instacart just launched same day delivery of Christmas trees and other holiday decor? Are you a real or artificial guy?
Chris 30:24
Oh, that’s a good question.
Anne 30:25
In more ways than one
Chris 30:25
I have no idea which way you’re gonna go. I have no idea what you know, either but oh man, for me. I’m a big artificial guy, you know? And it’s because it’s pragmatism Anne it’s all about pragmatism. I hate the fire risk with a real one and the needles at the end of the season like it’s it’s terrible.
Anne 30:43
I would like to see I would like somebody who’s like spouse or partner is in insurance to call us I want to see the side by side of like,
Chris 30:50
Have you ever seen a Christmas tree go up in flames?
Anne 30:52
I have but my argument is like what about all the other stuff that the the like synthetic trees are made of like that would that’s gonna go up in flames fast too.
Chris 31:01
I don’t think so. Not like No, not like, I mean, those videos are insane. Alright, question number four this might be my favourite question of all time. Pantone recently announced its 2023 colour of the year.
Anne 31:12
I love it.
Chris 31:13
Viva magenta. And what is your favourite word to play with Viva in front of
Anne 31:19
This was an easy one
Chris 31:20
Really?
Anne 31:20
The answer is Viva Knievel, by far the best cover band on the planet based out of Minneapolis. Look them up online if you are ever here go see a viva Knievel show they bang
Chris 31:32
They bang. Bang Well, this is a better banger podcast to say the least. Alright, that wraps us up. Happy Birthday today to Kim Baysinger. Sinead O’Connor and the woman who I will never forget how much my jaw dropped the first time I saw her make a guest appearance on nikecourt Anne the great Teri Hatcher
Anne 31:49
oh my god, I forgot about
Chris 31:49
Oh, yeah. God. All right. And remember, if you can only read or listen to one retail blog in the business make it on me talk. Our Fast Five podcast is the quickest fastest run out of all the week’s top news. And our twice weekly newsletter tells you the top five things you need to know each day. It also features special content exclusive to us and just for you and we try really hard to make it all 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 a review wherever you happen to listen to your podcasts or on YouTube. So with all that on behalf of all of us at omnitalk as always Be careful out there.
Anne 32:23
The Omnitalk Fast Five is a Microsoft sponsored podcast Microsoft Cloud for retail connects your customers, your people and your data across the shopper journey delivering personalised experiences and operational excellence and is also brought to you in association with the a&m consumer and retail group. The a&m consumer and retail group is a management consulting firm that tackles the most complex challenges and advances its clients people and communities for 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 grocers 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 free payments over six weeks. learn more visit sezzle.com Finally, silk, the silk cloud DVX virtualization platform is a virtualization layer between your workloads and the Cloud helps you scale your cloud without scaling your costs. Visit silk.us to learn more
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. 