Gap Turns Employees Into Influencers, Grocery Keeps Sinking & Albertsons Breeds Canaries | Fast Five

Hello and welcome to this week's Omnitalk Retail Fast 5.

I cannot wait to get to this week's episode because after over 10 years of encouraging retailers to do something, to do this one thing, one retailer finally went out and did it.

What is it?

Well, you're just gonna have to listen and watch to find out.

Producer ELLA let's get this show on the road.

I've been talking about somebody doing this.

Why aren't we putting the merchants out in front via social media?

In order to buck the trend, I think true deflation has to happen, not slowed inflation.

40% Of its sales are at risk from snap waivers.

Changing that is just a holy crap statistic.

You know, I think people will appreciate the value options, especially kind of in the macroeconomic environment we're in today where value is king.

How does Albertsons continue to survive in the long term with that much price transparency now at the fingertips of consumers?

Josh Ha, now of J Recruiting Services and formerly of Sports Authority and until just recently, over 11 years at Meijer.

How are you?

I am awesome.

It is a beautiful day here in Michigan, just soaking up the next couple months of summer and excited to be here and talk some retail with you guys.

I know, I know it's looking nice here in Minnesota, too, and the wildfires have kind of dissipated as well, hopefully for you guys up there as they have for us here.

But.

But I'm excited.

I'm excited to have you because, you know, for those that maybe don't know you aren't familiar with you, you bring a wealth of operational experience to our discussion both across specialty apparel from your time at Sports Authority and also the mass merchant landscape from your time at Meijer.

So tell us a little bit more about yourself because I'm not going to do it justice.

Josh yeah, for sure.

So I live here in Grand Rapids, Michigan with my wife and three kids.

As you mentioned, I've spent about 20 years in corporate retail.

Most of that time was spent in the marketing space.

But I've also led Consumer Insights, retail media, visual merchandising, and a variety of other things in corporate retail.

And honestly, even since I was young, I've been in retail.

So my first job ever was at Target Stock and shelves, being a cashier when I was 16 years old in Denver, Colorado.

All through high school and college, I worked at retailers like J.C. penney, the Buckle, Big Five Sporting Goods, and I guess you know how they they kind of have like a gym rat in basketball or a range rat and golf.

I'm kind of A retail rat.

Just because I've been doing it.

Doing it forever.

But yeah, I recently joined J Recruiting after this long retail career, mainly because, you know, the people side of the business has always been really a favorite part of mine.

So I'm excited about spending my time on that now.

Wow.

Small world.

Who knew?

So.

So, Josh, what store did you work at in Colorado?

Having run stores in Colorado, it was on Ilif Buckley.

It was right by the Walmart.

There was a Walmart and a Target and that.

That was my first job I ever had.

Okay, awesome.

I didn't have the Denver stores, but, you know, I had everything north of Superior, Colorado.

So.

Wow, small world.

Small world that you cut your teeth in a Target store.

What was your favorite job in retail?

Like, I'm curious, what was your.

If you look back, like, was there one thing that wetted your whistle more than anything else?

I mean, there were so many of them that I don't think there was one that stuck out.

To be honest, I didn't think I was going to be in retail forever.

I was putting myself through college, making money in retail, and then I just ended up sticking to it.

And so I thought I was going to be an engineer.

But yeah, I think.

I think my favorite part was honestly, when I was on the front lines when I was young, just working with customers, working in stores, obviously I spent a lot of time in corporate, but, you know, I always look back and just enjoy the times I spent when I was younger in the stores.

Yeah, you know, that's a really good point.

I think I did, too.

My best memories are when I was working in the stores, too.

It's funny how you said that too.

As you were thinking, as you were saying that I was even joking to myself.

Yeah, I didn't think I'd still be in it too.

And some days I still wonder why I am.

But hey, here I am pushing 50 and, you know, excited to talk to you about everything going on in retail.

So.

So one last question.

You also live in Grand Rapids, like you said.

Does that make you a big Spartan fan or does your collegiate allegiance align with someone else?

Please say it does.

It does.

I am definitely not a Spartan fan.

You know, I was born in Nebraska, Chris.

Okay, so when you're born in Nebraska, red reigns supreme in your life.

And so I was raised a Husker fan.

I went to Texas Tech, so I love Texas Tech too.

Oh, wow.

But yeah, I'm excited for people bought so old Big 8 and Big 12 routes there.

But I'm excited for football season to come up.

Coming up.

All right.

All right.

Well, that's Texas Tech's on the upswing too.

I got another friend of mine, friend of Omni Talk, that loves Texas Tech as well.

So you guys are on the upswing, so it could be a good year for you guys.

It was last year for sure.

So yeah.

All right, Josh.

Well, this is also the time of the month when we hand out some serious hardware, everybody.

For those new to the podcast, our Omnistar Award is the award we give out each month in partnership with Corso to recognize the top omnichannel operators out there.

Not the pundits, not the so called experts, but the real life retail operators making a difference in their organizations.

Corso's AI copilot coaches retail leaders to optimize store performance at every level.

You can transform your retail operations from data overload into data powered.

So I'm pleased to announce that this month's Omnistar is Ryan Baker.

Ryan is a nearly 25 year veteran of Bunnings, the home improvement retailer down in Australia.

He is currently the COO after previously serving as Bunnings Chief Customer Officer.

Ryan is also a longtime fan of Omnitok and I had the chance to interview him out at the DIY summit in Amsterdam last month and without a doubt, it was one of my favorite interviews of the year because Ryan is thinking about Omnichannel from every angle.

If you have a chance to listen to the interview, I highly encourage you to do it.

You can find it on YouTube.

Just search Ryan Baker.

Chris Walton, Omnitalk.

But he's thinking about it from every angle, from the customers to the employees down to the stores and online.

As Josh just mentioned, he gave me a graduate course in omnichannel thinking in the 15 minutes or so I spent with him behind the mic.

So Ryan, congrats on being named this month's Omnistar and if I'm ever in Australia, as you suggested, I am definitely looking you up.

So just wait for that one, Ryan.

All right, Josh.

In this week's Fast 5, which of course is brought to you with the help of the A and M consumer and retail group, Miracle Corso, Ocampo Capital, Valak and RNS Logistics, we've got news on David's Bridal debuting a new outlet shop and shop concept, grocery unit sales contracting for a fifth consecutive month.

Hy Vee rolling out 30 minute delivery and pickup chain wide.

Albertson's launching a major restructuring effort called of all things, ACI Edge while also cutting its Annual forecast.

But we begin today with Gap Inc.

Turning its own employees into paid brand influencers.

Headline number one is of course brought to you by the A and M Consumer and Retail Group.

The A and M Consumer and Retail Group is a management consulting firm that tackles the most complex challenges and advances its clients, people and communities toward their maximum potential.

CRG brings the experienced tools and operator like pragmatism to help retailers and consumer products companies be on the right side of disruption.

All right.

According to Chain Storage, Gap Inc. Is expanding its creator, affiliate and social media advocacy program to its own employees across Old Navy, Gap, Banana Republic and Athleta, allowing eligible staff to earn commissions as brand influencers.

Gap Inc's creator program originally launched in October 2025 for US based creators 18 years or older with at least a thousand followers on a single platform such as TikTok or Instagram.

The company says the program has already driven nearly 30,000 unique posts, reaching 154 million users.

Now employees across Gap Inc's offices, stores and distribution centers may apply to join, access social sharing tools and content opportunities and participate in affiliate programs across all four brands for earning commissions and products.

Josh, do you think other retailers will follow suit and decide to turn their headquarter employees into paid creators as well, just as Gap appears to be doing?

Yeah, so I would say I think this is really smart and I think it's really fun too.

I mean, I spent a lot of time in the social space paying influencers, pushing paid and organic content and all that stuff.

And I think we're just in a different age now where people really look to each other rather than trusting marketing and media these days.

And, you know, not to mention, I think the people that work for these retailers buy more products than anybody else.

And so they're really the best advocates you can have.

And so it's kind of like getting the inside scoop when you hear from, you know, current employees.

And it should be fun for everybody, fun for customers, fun for employees.

My only hope is that they don't squash this, like, great idea with some lame approval and review process that makes it seem less authentic and just makes it slow to market.

So overall, I think it's great.

Right.

So do you think other people will follow suit?

I think so.

Bite the apple.

You do.

It's a big number of people.

I mean, when I was at Meijer, there's 70,000 employees.

When you have those people as advocates for you or creators, and I know this program is a little different, but I think, I think they should follow suit if they aren't going, you know, if they think about it.

Yeah, yeah, I 100% agree.

And I think the merchant side of this is really intriguing.

And I tease it at the outset.

Like, I've been talking about somebody doing this.

I can remember talking about this at Target when I was running home furnishings for Target.com.

Like, I was like, why aren't we doing this?

Why aren't we putting the merchants out in front of the, you know, via social media?

Because they know more about the products than anyone.

Like, I can think.

Like, I think I was talking about this with, with producer Ella and Jen at the end of.

Jen Hahn at the end of one of our shows.

Like, I was saying, like, this is a cool idea and now Gap is out there doing it.

So kudos to Richard Dixon for doing this.

I'm all in on Richard Dixon now because the premise is so easy.

It's so simple and intuitive to me too, Josh, because, like, I think about it like, for example, when I was a merchant, I was buying beach towels, and I probably knew as much about beach towels as anyone in America at that point in terms of how they're made, how they're constructed.

My products were featured on Oprah's Favorite Things, but yet as the creator of those products, I was not.

And so that, to me signals that there's a huge opportunity here.

And I can even remember from my time at the Gap, the denim buyers going down to Mexico to learn all the things that go into creating a pair of jeans and all the things that go into the different washes and the, and the, the constructions and the, and the, you know, you get the wildcat prints on the, you know, you know, at the front of the legs.

Like, all that stuff, I can't remember what it's called, but that stuff matters to people.

And so why not give voice to the merchants that have the charisma and that can play the part on social media to, to help promote the brand and possibly even earn a little more extra money for themselves too.

I think, I think it's a win, win all around.

But, Josh, what do you think?

Last word here.

I agree.

I'll compare it to one thing that I experienced in Denver, Colorado, where I was at a sandwich shop and they had a menu that they wrote the menu on.

And next to some of the items on the menu, it would say Joe's favorite or whoever worked there.

Right, Right.

And I'm like, I want Joe's favorite.

Like, I choose that every time.

Like, I want to know what the employees think.

Who know the most about what they're creating and what they're producing.

And so I think it's awesome, right?

100% Or like when you go into like a Barnes and Noble and it's got like Kathy's book pick of the week, right?

It's the same idea, you know, and, and you know, for me, like I think back to beach house example, I'd be like, you know, if you want the best value beach towel, I tell you to get the seven foot roll of beach towel.

Don't screw around with everything else.

It's going to be the one that does the job that you want.

You're going to look good on the beach and just make it happen.

And like that would work.

I mean, I don't know.

But anyway, I'm excited for it and kudos to Richard Dixon and the Gap for pulling the trigger on it.

All right, headline number two.

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David's Bridal debuted the Outlet Shop by David's Bridal, which is a hybrid outlet plus full price shop and shop concept that opens opened up inside its existing McAllen, Texas location with more locations planned this year according to retail dive.

The outlet shop and shop opened earlier this month per a July 14 press release and David's Bridal is currently evaluating additional locations to open throughout the country this year.

The store now features discount wedding, bridesmaid, guest prom and mother of the bride dresses.

I guess that's the thing.

I didn't even think about that until I read this alongside the retailer's full price assortment, giving shoppers a one stop shop experience at a single location.

Josh, I can't think of anything more out of place than two dudes discussing bridal retailing.

But as a lifelong retailer, do you think selling both bargain hunting and luxury under one roof is a wise move for David's Bridal?

Yeah.

So as you mentioned Chris, I am definitely not the Target shopper here.

I have never been in a David's Bridal but I do think this can work.

But I think it's all about how they execute it in the store.

So you know, the store experience for, for the discounted product I think has to feel separate in my opinion.

I think, you know, they have to protect the brand and not turn Away the shoppers that are maybe looking for this more elevated experience.

If you have a bunch of discounted product, you know, sitting nearby on a crappy rack with orange stickers like it's not going to work great and be a good reflection of the brand.

But I'm sure they've thought through that and that's not their plan.

And I think from a customer side of things, you know, I think people will appreciate the value options that this, this gives them.

And especially you know, kind of in the macroeconomic environment we're in today where, where value is king.

So Josh, going back, let's take Gap as an example.

So like, so it sounds like you, sounds like net net.

You're kind of, you kind of like this move from David's Bridal.

Is this something you would advocate like a Gap to do?

Should they combine their Gap stores with their Gap outlets into one under the roof experience?

I don't think.

I love that.

I think David's Bridal feels like a smaller, more kind of intimate, more service focused experience than like a Gap or another retailer.

But I wouldn't love that.

I don't think.

And they kind of do that with.

It's just clearance.

Right today.

Right, right.

Where the outlets are just getting the clearance product and they're selling a bigger assortment of.

And so it exists in those stores today.

It's just not, you know, a separate experience.

I don't think they need to do that.

Right, right, right.

Yeah.

I think for the average retailer is why I asked the question like, I hate this idea for the average retailer.

Yeah, you do too.

You hate it too for the average retailer.

Yeah, I don't think it would work well in the average retailer.

I think it's more, you know, this isn't a very, something you do very often.

Right?

Yeah.

Right.

And I think the reason for that and when I first read the headline, I was like, I hate this.

I hate it, I hate it.

But then I got thinking about it and I was like, but bridal shopping is, is different.

It's different than everyday weekend clothes shopping, you know, or every, you know, every few weeks clothes shopping, you know, because it's occasion shopping and so it could make sense in regards to how do, how does David brighter bridal, excuse me, capture more of that occasion?

Will it work for that?

Because it's such a defined period of time in people's lives that they're only going to spend so much time doing it.

So, so I think it just might work for, for, for that reason because it gets more wedding Shoppers in the doors, which is what I think you ultimately want.

Josh, am I onto something there?

Do you agree with the whole occasion premise?

I do agree, and I also think that these are a lot of the time, they're big ticket items, right?

Yeah.

So when you're going to go spend hundreds of dollars on a dress and you maybe don't have the budget to do that, and you can go spend, you know, a couple hundred, 150, something like that, it feels like you have options where it's different.

When you go in a Gap or you, you know, you go in another apparel retailer where there is a variety of price, you know, a lot of the time, or you're picking the retailer based on price.

But when you're spending a lot of money on a dress or something for your wedding, I think, I think the having, you know, tiers in pricing makes sense.

Yeah.

Or, or you're at a mall and there's lots of options for those, you know, different specialty apparels too.

Like here.

Like, you know, there just aren't that many wedding stores and you only have so much time.

So I think of it like home and furnishing shopping in a lot of ways.

Like there's, there just aren't that many wedding stores and you only have so much time in the day.

And so how do you just get that all done?

What's the job you need to do to your point on that high ticket item?

And how do you see what's most available to you and therefore what do you want to purchase, given the options?

And so, yeah, I think they're, I think it's a, it's a timeshare grab play here at the end of the day.

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Headline number three.

Grocery unit sales in the US fell by nearly 2% year over year in June, marking the fifth consecutive month of declining volume.

That is according to a new analysis from Bain Co. And Nielsen IQ.

Unit sales declined 1.8% in June, 1.9% in May and 2.2% in April, with the west region hit hardest at down 3% and the Northeast least affected at down 1.3%.

The study says shopper pullback has now outpaced pricing, growth and inflation.

Meaning price increases can no longer mask the fact that consumers are simply buying fewer items.

Roughly 8 in 10 US consumers say they're trying to spend less, with close to 30% specifically working to cut grocery expenses.

Among that group, more than half are trading down to cheaper brands.

Over 40% are leaning on coupons and promotions, and about half say they're just buying fewer items outright.

Rising gas prices, steady grocery inflation and reduced SNAP participation were all cited as key pressure points.

Josh, your job at Meijer was to help give voice to the customer, so you probably had a front row seat into some of these dynamics.

Do you think five straight months of unit declines is a temporary blip or is it a genuine volume contraction?

I think it's a great question, Chris.

I do think it's, you know, contraction that will continue.

Yes.

And I think, I also think it can change, but I don't know when.

You know, it's been a trend for a couple years now.

Last year it was inflation, this year it's been fuel prices and other things that are on people's minds and tightening their wallet a little bit.

But.

And people are continuing to shift to wholesale, right?

Costco and Sam's Club of the World are doing pretty well and that looks like that's going to continue.

And these are all things that I think are just going to be hard to overcome.

But honestly, in order to buck the trend, I think true deflation has to happen, not just slowed inflation.

And I think fuel prices have to go down And I think CPGs and retailers are just going to have to be willing to, to cut into their profits a little bit and be sharper on pricing and not just like, you know, more promotions and sales, but it's the everyday value.

That's why you see, you know, some of the more budget grocers out there right now, like the Aldi's and the Walmart's of the day that really focus on an everyday low price strategy.

They're the ones that are winning right now.

Yeah, man.

That deflation, that deflation needing deflation is a scary statement to say.

It is when you step back and think about it.

Wow.

Yeah.

I mean, I agree with you.

I think it, I think it's, I think, I think it's more of a contraction.

I think we're in for a long 10 years here or so for the grocery industry too.

The other thing I'd call out to Josh is like, I think it's more of a contraction because there were three other factors I think that are at play here beyond just like gas prices and inflation, which are definitely an important part of this, but those are more temporal in nature.

And I think there are three other things that are endemic to the grocery industry that are, you know, kind of putting the gun squarely pointed at the industry right now.

The first is what the, the headline discussed and talked about it a little bit, which is the changing SNAP regulations.

Those are really interesting.

I was talking to somebody that knows this space really well and he told me that there is a CPG brand, like a top five CPG brand that 40% of its sales are at risk from SNAP waivers.

Changing.

And that is, that is just a holy crap statistic.

If that, if that hits that CPG, if it hits other CPGs even to the same degree or even even like half of the degree.

Right.

20% Of your assortment being at risk for SNAP waivers is a big, big deal.

So that's going to have an impact.

The second thing which has also been called out is GLP1.

I don't think we've seen the impact of that yet.

I think that's still coming and it's going to continue to be more pronounced.

But the third thing, and which we'll get to this more too, I think too, Josh, and you hit on it a little bit with, you know, people moving towards Costco.

The other element here is the increase in quick delivery.

You know, the everyday items are moving out of the regional grocers and they're primarily going to Amazon and Walmart and the basket sizes online are probably smaller than typical grocery trips.

So that's why people are buying less as well, because you just don't have the load up factor of not, you know, getting the end of the cart and not, you know, buying on a budget to the same degree that you can online.

So, so yeah, for those reasons, I'm with you, Josh.

I think, I think there's a big contraction here.

Anything else you'd add?

No, I don't think so.

I mean the SNAP is a great point.

GLP1 is a great point.

I think people are going to be consuming less food.

When they're consuming less food, they're buying, you know, less, less units.

And I think, you know, the, the health trend too is probably something to consider along with GLP1s is.

Yep.

You know, as people look for healthier options, there's a lot more unhealthy options in stores than there are healthy options.

So you're just going to see naturally less products being bought.

And so, you know, we'll see.

But I think it's going to continue for a while, like you said, and maybe plateau.

And if things change, maybe it could turn around, but it doesn't look like it's going to happen for a while.

Yeah.

Yeah.

And I'm really interested to continue to watch the trend on delivery, too.

Like, does how we shop for groceries change the amount of groceries that we buy?

And I think the answer to me, if you put a gun in my head, is yes.

What do you think, Josh?

I think it's yes.

And I think that's what retailers are trying to figure out with their online shopping, is that you don't have the opportunity to drive impulse as much, which is why they're using things like personalization.

They're trying.

They're looking at their.

Their full shopping experience in the customer journey online to try to create those impulse opportunities.

Because the baskets are smaller.

You aren't buying that candy bar at checkout.

You know, you aren't buying that.

Whatever it is that you see as you're walking towards checkout like you do in the store, you don't see the end caps.

Like, there's no virtual end cap on a website.

Right.

But the end caps drive a lot of volume.

And so I think creating a similar experience online as you do in store is a continued challenge.

So more digital shopping means less.

Less volume.

Yeah.

You know, it's funny, Josh, I'll tell a funny quick story here before I move on to the next headline I was reaching.

I was recently at the ncaa, which is the National Confectioner Association's conference out in San Diego, like, two weeks ago, and I was giving a speech, and I talked about this in much more detail than I just covered now in terms of the rise of quick delivery.

And I could tell, I was just talking, that the whole industry was like, oh, boy.

You know, there's kind of like a quietness that fell over the room.

And then I got in the elevator to go back up to my room, as did everybody else, and this guy didn't see that I was in there, and he was like, man, that guy really shook me with what he was talking about.

And then everyone else in the elevator was quiet, and I got off.

And then one guy was like, yeah, he was.

He kind of knew what he's talking about.

Right.

And I was like, thanks, man.

It was.

It was hilarious.

So, yeah, it's just.

There's a lot happening in this industry.

It's so.

It's just so fascinating to watch.

All right, well, headline number four is brought to you by Ocampo.

Capital Ocampo Capital is a venture capital firm founded by retail executives with the aim of helping early stage consumer businesses succeed through investment and operational support.

Learn more@ocampo capital.com Hy Vee Hy Vee has launched a new Get It Faster fulfillment option across all of its stores, offering online pickup or delivery in as little as 30 minutes.

I teased it now it's here.

Per Progressive Grocer and grocery dive shoppers select Get It Faster at online checkout.

Hy Vee perks plus members get free 30 minute pickup and pay a flat4.95 fee for 30 minute delivery, while non members pay 9.95 for pickup and 14.95 for delivery.

There's no minimum order for pickup and the launch lands alongside an existing promotion waiving delivery fees on orders of $75 or more.

Through September 6th.

Hy Vee's standard fulfillment window had been about two hours.

This cuts it to 30 minutes chain wide across more than 560 business units across nine Midwestern states.

Chain Store Age also noted that Hy Vee joins a growing list of grocers in ultra fast delivery, following Albertsons Flash since 2023 and Instacart's powered 30 minute options at stop and Shop Giant and Kroger that date back to 2021.

And let's also not forget Walmart and Amazon have both been expanding their own 30 minute footprints.

Josh, is Hy Vee's 30 minute delivery rollout a genuine competitive differentiator or is it just table stakes at this point?

I do think it's, it's starting to become table stakes.

But I also believe this is more of a loyalty long term and defensive play than it is, you know, a money maker.

It's just not a money maker.

The logistical costs of ultra fast fulfillment are pretty significant.

And if you think about it, we were just talking about it, a lot of these purchases are more impulse, right?

They're smaller baskets, they're less margin, they're expensive to fulfill.

And I think their goal here is really just to get more perks plus memberships who are paying the $99 a year, which will likely go up in the future just to create this kind of steady cash flow and predictable cash flow that they have.

So I think it's smart.

I think it gives you an edge on convenience.

I think it gives you more customer data and more predictable cash.

And so.

But it's just not a profit driver, I don't think.

Yeah, right now I agree with you.

I think, I think the answer is it's actually, it's kind of a, it's kind of a funny question.

It's actually both, but it's both of the caveat.

It's like it's table stakes, but you have to do it well to differentiate yourself or you're going to lose.

I think that's the thing I would say here, you know, as I was thinking about what you said, I mean, I think, you know, I think this is going squarely after the, the hey, I forgot this trip, you know, or I need to run in and get this trip.

And that's also driving unit purchases down too, because when you go in and get one thing, you might actually go in and get two things even though you went in for one.

So.

And the, the, the, the thing that I keep pointing to, and I talked about this at NCA too, is Brick meets click.

Puts out great data on this stuff every six months.

And the last report that they put out in June, it was really interesting because it said that ultra fast fulfillment, which is essentially what we're talking about here, the way brick meets clicks to find it is one hour or less.

But that makes up now 18% of all delivery orders.

18% And 10% of ship to home orders, which is direct from the grocer.

And so that for the most part is Walmart and Amazon.

And now ostensibly it's hy vee as well.

And that, don't forget ship to home as well is the fastest growing segment of online grocery as well.

It's, it's accelerating beyond, you know, the instacarts and the doordashes of the world and even accelerating faster than curbside pickups.

So, so this trend is coming.

We've been seeing it overseas in Europe for a while now, and I think it's here to stay in the U.S.

Yeah, I think it's, I think it's kind of a, it's a nice to have, it's a super convenient experience that you can give to people and eventually it's going to become to the point where you have to have it.

And so I think, you know, to answer your question earlier about table stakes, I think it's going to become table stakes.

And like you said, I think people just have to figure out how to do it well.

And if they can do it well, the goal is to just continue to win those extra shops to get more people into their loyalty ecosystem, which I think is, you know, from a lifetime value standpoint in, in retail and, and loyalty.

I think, you know, the more people you get into your ecosystem, the, the more data you have and the better you're going to be off long term.

So I think it's, I think it's a good move and I think they, we're going to see more and more retailers rolling this out.

Yeah.

And Hy Vee is a great retailer too.

The other point you bring up too, Josh, is the subscription.

You know, like the key is getting them into the subscription because once you get them in there, you get them hooked.

You do this well, there's no reason you can't take the subscription price up over time as we do that very well.

Yeah.

Think about it.

We see with Amazon, I mean, my Netflix prescription must go up every six months.

Disney, all of the streaming services, but once you're hooked, you're like, I'm not leaving.

And so long term, I think it gives you the opportunity to continue to, to make a little bit more money.

And it's very predictable, which I think is important for, for those businesses, they know exactly how much cash is coming in there.

Yeah, yeah, yeah.

Or I'm suddenly watching ads on all my Amazon prime videos.

Thank you, Amazon.

Yeah, appreciate that one.

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Albertsons is overhauling its operations.

This is going to be a great one to talk about with you.

Josh is overhauling its operations through a new initiative called ACI Edge, consolidating 11 divisions into four regions while cutting its full year sales and earnings forecast after a disappointing first quarter.

According to Supermarket News, identical sales fell 0.8% in Q1 of fiscal 2026.

And Albertsons now projects full year identical sales to decline by as much as 1.5%, which is down from prior guidance of up to 1% growth.

ACI Edge, which sounds much cooler than it probably is, consolidates 11 divisions into four regions, California, the West, the south and the east, and centralizes center store merchandising under a single enterprise team, targeting about $200 million in annual run rate savings by fiscal 2027, with roughly 50 million in transition costs across fiscal 26 and 27.

Four enterprise AI priorities are central to ACI Edge digital customer Experience, merchandise intelligence, labor optimization and supply chain optimization.

CEO Susan Morris cited, quote, increasing pressure from softer industry unit trends and a more cautious consumer, end quote.

And said the sales decline was sharpest among lower income shoppers who are trading down to private label value, packaging and cheaper proteins.

Morris also pointed to Walmart, Amazon and Aldi as the retailers pulling share from Albertsons.

Albertsons shares fell more than 20%.

Just 20% following the announcement.

Josh, we're coming to the end of the show.

I hope you still have your energy because this is also the A and M Put yout on the Spot question of the week.

We don't usually get this in Headline number five, Josh, so hope you've had your coffee today.

Here it is.

If Albertsons is serious about reorganizing for growth, are they getting it right in terms of which functions and capabilities should be centralized and which should be more locally distributed?

Yeah, so I think you have to have some level of centralization in merchandising and buying.

So I was actually surprised when I read this because I don't, I don't know exactly how they're operating at Albertsons, but I've also never.

Yeah, but I've also never worked for a retailer with over 2000 stores.

I know they have a lot of stores in a lot of places, probably different formats and other things.

Yeah, a lot of banners.

So obviously, you know, I think it's certainly going to help their buying power.

I think it's going to create, you know, a more consistent brand experience across a lot of their stores.

But I think the risk they run in some ways is just losing a little bit of speed to market or kind of that hyperlocalization that happens at, you know, through a distributed model where maybe the stores or the regions or markets have a little bit more control over assortment.

You know, I guess when you're sitting in an office in Idaho and trying to curate, you know, an assortment for a store in Louisiana, you know, I can imagine that might be, might be a challenge, but I think it's a good idea.

I've never worked anywhere that didn't have a lot of centralization from a merchandising and buying standpoint.

So I think it's a smart move.

I think it's gonna, you know, if you think about how they're operating though, today, my guess is it's gonna take them some time to get this right and get people to understand how to do.

Do it the new way.

Yeah, that, yeah, that's really interesting.

The reason I laughed, I chugged too is I was kind of like, yeah, I'm kind of surprised you aren't doing this already, honestly.

And I mean, to AM's question, I think, I think it's the right places to do it.

The other thing, you know, like, I was thinking about this too, is like, you know, okay, you know, Kroger kind of takes this approach to some degree, I'm guessing.

You know, I hold in the Northeast probably takes this approach safely takes this approach.

And a part of me is like, is it, are we sitting on Moneyball here?

Like, why is this approach still being taken?

Like, you know, why isn't.

Why aren't Kroger stores all just Kroger stores?

You know, like, why aren't we ripping the band aid off that?

Like, is there anything that tells us that that's not the right way to go?

Or is it just old beliefs that we're holding on to, that we need all these localized stores, you know, or can you grow them into one national banner at the time?

Because all the points you're bringing up are like, yeah, but, you know, Walmart does it, you know, Target does it.

You know, there's Aldi does it, you know, like, so what?

I don't, I don't get it.

And the other thing, too, that's a factor here now, Josh, which we just spent a ton of time talking about, is it's also online.

Online is the easiest.

This drives me nuts, actually.

I've had lots of battles about this over my career.

Online is the best way to personalize your store, your physical stores, like, just offer the other localized products online and have a vast marketplace of localized offerings.

Because you know what, you have people that are from Louisiana living in California, they want to buy Louisiana stuff.

So, like, just offer it, you know, make it happen.

And so that's the thing that, that doesn't make sense.

That's the question I have.

But the other point I bring up, too, Josh, you know, which goes back to what I talked about on this show.

It's like, at the end of the day, this might be the right move for Albertsons, but I don't think it's going to matter.

Like, I think it's a bilge pump at this point.

And, you know, the reason I say that is I shared this slide on social media this week where I asked Google Gemini, Josh, I said, google Gemini.

I said, give me a basket of five items, you know, five typical grocery basket items of the typical shopper and compare the prices at Walmart, Amazon, and I just happened to randomly pick Albertsons you know, before this announcement and, and of course, not surprisingly, the baskets are cheaper at Walmart and Amazon than they are at Albertsons to the degree of like if I was to cherry pick the best items across Walmart and Amazon, I would save 25% versus Albertsons.

So in the age of AI and then you combine in Prime Walmart plus subscription delivery 30 minutes or less, I can get whatever I want.

How does Albertsons continue to survive in that arena in the long term with that much price transparency now at the fingertips of the consumers?

I just don't see how it works.

I, I'm sorry, I, that, that slide says it all to me right there.

But Josh, you get the final word on today's show.

Well, I think you're right.

By the way, I've always wondered too, why do we have so many banners?

That just doesn't make sense to me.

I think everyone does that.

Yeah, yeah, because I'm like, it just seems like more work for everyone because you're just dealing with all these different banners that sell the same products.

But yeah, you know, I don't have a lot, a lot else to add to that topic.

I think it'll be interesting to see where they go.

But to your point around price transparency, like I said, I led a lot of work in consumer insights and value trumps everything right now.

And so if you can't win on price and promotion, you are not going to create any brand equity.

And so I think they're going to have to figure that out.

I've saw it with a bunch of other regional retailers too, and grocers, which I won't name here, but they were in the same situation because their prices are just too high and they can't compete.

And so they're going to have to figure that, that out long term.

Quality always matters, but it matters a little less, you know, than it, than it has traditionally because a lot of the quality you're seeing, especially with private label brands and other things, they're starting to get better and you know, it's a little bit, there's less discrepancies between those products across retailers and so they're going to have to win in value.

And so, yeah, 100%.

And then the other point too is like we're crossing that threshold of 20% online penetration in grocery, which when things really start to change.

And so that's another reason we're at, you know, at this point of having this conversation that we've been having today.

So it's been a grocery heavy show But I think it's been a really important grocery heavy show in terms of thinking about how the future is going to unfold.

All right, Josh, well, let's go to the lightning round.

Question number one.

It was National Tequila Day on Friday.

What's your go to tequila order?

I love margaritas.

You know, so that's a really easy answer.

But I will tell you when High Noon came out with the tequila.

High Noons.

So I can't taste.

You know, vodka isn't supposed to have any taste anyway.

I can't really taste vodka in High Noons.

But when they came up with tequila, you can taste the tequila.

It tastes like tequila.

It's delicious.

And so I highly recommend those.

Nice, nice.

Are you a frozen or on the rocks margarita or do you dab from both?

No, I never dabble with frozen, only rocks.

Salt, always.

And yeah, the.

The wider the tequila and less yellow the.

Or, I'm sorry, the whiter the margarita and less yellow, the better.

Yeah, for sure, for sure.

You know, it's funny.

I just was literally having this conversation with my wife this weekend.

I was like, you know, I think I need a frozen margarita again.

It's been like 10 or 15 years since I've had a frozen margarita.

I think I need to have one.

Are we ready for question two, Chris?

We are.

Let's do it, Josh.

So it is Shark Week this week on the Discovery Channel, which is amazing because it's been running for 38 years.

So my question to you is, would you ever go in a shark cage or diving with sharks?

Oh, man, that.

That.

That is such a good question.

First of all, I didn't know Shark Week was that old.

That makes me feel really old.

But I am fascinated by sharks.

Josh.

Like.

Josh, sharks are like my.

The animal that just absolutely captivate me the most.

Like, I would not watch Jaws until I was like 14 or 15 years old because it freaked me out.

And I still don't like going swimming in the ocean because of sharks.

So my answer.

My answer to you is resolutely no.

I'm never going into a shark tank for all the money in the world for two reasons.

One, because I'm definitely afraid of sharks.

But two, I think I'm more likely to die from my scuba gear not functioning correctly that I actually am from the shark in the shark tank.

So.

So that gives you a sense of who I am.

As for my personality, Josh, would you go to Shark Cage?

You probably have.

I've never gotten a shark cage.

I think I would do it, but to your point, the only thing that scares me is, like, oxygen.

And so the sharks don't scare me as much as, like, something going wrong there.

But my daughter did ask a funny question today, because I was talking to her.

We've been watching Shark Week.

And so when we were driving to daycare this morning, she was like, she was like, daddy, do you sharks sleep?

And I was like, I have no idea.

That's a great.

Knows.

Nobody knows.

That's a great question.

Nobody knows if they sleep.

Yeah, it's crazy.

Like, it's crazy.

It's.

Nobody knows the answer to that.

It's.

It's so fascinating.

Sharks are such.

Are such fascinating, fascinating animals.

But I've been freaked out, too, Josh, by all the recent social media posts of, like, people swimming next to great white sharks in California that don't know the great whites are there that you're seeing on drones now because of all the potential climate change activity changing the.

The migration patterns of sharks.

So, yeah, dude, no, I'm not doing it.

I'm not doing it.

All right.

John Cena reportedly said recently that his two hair transplants, quote, totally changed his life after more than 20 total hours in surgery.

Wow.

What celebrity do you think needs to just give it up and embrace his baldness?

I think Donald Trump.

I think, oh, my God, that's so good.

So his.

I mean, his head looks flat on top, you know, completely flat, and it just kind of falls over.

It looks square.

You know, it kind of looks like a rectangle head.

And so if I was him, I would just go bald.

It would make.

Make it harder for people to impersonate him because they can't wear that, that wig.

But yeah, I say Donald Trump, he's got to get rid of that, that hair.

Oh, my God.

Oh, my God, that's so good.

You know, I was thinking like, John Travolta was my answer, but I think he's kind of finally thrown in the towel.

But, but as I was thinking about this question too, like, I saw David Spades like, toupee.

Oh, my God, it's terrible.

But I don't know what he'd look like bald.

So I think he's probably better off with it.

Toupee.

USA Today readers recently ranked the best fast food french fries in the United States.

And surprisingly, Chris, a taco joint came out on top.

So what is your go to destination for fast food?

French fries.

A taco.

A taco shop came out on top.

Josh, which taco shop?

Del Taco.

Del Taco came out on top.

For french fries.

Wow.

Oh, God.

Okay.

My favorite french fry.

Easily it's In n out.

I love in and out french fries, especially with a lot of salt on them and stuff.

But, you know, it's interesting because I'm going out to California next week and there's a Del Taco right next to the In n Out Josh.

So I might have to do a french fry bake offer taste test.

I think that's.

I think that's what I'm going with.

Yeah, I can't wait for that.

You just, you just made my trip a lot more interesting.

Josh, what's your go to French fry?

So do you have Culver's where you're at?

Yeah, for sure.

Culver's is probably my go to, both for burgers and french fries.

I love that place.

But there is another taco place that I've been to in Nebraska.

I think it's Taco John's.

They have amazing french fries.

Also.

They're the crinkle cut fries.

Apparently it's a taco.

They have tater tots.

They have everything.

So, you know, these taco fast food joints are just expanding that menu, I guess.

And I have had a Del Taco french fries and they are pretty dang it.

Okay, wow.

All right, good, Good recommendation here.

All right, let's bring producer Ella onto the show.

I know she never gets my movie references, but maybe she's had a Del Taco french fry in the past.

Ella.

Yeah, I would say.

And to my favorite french fry, I'm going to go chick fil a all the way.

Oh, you waffle fry.

The waffle fry is superior.

It is hard to beat.

Yes.

Those are pretty good.

Those are pretty good.

Especially, I think I just like anything with a lot of salt.

But, But, Ella, speaking of a lot of salt, which headline did you.

Did you like this week?

Yeah, today was really hard because I, I found myself torn between my bridal era with David's bridal and influencers.

Yeah, I, I really, I could go into both.

But whenever Gap's on, they're always my favorite pick.

It wins because who better to talk about the products than the people in the store?

And I feel like it's been real life marketing forever now.

When you walk into a store and you see an associate wearing head to toe, whatever that brand is, right?

Like, you're looking at how they styled it, how it fits, how confident they feel.

So why not lean into that in social media?

And I honestly think that Aritzia, I don't know if you guys Are familiar.

Yep.

They are such a great example of this.

And I love watching their stylists, especially if you're from Minnesota, like Mall of America or Southdale.

They pop up on my feed all the time.

And someone can correct me if I'm wrong.

I don't think they have something rolled out like this.

Like, those people are genuinely just doing it for the love of being a stylist and being in the.

Yeah, they just love doing it.

They just love doing it.

And they give me such great advice.

So whenever they're on my feed, I'm watching that whole eight minute long video, right, about what someone chose to wear, how you would style for this event.

So I shout out to Gap, because this is just such an authentic way to market.

Yeah, that's a good point too.

Like, I can remember at the Gap, like, I would get samples.

I remember, I got a sample.

I remember the brand or the type of jean it was, the vintage cut jean.

And I got a sample of it before it went in store.

And everyone was like, wow, those jeans look great.

Because we always used to wear the product.

We all wear the product to work every single day.

And, you know, and I got a sample of it and like, people were telling me it looked great.

And I'd be like, if today you put me in that position, I'd be like, look at these new jeans.

They look awesome.

Like, come get them when they launch in September.

You know, like, that's just easy, easy.

Oh, man.

All right, so wait, I gotta ask you about the David's bridal thing too.

Ella, do you like that idea or no?

Yeah, I actually love this idea.

And I agree with both of you.

It has to be intentional because the bridal experience, if I was to walk you two through it, right?

Having myself, right, you walk in and it's.

It's typically very personalized, right?

They're asking you questions, they're asking you your budget, and then you have a personal.

You have someone there that's almost your expert bringing you, right.

Items, right?

And so I can imagine in my situation, if I was up there and I fell in love with a dress that was maybe way above my price range, and they could say, hey, guess what?

Like, we have the same dress in the back in our outlet that I can bring you.

And yes, maybe it has a scuff or there's something, maybe why it's discounted, but, like, if I'm okay with that.

Of course, if I could drop a couple hundred dollars, I would take that.

So if they could do this Intentionally where it doesn't have those stickers on the rack and you can't really see it because the whole etiquette of dress shopping is so almost grand.

You don't want to see those, you know.

Yeah.

Bad parts of the business in quotes, but, yeah, I love it.

Yeah, it's good buying strategy, too, Ella.

You go in there and you're just like, this one's out of my price range.

Do you have anything a little, you know, on the outlet rack that, you know, approximates this?

That's.

That's pretty smart move.

I like how you're thinking there.

Yes, I'd like how you're thinking there.

Like a.

Like a good bargain shopper.

All right, happy birthday today to Genesis Rodriguez, Wil Wheaton, and to the one and only Josh might get this reference.

Loan Lt. Callahan from police Academy, Leslie Easterbrook.

Josh, you get that one?

100%.

One of my favorite movies as a kid.

Yeah, me too.

Me too.

What's your favorite one?

It probably had to be the Second 1.

Police Academy 2.

I think so, too.

Yeah, I think so, too.

That second one was really good.

All right.

And remember, if you can only read or listen to one retail blog in the business, make it Omniton.

Totally not appropriate for today's day and age, though, Josh.

Probably.

I'm sure it would get canceled in, like, 20, 20 seconds.

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You can follow us today by simply going to YouTube.

Josh, if people want to get in touch with you, learn more about J Recruiting, what's the best way for them to do that?

Yeah, you can find me on LinkedIn, search for jrecruiting services, or just send me an email@joshrecruitingservices.com awesome.

Awesome.

And on behalf of Josh, producer Ella, and myself and all of us that work at Omnitok Retail, as always, be careful out there.