Kohl’s Has A New CEO, Perplexity Goes Shopping & The WSJ Calls Target ‘Dull’

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Today is November 27, 2024.

I'm one of your hosts, Ann Mazenga.

And I'm Chris Walton and we are.

Here once again to discuss all the top headlines from the past week making waves in the world of omnichannel retailing.

And one headline that is very important to us here at Omnitack Retail is that we have become Walmart plus members.

And Chris yeah, you use it for the first time so purchase and yes, yes, let's hear about, let's hear about.

It's amazing.

So.

So Ann, I Don't want to give too much detail on this, but had a plumbing issue.

I had a plumbing issue on Friday.

Had to call the plumber and the plumber sitting there and he uses the toilet snake, or also known as the toilet auger.

If you're going to Purchase 1 from Walmart.com okay.

And I'm like, should I just buy one of these?

He's like, yeah, it's like 20 bucks and you don't have to call us out.

So I'm like, okay.

So I get.

I, I send him on his merry way in the spirit of the holidays.

I go on Walmart plus I buy the toilet auger.

And next thing I know, I didn't, I didn't elect express delivery.

It's at my house in three hours.

Three hours.

I have a brand new toilet snake in three hours.

It's life changing, Ed.

I absolutely love it.

Like, it's so great.

And, and you know, those are the types of items too, that I don't.

That's, that's, it's, it's a testament to Walmart's marketplace too, that I could find a toilet snake@walmart.com Very easy.

And you know, it's going to be used very often in my household.

And that's what I'll say from what, Buying stuff too, because we share the membership.

I've seen your notifications going on.

Like, how are the things you've been buying?

I've been buying so much stuff.

I mean, I bought myself a weighted blanket with the early Black Friday sale that they had started November 11th.

I've purchased.

Actually, I'm.

What I've been most surprised about is the beauty products that I purchased.

I purchased everything.

Walmart's gonna like you even more, Ann.

Nice job.

I am honestly surprised.

Like, I was a little hesitant because I'm, I don't usually like buying beauty products from Amazon.

And so I was like, well, let's see how this goes.

But I, I've ordered, I mean, I ordered gifts for my girlfriends for our favorite things giveaway from there that are beauty products.

I've purchased my own beauty products and it's been very, I would say overwhel, overwhelmingly satisfied by the types of products that they purchased.

And then we moved into a new house.

So I mean, I think I have something shipping here every single day from, from Walmart now.

And I, it's been, I mean, I think you probably say the same, like, where would you have gone before for that toilet auger?

Right.

Like, probably I would have gone to Amazon for sure.

Before Amazon.

Yeah.

I wouldn't have gone to Target because I don't think Target probably carries it in their marketplace.

I know they don't carry one in store so I doubt they've expanded their assortment to carry one.

I don't know that, but maybe they do, but I wouldn't have thought of them.

So I would have gone to Amazon.

But now, you know, given, given the delivery dynamics and the fact that I just expect Walmart to have the best price, like I still expect Walmart to have the best price.

I just went to, I just went to Walmart and I got it there and, and I just really like what they're doing with Walmart plus and I wanted to experience it.

So yeah, that's, that's, that's what I thought of.

Is that why you were asking me that question?

Yeah, I mean I think it's just, it's, it's changed my behavior and where I go and I think the key driver of that is price.

Like Walmart is just beating everyone on price.

It's a testament to their marketplace that they've got set up.

Like it's just you, you go there with a high degree of confidence that what you're going to find is going to be here quickly and that it's going to be the best price.

So we are not.

This is, this sounds like a paid promotion for Walmart plus.

It is, it's definitely not, it's definitely not.

We, we, we are, we have tried it.

We, we are now believers in Walmart plus.

I'm bought in.

I'm bought in.

Yeah, yeah, I mean I expected that.

I.

Oh, sorry, go ahead.

I was just gonna say I think that's gonna make for some, some consistency with some of the headlines that we talk about today too.

Makes sense, but go ahead.

Yeah, no, 100%.

It's a great setup for the first headline actually because, because, yeah, it's, it's very important and germane to, to the topic at hand this week, particularly as evidenced by some of the headlines coming out of the Wall Street Journal.

But all right, let's get to the headlines then.

Today's headlines are brought to you by.

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In this week's Fast 5, we've got news on Kohl's new CEO curate its new rebrand and push into live streaming and social media.

TikTok quietly testing product links in its posts and Perplexity introduces a new shopping feature for for its paid pro US users.

But we begin today with we as we alluded to at the start, with the big question being raised from the Wall Street Journal about Target.

And headline number one is from the Wall Street Journal this week, which asked if Target has moved from cheap chic to a dull chore.

According to the Journal, Target's share price tumbled more than 20% after the company reported another disappointing quarter and executives lowered financial targets they had set back in August.

The shares have lost more than half their value since hitting a pandemic peak around $266 in November of 2021, putting pressure on longtime chief executive Brian Cornell to turn things around.

We also have heard that customers have long bragged about their cheap, chic Target purchases, but now many are griping about items missing on shelves, long checkout lines and products being locked up to prevent theft, said longtime Target executive and former Toys R Us CEO Jerry Storch.

Target, quote, is like an old friend.

You kind of have to wander away from an old friend who has become boring.

End quote.

Chris, we we are starting you off with the A and M Put yout on the Spot question of the week, which is are you ready?

Bring it.

Okay.

As we recently discussed in our five insightful Minutes segment with you about our most recent Consumer Sentiment report, the US Consumer across all income levels continues to pull back on discretionary spending in favor of fulfilling basic needs.

Is Target's slide really about retail execution?

Things like stockouts, long lines and products under glass or those things just amplifying the problem that Target's customers are cutting back on the things they normally shop at Target for.

Chris, the floor is yours.

Oh, Ann, I love that question.

First thing I think about is, Ann, our customers love products under glass.

Remember when Cornell said that?

Yes, they just love us.

They're coming up to me and thanking me for putting our products under gl.

What a bunch of baloney.

But, but all right, getting back to the question at hand to put you on the spot.

Question from our friends at the A and M consumer and Retail Group.

I think it's a great question and my answer is actually yes and an.

I think it's, it's partially macroeconomic, it's partially execution.

But the real root is honestly CEO Brian Cornell's leadership.

You know, we've been, we've been, we've been circling this, this eventuality for a long time on the show.

I think you could go back a year, year and a half to us predicting that this type of thing was going to happen.

Um, and I've never shared this anecdote.

Um, I've talked about it with you, but I've never shared it on this podcast.

But Cornell stated strategy in 2017, which is 100%, this is 100%.

Why I decided to leave Target when I did was to retrench, refurbish the stores and pick up share while other competitors died off.

So essentially his strategy was to grow through other people's deaths versus to make yourself more compelling.

I didn't find that inspiring.

I believe in the, I believe in the idea of how good is your good, not grow from other people dying.

Like, I'm just going to put it out there.

And so, and I think so now let's flash forward.

Like now we're what, seven years later and the pandemic happened.

And like a novice blackjack player who wins when the dealer bust, the pandemic happens.

And all of a sudden people don't have that many places to shop and want to consolidate their trips, so he mistakenly looks like a hero because they start selling more groceries and apparel than ever before.

Because quite honestly, they were the only one of the only few stores that was open.

But now, two years out from the pandemic, the company doesn't have a single stated growth strategy to write home about the culture is reportedly awful, according to our sources, the friends of whom we talk to regularly.

And meanwhile, on the flip side, Walmart is growing via high income earners, is selling its tech to other retailers, has a far more robust marketplace on a scale literally, literally, because I looked the numbers up a hundred times more than Target, which goes back to what we talked about the outset of this podcast.

And it's getting into banking and making moves in finance.

And the biggest thing coming out of Target's earnings release this past week was the launch of some wild fable apparel brand.

I say that, but that's real.

That was the best thing they were talking about.

And wicked.

So it's and wicked.

And Wicked.

Right.

And Taylor Swift.

Right.

Yes.

And wicked And Till.

Yes.

Being fair.

Yes.

Oh, and the amorphous, like, X number of stores are going to build out over 10 years, which no one's defined in any way, shape or form.

So in my opinion, Ann, I hate to say it, but it's time the shareholders take a hard look at what Cornell has really accomplished and start to start the process of deciding who stays and who goes under his regime.

Because Emperor Cornell is at risk of standing naked for all to see here very soon, and it's time for him to step down, honestly, before it's too late.

That's my opin.

Wow.

How do I follow that up, Chris.

Agree or disagree?

Let's start there.

Ed.

I mean, I don't.

That was, that was.

It was.

It was, it was not a rant.

It was, I thought it was a very, very.

It was, it was, it was definitely, like, pointed.

But I, you know, I thought.

Yes.

You know, I thought it was, it was, it was not rant level like I've done on previous shows.

But no, I think it was better than this Wall Street Journal article.

I will say that.

I mean, talk about waste of an article.

Like, you could pull.

I don't care what Mary and Florida things.

Jim on his way home from the gym in the morning.

Like.

Right.

I actually, that's actually part of, part of the problem here that I have with the reporting that's happening.

And I especially call out Wall Street Journal for this.

Like, get in and start talking to some executives at Target, find out what's really going on.

I find it hard to believe that you can't find anybody at Target as a source to really dive into what's going on inside.

And I think that, you know, the, or to just display facts like what you just did in, in your, in your points that you're making here in your answer to the A and M question.

I mean, I think the number one thing here, we've been asked by reporters, by friends in the last week multiple times, like, what does Target need?

What's the strategy here?

And you called it out, and that's growth.

And it pains me because, Chris, these are our friends, our neighbors, our former colleagues.

Like, there is no reason the Target couldn't be on top here and couldn't be better.

You, you have a unique value proposition.

Target, you had it.

Get it back and start making investments in the places that make sense so that you can grow and can be competitive or it will be the end for Target.

I hate to say it, but it's like there.

Some people need to start taking action inside Target.

I'm sure some people are trying.

There are good, smart people there.

But Cornell, you got to step down.

I was actually a little surprised, Chris, that we didn't hear him say that he might be stepping down.

In this call last Wednesday, I was, I was, I had, I had a feeling that, you know, I still have a feeling that this is going to come earlier than the one to two years that they, they're, they were projecting like, oh, no, we're going to change our retirement age so that he can stay on for longer if he wants to.

His time is done.

He's benefited off the pandemic and now some serious decisions have to be made for the sake of all of our friends still at Target and the Target consumer, because things are not going in the right direction and they definitely need to turn around.

So.

But then that raises the next question, is like, what do you do next?

Right?

Because his whole, his whole C suite is long time Target executives with very little outside experience.

And so then, you know, it begs the question of like, are they fit to compete in this digital world where Walmart is 100% using digital to their fullest extent possible, as is Amazon too, let's not forget them, as are other competitors that are getting the punchline to that joke.

So that's the big question here, is where do you go?

Is it going to be more of the same by just picking one of the people on the bench as his successor?

Or is the board get, you know, do they, they, they get smart, honestly, in my opinion, and look outside the company here for his successor?

I don't know, but you get the last word.

Yeah, I mean, I think you can't, you can't disqualify people because of their tenure.

I mean, Walmart has people like, you know, John Furner, who've been there, Doug McMillan who've been there their entire careers as well.

I think it's just, it's what you said, it gets back to who's the leader and what is their focus.

And the focus has to be on smart strategic growth strategies right now, end of, end of story.

Headline number two, which also is about a new CEO.

And so it's kind of apropos or very, very a nice segue here we've got going.

Wonder if that was planned.

And you think so?

I don't know.

Pretzel.

All right.

According to Retail Dive, the new department.

Store, you're just patting yourself on the back.

I don't like Chris.

I'M not back.

I'm just like saying this is what we did, you know.

Okay.

Okay.

According to the retail dive, I think I said the new department store Kohl's is anything but new.

The department store Kohl's has tapped Michael CEO Ashley Buchanan to lead the retailer beginning early next year, replacing Tom Kingsbury, effective January 15th.

Buchanan has been CEO of Michael's company since 2020 and in a 13 year career at Walmart, held various executive roles including chief merchandising and chief operating officer for Walmart US E Commerce.

And what do you think of Buchanan as the new CEO hire for Kohl's?

Oh, man, I, you know, I think he's, he's a, the, he's a great person for this job.

Um, I will especially be looking to his time at Walmart to help Kohl's grow.

Cause I think that's a similar customer demographic.

It's a similar income demographic and product set realistically for where Kohl's really needs to be strong.

But Chris, my question is actually like, after Kingsbury leaving, I mean, we thought he was pretty decent too.

I'm just one.

And the earnings, I mean, I'm just curious, what is there to do?

Like, how can you save this?

And so my tell will really be, how long does Ashley Buchanan stay there after, like, is he going to be a year in and out?

Because there's really no salvaging what's left of Kohl's right now.

Or does he.

Do we start to see things turn around from him?

But I think it's the right person for the job, the right background for the job, especially given the similar customer demographics that I mentioned.

But what, where do you fall on this?

Where are you?

Yeah, I, I think you're bringing up a good point.

Yeah, I actually think he maybe jumped ship too early, going back to the first headline, because I think I said like three or four months ago that he'd be a good candidate to take over for Cornell at Target.

But now that ship is essentially sailed and I think it is an uphill battle, you know.

You know, to your point about Kingsbury, I thought, you know, I always questioned his hire because he was from Burlington.

I called him Burlington Tom for a while.

Like, again, that guy doesn't have a lot of digital experience.

And so what did he do?

He did the things he knew.

He brought Baby into the store because Burlington was a success at Baby.

But like, we actually hypothesized back.

I remember when we were doing this podcast at Shop Talk Europe, we're Looking at Cole's second quarter earnings, we're like, oh, my God, this is only going to get worse.

And look, here we are now.

It did.

And their earnings report yesterday said that sales were down 9% comparably in the last quarter.

So that's, that's crazy.

But on paper, Buchanan looks like the right guy.

He's done a great job at Michaels.

Like, he's done a good job there.

And he, he also listens to our show.

So, you know, kudos to him for that.

But, you know, so he.

But he's definitely got his job cut out to him.

I'm not sure there's anything you can do with Coles at this point, though.

But I wish him the best of luck and, and I think he'll like that we're saying this to him, but we are going to objectively comment on what we see him try to do here going forward.

Yeah, but I think he's got the right chops to lead this type of retailer, too.

That's the last point, I'd say, Ann, which is like, you know, if you look at what Michael's done, they've expanded their marketplace pretty broadly.

They've created an experience platform to coordinate events in their stores for parties, for dates, for meetups.

They allow makers into their stores as well.

So they have extended their brand in a way that people didn't think was possible.

And that's the kind of thing that today's leader needs.

I said this to a consultant this week.

You have to understand as an executive how to use digital to extend the relationship with your brand.

Yeah.

And that he's willing to test.

Yeah.

And then he's willing to test that kind of stuff like you're talking about in the stores and, and figure out, not just testing it, but okay, if we're going to deploy this, this makers marketplace in store, like, how are we going to scale that realistically?

Because that's a very hard thing to do.

And so I think that that, to me, shows that he least willing to hopefully try some.

Some things.

Like you're saying that incorporate digital, that allow Kohl's to scale some of these initiatives quickly to hopefully save that business.

Yeah.

And you have to have that mindset.

And that's.

And that's the.

That's the reverse engineer bicycle.

Remember that analogy we used to talk about a lot like, you know, learning omnichannel retail is learning how to ride a bike that is reverse engineered to.

When you want to go to the right, you have to turn the handlebars to the left.

Yeah.

Neuroplasticity.

Yeah.

People with digital mindsets like he has that have grown up in E commerce have that legacy.

Merchants that have grown up in 20 years inside an organization are not likely to have that.

And that's what the boards have to realize.

All right Chris, let's go to headline number three.

TikTok is testing product links within its posts According to modern retail, TikTok is letting some creators add product links from third party affiliate networks including Amazon, Walmart and Target directly into their post with a new integration.

TikTok declined to provide an on the record statement for this story, but a company spokesperson said the new integration is part of a test available to a limited number of creators.

As such, it is not an official program, but TikTok is collecting feedback from the initiative.

TikTok's latest approach to affiliate marketing marks a significant departure from the creator's earlier reliance on link and bio tools like Link Tree.

With the new integration, product links show up at the top of a post comments section, reducing the number of steps a shopper has to take to navigate to a creator's recommended products.

Chris, are you excited that you know now you're going to potentially be able to get to your products faster on when you're scrolling on TikTok testing direct links to products within your product posts, are you excited?

Oh and and I'm not going to take long on this because this is definitely more your Baliwick than it is mine.

But yes, I love this, I love this idea.

I hate, I absolutely loathe the whole Lincoln bio thing.

It drives me absolutely insane and but what I find more interesting about this is that it positions, it positions TikTok almost said Instagram.

It positions TikTok more as a creator conduit versus as the actual marketplace for the goods which if that is the road this does end up going down.

It does beg the question of whether anyone in the US market can bridge commerce and social end to end versus instead linking out to retailers own sites like like this is basically Showcasing so the YouTube because the US retailers don't want that end to end thing to happen.

The US retailers want to keep control and Facebook has direct pivoted away from its marketplace.

Amazon has tried and failed numerous times with social and so it is so my question is, is the same Fate destined for TikTok here just to remain in advertising and a social commerce vehicle?

And you know if, if this takes off I think chances are I if I was a betting man, I think chances are that the answer to that could be.

Yes, but, but man, I'm dying to hear what you think about this.

Being able to add product links like this as a creator directly to your posts is critical, especially for, like you said, the future of, of TikTok and their social commerce kind of economy.

It was something that you could do if you're, you know, your product was selling through TikTok shops, like you said.

But that's very limiting for a lot of the creators.

Like most of these creators are working across, you know, these aggregator affiliate programs and that's how they're.

It's quicker, it's easier for them to make money doing this and that's really at its core, like that's what you have to empower in order to, you know, get adoption on this type of platform.

So I love this idea.

I think it's, it's putting TikTok squarely in competition with YouTube, which has allowed creator links to be embedded in their videos.

Right now, you're enabling more nano influencers to get on the platform and to become relevant to brands, which we heard from John Denis Mariani, the former CDO of Coty, in our firework interview yesterday, is where, where the future of social commerce is going.

So I think that's the key thing here.

Not only is it allowing these creators that TikTok's testing with to make this process more simple, but it's going to allow more people to get on the platform to, to start selling products.

And all in all, that's better for customers and better for brands.

So I love it.

Yeah, I think that's a great point.

Yeah.

I think ultimately the experience is clunky for what consumers want to do, which is buy things they get inspired to buy.

Right.

And so, you know, if this is one step forward to making that experience less clunky, you know, I personally am all for it.

All right, headline number four.

Curate.

The owner of QVC and HSN and a first timer on this headline on this show, I think, and I don't think we've ever done a Curate retail headline before, it is rebranding the QVC Group.

Rebranding to QVC Group as It aims for $1.5 billion in revenue from live streaming and social media within three years.

According to Retail Dive, the company is renaming itself the QVC group by Q1 of 2025.

And part of its new strategy, the company will continue to amplify its QVC plus and HSN plus streaming platforms and develop streaming commerce options for channels including Netflix, Hulu and YouTube TV.

Bring celebrities and sales content to its social media channels, refresh its production studios and tailor its content to TikTok, Facebook, YouTube and other platforms, as Anne was just talking about a few seconds ago.

It should also be noted that QA Retail Group has struggled with falling sales.

In June, the company said it was facing a delisting from Nasdaq and has until December 9th to regain compliance.

In its Q3 earnings released earlier this month, the company also reported a 5% dip in revenue.

Year over year.

And a year ago, the company landed on retail dives bankruptcy watch list.

And do you think Curate Retail's rebrand and more overt goals to drive revenue via live streaming and social media will help to reverse the tide of this once prosperous brand?

I feel like that as ominously as possible.

Yeah, I was like, this show has turned into a show about retail turnarounds.

But it's kind of the state of the state right now.

Right, right, right.

So to me, this is another no duh thing for Curate Retail.

Like, yes, you need.

Oh really?

Oh, yeah.

You need to revamp.

You need to rethink your strategy because, Chris, here's the thing.

I think people may associate QVC and the Home Shopping Network with an older demographic, but look, those.

There's still money to be made from that demographic.

It probably should, yes.

But.

But there, there is still money to be made there.

Except those people are also on social platforms now.

They're not watching TV as much anymore.

They're scrolling on their phones.

And so I think it makes a ton of sense to take the platform that QVC and the Curate Group are very, very well versed in and move it to social, like move it to Facebook.

I still think there's a lot of opportunity there to capture sales and capture an experience familiar to that audience.

And then I think you're also bringing in fresh blood.

We interviewed Mara Soral.

She was formerly of Saks off fifth.

She's in there as a new merchant.

You got the Rue and Guild groups, Rosalie Abu Caro, that's also joining there.

So I think you have that, that new insight, especially from a merchandising perspective, that could help bolster and make Curate relevant again to that younger demographic at the same time.

So I think this is something that they absolutely have to do.

And whether or not it's going to be successful is another question.

But live, live streaming is coming back in popularity.

I think it fell out of favor a little bit for a while.

But again, like, this is something, this is a methodology that is when you get people engaging with an Individual online.

The sales go up, they increase, the baskets get bigger.

So I think this is a very necessary move from curate.

But what do you think?

Yeah, and it's, it's more about, it's, you know, it's the live stream.

It's more about video commerce.

Right.

When we go into our feeds, we're watching the video feeds now we're not watching the static feeds, we're all watching the video feeds.

And a couple of things come to mind for me on this story and number one is like, you're just doing this now.

Like, like, oh, yeah, I mean, I mean, like, like, seriously, like that's kind of an indictment.

And so the other point I make is like, I don't think this is going to make a hill of beans bit of difference because as you just described in the.

Yeah, because as you described in the last headline, the world.

Yeah, the world, this doesn't work this way anymore.

And it just doesn't.

And direct influence, first of all, direct influencer content is cheaper to produce and it's more readily available than ever before.

And so then it's harder to differentiate something as the QVC group.

Like, you know, so, you know, as we learned in our webinar, like you said yesterday with Cody's former chief digital officer, video is going to be the primary medium by which consumers conduct commerce.

I just don't see how QVC continues to thrive in that age.

Because the individual content creators will work.

They're going to work.

There's so many of them now because it's so easy to do.

They're going to work to keep the margins themselves.

They don't need QVC providing the production studios and the distribution and the pretty spokesperson people anymore.

The brands don't need that either.

They can just go directly to the influencers that matter the most.

So, like, yeah, I don't understand what value Add QVC is playing anymore because in the old days, yeah, they had this fancy studio.

They had the fancy show person with the nice pearly white teeth and that just, you don't need that anymore.

It's gone.

So I'm, I'm so negative on this story, man.

Like, okay, this is like Chris Glass half empty day.

I think.

Yeah, I think you're raising some, you're definitely raising some important.

There's some good points there, right, Anne?

I, for sure, I just, I'm not ready to call time of death yet on them.

I still think that they have, they have this, the knowledge and the know how.

Is this a little late?

Yes, definitely.

But I still think that there's a venue.

Yes, there's, there's a lot of investment in UGC and there's a lot of investment in individual creators.

But I still think that there's some value that can be driven from, you know, having somebody that can, that has already has a platform and a dedicated base of consumers who are used to buying from this platform.

They just need to move it to a new, to a new place, to Facebook, to Instagram or whatever it might be.

But it'll be a fun one to watch.

Yeah, that's the interesting thing for me though, like even in our business, I think the power is in the individual creator versus like conglomerations like this.

And that's where we're going to see more individual creators get more powerful and extend their reach too.

So I don't know.

But, but unfortunately, Anne, I think we've got a story here at the end that's going to perk me up and get me a little glass house.

Oh my God.

All right, all right, let's get you going, Chris.

Headline number five.

Perplexity has introduced a pro shopping feature for its pro users in the US according to TechCrunch.

AI powered search engine Perplexity is venturing into e commerce.

Last week the company debuted a new shopping feature for its paid custom customers in the US which offers shopping recommendations within Perplexity search results as well as the ability to place an order without going to a retailer's website for shopping related search queries.

The tool presents users with visual cards that have details of the product, pricing and seller info, short description and the pros and cons of the item in question.

Users can click or tap on the card to read more information including reviews and detailed key features.

Consumers can also store their address and credit card details in Perplexity for easy checkout.

The company says it calculates taxes for your address so you can purchase the item with just one click.

The company also said that Pro subscribers will get free shipping for items purchased through its one click checkout system.

For now, the search engines recommendations are quote unbiased as there are no sponsored slots.

Perplexity notes the new search experience is powered by integrations with seller sites, including those on Shopify.

Chris, are you buying or selling shopping via Perplexity?

And I'm buying this hook, line and sinker.

Okay, this is the future.

You and Jeff Bezos.

I mean everybody.

Yeah, yeah.

This is the future to me.

I don't know if it's necessarily via Perplexity in the long run, but this is the future.

This is the story that tells where the future's headed.

So much so, Anne, and I haven't said this in a long time.

I haven't said that this much this year actually.

This is now my dark horse candidate for headline of the year, which we're going to announce in just a few weeks here with our friends at the A and M Consumer Retail Group.

It's between this, I think when I thought about it, I think it's between this and Walmart getting 75 of its revenue growth from, from high income shoppers.

I think it's one of those two headlines for me this year because there's so many interesting dynamics to this story in particular.

So first I would call out natural language searches make learning about products easier because you can filter through the things that matter to you as an individual.

You're not constrained by the filters that the retailer gives you.

Right?

Yeah.

And so, and you can use that however you want and you can have, you know, Perplexity or chatgpt or whatever lay that out for you in whatever grid style, graph style, whatever you want.

And so that's, that's an important factor here.

But secondly, the fact that they are offering this via paid subscription is really interesting to me, Anne, for sure, because it gets people sticky to using Perplexity for search and it flies in the face of Google and their paid search model which in the long run is interesting to me because in theory my searches should be less biased if I'm using a service like this from Perplexity versus using one from Google that you know, runs their business on paid advertisements.

So, so that's interesting to me in terms of being a disruption here.

And then third, which is totally self serving for me.

I love the fact that I don't have to enter my.

I'm sure you do too.

I love the fact I don't have to enter my credit card info again or my shipping address and it's just stored in the search database.

And so if I'm shopping for products and looking at these images like I can just click on them and be like, oh, and I can just basically give a text command.

I can be basically like, please buy this for me and it'll buy it for me and it'll arrive at my house as soon as possible.

Like I, that is amazing.

Like I love that this, this gets, this is the bridge to what we were talking about five or six years on the keynote stages where we give presentations where it'd be like there's going to be the Merging of text with something new.

Text commerce with something new.

And this is, that's something new, I think.

But you were slapped an eye at me.

Why?

Why?

Because I think you're giving credit, I think you're giving too much credit to Perplexity for a tool that already exists which is called Google Search.

I, I just, I can't, I can't.

Do any of this in Google.

I can't do anything.

That's not true at all.

Shipping, yes, you can Google save credit card information and address.

Yeah, I guess I think you're giving.

Yeah, maybe.

But is it enough for people to pay for?

Like that's my real question is like.

Are you going to get people to pay for this?

Yeah, but you all.

But the search and all the other.

Language queries features you get.

Yes, but you already have that.

Like Google came out with this headline weeks ago.

And so I think Perplexity is set up to be a true competitor of Google.

But you still are going and yes, sure, it's like the bougie version of Google.

Like that's what this is to me.

It's like the rest of the like what's Anna Delvey, she says in that, in Inventing Anna that movie when she's like why are you so poor?

Like this is like this is the like why are you so poor version is Google.

And then like Perplexity is now like what the rich people will use.

But I mean number one, number one thing that you hit on and that, that which is why I think my headline of the year is actually going to be Google rolling out natural language search and all of the shopping abilities that they've, they are kind of giving to the masses.

I think that's natural language search is the key headline here that has changed things dramatically and will continue to change how we shop.

I don't argue with that with you about.

So we're agreeing then?

Because that's basically that.

We're agreeing that.

Because that's basically what I said.

I said I didn't know the Perplexity is going to be the answer to this.

But this shows the future of where things are going.

Right?

So but I think that Google already showed the future of where things are going.

Walmart last year at NRF when they announced Jenny, I search in their, you know, text box on their website.

Like that's what's changing search, not this Perplexity headline specifically.

Like I still think that, you know, what they're doing is just a horse of a different color.

Like it's just a Little bit.

It's nicer, it looks a little more polished.

But I don't think that Google's gonna get away from this.

Google get there with these features too.

Right, Anne?

I mean, I think that's what you're saying.

If it doesn't have them now, which I think it's debatable whether they have all of these now, but it'll get there eventually.

Yes, absolutely.

Plus I think you have greater user adoption from Google which gathers more information, which is able to change their, how they're interacting more consistently.

So I think definitely Perplexity is something we should be paying attention to.

You're the unbiased reviews thing feels a little bit of a stretch to me because it's pulling from the same sources that Google is.

It's pulling from Wirecutter, it's pulling from Refinery 29.

Like all of these sources are the same place.

It's just being displayed a little bit differently.

And I also, I'm also willing to bet that Perplexity down the road ends up going the way of sponsored products or suggested products.

Right?

Yeah, I thought that was fun.

Yeah.

Let's say hello or like.

Yeah, yeah, we saw you shopping for this.

Do you want to buy it at this discount?

Right?

Yeah, exactly.

But I think the important thing is it's, it's a great thing for people to try.

I think the last thing I'll say, Chris, is that I was, I used it last night.

I was testing it out to see, you know, how it just displayed.

I was looking for a wet dry vacuum.

Right.

Now that's one does.

Yes.

As one does.

The crazy thing to me is I went, I typed the same search query.

What is the best wet dry vacuum or mop for hardwood floors?

I put that in Perplexity.

Beautiful layout.

Here are the options, here are the pros, Here are the cons.

I went to Target.com and I put that in and you know what it served me up?

What?

Dog treats.

It served up a candle and it served up like your standard old mop and it says we could not understand that question for you.

That to me that goes back to headline number one, which is like this is how people are going to be searching.

You target are not even prepared for this.

And it's going to come fast and it's going to come hard and you need to be ready.

So that to me, that was a big eye opener that I feel like has to be discussed.

See now, now, Ann, I'm going to give you kudos to see how you just wrap the show.

You just completely enveloped the show from headline one to headline five.

You brought it back around full circle.

Completely enveloped it nicely.

Nicely done.

Nicely done.

And I could not agree with you more.

All right, let's do the lighting round because I'm excited these questions.

All right, Chris, before we get to the lightning round, I just want to give a quick.

Because it is Thanksgiving and some of these themes are travel and Thanksgiving related, I just want to give a quick thank you to our listeners because it's the time of Thanksgiving and we could not be doing this job with everybody without everybody who supports us, listens, sends us DMS, especially when we.

We misprint something on LinkedIn and they're watching very closely.

So I want to make sure that you all know how much we appreciate you before we get into this lightning round.

Yeah.

And that also brings up a good, good thing to call it, too.

So for those that are still listening that like the lightning round, particularly because you are fans.

Yes, On Friday, we are debuting a new podcast where the working title is you're such a ranker, where we have ranked our top five holidays.

And let me just preface this by saying it's a little interesting where Thanksgiving falls in our rankings, folks.

But.

But that's coming out on Friday.

You can give it a listen, let us know what you think and let us know what else you'd rank and let us know who you agree with, Anne or myself.

All right, and let's do it now.

Let's get to the lightning round.

Okay, question number one, Chris.

Our boy Brian Nickel, the new Starbucks CEO, is now tackling wait times at Starbucks airport locations.

Especially of note today, one of the busiest travel days of the year.

Chris, what is the longest you waited for Starbucks at an airport?

Oh, I remember this pretty vividly, actually.

I think I was in.

I think it was at the Phoenix airport last New Year's, like around New Year's, and it took 45 minutes to get my Starbucks.

Like, it was crazy.

45 minutes.

Yeah.

And it kind of.

You kind of get the other thing I don't want.

You kind of get no man's land when that happens too.

Like, because you can't go back through the line and be like, cancel my order because you've already paid for it and it's no so frustrating.

But yeah, I mean, I don't know what you do about it because it's just that many people you're trying to serve.

So, you know, it wasn't that big a deal.

I'm captive in an airport.

I Guess, Ann, But I don't know.

What's yours?

Uh, I mean, yeah, it was.

It's a long thing.

I think I.

That was the first time I ended up messaging Starbucks through the app and just being like, I paid for this order.

I've been waiting for half an hour, and I have to get on a flight, like.

But.

And they.

They resolved it quickly.

But it's definitely an issue.

Definitely an issue.

Especially at the airport locations.

That's good to know.

I never thought about doing that.

All right, second one.

Krispy Kreme launched a new Grinch donut made with an unglazed donut base that is filled with coal, AKA cookies and cream filling, then dipped in Grinch green icing with the lines of chocolate frosting piped on top to form the character's face, complete with a quote, smirky grin and buttercream hair.

End quote.

What was your favorite Dr.

Seuss book growing up, Ann?

Oh, the places you'll go.

My.

My grandma, who I was very close to, gave me a copy of that book and wrote inside of it.

And it's probably one of my most treasured possessions that I own right now.

So, yes, that's my favorite.

And the Grinch is fun too.

But yeah, the podcast makes you feel a little happier each week, too, and thank you for that.

Thank you for that.

All right, Chris.

Next week, Delta will start serving Shake Shack burgers on flights out of Boston with plans to roll it out to the rest the US not so long afterward.

Are you pro or con Shake Shack being served to every person sitting within inches of you on your next Delta flight?

Oh, my God.

I'm decidedly caught on this.

I think this is a terrible move by Shake Shack.

Why would you want your potential first introduction to your brand BV airplane service?

Seems like a good, right?

It's not going to be good.

It seems like a move with only downside to me.

And the other thing it makes me think of, too, Ann, is I guess you could say that I've had it with these mother effing Shake Shacks on this plane.

You know, like, that's freaking Shake Shacks on this plane.

Oh, yeah.

Oh, yeah.

Samuel L.

Jackson.

All right.

Yeah.

All right.

Yeah.

All right.

Build a bear and KFC have collaborated on a new collection that includes a beer in a KFC bucket.

A bear.

Not a beard.

A bear.

A beer.

Yeah, I would do.

I would definitely have a beer in a KFC bucket.

Hell, yeah.

Yeah.

More than one.

All right.

A bear in a KFC bucket.

Were you to eat at kfc, would you order your chicken extra crispy or Original Recipe?

You have to pick one.

Okay.

I have never been to kfc, so I would probably pick Original Recipe because I feel like you don't mess with a good thing.

Right?

Like, that's what they're known for.

Although, like, normally I would tend to go towards extra crispy, but I think I would have to try original recipes recipe first.

Yes.

Yes.

Shout out to my long dead father, Chuck Walton.

Like, he was a hardcore Original Recipe fan.

He used to eat there too many times a week.

Not why he passed away, but, you know, probably.

Probably wasn't long for the road given his health habits.

But yeah, no, he'd go.

He would.

He would salute you, Anne, for your choice.

I can't believe.

What would you pick at KFC?

What would you.

Recipe 100.

100.

Okay.

What is extra crispy?

Just like, like, I worry about it getting, like, burnt or like, too crunchy.

Is that the case?

No, extra crispy is like, like, you know, like you get at, like, the supermarket in, like, in, like, you know, like if you get like fried chicken at the supermarket, it's like that.

Okay.

It's like that kind of thing.

But Original Recipe is like a very definitive texture.

It's what.

It's what, you know, KFC was originally known for.

So.

All right.

Yeah, that's.

I'm going with the original recipe.

You gotta try it out.

You gotta go to kfc.

The kids will like it, you know, Give it a try.

I love Popeyes too much.

Like, why again, Like, Popeyes is so good.

Chris, have you been to Popeye's?

I've never been to Popeyes.

No, I've not been to Popeye's.

God, you're gonna change your ways, man.

Chick fil a kfc.

They're gonna be out the window.

Popeyes is.

But you should still try it.

You should still see if it's good.

You know, like, variety is the spice of life.

Okay.

Okay.

I don't even know where there is a KFC by us.

Is there actually.

That's actually a really good point.

There is not one close to us at all.

How does one try kfc?

We'll see.

Yeah, I don't know.

I don't know.

In your travels and in your travels, eat some fried chicken.

All right.

Happy birthday today to Allison Pill Ken Pilots doppelganger William Fickner, and to the woman who makes the replacements, watchable Brooke Langton, also of Melrose Place fame.

And remember, if you could only read or listen to one retail blog in the business, Make It Omnitalk, the only retail media outlet run by two former executives from a current top 10 US retailer.

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So until next week, Happy Thanksgiving everyone, and on behalf of all of us at Omnitalk Retail, be careful out there.