Kroger’s Automation Reset, Starbucks & Why There Ain’t No Party Like A Walgreens Party | Fast Five
In this week’s Omni Talk Retail Fast Five, sponsored by the A&M Consumer and Retail Group, Mirakl, Ocampo Capital, Infios, and Quorso, Chris and Anne discussed:
- Kroger’s evaluation of its automated e-commerce fulfillment network (Source)
- Walgreens dedicating in-store space to party supplies and expanding assortment (Source)
- Starbucks deploying computer vision technology to track in-store inventory (Source)
- Pacsun announcing the formation of an industry-first youth advisory council (Source)
- Nearly half of AI search users preferring AI tools over Google (Source)
There’s all that, plus croissants versus pain au chocolat, escargot versus languostines, and whether the Paris Metro beats the London Tube.
P.S. Be sure to check out all our other podcasts from the past week here, too: https://omnitalk.blog/category/podcast/
P.P.S. Also be sure to check out our podcast rankings on Feedspot
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#RetailNews #KrogerAutomation #WalgreensPartySupplies #StarbucksAI #PacsunYouth #AISearch #RetailPodcast #OmniTalk #RetailTech #ComputerVision #AutomatedFulfillment
00:00 - Untitled
00:00 - Introduction to the A and M Consumer and Retail Group
04:45 - Exploring Retail Innovations
09:39 - The Shift in Retail: Expanding Party Supplies at Walgreens
14:17 - The Impact of New Leadership at Walgreens
24:46 - The Rise of AI Search Tools
29:31 - Culinary Preferences: A Taste of French Delicacies
This episode of the OMNITALK Retail Fast 5 is brought to you by the A and M Consumer and Retail Group.
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Speaker AThat's mirakl.com and Corso.
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Speaker ATo learn more, visit infios.com and finally, Ocampo Capital.
Speaker AOcampo 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.
Speaker ALearn more@ocampo capital.com hello, you are listening to Omnitalk's Retail Fast Five, ranked in the top 10% of all podcasts globally and currently the only retail podcast ranked in the top 100 of all business podcasts on Apple Podcasts.
Speaker AThe Retail Fast Five is the podcast that we hope makes you feel a little smarter, but most importantly, a little happier each week too.
Speaker AAnd the Fast 5 is just one of the many great podcasts you can find from the Omnitok Retail Podcast Network alongside our Retail Daily minute, which brings you a curated selection of the most important retail headlines every morning and our Retail Technology Spotlight series, which goes deep each week on the latest retail technology Trends.
Speaker AToday is September 17, 2025.
Speaker AI'm one of your hosts, Anne Mazinga.
Speaker BAnd I'm Chris Walton.
Speaker AAnd we're here live from the Musion Group booth in Paris at NRF Europe to bring you all the top headlines from the past week making waves in the world of omnichannel retailing.
Speaker ABut Chris, before we get to the headlines, we're here in Paris.
Speaker BWe are.
Speaker BIt's so it's so energetic.
Speaker BI'm loving it here.
Speaker AIt is.
Speaker AIt's beautiful here.
Speaker BIt slept in like three days.
Speaker AYes.
Speaker BSo you'll be able to tell very few people on the podcast listening.
Speaker ABut because I asked you this in Amsterdam and we are in the food capital of the world, I have to ask you now, what's the best thing you've eaten so far in Paris?
Speaker BOh, it's without a doubt.
Speaker BI teased it last weekend.
Speaker BWe arrived on Sunday and the first place I went to, I looked it up.
Speaker BI looked up, ah.
Speaker BI'm gonna make sure I get it right too, because it's very hard for me to say, ah, meuvelu eh, me vel.
Speaker ALiterally every French speaking person that listens to this podcast fringed, vomited a little bit.
Speaker BYeah.
Speaker BBut I went and got the pastry that I wanted.
Speaker BIt's like a raisin sweet bread.
Speaker BGot two of them, ate them both.
Speaker BI think I got stung by a hornet too, because there were all these.
Speaker BYeah, there was like a lot of.
Speaker BDid you see that?
Speaker BYeah, there were a lot of bees in there.
Speaker BI think I got stung.
Speaker BI got stung pretty bad.
Speaker BOkay.
Speaker BBut yeah, so that's what I did.
Speaker BWhat was your.
Speaker BWhat was your favorite bite?
Speaker AMine is a chocolate bretzel au chocolate.
Speaker BOkay.
Speaker AI tried to bring one for you this morning.
Speaker BOh, wow, that was nice of you.
Speaker AThis is the bakery.
Speaker AI can't pronounce it.
Speaker AIt's right by our hotel and it is the most wonderful.
Speaker ASo I brought you a pan of chocolati.
Speaker AThank you.
Speaker ABut which will come in.
Speaker BCome in later.
Speaker BYeah.
Speaker BAll right.
Speaker AThis thing is like a.
Speaker AIt's a pretzel.
Speaker BYou know, pretzels.
Speaker AIt's in the shape of a pretzel.
Speaker AIt has sea salt and chocolate inside of like the dough is more like a cinnamon roll.
Speaker AThey were sold out this morning already at 7am when they opened like 6, somebody came in and bought them all.
Speaker ASo I'm gonna have to keep searching, but I will find you one.
Speaker AThe Bretzel.
Speaker AI'll chuck.
Speaker BThat sounds amazing.
Speaker BThat's.
Speaker BYou know, it makes me wonder too.
Speaker BAnd why haven't we called the beer pretzel the Beerle or something like that in the U.S. like, why do we call it the beer pretzel?
Speaker BWhy don't we get a little more creative with that?
Speaker BWhy do the French need to own the Bretzel?
Speaker BWhy can't the Americans get it?
Speaker BGet on it.
Speaker BCome with.
Speaker BVery loud.
Speaker BLet's get the beer going, folks.
Speaker BHey, we're all friends here.
Speaker AMaybe until we get like pummeled.
Speaker BAll right, all right.
Speaker BWell, let's get to today's headlines.
Speaker BToday in this week's Fast5, we've got news on Walgreens going after party supplies.
Speaker BStarbucks using Vision AI to monitor in store inventory.
Speaker BPacsun announcing the formation of an industry first youth council and the growing preference of AI search engines over Google.
Speaker BBut we begin today live from NRF Paris at the Fusion Group's podcast studio with news on Kroger.
Speaker AAnn that's right, headline number one, Kroger is reviewing its automated e commerce fulfillment network.
Speaker AAccording to GroceryDive, Kroger is conducting a quote, full site by site analysis, end quote, of its automated order fulfillment network as it looks to improve profitability and reduce costs.
Speaker AInterim CEO Ron Sargent said Thursday during the grocer's second quarter earnings call.
Speaker ASargent said that the supermarket operator intends to focus on store level fulfillment as it strives to provide grocery delivery services faster and more efficiently.
Speaker AInstead, developed in partnership with UK based automatic sorry automation specialist Ocado, Kroger's automated e commerce network features robotic warehouses that connect to smaller facilities known as spokes.
Speaker AQuote, where we have been strong, where we have seen strong demand in high density areas, these facilities deliver better results than those facilities where density is lower and customer adoption has been slower, end quote.
Speaker ASargent said about the network, adding, quote we are taking a hard look at some of our automated facilities, end quote.
Speaker AChris, what are your insights here on Kroger's purported site by site analysis of its automated e commerce fulfillment network?
Speaker BOh, my insights?
Speaker BThat's a new question.
Speaker BWe haven't had that before.
Speaker BAll right, well, you know my thoughts in general for this.
Speaker BI think this is the right move.
Speaker BYeah, I do.
Speaker BI think, you know, Ron Sargent, you know, the interim CEO, he appears to be making the tough decisions, he's making the tough calls.
Speaker BHe isn't gonna.
Speaker BYou know, one of the first things you learn about in business school is like you don't ever want to fall into the sunk cost trap, like the fact you've spent billions of dollars on something that you're gonna keep doubling down on it until it works.
Speaker BSo he's trying to avoid that.
Speaker BThat's my first takeaway.
Speaker BMy other takeaway is that, you know, this is kind of how we figured things were going to play out.
Speaker AYeah.
Speaker BYou know, if you look back at our coverage for the past, God, I don't know, five, six, seven years since we started talking about micro fulfillment, we always had questions about whether or not the large centralized automated facilities would play out across America Yeah, and it sounds like they may not be.
Speaker BAnd it sounds like where they are working is where there's urban density, where you can.
Speaker BWhere it's similar to what you see in London, where Ocado is successful.
Speaker BSo in some ways I'm not surprised by this, but those are my thoughts right now.
Speaker BBut I'm curious.
Speaker BI'm interviewing Ocado CEO Tim Steiner on stage.
Speaker BI haven't actually met him yet or talked about what our discussion topic is going to be, but I'm hoping to at least get some insight into how they're thinking about Kroger, the landscape for automation in the US but really broadly too, because I think they're in 14 countries and I gotta imagine there's a lot of similarities in terms of what works across those countries as well as differences that we can learn about as U.S. grocers and consumers too.
Speaker BSo that's my takeaway.
Speaker AYeah, I think you hit on a lot of important points.
Speaker AOne being we know that in the US Especially, stores are still important fulfillment centers when it comes to doing last mile efficiently and really being cost effective.
Speaker BThat's cheaper, right?
Speaker AIt is.
Speaker AAnd that's why I think you see even retailers like Target expanding their footprints in stores and expanding their back rooms so that they can do more in store fulfillment.
Speaker AEven Kroger is talking about some of their new concepts, where they're going to, you know, give more space in the back room.
Speaker AAlthough I don't think that takes away from the role that these fulfillment centers play.
Speaker ABut I think Ron Sargent is smartly kind of going through and looking at what.
Speaker AWhere do these make sense?
Speaker ABecause they do make sense.
Speaker AWalmart's building another.
Speaker AYou know, they're building facilities where they're automating some of these processes too.
Speaker ABut I think it's just really reevaluating smartly as Sargent is the nodes in the network and what makes sense and what, what buildings are fulfilling, which operations.
Speaker ABut I'm curious about this because what this really makes me think about more than anything is the challenge that Amazon has in front of them.
Speaker BOkay.
Speaker AWith.
Speaker AWith delivery, especially as they're starting to get more into grocery.
Speaker ABecause if Kroger's having problems with this and Kroger has 2,800 store locations across the U.S. what does this mean for the continued expansion of Amazon with no stores?
Speaker AYes, they have fulfillment centers, but we're seeing from this that Kroger is having a lot of difficulty with these fulfillment centers.
Speaker AHow is Amazon going to do this better with no physical locations?
Speaker BYeah, it's a tough challenge.
Speaker BI mean, that was part of the, that was, that's a good point because that was part of the premise of these Kroger fulfillment centers too, is that they could go into markets where they don't even have stores.
Speaker BRight.
Speaker BAnd see and get them to work and get them to deliver products.
Speaker BAnd it doesn't seem like that's been working the way that they had hoped.
Speaker BSo that's an interesting point.
Speaker BYeah.
Speaker BJust another challenge for Amazon's grocery strategy.
Speaker BAll right, headline number two, Walgreens is dedicating in store space to party supplies and expanding its assortment in the category according to retail dive.
Speaker BWalgreens is expanding its party supply lineup in stores and online.
Speaker BAnd online, the retailer now has dedicated in store space for party supplies with nearly five times more than before.
Speaker BNot nine times like Ferris Bueller, but five times.
Speaker BSome of the retailer's party items are also available for 30 minute pickup or even one hour delivery should you need that helium balloon.
Speaker BAnd because the expanded assortment includes helium balloons, cake toppers, party plates, napkins, banners, foil backdrops and decorative centerpieces.
Speaker BAnd some of the items, Ann, are starting at $1.99.
Speaker BCan you believe this?
Speaker BAll right.
Speaker AWhat a steal.
Speaker BI know, right?
Speaker BThe move comes after Party City filed for Chapter 11 bankruptcy a second time and then announced the closure of nearly 700 locations.
Speaker BAnd as you can tell by the increased enthusiasm.
Speaker AYes.
Speaker BIn my voice as I read that headline.
Speaker BThis is also the A and M Put yout on the Spot question.
Speaker BAll right, all right, here it is.
Speaker BAnd I quote, after Party City's Chapter 11 filing and liquidation, is there still enough to go around that physical retail.
Speaker BPhysical retail.
Speaker BAnn needs new players to pick up the slack and introduce these categories.
Speaker BEnd quote.
Speaker AYes, yes, I do think so.
Speaker AAnd not all retail players, let me.
Speaker BMake note of that.
Speaker ABut Chris, have you ever found yourself, like on a Christmas morning thinking, I need some things, I need to get plates because we don't have enough plates.
Speaker AI need some kind of.
Speaker BI have had a plate emergency.
Speaker AYes, yes.
Speaker AYou know what's open on Christmas?
Speaker BNot a hell of a lot.
Speaker ANot a hell of a lot.
Speaker ABut you know what is open?
Speaker BWalgreens, 24 hours.
Speaker AWalgreens, 24 hours stores.
Speaker AWhich is, I think, why this move is so brilliant.
Speaker ANot only is this an area where I think people are already going, you already know that if, if it's a, especially in a holiday emergency situation where you need these types of products, Walgreens is available.
Speaker AThey're going to be open.
Speaker AAnd I also Think that this is going to increase the basket for some of those shoppers.
Speaker AThey're not just going to be going there to get the party supplies.
Speaker AThey're going to be picking up extra sodas or maybe they're picking up, like, little toys or candy or something to put in these party bags.
Speaker ALike, I think this is a very, very smart, strategic move for Walgreens.
Speaker AAnd even as I've been walking, I was in New York last week.
Speaker AWe were in Paris this week.
Speaker AEven as you walk in these little city versions of, you know, Carrefour or whatever Monoprix might be, they have significant party supply areas and they are wiped out.
Speaker BAnd the French know how to party.
Speaker BThat shouldn't be a surprise.
Speaker AI know, but it's like, everybody needs these products.
Speaker AThis makes sense.
Speaker ABirthday candles.
Speaker BLike, you're all in on this move.
Speaker AI am 100% in.
Speaker AI think this is so smart.
Speaker AAnd I do think, to answer A and M's question, that this is 100% one retail retailer that should be picking up the slack.
Speaker BOkay, okay, okay.
Speaker BAnd.
Speaker BWell, I'm going to respectfully.
Speaker BRespectfully agree with you.
Speaker BI'm going to agree with you on this one.
Speaker BYes.
Speaker AYou had me worried.
Speaker BYeah.
Speaker ANo, a lot of respectfully is.
Speaker BI can tell how A and M is thinking about this based on how they asked that question.
Speaker BI'm kind of surmising that.
Speaker BBut no, I think, you know, first of all, the party city business is the nothing to sneeze at.
Speaker BI looked it up.
Speaker BIt was $2 billion.
Speaker AYeah.
Speaker BConsistently.
Speaker BThat's a lot of.
Speaker BThat's a lot of change.
Speaker BThat's a lot of party supply.
Speaker AThose helium balloons are not cheap.
Speaker AHave you bought one?
Speaker AThey're like 12, $15 for, like a balloon.
Speaker BI try not to buy them as often as possible, to be honest, but I have had to buy them.
Speaker BYes.
Speaker BAnd they are.
Speaker BYeah, they are.
Speaker BThere's a margin in those helium balloons, you know, but I think I.
Speaker BFor a couple other reasons, I think it's a great addition, too.
Speaker BSo, one, I think it's a solid incremental item.
Speaker BRight.
Speaker BFor the floor pad.
Speaker BRight.
Speaker AYeah.
Speaker BAnd, you know, I go through Walgreens all the time.
Speaker BI'm like, there's so much slow moving stuff in here.
Speaker BLike, you could dedicate more space to stuff that you need, like on the occasions that you're talking about.
Speaker BThen the other thing I thought about too, is they have that whole service counter.
Speaker AYeah.
Speaker BWhich is an element of a Walgreens experience that not a lot of other retailers have.
Speaker BSure.
Speaker BYou can get your passport photos, you can get real photos developed.
Speaker APick up packages.
Speaker BYou can turn your packages.
Speaker BPick up packages.
Speaker BSo why can't you put here helium behind there?
Speaker BYeah, totally easy.
Speaker BRight?
Speaker AAnd it gives the people something to do when they're bored, you know, just like.
Speaker BRight, because the Walgreens employees don't have enough to do.
Speaker ARight.
Speaker BYou know, shout out to them.
Speaker BThose guys work hard.
Speaker BBut anyway, the other point I'd make, and this is inside baseball, folks.
Speaker BThis is why you listen to Omnitalk Retail.
Speaker BBecause we know that the new chief merchant at Walgreens, which was not in most of the head.
Speaker BI didn't see it once in the headlines actually.
Speaker AReally?
Speaker BThe new chief merchant for Walgreens is formerly of Party City and formerly a colleague of ours at Target, Tracy Kolder.
Speaker BSo my hunch is she knows a little something about party supplies and how to tack this opportunity.
Speaker BSo if anyone's gonna do it, it's probably her.
Speaker AYeah.
Speaker BNow, caveat.
Speaker BOf course.
Speaker BShe could be like, okay, maybe I know this category, that's why I'm going into it.
Speaker BBut I don't think so.
Speaker BI know her pretty well.
Speaker BI think she thinks there's some low hanging fruit here.
Speaker BSo kudos to her for going after and getting it.
Speaker BAnd it sounds like the use cases like you described are there, Tracy.
Speaker AWe're all in.
Speaker ASo we'll start buying our helium balloons as soon as they're available at our local Walgreens.
Speaker BI reached out to her to see if she's at grocery shop.
Speaker BShe's not going to be there, unfortunately, but hopefully maybe we get somebody else from her team to speak with us.
Speaker AAll right.
Speaker AI love it.
Speaker AOkay, let's go to headline number three, Chris.
Speaker AStarbucks is deploying computer vision technology to help the chain track its in store stock and possibly even to automate some ordering.
Speaker AAccording to Supply Chain Dive, the tech developed in conjunction with Nomad Go is currently.
Speaker AYeah, Nomad Go, it's great name.
Speaker AYeah.
Speaker AIt's currently live across thousands of coffee houses and will be in use across the chain's entire North American company operated store system by the end of September, according to Deb Hall Lefebvre.
Speaker AI'm going to go with Lefebvre.
Speaker BThis is my favorite name of any name.
Speaker BIt's like, it's like Brett Favre.
Speaker AYeah.
Speaker BIn something about Mary.
Speaker AYeah, I know you mentioned that.
Speaker AYeah.
Speaker ALike how do you.
Speaker AYeah, well, debfevre.
Speaker ADeb, you know how to get in touch with us.
Speaker AShe is Starbucks chief technology officers and she says that in cafes using the artificial intelligence systems, quote, inventory is now counted eight times more frequently, giving us real time visibility and enabling faster, more precise replenishment.
Speaker AEnd quote.
Speaker AA publicity video shared with the announcement shows workers scanning fridges and stockrooms with the cameras on store tablets which automatically tabulate and the amount and type of ingredients on hand.
Speaker AChris, are you for or against Starbucks experimenting with computer vision to help track store inventory?
Speaker BOh, I'm 100% for this, yeah.
Speaker B100.
Speaker AExplain why.
Speaker BWell, it's very simple and because Starbucks needs to find a way to free up its staff to actually fill orders.
Speaker ARight.
Speaker BAnd so if they're going to try to experiment with this through the future of automated ordering, yeah, I'm all in.
Speaker BBecause the most telling system to me in the article was actually buried at the end.
Speaker BI'm guessing you saw it too, where they talked about how Starbucks recently revealed that they're testing something called the smart queue ordering sequencing platform, which is hard to say.
Speaker BThe smart queue ordering sequencing platform.
Speaker BAnd here's what Nicol Brian Nichols, the CEO of Starbucks said and I want to make sure I get this right, so I'm going to read it out loud.
Speaker BSo he said, quote, since testing the algorithm, it has driven, quote, a double digit improvement in cafe orders and handed off in under four minutes with 80% of in cafe orders now meeting that target, end quote.
Speaker BWhere the algorithm is being tested.
Speaker BOkay, so think about what that statement means.
Speaker BAnd that means that 20% of the orders, yes, where this is showing a massive improvement, are still not meeting the customer service expectation of under four minutes.
Speaker AThat's ridiculous.
Speaker BThat means you have a massive problem and you have no idea what the dispersion of these, that of that is either like are some people waiting 10, 15 minutes?
Speaker ARight?
Speaker BI mean I've been putting my orders in.
Speaker BIt's taken a long time, many, many times.
Speaker BSo, so that is just crazy to me.
Speaker BAnd so yes, anything that possibly chips away at that frees up employees to make coffees more quickly.
Speaker BYeah, all in.
Speaker AYeah, I agree, I agree.
Speaker AIt's not automated coffee makers yet, which I would still like to see.
Speaker ABut like you said, anything that frees up time for the baristas to be more focused on getting in front of customers and making coffee more quickly, the better.
Speaker AThe second part of this is I didn't realize what a problem Starbucks had with out of stocks until this article and started like going into that, I've.
Speaker BNever actually encountered that.
Speaker AThat to me is a huge problem because when I think about the future success of Starbucks, it's not whether or not there's a coffee house that I can sit in and work or not.
Speaker AStarbucks is sold 100% on reliability.
Speaker AThe reliability that whether I'm in Beijing or Boston, I can get exactly the same drink that I am expecting every single time.
Speaker AAnd if they don't have the products in stock, I'm gonna stop going to Starbucks for that.
Speaker ALike I'm gonna.
Speaker BDoes that ever happen to you though?
Speaker AYes, for sure.
Speaker BReally?
Speaker AOat milk is out of stock or like I like a vanilla bean powder and that's.
Speaker AThere's like a lot of instances or food, other things too, like where those products are not in stock.
Speaker AAnd I think if, if you can't hit on reliably reliability Starbucks, that's where you're going to start losing people to the other local coffee houses or to somewhere else where they are having a better experience or they're getting that fast coffee that they want or the coffee house experience that they want.
Speaker ASo to me, you know, before mobile orders, before coffee house experience enhancements, you have to make sure that this is in your products are in stock and people can get what they're looking for when they go to you.
Speaker BThat's interesting.
Speaker BI never thought about that.
Speaker BI've never actually had that experience.
Speaker BBut I also.
Speaker BBut the other side of the coin too is like there's actually the efficiency of the inventory from deploying tools like this too, which frees up your working capital, then potentially put it back into store labor as well.
Speaker BSo there's that side of it as well.
Speaker BSo either way it seems like a win.
Speaker BWin.
Speaker BAll right.
Speaker BHeadline number four.
Speaker BThis one's interesting.
Speaker BPaxon announced announced this past week that it has formed an industry First Youth Advisory Council.
Speaker BAccording to a pacsun press release, unlike traditional ambassador programs, the pacsun Youth Advisory Council, the YAC as I'm calling it, selected members.
Speaker BWait.
Speaker BThe Youth Advisory Council.
Speaker BI'm sorry.
Speaker BGrants selected members direct access to PacSun's strategic decision making processes and a spot at the leadership table.
Speaker BThe council is intentionally structured with young people who regularly meet with PacSun executives to share their perspectives on the same topics reviewed at leadership meetings, while also contributing new ideas that reflect the values and priorities of their generation.
Speaker BAnn?
Speaker AYes.
Speaker BI'm gonna put it bluntly.
Speaker BAre you buying or selling the industry's first youth advisory council?
Speaker AI'm 100% buying.
Speaker BI figured you would.
Speaker AI think this is a really smart move for a few reasons.
Speaker AOne bcg, we've worked with them, Burns Communication Group.
Speaker AThey put this event on at Most conferences that you're going to, called the Z Suite, it's where they take a panel of gen zers and they put them up in front of retailers and just open it up to questions.
Speaker AHow are you shopping?
Speaker AWhat are you, what means are you looking to help just with product discovery, like where are you going?
Speaker ALike any question that you want.
Speaker AAnd those rooms are packed every single time because every retailer and every solutions provider, Google's looking for this type of insight to really understand what this next generation is looking for.
Speaker ASecond point, we've also started to see this trend in the fashion industry where publications, fashion publications are hiring influencers now as editors.
Speaker AAnd the reason that they're doing that is because they one have the insight of what they know their loyal, engaged followers are paying attention to.
Speaker ABut then the other side of that is that they also can put out that content, that editorial from that publication to their engaged followers and that cycle continues.
Speaker AAnd that's no different than what pacsun is doing here with this advisory council because they're taking well known influencers who are, you know, who have a devoted following.
Speaker AThey're getting insights into how to develop that right product for the rest of their demographic and then they're also putting that content out and I think.
Speaker AAnd they're putting that product out in front of their followers.
Speaker ASo to me this is a brilliant, brilliant move and they're giving some great mentorship opportunities.
Speaker ALike side note, that's great.
Speaker AHow wonderful would it be to be, you know, a young 18 year old, 20 something and you get to be part of this council?
Speaker BYeah, yeah, no, yeah, okay.
Speaker BI, I disagree with you on the first part.
Speaker BAgree with you on the second part.
Speaker BI think the first part, I think that's fine.
Speaker BI mean, yeah, I've been at those, I've been at those events, I've been in those rooms.
Speaker BLike lots of companies are doing that.
Speaker BI don't think that's competitively differentiated.
Speaker BI think it's easy to do too.
Speaker BAnd I've been at things where they've said they're going to do that and then the executives just pencil whip it and me with the executives meet with these people for 30 minutes and they go about their day and don't really take anything back that improves the business.
Speaker BSo when I first read the headline I was like, oh man, if that's what this is, I'm not buying into this at all.
Speaker ARight.
Speaker BBut your second point I think is really important because this is seemingly unique.
Speaker BAs I read into the headline, you look at the list of who's on this advisory board?
Speaker BIt is a who's who, at least seemingly so based on the backgrounds that they're sharing.
Speaker BYeah, the staff, bona fide influencer.
Speaker BAnd so to me, this is less of like an advisory council, depending on how they set it up.
Speaker BI may be giving them too much credit here, but I'm kind of doubting.
Speaker BI'm not.
Speaker BIt's more to me like an advisory board, like of a startup where you're bringing these people in, you're potentially getting them equally yoked to the success of PacSun.
Speaker ARight.
Speaker BThey have their influencer channels too, so they're gonna want to promote PacSun.
Speaker BAnd so I think about this kind of as maybe a new wave model to get a different representation on customers, kind of your board, your boards in general.
Speaker BBecause, like, when you think about the money you're putting towards, like the old white guy on the board from options and things, you could probably spend the same amount to these people who could actually help drive the business as well.
Speaker BAnd that's what I think is really unique about it.
Speaker ARight.
Speaker AI also think that Brie Olson, the CEO over at PacSun, gets a lot of, should get a lot of kudos for this move.
Speaker AShe is consistently an out of the box thinker and I built a culture at her organization that supports things like this being successful.
Speaker AWill this, would this work at any other retailer?
Speaker AYou got to have the culture, you got to have the fit.
Speaker AI think Bri has done a tremendous job of making sure that she's got that in place so that they can actually take from this council and learn something and do something with it, versus just being like, okay, we met with you for 30 minutes, we're gone.
Speaker BAlthough I would push that a little bit, I think it should be able to work at every retailer.
Speaker BIf it doesn't, that's because of your culture not being able to make money.
Speaker BAnd that's another issue that you gotta solve because as you're trying to get younger, as the generations are growing and the spending power shifting, you have to figure this out for sure.
Speaker BSo if you can't make an idea like this work, you kind of suck.
Speaker BAnd your culture needs to change.
Speaker AYou need to fix your culture first so that idea is like, this can work.
Speaker AThat's where the focus needs to be.
Speaker AAll right, let's go to headline number five.
Speaker AA new survey has revealed, Chris, that almost half of AI search tool users prefer them to Google.
Speaker AAccording to ChainStorage, a new report from the SEO agency, Ethical Google remains the dominant search platform with 86% of survey respondents in the US and the United Kingdom are using it to find information.
Speaker AHowever, AI powered search tools are widely adopted, with 81% of participants using them in the past three months.
Speaker AYounger consumers, 63% of Gen Z and 68% of millennials use AI tools frequently, compared to less than half 46% of baby boomers.
Speaker AAlmost 45% of those surveyed say that AI tools provide a superior experience to Google in terms of speed and clarity, with 15% saying it is, quote, much better than and 29% saying it is slightly better.
Speaker AI got one more.
Speaker ANearly 60%.
Speaker ANearly 60% of respondents told Ethical that they use AI tools to research products or services before buying.
Speaker B60% though, that's a lot.
Speaker AYes.
Speaker AChris, are you surprised that almost half of AI search tool users prefer them to Google and AI search tools as we're talking about it?
Speaker AChatGPT perplexity.
Speaker AYeah, Gemini.
Speaker AWhatever you want to.
Speaker BWhatever.
Speaker BWhatever your flavor is.
Speaker AWhatever your flavor is, yes.
Speaker BI'm not surprised.
Speaker AYeah.
Speaker BAre you surprised?
Speaker BNo, no, I'm not surprised.
Speaker BNot at all.
Speaker BAnd I mean, just about the times my mother and my wife and my friends use it.
Speaker BLike, I'm not surprised by this at all.
Speaker BMy big question for me, and I'm curious about this because I've seen a lot of people start to poo poo this on LinkedIn, particularly some people that I really respect.
Speaker BI'm not going to call them out here because I want to actually talk to them first before I do, but they've been poo poohing the movement towards agentic AI.
Speaker BAnd so what I think is really interesting about this is the agentic AI movement.
Speaker BWe're not even in any one of that yet.
Speaker BAnd that potentially is still going to happen.
Speaker BSo depending on how that takes off, this will amplify those numbers even more as people get acclimated to what that is, how it works, and what it can do for you.
Speaker ARight.
Speaker BSo I'm buying this headline.
Speaker BI think it's very important.
Speaker BIt's very, very disruptive and it's only going to become more disruptive.
Speaker BAnd to all the naysayers out there, I'd say I wouldn't discount this so fast.
Speaker BNo, I think you're kind of risking things a little bit there.
Speaker BI'd be hedging on this.
Speaker AYeah, well, and you can't even transact in some of these yet.
Speaker ALike, that's the thing too.
Speaker ALike they're already getting this much traffic when you can't even just click and buy in all of them yet.
Speaker ASo I think as you as that, that process becomes more fluid and you can do that without having to leave that, that search engine.
Speaker AI think that's really where things are going to continue to light up.
Speaker AThe other thing, and I'm teasing, we have an amazing podcast coming up with David Dorff next week of Amazon the Other Time.
Speaker AThe Other Time I want to look back at this data, Chris, is after the holidays, because I'm curious now that we've had ChatGPT or large language search in all of our lives for over a year, pretty widely adopted.
Speaker BOh, yeah.
Speaker ANow I'm curious to see how much this increases after the holidays when and during gift giving season.
Speaker ABecause I would be, I would venture to guess that we're going to start to see even more adoption as more people start to use this because it's so valuable.
Speaker AYou just, it's so it's a much better experience.
Speaker AYou get much better results.
Speaker AThe only missing link for me right now is that transacting in the market.
Speaker BYeah.
Speaker BAnd that's going to come now, whether the agentic part, how that plays into it and how that disruptive.
Speaker BThat is.
Speaker BYes.
Speaker BBut that's a great point.
Speaker BYeah.
Speaker BLike, you know, holiday shopping, e commerce always increases during the holidays.
Speaker BEvery year, the percentage of commerce that goes to e commerce always goes up.
Speaker AWell, even Ryan Hamburger yesterday from Instacart who we interviewed, I mean, are you thinking about it?
Speaker AOne thing that occurred to me there is it's like they are already thinking, if you aren't thinking about how you're going to prepare for a world where agents are shopping on behalf of your customers and customers are still shopping, you, you're going to be in a whole heap of trouble, I think come, you know, even six months or a year from now, you know.
Speaker BAnd newsflash, there's, in my opinion, there's no surprise that Instacart CEO Chris Rogers was out in the media this week saying that retailers need to keep their prices the same in store as they are on Instacart.
Speaker BAnd why is that?
Speaker BBecause of the eventuality of agentic AI coming.
Speaker BBecause they're going to get stripped away if they don't do that.
Speaker BSo they're preparing for that eventuality, at least as part of the reasoning for that.
Speaker ARight.
Speaker AOkay, Chris, let's go to the lightning round.
Speaker AThis is a French edition.
Speaker BFrench edition.
Speaker BOkay.
Speaker ACroissant.
Speaker BBonjour, mon ami.
Speaker ABonjour.
Speaker ACroissant or pain au chocolat.
Speaker BOoh.
Speaker BOh, pan.
Speaker BI go with the pan a chocolat.
Speaker AI know for sure.
Speaker AWhich I brought you.
Speaker BYeah, which you brought me.
Speaker BYou can have.
Speaker AYou can have right after this episode.
Speaker BYou do so well.
Speaker BAll right, and next one.
Speaker BLangoustines.
Speaker AYeah.
Speaker BOr escargot.
Speaker AFor sure.
Speaker AEscargot.
Speaker BNo way.
Speaker AOh, a thousand.
Speaker BNo way.
Speaker BThe salty sea versus the dirt of the earth.
Speaker AI think langoustines and lobster are very overrated.
Speaker BOh, no, not if you have a good one.
Speaker BThe best.
Speaker BThe variability may be higher.
Speaker BWell, I don't know.
Speaker BI've had some bad snails too, but, like, the best lobster is freaking amazing.
Speaker ASee, I mean, it's okay, but I think escargot is, like, such a unique.
Speaker AGiven your choice, I think somebody could slip, like, a shrimp in there or something, and you would not be able to notice.
Speaker AOkay.
Speaker BBonafide legacy, though.
Speaker BBut not a shrimp, but okay.
Speaker AOkay.
Speaker AI'm just saying, like, I think that you could.
Speaker AYou could be told, that's a langoustine, and be like, yeah, this is good.
Speaker BIt's just a big prawn.
Speaker AYeah.
Speaker BYeah.
Speaker BRight.
Speaker AOkay.
Speaker AOkay.
Speaker AParis Metro or London tube?
Speaker BOh, God.
Speaker BYou know the answer to that.
Speaker BLondon Tube, 100%.
Speaker BFor so many reasons, but because it's also the greatest example of user experience design in the history of the world.
Speaker BBecause the map is not actually drawn to where the actual tube stops are, which I just find fascinating.
Speaker BThat's why it was on the back of the Fast5 podcast for so long in the background of our videos.
Speaker AI was at dinner last night, and there was a Frenchman who said the difference between the London tube and the Paris Metro is that if you bump into somebody on the London tube, both people will apologize.
Speaker AAnd if you bump into.
Speaker AIf I bump into you on the.
Speaker AOn the French Metro train, I would be mad at you for being too close to me.
Speaker ASo that's simply the difference between these two modes of transport.
Speaker BNow, I will say I haven't ridden the French metro as often as the London tube either, so I got to give it more of a try, but.
Speaker BAll right, and last one.
Speaker BThis one's a good one.
Speaker AYes.
Speaker BNapoleon or Genghis Khan?
Speaker BFavorite emperor.
Speaker AI picked Genghis Khan.
Speaker AReally like that song more the Mike Snow song, you know, like, I get a little bit Genghis Khan.
Speaker AYou'll recognize it.
Speaker AI'll play it for you later.
Speaker AYes, that's.
Speaker BThat's going Genghis, huh?
Speaker AI'm just going Genghis Khan because I have no.
Speaker AI don't have enough historical knowledge on both of their reigns to properly.
Speaker BI just Read War and Peace.
Speaker BSo I was like, it's all about Napoleon.
Speaker AOkay, so you're picking Napoleon?
Speaker BI think I'd pick Napoleon.
Speaker BPlus, he's got, like, you know, like, food named after him.
Speaker AWhat about Genghis Khan?
Speaker ALike, why would.
Speaker AWhy wouldn't you pick Genghis Khan?
Speaker BI don't know.
Speaker BI mean, it's probably because he doesn't have any food named after him that I can think of.
Speaker ASo songs and food.
Speaker AThis is how we're.
Speaker BYeah, that sounds about right for our personalities.
Speaker BAll right, well, that wraps us up for today.
Speaker BHappy birthday today to Kyle Chandler.
Speaker BKyle Chandler?
Speaker BI know you like Kyle Chandler.
Speaker BBass Lerman.
Speaker BYou know Kyle Chandler's Friday Night Lights?
Speaker ANo, do I know him?
Speaker BThe coach at Friday Night Lights?
Speaker BYeah, you know him.
Speaker AOh, yeah.
Speaker AOh, yeah.
Speaker AOkay, now, I didn't know that was his name.
Speaker BWow, you really know him.
Speaker BAll right.
Speaker BOkay.
Speaker BBaz Luhrmann.
Speaker BAnd because we're in Paris, to Daniel Huddlestone, who played little Gavroche in the 2012 movie version of Les Miserables starring Hugh Jackman.
Speaker BAnd remember, if you can only read or listen to one retail blog in the business, Make It Omnitok the only retail media outlet run by two former executives from a current top 10 US retailer.
Speaker BOur Fast Five podcast is the quickest, fastest rundown of all the week's top news in our daily newsletter.
Speaker BThe Retail Daily Minute tells you all you need to know each day to stay on top of your game as a retail executive.
Speaker BAnd also regularly features special content that is exclusive to us and that Ann and I take pride in doing just for you.
Speaker BThanks as always for listening in.
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Speaker BYou can foster name by simply going to YouTube.com omnitalkretail so until next week, and on behalf of all of us at omnitalk, on behalf of Ann, myself, be careful out there.