Target Bans Dyes, AI Takes 4,000 Jobs At Block & IKEA Opens Its Doors To Sporting Goods | Fast Five

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It is March 4, 2026.

I'm your host Chris Walton and we are Here once again with the wonderful folks from the A and M consumer and retail group to bring you all the top retail headlines, making waves in the world of omnichannel retailing and helping us to ring the weekend, our Cassie Riding.

Cassie, how are you doing today?

Great, thanks for having me, Chris.

Yeah, it's great to see you back.

I think this is your third voyage with us, if I'm not mistaken.

It is.

It's very exciting to be back.

Yeah.

And also we have Joanna Rangaraja, one of my favorite last names to say of all the folks at A and M. Joanna, welcome back to the show.

Thanks, Chris.

Good to see you.

Yeah.

And this puts you in, I think the Five Timers Club potentially, as we were talking about before the show started.

Yeah.

You don't have the jacket yet, but we haven't procured those yet, so.

But yeah, right, I know.

Well, why don't we get started?

Joanna, why don't you start off?

Why don't you tell the audience a little bit about yourself as a refresher?

You have been on the show a lot, but it's been, you know, a little time since we've had you back on.

So why don't you give the audience a little bit of, a little bit about yourself?

Yes.

I'm so happy to be back.

I am a managing director with Alvarez and Marcel Consumer and Retail Group.

As you mentioned, I've been with A and M for about, about five years, but prior to that I spent time in industry and consulting as well.

So I've, I've been around for some time.

My topic of interest is really end to end product operations, predominantly in apparel, accessories and footwear.

So I am thrilled to be back, excited to dive in a little bit later.

All right.

All right.

We've got a great list of topics today.

It's kind of an eclectic list which is always fun when you all are on.

All right, Cassie, how about yourself?

I'm Cassie Riding.

I'm a senior director with A and M. I have been with the consumer and retail group for nearly six years now.

So since the early days of the consumer and retail group here.

I also had a life at some other consulting firms beforehand but have been excited to be growing the group here.

I do a lot of the large scale transformations with some of our retail clients.

Kind of all different types including fashion, apparel, specialty, some pharmacy.

The retail that I know we're going to talk about a little bit later.

So excited to get into that.

Oh, yeah, I can't wait to talk about that one for sure.

And there's a lot of transformation going on in the industry right now, isn't there, Cassie?

Oh, yeah, so much so.

You know, we're always busy here.

Yeah.

It's probably one of the more overused words, too, in the industry for the most.

You hear about it everywhere.

I imagine you're very knee deep in it every single day.

All right, in this week's Fast5, we've got news on Jack Dorsey and Block speaking of transformation, swapping out 4,000 workers for AI and apparently daring the rest of corporate America to do the same.

Schlacky's Deli making a bold bet that going back to basics, including reclaiming its own name, is the key to franchise growth.

Walgreens piloting a brand new hybrid pharmacist role across six states, as Cassie was alluding to.

And IKEA opening its blue box doors to decathlon in a landmark store and store pilot in the uk but we begin today with big news.

If you'd like to traffic the cereal aisle at your local Target.

Headline number one.

Target last week announced that it will only carry carry cereals made without certified synthetic colors at its stores by the end of May, putting itself ahead of most major food brands on the artificial dye removal timeline.

According to the Wall Street Journal, Target cited sales data and customer research showing a meaningful consumer shift towards food without artificial additives.

The move aligns with the broader MAHA Make American Healthy movement, with HHS Secretary RFK Jr. Having pushed to strip synthetic food dyes from the American diet.

Major manufacturers are already moving, but on longer timelines.

Kraft Heights, for example, by the end of 2027.

W.K.

kellogg by also by the end of 2027.

And General Mills targeting summer of 2026 for its U.S. cereal portfolio.

Target's May deadline means it is not waiting for brand commitments.

It is pressuring brands to accelerate, said Chief Merchandising Officer Kara Silvester.

Quote, we know consumers are increasingly prioritizing healthier lifestyles, and we're moving quickly to evolve our offerings to meet their needs, end quote.

Joanna, you're going to start us off today.

Scale of 1 to 10.

How much do you like this move from Target?

Oh, Chris, I'm going to go with.

I know a scale of 1 to 10.

It's so hard depending on the dimensions.

But I'll put a stake in the ground.

I'll, I'll probably give this about a seven.

Okay.

And, and here's why.

I think on the surface, it's a strong signal.

You know, we're, we're planting A flag, putting a stake in the ground, positioning Target in, in a clear stance on ingredient transparency and responding to, you know, their consumer demand for, for cleaner ingredients.

It also strategically aligns, it seems, with Target's broader effort to sharpen their merchandising and being more intentional about the assortment that it carries.

And that's something that Target's leadership has emphasized in their new growth strategy, which they released literally yesterday as they were, as they were talking about it, they said in that release we want to lead with trend forward assortments that will help position us in our unique lean in retail.

And as they outline their 2026 growth strategies, the number one on the list was to lead with merchandising authority, having a differentiated and culturally relevant assortment.

And so it seems like based on those things, this is a step towards fulfilling that.

And being aggressive in the timeline is, is just trying to advance that.

And that puts them ahead of the timeline that Walmart had publicly come out with, which was early 27 for that requirement.

So, you know, adding a little bit of pressure.

That having been said, I do think that execution risks are real here.

As we think about the reformulation, it does take time.

That's why companies you mentioned have, you know, 2026 summer or 2027 in their horizons because reformulation does take time.

And so even with this may deadline, there is a real possibility of sort of near term assortment gaps that may exist.

And Target will either have to provide substitute SKUs or lean further into their own private label in order to fill the aisle while the transition is occurring.

And cereal as we know, is a pretty brand loyal category, especially for families.

And so if current legacy brands are sort of missing from the aisle or temporarily disappear, then Target needs to sort of carefully manage that, that shopper and at least keep them in the store for other other things.

Now I do have a couple additional thoughts, but Chris, it sounded like you had something to add.

Yeah, no, I mean, I, I mean that there's a, there's a lot to take in with this story.

I think.

You know, I think that's the key thing here.

And like, you know, I'm, I'm curious, I'm interested to hear you gave it a seven.

And I'm curious like, because I've been, I've been debating what score I would give it to and just, and to steal the thunder, not to steal the thunder here, but to give an idea of like where my head is.

I went anywhere from like a five to an eight on this story.

And I'm curious, did you do the same thing.

Joanna, was your like, mind kind of going back and forth or like, were you really lower?

You gave it a seven.

Were you like a nine?

You brought it down to a seven.

Like, talk us through the thought process here in terms of what are some of the considerations that you have in terms of liking this or not liking this or giving this above, above average grade, so to speak?

Yeah, I did, Chris.

I oscillated basically up and down the entire scale with the exception of 1 in 10.

Right.

And I did.

And I think, you know, I mentioned in my intro, I'm an operations person.

So, you know, at heart I start thinking about the execution of it, what that means, how they're going to keep the aisles full while they transition.

Conversely, you know, the market tends to love brands that have a strong perspective and know what they stand for.

And that's something that we've seen Target kind of experiment a lot with a variety of initiatives over the past several years, trying to sharpen their positioning.

I think that's an important question here is whether or not this is another experimentation or if this is really a strong stake in the ground as part of their growth.

The other thing, Chris, is, is it, is cereal the starting point or is it an exception?

And if we start walking the aisles, you know, are we going to start to see this come in as a rather fast follow?

Because now they're going to have to potentially stand behind it and say, we're going to make this a standard for our snack aisle.

We're going to do this in beverage.

Are we going to get out of grocery and do it in beauty and say we only carry clean beauty brands.

And so where does it end?

I'm not so.

But I think as a starting point and trying to put pressure on a timeline that was already kind of out there, that was already being worked towards, was a moment to try and grasp at.

We are trying to pivot our merchandising assortments to, to something that some customers are saying is, is extremely important.

Yeah, you're, you're bringing up really great points because when I first read this headline, I was like, I love it, I love it.

From a differentiation perspective.

It keys in on the mom, the family, the healthy eating, like the demograph Target has traditionally, you know, over indexed in.

But then as I got to thinking about, I got to think about your points.

Like, I'm like, but you're talking out of both sides of your mouth.

The snacks, the candy aisles are still there.

Like, what are you doing there?

And then the point for me, which Cassie, I want to get you in here too, is like, I was like, is this actually going to be a traffic driver or is it going to be a traffic eliminator?

Because now I know I can't get the Fruit Loops or stuff that my family traditionally wants on my trip for the One Stop Shop.

And I don't, I don't actually know the answer to that question.

So, Cassie, what do you think?

Yeah, I've been thinking about that.

So I did read somewhere that I think about 85% of their sales are already clean for cereal.

So it feels a bit that there's an authenticity lag here that could be at risk.

So they're getting the credit for being this wellness leader.

But you know, 85% are already supposedly clean.

But I mean, Chris, you brought up Fruit Loops.

That might be something that I know is.

But beyond their, I think it's a 27 play that they're going to actually be clean if someone is coming in.

Joanna made the point that cereal is very specifically, you know, people are brand loyal.

If someone can't get their Fruit Loops, is that going to be something that they, you know, are going to choose Walmart instead for their groceries rather than doing Target?

But I think there is less of a risk here that they already are going to be able to have a significant portion of what's in their aisle.

Right now, I don't know if it's actually going to be driving much traffic because once people come in for their first time, they see what most of what they can get already is already there.

They're not seeing much of a play.

But I think that authenticity risk is there.

It seems a bit performative in some ways, you know, if you don't extend it to other aisles.

You know, we've brought up candy already that has a lot of dye in it.

So if they're not going to continue this, I think, you know, they'll get headline credit at first.

But, you know, is it a long term conversation?

I don't know.

And Cassie, to that point, isn't Serial also a declining category nationally?

Like, aren't people eating less and less cereal as well?

So that's part of this story too.

Yes, it's an easy first win.

It's kind of less at stake, I think.

But again, and they get that headline and I mean, it's great that they're starting to move and maybe this is a great way for them to test it out and see the impact there before they, they move on to categories that maybe are bigger Drivers.

Wow.

Yeah.

Wow.

Cassie, riding, going, bringing in some intel and some insight.

Wow, that's really good stuff.

Yeah, I never, I didn't even think about the performative nature of this announcement in the, in the degree that you, you just described it.

The one thing I will say, though is I think, you know, Joanna, you mentioned Michael Fidelke's, you know, Earnings Investor Day yesterday, basically.

And the one thing I did like is he said we are not going to try to be the everything grocer, which I think people have pressured Target to be for a long time.

So I'm glad to hear them finally say that because I've said on the show many times, I think that's a red herring of an idea.

All right, headline number two.

Block, the FinTech and payments company behind Square and Cash App, announced it is cutting nearly 4,000 jobs, roughly 40% of its workforce, and replacing that capacity with artificial intelligence.

According to Payments Dive CEO Jack Dorsey wrote to shareholders that Black's headcount will drop from 10,000 employees to just over 6,000, attributing the move directly to AI capabilities, not financial distress.

Dorsey wrote that intelligence tools have fundamentally changed what it means to build and run a company and that a significantly smaller team using those tools can do more and do it better.

He predicted that within the next year, the majority of companies will reach the same conclusion and make similar structural changes.

Also important to note is that this move comes at a time when Block is doing well.

Q4 gross profit rose 24% year over year to $2.87 billion, fueled by cash out performance and the company increased its revenue and profit guidance for the year.

Cassie Dorsey says most companies are, quote, late to this AI workforce transition.

Is he right?

And what does a move like this mean for retailers and the broader industry?

I think we can probably all agree that Jack Dorsey likes to be a bit provocative.

So by him saying that they're late now, also, like, I don't think he's wrong, but what is he saying late to.

What is this to displacing and reducing their headcount, that he thinks they've been too high for a while.

Is it actually at deploying the AI?

I don't think he's wrong, but maybe just overstating a bit, a little bit of extremes there.

So I think, yes, from like a fintech tech perspective, they maybe might be at the point where they're ready to make these structural moves and really think about how they're structuring their workforce.

They're going to be able to have Those internal capabilities a lot more and you know, benefiting from that.

So the math works a little bit better for them.

For retailers, I'm not sure that they're quite there yet.

It's a little bit more nuanced.

A lot of retailers are more still in the pilot phase of actually incorporating AI and so I don't think that this is an overarching.

Everyone is behind.

I think it's very specific companies maybe are going to be able to make a similar move.

So I think from a retail perspective there's always going to be a significant physical human need and touch points that AI will never be able to displace.

I think there are a lot of opportunities too for AI to impact how we think about things.

So you're always going to have the in store interactions, you're always going to need that creative mindset.

There's a lot of things that we're not going to be able to change that are going to be deeply human.

But I think there is a huge opportunity.

Just time will tell how much this will actually impact.

So when you're thinking about where are we still making decisions based on human intuition rather than data truly informing them.

So something like how much for demand forecasting, pricing and promo personalization.

There's a lot of aspects that I think retailers are still very immature with actually incorporating AI.

And so give us a few years, we'll see what that happens and maybe there will be difference.

But I think the real winners here will not be people who are just making headcount changes of being able to make their workforce more productive through using AI.

And so you're using the same people to do higher value work at a larger scale.

And so I think, you know, Jack Dorsey wants to be provocative.

He wants to be able to say we're reducing 40% or 40%, that's going to make a lot of people's ears perk up.

Right.

Like that is huge right now in a lot of industries that are, you know, very thin margins.

So that might seem attractive, but I think there's still a lot, we're still very far out from a retailer perspective of when we can even be comfortable with saying that we're going to be, you know, replacing a lot of functions with AI.

Got it.

Okay, so let me, so let me press you a little bit on this.

So then, so because you know, you said at the outset, you know, transformation is kind of your specialty.

So are you seeing in the boardroom discussions that you're having with retailers, are you seeing retailers put in plans Place that are this drastic in terms of like a two or three year out horizon in terms of workforce planning and organizational optimization.

Are you seeing that at all at this point?

I think we're still a few years out from this at this point.

I mean it's always being discussed, it's always a question.

But the ways of working right now at most companies are truly not involving enough of this higher capability AI that's going to make this type of impact.

I think those are ultimate goals and that they can actually be able to have their people do better work in more efficient manner.

But it's not necessarily, I think from the same angle that, that Dorsey was going at it from.

Right, right.

Yeah, because the, because I think your point's right too.

Like, or it makes a lot of sense when you said like a retail operation is much more diverse in terms of how it works day to day as well.

So Joanna, to that point, I mean being the end to end operator, what do you take from this announcement?

And my question too is like for the retailers observing it, is it, is there more risk in thinking he's being too drastic or less, you know, or, or, or, or less risk by just sloughing it off and saying, yeah, now he's just being provocative.

Like how do you think about that?

Yeah, it's a, it's a great question, Chris.

And I think that this is what a lot of retailers are talking about.

Whether they're talking about it in the, in the boardroom or not, they are wrestling with it at all, at all levels.

I think that, you know, starting from the announcement itself, I think that this example from digitally native companies that are owned by block like that is instructive on the impact that AI is and can have on a workforce going forward.

Much to Cassie's point.

I would expect that the change in more physical goods companies to be a bit slower and more measured partially because of the nuances that Cassie brought up.

But the impact will start to be felt in areas in organizations and roles that have more analysis behind them as well as more sort of cognitive engagement like a customer service or a call center where they're handling multi step problem solving, where some of those steps can be triaged by AI as a starting point and then escalated for, you know, overly complex issues.

And so I do think that like that will then increase human productivity and ultimately result in the need for a smaller human workforce in some of those, some of those functions.

The way I think about it, my advice would be very similar to what Matt Schumer put out at the beginning of February he had a great article called Something Big is Happening where he talks all, you know, all about this.

And I think that the idea that enterprises need to let or, or, or rather encourage employees to really incorporate AI into their work where they can and inviting that in, you know, the philosophy of sort of letting a thousand flowers bloom, you know, within reason is, is something that ought to be encouraged because there will be successes, there will be failures.

It is an iterative process.

But companies that try to control sort of the contagion of AI through you know, a centralized IT tower or something like that is likely going to end up, they'll likely end up being a bit left behind.

And even that approach is, has fed into what we've seen in some companies where they've had organizations with kind of a subpar Microsoft copilot based experience that isn't really generating outcomes that are productive in nature.

And so I think that's where kind of it's, it's heading.

But we are all using AI in some way in our personal lives.

And so you know, successful retailers kind of bringing and inviting ways to incorporate that into employees, that experimentation rather into employees work, not casually, but you know, actual work are going to see some, some good strides.

And I think the trajectory only goes one way on this, Chris.

It really does.

And so your ultimate question, I think was is it a bigger risk to think he's being provocative or a bigger risk to, to say what was the alternative?

Yeah, is it, is, is the risk, is, is there a bigger risk in thinking he's wrong or thinking he's right?

You know, I think, oh, the bigger

risk is thinking he's wrong.

Yeah, I think so.

The order of magnitude may not be there yet, but, but that's definitely the bigger risk.

Yeah, I think, I think so too.

And you know, I, the reason I say that too is like, I think you have to look at who's saying it too.

And I think Cat, you know, Cassie brought this up.

He's a very provocative guy, but at the same time he's kind of a savant in the industry.

I mean the, the guy, the guy started two incredibly successful tech companies and he's also one of the most productive CEOs of recent memory too because he was, he was at one point running both of them at the same time as CEO.

So this guy understands productivity and how to, how to make more, make, do more with less, for lack of a better way to put it.

So yeah, I mean I, I, when I hear what you said, Joanna, too I think I had a big epiphany at Etail west when I was out there last week.

I was sitting there listening to a gentleman talk about how he's reorganized his marketing data infrastructure around AI.

And the point that that came, that I was thinking about as he was talking was I think, I think there's going to be two things that have come out of this.

And it's just a question now to Cassie's point about like how fast this happens.

There's going to be less jobs.

You know, maybe retail doesn't get hit with the size of that impact as quickly, but over time it's going to.

And then I think there's going to be different jobs.

Joanna, and this is what you're saying with terms of like the roles, I think we're going to see less analyst roles, like data entry roles.

And those jobs are going to switch into what I'm calling for lack of a better way kind of the output approver role, where it's your job to monitor and manage the AI outputs.

And I don't know if the skill sets for that are going to be the same.

I don't know if they're going to be different, but I think that's how jobs are going to migrate over time.

So, yeah, so with that said, I think there's just 100% more risk in, you know, dismissing this announcement than there is in, you know, trying to say, okay, what can we learn from this as an organization?

All right, headline number three.

Let's switch over to deli meat.

Schlosky's Deli, the 55 year old sandwich chain that has been through more name changes than most brands have had.

Menu revamps is going back to basics.

Re embracing the deli name and launching a next generation prototype designed to slash operating costs by 20 to 25%.

According to chain storage.

Goto Foods owns Schlatsky's, officially returned to the Schlastkeys deli name after a 2025 guest survey found 2/3 of respondents already called it a deli.

And qualitative research revealed many customers didn't even know Schlacky's was a food brand.

Chief Brand Officer Donna Varner said, quote, people would say, I thought Schlastki's was a dry cleaner.

I didn't realize it was a food place until I saw Cinnabon on the side, end quote.

That's a great quote.

The new next generation prototype caps at approximately 2100 square feet versus a previous range of 1400 to 3600 square feet.

Key features include self order kiosks, dedicated digital pickup zones, grab and go offerings including pre made cold deli subs and an optimized back of house layout.

The model can operate with as few as two employees during slow periods.

For context.

For those maybe unfamiliar with Schlotsky's nationally as some of us may be, it currently operates 290 locations in 25 states and sales have declined 4.7% in its most recent reported numbers.

Joanna, when was the last time you ate at a Schlotsky's number one?

And is the Schlotzki's deli rebrand and prototype something that will move the needle?

I am, I am embarrassed, but I will say I've actually never had the pleasure.

Oh my God.

I know, I know.

Gas.

Pause for gas.

I have had dry cleaning done however, so if that, if Schlotzki's is a dry cleaner then I have had directly

it probably is a dry cleaner named Fudge Schlatsky or something like that, you know.

Yeah, right, exactly.

But I, unfortunately I've never had it.

I am familiar with it, with their fresh quality and sort of that round bread that they're known for.

So barring having taste tested it, I will say I think it seems kind of, you know, more along the lines of a smart move to kind of amp up the franchise optionality for them and, and helping to get their quality and their, their cult like following kind of going again.

They are competing against fast fresh options and, and the need to give easier access to their differentiated freshness is, is important for them.

In our recent A and M CRG crave report we saw that 83% of frequent QSR orders are done through pickup or delivery or a drive through format.

And so the store designs and the considerations, the self serve kiosk and, and the formatting for sort of that gig pickup does seem to align with what we're hearing from consumer sentiments as well.

So I think at the end of the day, I think we need to see if franchisees embrace this and actually expand the footprint in order to know whether or not it actually moves the needle.

I had no idea you guys had a crave report.

I gotta get, I gotta get that one.

That sounds right up my alley.

Because first of all it's like a shot to the heart when you tell me you've never had a Schlossky's Joanna, because like I, I was, I was, I was ride or died with schlotzkis back in 1999 in Tempe Arizona.

I used to go there all the time and I've been sad that I can't get it anymore.

That's actually, I actually think it's really good.

And so what this makes me think, though is I actually, I love the moves for you said, I think operationally, like, this is how QSR is moving operationally.

But what.

When I hear the quote from her and Cassie want to get you in on this, like, this feels like the DeWalt Business School case, only for QSR in terms of like the rebranding of Black and Decker to DeWalt and taking over the industry.

I mean, it seems like nothing but upside when, when people are confusing you with.

With a dry cleaner.

Right?

Yeah.

I mean, I think it's the right move for them and I'm excited to see how this turns out.

But I do think that, you know, store design is a tool for them.

It's not necessarily their strategy to win because it's still.

You still need someone to wake up and choose to go to Schlotsky's and where they're having this brand image problem.

Your store design is not going to change that.

So I think there's a little bit of the jury is out from there.

And how do they then make sure that everyone is making that choice?

Because especially, you know, Joanna's talking about how 80 something percent are going to be either, you know, delivery orders typically right now, or some kind of, you know, doordash of that nature.

And so people are not going.

They're scrolling through their app.

They have to choose you.

And if you don't have that brand name recognition, it doesn't matter that you've saved on your operating costs and you've been able to make it a smaller footprint.

So the math makes a little bit more sense for franchisees if you're not driving the customers to you.

So I think there is a another level that they need to make sure that they nail as well to get this.

But I think it's the right first move for them because it is making it more attractive.

But if they don't have that rebrand hit, I think.

Is this really going to help?

Right?

Yeah.

There's going to be some customer acquisition costs to get people in the door, regardless of what the physical footprint starts to look like.

Yeah.

All right, Well, I pull it for Schlotzkis.

I don't know, but I guess.

Cassie, have you been to a Schlattsky's?

I also have not, but I feel like I might need to try it.

Next time I am, I'm somewhere that I can get my hands on them.

God, it's like, it's like the lowest hanging fruit waiting to be picked up by the Schlotzkis people.

All right, headline number four.

Walgreens has introduced what it's calling a first of its kind hybrid pharmacist role, allowing pharmacists to split their time between in store work and centralized settings.

I can tell you from first hand experience this is a really, really important story.

According to Change Storage, the role has launched in Arkansas, Missouri, Minnesota, North Carolina, Oklahoma and Tennessee.

With strong early feedback from participating pharmacists.

The program directly addresses a growing workforce crisis.

One found nearly 90% of pharmacists are at risk of burnout.

One study found.

I should say that nearly 90% of pharmacists are at risk for burnout.

On centralized days, hybrid pharmacists review prescriptions, provide clinical support, and consult with patients and providers over phone and email, freeing in store pharmacists for direct patient care, immunizations and medication counseling.

Walgreens describes the benefits as predictable schedules, expanded career pathways and varied practice settings without leaving direct patient care behind.

Cassie, you talked about this at the outset.

Does Walgreens hybrid pharmacist model single signal a broader reimagination of how health and wellness retail roles need to evolve, or is it actually a canary in the coal mine for the structural issues facing pharmacy retailing?

Better you than me.

Yes.

So Chris, I think it's a little bit of both.

So yes, there, there is a direct response that they need to, you know, have to this structural change.

But also, you know, this is something where there's been a lot of talk of how we can address this and you can't go forward either way.

And so let's, let's try a few options here.

So as I mentioned earlier, so I've spent a lot of time actually in pharmacies observing pharmacists and I have seen firsthand the burnout and trying to figure out a number of solutions with how we can address this.

And so definitely that 90% of pharmacists are at risk really resonates with me.

And I think there's also a larger structural issue here because we don't even have enough pharmacists that are going through pharmacy school to fill the number of roles that are available.

So there's even a competition, there's signing bonuses out there for people to switch change.

So there's a lot of pressures in the industry right now and what we've been doing in the past really isn't working.

But also the nature of how customers are interacting with their pharmacies has changed as well.

So the two combined there is really saying, you have a broken pipeline, but we have a changing customer.

How do we start, you know, address this?

Because the people who are staying are really running on fumes in the pharmacy.

And that's not, not what we want to be seeing.

So I think that, you know, Walgreens is saying, we see the issue, we want to do something to address it.

It's more of a business model problem than just a scheduling problem or having the right people at the right time.

It's much larger than that.

And also the economics of, you know, traditional pharmacy are obviously changing.

We have more central fill, we have other players coming in.

And so they really have to address both at the same time to, you know, keep up, I think.

And so to keep their pharmacists happy, to be able to make sure that they, you know, can continue to keep their workforce going.

I think this hybrid model does make sense.

It gives them a bit of relief.

So you have your, your in store time when you're really talking to patients, working that and then the more predictable, you know, central fill or anything like that.

And they're actually able at the same time to be moving a lot more of their scripts to a central fill location either to then to be delivered to stores and picked up or delivered right to you at your home.

So they're really rebuilding this operating model.

And so I think, yes, they're trying to have a band aid on.

We have a workforce issue, but also we have to at the same time be moving what we're doing.

And so I think one of the big watch outs here though is is this actually going to improve retention with Walgreens?

And so is this, you know, like I said, a band aid for them and we're going to actually see them short term might work, but then we see these pharmacists, oh, okay.

I have better opportunities somewhere else because it's really not addressing what my true root cause issues are or is this going to be enough?

And so we'll see other players maybe following suit and saying that we would like to model this as well.

So I think time will tell if this is enough of a fix, But I think it is the right move for them right now to be kind of dual pathing.

Let's address what our workforce is telling us and saying they're burnt out.

How can we address this?

But also let's Change our model a bit.

Yeah, that's a really.

She put that.

I've never thought about that.

You're getting my head thinking about too.

Cassie is like, you know, pharmacists are really expensive too, like in general, like as average employees, you know, especially for a Walgreens.

So like, you know, you start thinking about like, is it, is it actually smart to push delivery of prescriptions for this reason?

You know, give people a big cost break because hiring them is expensive.

Retaining them is expensive.

Getting people to fill in when they're not showing up for work is even more expensive.

So like, have you been involved, I'm curious, have you been involved in any conversations like that in terms of the economics of how these models work?

Yeah, so there's, there's a lot of talk about.

So you have your technicians in the pharmacy, then you have your pharmacists, Obviously, you know, 3x maybe difference between the two there.

And so the more you can actually push to the centralized the locations that where some of these, you know, the hybrid model will have more pharmacists working at these.

They have more automation in them.

But then they also obviously need a pharmacist role there, despite it being automated.

It really is a very different setting for them than the constant.

You know, I don't think everyone's always the most friendly.

Sometimes what I've seen as their patients walking up to get their prescriptions and, you know, everyone there is stretched thin.

And so being able to balance that, you know, gives them the time where a lot of them are very excited also about being patient focused and being patient forward.

So they want some of that time, but then also a little bit of breathing time on the back end.

But we want to make sure when we're working with them that the technicians are also their most productive.

So being able to balance the two of that there.

So then you have your brick and mortar that's running the most efficiently and then you supplement that with what can actually go through the more automated central fill.

You need to figure out that right balance.

But there is a big labor trade off there.

Yeah, those are, those are amazing points because I can attest to it firsthand.

You know, being a district manager for Target, the pharmacists were hands down the most stressed out people in my entire workforce.

And it's because of reasons you said.

And there's also another reason I would add in there too.

There's a high likelihood that as a pharmacist, you might have a gun pointed in your face at some time, which is a really real factor.

Like, this happened to me.

Like, I, my wife was in labor and I got a call saying one of my pharmacists just got held up at gunpoint.

Like, it's a real thing that happens.

And so if you can put them in a location where they can just do what they like to do, which is fill prescriptions, you know, and, and do that well and do that quickly and do that fast, like, there's probably a psychological benefit to this, too.

So that's why I, I 100% applaud this move.

And I think it's where the industry needs to go more in general.

And also to your point, Cassie, I personally love getting my Walgreens prescription delivered.

The issue for me is that can I get it fast enough?

Right, because you generally need your prescriptions really fast enough, and right now it's still a little costly or I'm not confident in the delivery time to.

To do it as often as I would like to.

But, Joanna, what do you think here?

I think you both are absolutely right.

I think that the structural challenges that exist require leaning into something like a hybrid model just to start addressing.

I also think that the scope of practice that pharmacists are being asked to perform has continued to increase.

It's not just understanding your new prescription and helping counsel you on any existing prescriptions and how they may interact or not, but now we're going into immunizations and we're going into other consults.

And so as a result of that, there does have to be a bit of a relief valve here for these folks.

And I think that addressing that through something like a hybrid, I think naming it is also interesting because this isn't a new trend.

When we think about accessibility to pharmacy care and coverage in more rural areas, We've been seeing more of a balance of sort of this digital mixed with in person.

It just wasn't called hybrid pharmacists.

And so I think that we're moving into giving it a name, giving it more legitimacy behind what I actually love about your question, Chris, which is reimagine feels like the right word.

You know, fundamentally the role of a pharmacist and things like compounding medications, like, isn't going to change, but the experience, experience that we have with them and what we're doing face to face versus digitally is going to evolve.

And so it does feel like the experience is changing to address both structural as well as just overall patient need.

And then, of course, the pharmacist need that you were mentioning from you know, all of their, their stress and, and the ability to, to provide the right support for them to be effective.

Yeah, those are great points to close on too.

Like, does the pharmacist role evolve here with technology as well?

Like, do we need as much direct, direct face to face interaction with the pharmacist day in and day out when we can get the information we need in so many different ways or through so many different vehicles?

All right, this last one, I saved this one deliberately for the end because I think it might be the most debated one where I think we might not agree as much on this topic.

So.

Headline number five, IKEA is opening its iconic blue box stores to other retailers for the first time, announcing that French sporting goods giant Decathlon will open a standalone store within a store at ikea's Croydon location in the UK this spring.

According to Reuters and Inka Group, the Decathlon location will occupy just under 1200 square meters with its own dedicated entrance inside IKEA's 25,000 square meter Croydon store.

With doors set to open this spring.

Inka Group, the world's largest IKEA franchise, confirmed that this is the first time a major global brand has been hosted inside one of its blue box stores.

Those smaller pilots with Nordics electronics retailer Keel Co.

Ran into Swedish IKEA stores last year.

Commercial manager Javier Quinones said, quote, our ambition is to become as accessible as ever and give customers more reason to visit us wherever they are on their home journey.

End quote.

Joanna puts you in, putting you on the spot this week.

Are you buying or selling the idea of buying sporting goods while shopping at Ikea?

I'm going to isolate the buying sporting goods while buying a sofa for a second and just say I am all for the idea of trying to monetize extra excess space in these big boxes that IKEA has, right?

They were built for a certain time.

They now have these mammoth stores that require a mammoth assortment to fill.

And so I think recognizing that there might be another way to drive traffic while monetizing that makes, makes good sense.

Now whether Decathlon is right or not, I think there's, you know, a little bit IKEA and Decathlon customers tend to be, you know, focused more on sort of value oriented consumers who are making lifestyle purchases.

So there's a little bit of harmony that, that makes sense, make sense there to me.

But also the philosophy of turning stores into destinations and I think we're seeing this in a variety of ways.

A couple weeks ago or last month rather on, on omnitalki, while we're talking about the regional grocers with the beer garden and trying to just turn it into a destination.

You know, people going to Ikea and dining there and using it as a place for dining.

My, my local IKEA host trivia nights.

So, you know, am I thinking about assembling a cabinet while doing bar trivia?

No.

But does it make it a destination for people who then, you know, may end up going there that weren't otherwise going to or pick up something along the way?

Maybe.

And so I think it's in that same vein now there's some lessons to be learned because we've seen others try and do this and we've seen mixed success.

Kohl's and Sephora, tremendous strong financial performance in their success story of kind of a store within a store.

Different when we talk about Target and Ulta and the fact that that partnership is ending in August.

And so it's mixed as to the success of it.

The one, the one big thing though that stood out was the emphasis on a dedicated entrance to decathlon, which did feel a little bit like it was undercutting the idea of getting people into IKEA so that, that I had a little bit more of a question mark on feels.

Mollish.

All right, so I'll put your feet to the fire.

Do you think this experiment works and that we will see more decathlons inside of IKEA in the next five to 10 years?

I think we will likely see more stores within Ikea.

Whether they're decathlons or not, I don't know, but I think they are massive.

They are kind of malls within malls to your point.

And so I would not be surprised if we started seeing more of that trend.

So we'll see more of the shop within a shop.

It's just I would not be surprised

the cocktail they want to use that works with their brand.

Okay, Correct.

All right, all right.

I'm going to come out and say it like I summarily hate this partnership.

Like, I just do.

I think it flies in the face of why I go to ikea.

I've said this on this show so many times.

You go there because you have to get the chore of furniture shopping done.

Most of the time you have to do that on the weekends.

It's a long trip, which is.

Is why it's good to have food there and you can get your Swedish meatballs at a low price.

Sporting goods.

Buying sporting goods are not part of checking that chore off of my to do list.

They're just, they're just not.

I'd much rather see things like, to your point, Joanna, I'd much rather see things like, why don't you bring TVs into the store, Ikea?

I mean, there's an idea or like how to install a security system or get your lawn and snow removal services, you know, all set up here as you're moving into your house, whatever it is.

There's so many different ideas that I would go after before I would think about sporting goods.

But Cassie, talk me off the ledge.

Tell me if I'm right, tell me if I'm wrong.

What am I missing?

I have to agree with you, Chris.

And so I think it's a strategy kind of disguise by just Ikea's becoming a landlord.

They have boxes that are too big.

People are increasingly buying furniture online so you know, their assortment not needing to be as large in stores.

And so I think saying that this is a strategic play, that you're, you're not coming to buy a soccer ball at the same time I'm buying, you know, a dresser.

It just doesn't make sense.

And I think that is why they're stressing the independent entrance.

And so that to me just flagged landlord, not.

This is truly, you know, a concept that we want to continue to, you know, evolve with decathlon.

It's as we have space that we can repurpose, we will find the best tenant for it.

And as long as it is complementary enough, we can, we can say that this is the strategy.

I just don't fully see it as, you know, becoming one.

I'm going to this IKEA for the same purpose as going to decathlon.

Yeah.

And in eight years of doing this show, I think you just summed it up perfectly.

Whenever you're asking the question, am I a landlord or a retailer, it's generally doesn't work.

So that's just my one caveat here.

All right, great show so far.

Let's go to the lightning round.

Question number one to Joanna.

Oh my God, I hope you guys saw this.

I hope you guys listening to all saw this as well.

McDonald's CEO faces ridicule this week, has faced ridicule this week over cringe over a cringe worthy Big arch taste test video.

So Joanna, my first question is, will you be giving the big arch a try or does the video compel you to satisfy your burger craving somewhere else?

That video is, is cringy, but it's so bad.

Anytime, anytime someone can repeatedly call a food item a product is, is just out of the gates Unsettling.

I. I personally probably won't be trying it.

I do like a McDonald's cheeseburger, however.

But I just feel like this is ripe with the hype right now.

Just get arch banning, get a quick ad that.

That does a proper bite out of the.

You know, and we can move on from this.

But I have enjoyed a little bit of the ribbing that's been coming through from.

From competitors as well, showcasing how to take a proper bite and smile.

So, yeah, McDonald's has got to come back with something like.

Something just that just totally emphasizes how much of a dork that CEO appeared to be.

Oh, my God.

All right, question number two, Cassie.

Zach Braff says that it was, quote, really shocking to learn some Scrubs reboot co stars weren't alive when the show first came out.

Will you yourself be scrubbing in for the reboot?

I can sympathize with that.

I think I somehow have that feeling when we have some of our associates with knowing what pop culture events they have experienced.

I can say I watched Scrubs actually.

I think during that time, Scrubs, I feel like was a different.

Going a different direction.

So I was more of a friends, more of the traditional at that time.

But I am interested.

I think I will tune in just to see the difference, especially now that they're really changing how they make some of these shows.

I know Matt Damon recently was talking about they have to write their scripts differently if it's a streaming because people aren't paying attention.

So I am kind of interested.

I kind of want to go back and watch some Scrubs from before beforehand and then see because, I mean, I like the cast.

I think it'll be good.

So I'll tune in.

Yeah, no, I'm the same way.

Like, I actually, it must.

It must have had a hook because, like, if it's coming back, it must have been a pretty good show.

But.

But I've never seen an episode either, for as much as I love television and movies.

Joanna, do you have a relationship with Scrubs?

I do not.

So no, I don't.

I don't either.

I.

Similar to Cassie, I was.

I was watching other things at the time that it was.

That it was out, but it must have, you know, any.

Any of the.

The reboots, they definitely are pulling at the strings of.

Of prior fans, so I hope it succeeds.

Yeah, I'm not going to bring producer Ellen on this one because I pretty much am positive she has no relationship with the television show Scrubs.

Given.

Given her birth date.

All right.

Next one, Joanna.

Daylight savings time is this coming Sunday, March 8th.

Will I'll lose an hour of sleep.

So, Joanna, are you firmly in the I love the extra evening light camp, or are you more on the team?

Abolish daylight savings time forever.

I don't really have a preference to be, to be honest, albeit, albeit as a, as a person with a, a pretty hefty sourcing background.

It is always nice when we go back to being 12 hours difference with our, with our partners in, in the East.

However, my favorite of all of this is just twice a year we get to hear a very impassioned debate about whether or not it should go away.

We all start hearing and checking in on each other's circadian rhythms, which we never do otherwise.

And, and we get, you know, somehow are massively affected by an hour's worth of jet lag comparatively to, you know, other moments in our lives.

So I, I enjoy it.

The local news coverage of it is always it.

It's more because I just enjoy the chatter around it.

But I have no preference.

Oh, my God.

See, I think for me, once I had kids, like, I was done with daylight savings time because daylight savings time is the witching hour.

That Sunday night is like the witching hour.

If you got kids, they're just, they're freaking maniacs.

At least at my house they are.

All right, last one, Cassie.

When asked to name her favorite sandwich on the Colbert Show, Jane Fonda responded, breakfast burrito.

Hold the potatoes, soft yolks, bacon and avocado all tucked inside a flour tortilla.

That answer is really specific.

What is your favorite breakfast sandwich?

And more importantly, do you agree with Ms. Fonda's categorization of the burrito as a sandwich?

There is a right or wrong answer to this question, Cassie.

Okay, I think I'm probably in the minority, but I do think that a burrito could be classified as a sandwich.

I think similar to, like, you know, different cuisines have different types.

So you could say a ravioli and a dumpling are, you know, in the same kind of classification.

I think this is controversial, so I'm accepting that.

But, you know, I think you want to keep.

Each type of cuisine has their own kind of take on it.

But in terms of my favorite, I think this is.

I'm just being controversial, I guess today, even though I live.

Yeah, you are.

Even though I live in New York, I'm also not going to say anything from New York.

It's my favorite.

My favorite breakfast sandwich.

Very specifically born in bread.

On Nantucket, they Have an amazing, obviously, hence the name bread, really great fresh ingredients, a good spicy aioli on it, you know, egg, fresh tomato, bacon.

And then you can go eat it outside.

And so I think, you know, maybe.

Maybe the setting is what, you know, makes it a little bit more of my favorite.

But that is a staple for me, I would say, especially in the summer months, so has a fond place in my heart.

Oh, my God.

I can't even compute what you just said.

Calling a burrito a sandwich.

It just.

That it just does not align with my thinking at all.

Producer Ella, come on in here.

What do you think?

Burrito.

Is a burrito a sandwich?

Cassie?

I'm sorry, Burrito is not a sandwich.

I mean, I think this goes to the hot dog, too.

Is a hot dog a sandwich?

I think if the bun is ripped, yes.

If the bun is still together, not.

So that's how you define it.

See, I don't know.

Like, I think like a. I think like a cheesesteak where the bun is still kind of connected at the end, is still a sandwich.

But, Joanna, what do you think?

You.

You be the deciding vote here or the tying vote, whichever way you want to go.

I'm going to go with a burrito is not a sandwich.

But it is a handheld.

But it's a handheld, so kind of Cassie's point on dumpling ravioli.

Like, it.

It falls in the handheld category.

It is just not a sandwich.

That's right.

That's better classification to it.

Yeah, that's why.

That's why you're the operation consultant.

Joanna, you just got it down.

All right, Ella, which.

Which headline won the week this week?

I'm thinking.

I'm thinking it was number one.

I'm thinking it was Target cereal.

That's what I'm thinking.

That.

No, I got it wrong this week.

No, you got it.

Oh, I got it right again.

That's why I was shaking my head.

I'm.

I was telling Chris last week.

I'm like, he always knows my answer and he's saying it's the merchant in him.

Which I totally agree.

But I think the first thing to note before I dive into my pick is that this podcast really makes me realize how much I'm influenced by the headlines.

Like, I am truly a marketer's dream.

Like, I fall for everything.

So I think it's important to note my answer is very consumer based.

Like, this is my personal experience and why I like this headline.

But originally I had why we ask you, Ella.

That's why we bring you in.

Yeah.

Let's hear it.

Yeah.

So originally, I had down target 1000%.

This just makes me so happy.

I mean, like, we.

We all want to care about our ingredients now, the labels.

I think we're in this era that just, like, being aware of what we're putting in our bodies is amazing.

But, Cassie, you bring up such a good point about Target is already pretty clean in their cereal.

And this is a loud headline right now, and I think it's sort of to grab consumers like myself to say, like, hey, we care shop Target.

Hey, we're, like, ahead of these retailers, right?

And, Joanna, you were talking about how.

How is this going to translate into, like, beauty and drinks and candy and, like, is it going to this fast?

Who knows, right?

And I didn't even think about that.

So, again, I am a marketer's dream.

Because I'm thinking over here, I'm shopping Target.

Duh.

Their cereal has no.

You know, so that's the winner.

But it definitely makes me think, wow, wow, wow.

Yeah, I think.

I think Cassie won this.

Like, that headline won the show for you, but I think Cassie won the show with that inside drop right at the outset or around, like, hey, you know what?

This may not be all there is to it, especially when you look at Target's track record, too.

They've done things like this in the past where they've tried to trade, take more credit than this probably really deserves.

So.

So, yeah.

Wow.

All right, Good insight, Ella.

Glad.

Good.

I don't know what I'm gonna do the day I pick it wrong.

I think I might just literally fall out of my chair because I. I don't think I haven't missed one yet.

Right.

In the entire time we've had you do this?

No, I don't think so.

Maybe.

Maybe once, Chris.

I can't remember, but still.

Okay, that's crazy.

That's wild.

All right, so happy birthday today.

Great show.

Happy birthday today to Stephen Weber, Patricia Heaton, and to the woman who makes me fall in love with Lethal Weapon 2 every time I rewatch it.

The lovely Patty Kenson.

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

Our Fastify podcast is the quickest, fastest rundown of all the week's top news.

And our daily newsletter, the Retail Daily Minute, tells you all you need to know each day to stay on top of your game as a retail executive and also regularly featuring special content that is exclusive to us and that we all take a lot of pride in doing.

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Thanks as always for listening in.

Please remember to like and leave us a review wherever you happen to listen to your podcast or on YouTube.

You can follow us today by simply going to YouTube.com omntalkinretail Cassie, if people want to get in touch with you or Joanna or anyone at the A and M consumer and retail group, what's the best way for them to do that?

Of course.

So you can find us on LinkedIn, both Joanna and myself, and then look at our website, It's Alvarez and marcel-crg.com you can learn a little bit more about us and also reach out.

Yeah, awesome.

And also, fun fact, Chad Lusk, frequent guest on the show, is gonna also be appearing at Shopdock here at the end of the month, giving his take on the trends that are shaping the industry.

And I'm very excited to see what Mr. Chad Lusk has to say on that topic.

So until next week, on behalf of all of us here at omnitalk, on behalf of producer Ella, myself, be careful out there.