Walmart’s Bait & Switch 2, Costco Gas & More Grocery Sound & Fury From Amazon

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Learn more@ocampo capital.com hello, you are listening to Omnitox 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.

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Today is June 18, 2025.

I'm one of your hosts, Anne Mazinga.

And I think I'm still Chris Walton.

And we're here once again to discuss all the top headlines from the past week.

Making waves in the world of omnichannel retail.

And today we're joined by the dynamic duo of Brooks Lovering and Bryson Waterman from the Alvarez and Marcel consumer and retail group for their regularly scheduled monthly appearance.

Welcome, you two.

Are you excited to be on the show?

Kicking off your Wednesday morning with Omnich Retail.

So excited to be here.

Thank you for having us.

It's going to be a great conversation, so really looking forward to it.

Good, good.

Well, Bryson, you're.

You're a first timer here on the Fast five, so why don't you give our audience a little bit of your background and your current role at am.

Yeah, I am longtime listener, first time talker, so again, appreciate the invite.

Looking forward to the discussion today too.

Yeah.

So I've been with Alvarez and Marcel now for three years.

I'm a senior director in our consumer and retail practice.

Prior to that, spent an additional 11 years in consulting with another firm, all focused on consumer and retail.

And really kind of the work that I'm most passionate about is really driving top line transformation.

So really getting into the sales as well as the marketing organization and helping drive efficiencies there.

In that 14 years, I've really focused on retail as well as, you know, going deeper into the beverage alcohol sector as well.

So a little bit of cross pollination between retail and the CPG side.

And then prior to that, spent 10 years in grocery retail where I had responsibilities around category management, pricing and revenue.

Optimization and, and fun fact, too.

And we just learned before the show that Bryson and I, Bryson's a fellow Arizonan.

He went to high school literally within like four, five miles with me right around the same time.

So we have a lot in common.

So I can't wait for this show.

This is going to be great.

Yeah, that's right.

And yeah, we just learned about Sparky the Sun Devil last week.

So we're getting.

If there's any other Arizona Arizonian, Arizonan knowledge.

Yes, Arizonan knowledge that we need to have dropped in this show, please feel free.

And Bryson is a Sun Devil too, I believe, right?

Are you not?

Yes, that is correct.

Go Devils.

Yeah.

All right.

No bear down comments today, please.

No, no.

God, no.

Never.

Not on this show.

Okay, Brooks, let's remind our audience you've been on the show before, but give the audience a quick bit of your background and your role at A and M, please.

Well, hey, thanks, Ann and Chris.

My name is Brooks Levering.

I'm a managing director at A and M crg.

And by the way, I'm just thrilled to be back with you today.

I love your show.

I call this the insider baseball of retail.

So I'm thrilled to be invited back and I'm delighted to be on with Bryson.

Bryson's middle name is Grocery.

I want you to know.

We'Ve got some headlines for Bryson today, that's for sure.

Well, we're so excited to have you both.

So thank you so much for, for being here.

And, and Chris, we have a, we have an announcement before we get into the show.

I believe we, we do.

And we have to announce this month's Omni Star.

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

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

Corso's AI copilot coaches retail leaders to optimize store performance at every level, transform retail operations from data overload into data powered with Corso.

And this month we have an Omni Talk first, Ann and Bryson and Brooks because.

Yes, and a first because we're giving the award to not one, but two Omni stars.

I know, right?

Cancel Christmas and yeah, new award winners in one month.

I know.

What are we going to do?

How are we going to top that?

I have no idea.

This month's award goes to Emma Blixed and Finn Lagarde Kopert, both of Circle K.

Emma is the Senior Specialist for Business Development and Projects Operational Excellence for Europe.

And Finn is the Head of Operational Excellence also for Europe.

Emma and Finn just rolled out Corso's intelligence store management Solution in over 3000 stores as part of a much wider project initiative at Circle K.

Which means Emma and Finn are the definition of an Omnistar because they are working hard to put store employees first and to give them the tools they need to succeed in this digital first world.

So congrats to Emma and Finn.

All right, and let's get to the headlines.

In this week's Fast5.

We've got news on Amazon restructuring its grocery leadership again.

H and M betting on AI upgrades within its stores.

Albertsons going all in on in store digital displays, Costco building its first ever standalone gas station.

And Lowe's VP of Marketplaces Michael McCluskey stops by for five insightful minutes to give us the 411 on why he and Lowe's think the time is right to build out their own marketplace.

But we begin today with big news out of Walmart and yes, that's right you guys.

Walmart decided to try something a little different with the launch of Nintendo Switch 2.

According to Modern Retail, Walmart delivered every Nintendo Switch 2 console pre ordered by customers by 9am local time and some even arrived as early as 7am and customers did not have to pay for the extra express delivery.

Additionally, to the surprise of shoppers, some of whom shared on social media, the retailer included Coca Cola bottles and Pringles chips alongside the consoles for free as an extra wow factor.

David Gurgina, the EVP and Chief e commerce Officer for Walmart US said the company wanted to use the launch to bring awareness of how quickly the company can deliver food items while alongside general merchandise.

Brooks, we're going to you first on this one.

I can't wait to hear what you have to say.

With the unique approach to the Nintendo Switch to launch, has Walmart forever changed the merchandising game around hot new product releases?

Well, and you had me at free snacks.

Yes, if I.

You can't stop it, right, Brooks?

That's the whole tagline, right?

Well, you're exactly right about that.

If I could just get my teenagers out of bed before 9am to pick up that package.

Somebody tell me that secret.

Even 7am you said?

Yeah, this might be motivation to get out of bed.

A new gaming console, Maybe.

We'll see.

Something feels amazingly ingenious about what Walmart pulled off here.

I'll be eager to hear more about the results and the execution.

This feels like a big win for Walmart.

Nintendo, Coke and Pringles, I'll say, which were along for the ride.

Yep, there are people that like to wait in long lines for a launch.

These people exist.

I'm not one of them.

This is service with a smile.

Nothing pairs better with gaming than Coke and Pringles.

So hey, kudos to Walmart for this vision.

I absolutely love it.

Yet how do you think, and were you surprised, Brooks, that Walmart was the one to kind of upend or to kind of change the merchandising game around?

You know how they do these product drops?

Well, I've loved Walmart's vision the last couple years.

The imagination.

I love that creativity.

I think this is the future.

I think it's a, it's a game changer as you said.

Chris, how about you?

You're, you're one of the, the merchants of the group here.

I mean, how much of an impact do you think this is going to have for even competitors in the space who are all trying to figure out how to launch these products in new and exciting ways.

Yeah, it's a great question.

And you know, you know, having been, you know, live in the war rooms during these product launches back in my Target days, you know, I think 100%, yes, I think Brooks is right.

This has changed the game forever.

And the reason I say that is because retail retailers are creatures of habit.

They don't, they don't do anything until they see somebody else do it and do it successfully and then they all follow suit almost like lemmings to a point.

And so that's what this is about.

You know, it's a, it's an approach, I mean, Brooks hit on a little bit.

It's an approach that beats standing in line and getting to the store only to be disappointed to find out, you know, that what you wanted to get is no longer available or even to go into the store to pick up your pre order.

So.

Yeah, and then you get the extra surprises of Coke and Pringles to boot.

So yes, my guess is the rest of industry and really the only players we're talking about in this space are our Best Buy, Target, used to be GameStop.

I don't know how much they're still in this game, but, but really that's who we're talking about.

And I wouldn't be surprised if the next time this comes around, all of them are going to do something very, very similar.

Yeah, especially with a category that is really one of the things that's, that had been really driving people to stores.

Like it was so important for people to have these product drops.

Bryson, what are your thoughts here?

I mean, what do you think about how this is going to change, like what Chris said, how maybe even Target or you know, some other retailers, Best Buy, start to market these product drops?

Yeah, no, I, I think it's the, the change is going to be meaningful and significant and I think swift as well.

I think just given the success that Walmart achieved in this drop, not only with the surprise and delight of their, you know, customers that participated, but also the word of mouth buzz that was generated through this.

Right.

On platforms where you traditionally don't see Walmart indexing, right.

The gaming platforms where this, these cohorts engage, so the word of mouth, the positivity you achieve through it.

But then I think also too then flipping over to the brand side, really that coveted access to, you know, those consumer insights and really that deep meaning the ability to establish that deep, meaningful connection one on one where brands are struggling with you know, competing with share of mind with their consumers obviously, you know, reducing assortments in store, competing for offline purchases and elsewhere.

So for Walmart to you know, bridge that gap and not only identify a key cohort that is vitally important to Coca Cola, Pringles and other brands and then be able to make that connection, I think is a huge win and you're going to see much more excitement and actually now brands starting to pull and push and setting that expectation.

So I think, you know, could be a little bit of a, you know, the genie's out of the bottle so be careful what you wait for.

But I think you're going to see more brands now flooding for that direct one to one connect with their retail partners 100%.

Yeah, I think that's the brand play here is, is just brilliant and I think this is definitely going to be one of those other touch points like you're saying Bryson, you know that where it's retail media.

But then how do I intercept and get in there in front of our consumers at home and how do I get in front of them in the, and I think the, the number one thing that you, you just mentioned that got me thinking here is the swiftness of how this can happen.

I think it's really important to call out who's speaking on Walmart's behalf in this article.

It's David Gugina.

It's not the brand rep, it's not the electronics buyer, it's really the supply chain team.

And, and when you think about all the logistics that have to go into making this be executed as flawlessly as it was to deliver in some cases by 7am like this involves coordination at a scale that Walmart clearly is ready to do.

Our best buy in Target also equipped with their internal operations to handle an execution like this.

That's the question that I have for how quickly we'll end up seeing some of the other retailers follow suit.

But Chris, it looks like you got a point to close on here.

Yeah, no, I think that's a great point, you know, because David Eugenia, for, I mean for those that maybe aren't as familiar with him as you are and you know he was formerly the EVP of supply chain and now is the head of E Commerce.

So he brings those chops to the table to execute.

So your question about can other people replicate it is really interesting.

The other point though that I think about is that I actually think this is an easier model to execute than the traditional pre order drop in the store as well because you Know, who needs who, who's demanding the items, and you just got to get them to them.

And then the last point I make is I also think this is very repeatable across other product categories, Like I think of fashion drops and things like that that, you know, like our, our former retail, our former employer loves to do as well.

So, like, this is very, very easy to do and replicate across the industry, not just it doesn't have to stay within electronic shops.

Bryson, close us out with the last word.

Yeah, and Chris, I think you brought up a relevant point that we really haven't given a lot of attention to.

Right.

And that is the impact on the physical stores.

Right.

So to prepare for and be able to facilitate these drops, look, over the past years, it's come at, you know, some risk for retailers, right?

Queuing up long lines, dissatisfied customers who weren't able to get their hands on the product.

You know, customers chomping at the bit and rushing through the store to be able to find that product.

So it really alleviates a lot of the potential legacy headaches that we've had and we've seen in these traditional drops, whether it's Black Friday, new product releases.

So there is a knockdown benefit of that too, in the sense of being able to control the narrative and satisfy all the customers as opposed to sending away some dissatisfied.

Yeah, great point.

And not even just the stores online too, because you can actually over fulfill your demand online and then have to issue a lot of apology notices on the back end of that, as well as I've been a part of in the past as well.

So.

Yes, so there's a lot of operational wins here too.

All right, headline number two.

Amazon has restructured its grocery leadership.

According to Grocery Dive, Amazon has named a restructured leadership team for its worldwide grocery division that includes top executives from Whole Foods Market.

The latest moves are part of an initiative Amazon is calling quote, One Grocery.

Wow.

And marked the first major realignment under Jason Biko, who became head of Amazon's grocery division earlier this year after serving as CEO of Whole Foods since 2022.

One grocery is just so creative, don't you think?

And in addition, Whole Foods Market's corporate employees will migrate to the same system as Amazon employees for benefits, compensation, structure and other aspects of their jobs.

And Amazon spokesperson confirmed to Grocery Dive, Bryson, what should we make of Amazon's One Grocery strategy?

Restructuring?

Or is it just more sound and fury ultimately signifying nothing?

No, no, it's a great question.

And so I, I don't think it's the latter, I think, you know, they're don't.

Okay, interesting.

I don't think it's the latter and I think quite honestly it's, it's long overdue.

Right?

I mean the acquisition of Whole Foods was back in 2017.

You know, now fast forward to 2025.

So for you know, Amazon to be able to, you know, effectively break down the silos that have existed between Whole Foods, Amazon Fresh and Amazon Go, I think the benefits are going to be exponential with respect to, you know, bringing together both physical as well as the digital insights for consumer trends, being able to cross pollinate ideas amongst the different retail banners and then leveraging and really bridging that gap from a true omnichannel standpoint in grocery.

So I do think that there are long term benefits or there are immediate benefits as well as long term benefits that they're going to unlock through this.

I think, you know, it does send a long term signal to the employee, internal employees as well, you know, giving them greater access to assets that maybe weren't available to them in the past, unifying on one platform, simplifying processes.

So I think the efficiencies, the insights as well as the reach are really going to be what set this move apart and really set Amazon up for long term success under the one grocery platform.

Wow.

Okay, so I'm, I'm a little surprised by that take right at the get go.

So let me ask you a follow up question there.

So, so no concern at all then about, you know, moving the Whole Foods employees onto the full Amazon compensation package benefits, no concerns at all about what that does to the culture of Whole Foods?

You know, I think it's a good point and a good, a good risk.

I know that, you know, just comparatively other retailers have been very cautious about merging online and physical, but I think, you know, the Runway has been long enough to where, you know, those cultural norms I think are established.

And I think, you know, and I am maybe going on a limb here and giving Amazon credit for, you know, not disrupting the boat too much in preserving some of that integrity.

But I think the, you know, benefits of being able to, you know, break down the redundancies, drive efficiencies I think is only going to result in, you know, improving the employee dynamic and dynamic amongst the members at Whole Foods and the like.

So I do think there is upside in it.

I think, you know, you bring up a book point about maintaining the delicate balance of the culture, but there, I think just given the access, the elimination of redundancies and overall efficiencies, I think that would outweigh the risks.

Interesting.

Interesting.

I'm not sure I'm buying into the argument of reducing efficiencies.

Is what, what Whole Foods needs to continue to be great.

But I'll save that for now.

I want to hear what Brooks has to say.

Brooks, do you agree with your colleague here or, or are you going to take a different slant?

Well, look, I'm going to go on record as never disagreeing with Bryson on the topic of grocery.

I know, right?

That's what I, I feel, I feel like, I feel like danger Will Robinson.

Danger Will Robinson already.

But let's, let's go.

So I'm going to take the proverbial wait and see on this one.

I mean, it's hard to believe it's been eight years since the acquisition and I think all of us expected this to be a major industry disruptor, but I think we're just still waiting for that.

Right?

I mean, groceries, what a trillion dollar market in the U.S.

amazon has 3, 4 or 5% share.

I mean, I think a lot of us were expecting more and maybe this is the answer.

I'm not sure.

Right, okay.

So you're taking a little more cautious approach.

Okay.

And what do you think here?

I mean, I think that it makes total sense if I'm Bryson and I'm coming in and I'm looking at how do I streamline operations, how do I continue to make Amazon's grocery success possible?

Like all of the things that Bryson just said have to happen.

I do.

However, I agree with that.

Yeah.

Think that just based on what we heard time and time again last week, Chris, from the grocery retailers that we talked to a consumer goods forum last week, they were all talking about having this sense of purpose in their roles of the corporation being not only about making sure that people get food, but providing feeding the world with the most affordable and healthiest food possible.

And what worries me is the line in this press release of, and other aspects of their job.

Like, I think from a, like, that's the part for me that I do think is going to really impact how successful this is in terms of the current workforce and the current culture and the current consumer expectations of the Whole Food customer.

Because I think if you go too far into autumn, automating and Amazoning a grocery store like Whole Foods, I, I don't know that you still have that edge that that Whole Foods has had in the market.

So yeah, I, I, I, that's where I'm, I'm at that point too.

And like I said, you know, from the people we've talked to that have worked at Amazon, like, the vision I have of working there is like, their systems are like, there's like clocks everywhere that you're watch that are, are watching.

You and counting down, like, how quickly.

You respond to emails and how quickly you get your job done and all that kind of stuff.

And if I'm a Whole Foods, like, lifer, I'm like, forget that.

I don't want that.

And so, like, I don't know how that, you know, makes that, that stifles my creativity somewhat, which is what Whole Foods was so good at.

But I mean, to go on my point now, I think, to me, I, I think it's, it's the move you expect.

100.

I agree with that.

I don't know what else you do, honestly, but I think going back to the question, I think it actually does signify nothing in the long run.

And I'll go even farther to say that in 10 years, I think Whole Foods is going to be a shelve its former self and be relegated to the dustbin of nostalgia if this plays out the way I think things are going to play out.

Because, like, look, Tony Hoggett's gone.

Claire Peters is now gone, which I didn't realize until this announcement came out.

Both are seasoned grocery executives, and they've, they're gone after countless other executives in Amazon Grocery have gone before them.

And so now you're putting Amazon Whole Foods on the Amazon incentive structure.

I just don't think that bodes well.

But the biggest tell for me in this is what does Amazon have to go on strategically here?

And the biggest tell for me is like, there's this weird metric that they're quoting about the Amazon Fresh remodels where they're saying like, that the average monthly store spend of a consumer has increased 20%.

I've never heard that statistic before.

Like, shouldn't that just be like, the average store is up 20%?

Like, what are you telling me with that statistic?

Like, I don't get it.

So, like, it seems like they're reaching as well for this.

And so I just don't know strategically, why, what is it?

Why does Amazon have a right to win in grocery at this point compared to the competition?

I just don't understand that.

But I don't know.

I'll give one.

Do any of you guys want the last word to, to retort on that?

Sure, I'll take that one.

So, you know, I think why do they have the right to win?

You know, and I think it really is, I think this is probably one of the best use cases for, you know, the divergence of the physical and the digital.

Right.

And I think Amazon's been reserved in that approach.

Right.

But we're starting to see it, we're starting to see the digital encroach on Whole Foods.

Right.

In the last time that I placed an order on Amazon, you know, I'm loaded to it, you know, anything else window where it prompts me to fulfill, you know, traditional food staples, right.

Perishables, arguably coming from Whole Foods.

You know, when you're facilitating returns for Amazon, you know, you have the convenience of dropping into Whole Foods for that.

So I think what's going to set them apart is really that 360 degree access into insights.

So I think, you know, you bring up a point.

It is incredibly imperative to protect the core and understand the core consumers.

But I think the robust insights and analytics that can be brought in from the digital as well as the other banners that Amazon operates does bring meaningful insights into the consumers.

So provided there to the Whole Foods consumer, so provided they are able to preserve, you know, what's made them successful to date, but also augment that with those additional opportunities to spot, identify and react to trends in a much more meaningful and faster manner presents a value proposition for the Whole Foods consumer.

Okay, okay, well, I guess we'll, I think we'll agree to disagree on this one.

We'll see where we go with the rest of the show.

All right, let's move on to headline number three.

H&M is betting on AI to upgrade stores and to face off against online rivals.

According to the Wall Street Journal, H and M is betting on upgrading a slimmed down store network to regain ground lost to rivals that sell purely online and hopes that artificial intelligence will smooth out the integration of its digital operations with its its physical Footprint.

H&M's share of the global apparel market declined to 1.1% last year from 1.2% in 2019 before the pandemic.

According to global data.

Zara's market share grew to 1.3% from 1% during the same time period.

But shein expanded rapidly to leapfrog the European fast fashion giants with a market share of 1.5% in 2024, up from 0.1% in 25 years before.

H&M has been applying predictive AI for several years and is exploring the use of generative AI and AI agents.

Attracts consumer data around fashion trends Style preferences and sizes to learn which products sell best in different markets and transfers data to stores with the aim of delivering better consumer experience.

It said the company also relies on AI for supply chain management, pricing and marketing, among other tasks.

Brooks, we're going to you first here.

Will the focus on AI and better store operations be enough for H and M to stave off the threat of Shein and Temu?

Oh, hey, and I just counted.

You said AI 12 times in what you just.

Oh, my God.

Or maybe it was 13 times.

Now I'm reading the Wall Street Journal article.

Brooks, I take no responsibility for that.

But yes, I agree with you.

Go ahead.

Look, I think it's hard to say no to more AI.

I mean, I'm not going to buck that trend.

Yeah.

And I'm going to say that fast fashion has a lot more to gain than most.

I mean, H and M is going to benefit a lot here.

So I like the push.

Think about the opportunity with AI, particularly in apparel returns.

You're talking to somebody who spends a lot of time in A and M.

And you know what I'm doing in.

H and M.

H and M?

Yeah, I said A and M both.

You spend time in both.

I spent a lot of time in H and M returning my wife's online apparel purchases.

And anything that you can do to make that a more efficient process, reduce the number of returns that's got big return on investment for H and M.

Right.

Yeah.

Bryson, what about you?

What are your thoughts here?

Do you think that this is a smart investment and will this keep them in the competition against Shein and Temu?

So I think it's the right move.

You know, it's hard to argue that it's not right.

It's going to help them, you know, really zero in on better understanding their customers.

Aligning assortment.

The bigger question, is this going to be enough to stave off TEMU and the threat of Sheen?

No.

Yeah.

It's not.

I think what we have to recognize here is that, you know, it is the right move, it is the right play.

But just in taking this approach, they're essentially going to narrow their assortment and their offerings for the customer.

Customers.

Right.

It's going to be the right products, but it kind of, you know, flies contrary to the unlock that digital has in the sense of the expanded assortment.

Right.

So everything for everybody.

And, you know, couple that with Sheen and temu's low cost, you know, high velocity model.

It's, you know, creating an uneven playing field in that regard.

It will drive efficiencies but, you know, it's, you know, potentially going to fall short of customer expectations with respect to assortment.

And then, you know, we have to also take into account that just as H and M is now making this investment, we could argue that Sheen and Temu have arguably been executed AI and probably doing so at a greater scale than that of H and M.

So it becomes a way to narrow the gap.

I don't think it becomes a point of differentiation.

It is a must have and a must do, but it's not going to be enough to stave off their continued growth.

Okay, I, Chris, you're nodding along.

Are you in agreement here?

Yeah, Unlike the last headline, I vociferously agree with Bryson on this one.

I think it's the right move.

Improving productivity is always a good thing to do, but, but it's not going to do a darn thing to stave off, you know, the growth threat from the online competitors, you know, because if you look at it like improving stores is exactly about that.

It's about improving, you know, things on the margin.

It isn't transformative, nor does it insulate you from the channel threat.

So, you know, and I would actually go a step further here, like where I think it, it brings up questions about how the leadership at H and M is really thinking about this.

Because if this is what they're talking about, I wonder.

I don't think they've got enough dry powder in their keg.

And the reason I say that too is because I look at their soho store in New York.

It's a very reduced assortment as well that plays on this idea that you can put less products in your store.

And I just don't think at their margins they can afford to do that in a way that they're going to be able to compete against their current business model.

Then you throw in the threat of Sheehan and Teemu as well.

I just think it's, it's, it's going to be a hard game to play.

And so I think the, I think the, the, the leadership needs to come up with some more ideas here pretty quick.

Is, is my, is my take on this one.

What else would you do?

I mean, what would you have them do to really stay competitive that they aren't doing?

Because I think that's my question here, like, I think they are.

This is the right move for H and M to be focused on, to stay competitive as a business entity.

But what would you say that they should be focusing more on, Chris?

To, to stay more competitive or to put them in a better place against Shein and Timu.

Yeah, I think because you have this.

I think this is very similar to what happened with E Commerce back in the day.

I mean, you have stores, so stores are still going to be a valuable asset in terms of how you can reach your consumer.

So I think then you have to meet the table stakes game on the production side and the fast fashion that you can produce digitally.

So I would actually be trying to emulate what Temu and Sheen are doing with the factories that you're working with and giving the customers the same options to have those small runs of batch, those small runs of products sent to them on demand.

That's.

That's what I would be doing.

I would be trying to fortify my position, you know, similar to how people ultimately fortified their position on E Commerce back in the day.

Yeah, I think.

I think there's a couple things that we have to take into account here.

I think, you know, the.

The soho store, the H and M store is a lab store for H and M.

I don't think that, you know, they are.

They tested fair point.

They haven't seen that store yet.

That they're rolling that they've already rolled out, like the RFID programming and that kind of thing.

Like, they've already rolled that out to other stores.

They're not consolidating.

I think that was more for a lab perspective to like, test on a smaller batch of product.

But I think something that's really important to hit on is that.

And Chris, you mentioned this, like, 85% of shopping is still conducted in stores.

H and M, I think, is smartly investing here in making sure overall else that if I do want fast fashion, I can get it that same day.

And that they know they're investing in things like generative AI and agentic AI so that they can quickly provide that information to me as a consumer.

So if I need a tank top, I don't have to wait two weeks for it to come from Sheehan and Tebow.

I know I can go to my local store within five miles.

They have sizes small, extra small and medium.

And I can choose from any of them.

Like, that's what I think is really important about what H and M is doing here.

And I think they deserve a little bit of credit for being like that place that confidently knows that where their products are, where their stock is, what's trending, and how they can put that at the forefront of their stores to still operate that model efficiently.

I do think that there is probably some programming that needs to happen, though, to your point, Chris, where they can stand to compete for some other items that will take a little bit longer to get to consumers.

But as long as this de minimis exception is removed, like, and the products cost the same and they're still taking two weeks to come from she and her teamu.

I think that this is a really smart play from H and M.

But I'll give you, I'll give you the last word, Chris.

Go for it.

Oh, no, I don't think so.

I mean, I, I, I, I, I, I think I agree with everything you said.

I just think it feels like it's more of a stop approach.

And I think even, even this, even the volume numbers that you're quoting in the stores, and maybe Bryson and Brooks know this better than me.

I have a feeling fast fashions, you know, bleed or impact on store volume is greater than, say, the online impact of, say, grocery or a comparative business too.

But, but yeah, that's just my take.

I think, you know, you're, I think you're dead right.

It's something they have to do.

But like the, the basic tea that I need right today, they're gonna always going to keep that business.

It's all the other businesses that are getting siphoned off or all the other, you know, customer interactions that are getting siphoned off over time based on the exponential growth of this.

And it's not just, it's not just us, us and de minimis either, as we learned at Shop Talk Europe.

I mean, this thing is big in Europe too.

Yeah.

Let's bring Michael from Lowe's onto today's show.

Joining us now for five insightful minutes to discuss his company's recent push into building a third party digital marketplace is Lowe's company's Vice president of Marketplace, Michael McCluskey.

Michael, let's start with this.

We've been seeing a lot of momentum around marketplaces with top retail leaders.

Why was a marketplace prioritized at Lowe's and why now?

You know, for us, Marketplace, it really starts with creating an endless aisle for our customers.

Right.

You know, the unique thing about the, the Lowe's customer, and I think what is going to continue to differentiate us quite a bit as we expand our digital experience for customers with Marketplace is that our customers are coming to us not just to search for a product, but they're coming with a project in mind or a problem that they have to solve for their home.

Right?

And so we've been on a journey the past several years to really Expand our digital experience at Lowe's and Marketplace just felt like the natural next step for us.

Right.

You know, we talk a lot here about the e commerce journey starts with having the right assortment for customers.

And we knew that really, in order to fulfill that, that need for customers and be there for customers, the best way to do that and to rapidly accelerate and expand the assortment that customers are looking for these days was to do so via a marketplace.

So we've just recently launched, and we're really excited about what we're seeing so far, the traction from customers as well as our sellers.

Well, Michael, you mentioned endless aisle, but what would you say are some of the other goals of the Lowe's Marketplace initiative?

You know, our goal at Lowe's is to be the most customer centric omnichannel retailer out there.

Right.

And so when you look into the home space, you're looking at total home.

Total addressable market in the US Is roughly a trillion dollars, and it's highly fragmented.

So you think about all of the opportunity that's out there from an assortment perspective.

Right.

You know, our goal starts with the customer, as I said.

Right.

And so it's really making sure that we continue to deliver on a frictionless customer experience.

You know, frankly, I think customers aren't thinking in the lens of marketplace.

Right.

That's for us to talk about.

Right.

But they're thinking, hey, was Lowe's able to solve my problem?

Did they have the item that I was looking for?

But we also have a new customer here.

As we expand this platform in this marketplace, we also are treating our sellers as a new customer into the Lowe's ecosystem.

Right.

So our ability to kind of connect the seller to the Lowe's customer, the customer who's looking to solve a problem for their home, is really a big ambition of ours, and we think we're well positioned to deliver on that.

So our goal, Ann, really, is just to continue to deliver that frictionless experience for both customers as well as our seller partners now.

Interesting, interesting.

So this experience is pretty unique.

And there's one aspect of it that I want to learn more about too, Michael, and that is that the initiative extends into Lowe's pro business.

Can you tell us more about that and how that works?

You know, the pro customer at Lowe's, this has been a growing segment of our business.

You know, roughly Today, we're around 30% of total Lowe's business is the pro customer.

You know, who is that customer?

Right.

They are the small to medium size and even large size businesses that are working on projects out there.

And what's exciting for us is, again, it's about assortment.

Right.

So it's not just the homeowner, the do it for me or do it yourself customer that's at home working on projects, but it's also this business owner that is looking for assortment, and we want to be able to satisfy that customer as well.

Right.

And the other thing I think that's really exciting for us is when you think about, you know, the seller experience and how we can continue to differentiate ourselves is we have this customers for our sellers.

So they're going to shop a little bit differently.

They're shopping in different quantities.

Right.

If they're redoing, you know, a building and doing bathrooms within that building, they're going to look for a vanity or mirrors.

They're not just buying one.

They're going to be buying in bulk.

And I think that's a pretty compelling value proposition for the seller when they start to think about new channels that they.

That they can launch on and grow their business as well with.

I love this.

Michael, what.

What other categories do you think that you'll be expanding into as this marketplace grows?

We think about marketplace really as fulfilling that.

That kind of torso and the long tail.

Right.

Where there's just a lot of breadth and depth within the category of assortment and taste and style.

Right.

I recently just moved here into the Charlotte area, and as we think about, you know, our home and all the things that we want to bring into it, you know, we're finding that we're spending a lot of time browsing online.

Right.

So you think about home decor, furniture, accents, outdoor.

Right.

Seasonal outdoor living, but even getting into some of our core areas like tools, for example, the opportunity, even with brands that we already work with today, to extend their range in the endless aisle, fashion.

Right.

Into bringing all of what they offer in their full catalog onto lowe's.com will really help our customers.

So, you know, the way I think about it, Chris and Ann, is this.

We're not trying here to be the everything store, but we do think we're well positioned to be the everything for home store.

And Marketplace is going to really help us, you know, make some progress on that front.

You are speaking my home furnishings digital language, my friend.

Wow, that.

This is so great.

All right, well, let's get you out of here on this.

So is there anything we didn't ask you about that you're excited to tell us?

What I would just leave you with is this, you know, a couple of points you know, we're super early on in this journey.

Right.

This is very early innings for us with Marketplace and Lowe's.

But what I can tell you is, you know, the opportunity is massive.

Right.

So again, I mentioned that total home in the US total addressable market, we're looking at a trillion dollars.

You know, just the sheer breadth of items that we're able to sell online.

We're super motivated and encouraged also by the early traction that we've seen since we've launched this business, both from customers as well as interest from the seller community to partner with us and be able to expand their business on those.

So I would just say, you know, expect to see a lot more from us.

We're really excited about this and encouraged by what, what we've seen and delivered so far.

Great stuff, Michael.

Thank you.

Thanks, Michael.

All right, headline number four.

Albertsons is launching its own in store digital display network.

According to chain storage, the grocery conglomerates, Albertsons media collective retail media arm.

Whoa, say that again 10 times fast.

Is partnering with shopper engagement solution provider Strata Cash my one of my favorite names of any tech solutions provider in retail to deploy a fleet of digital screens that will support in store advertising in its stores.

The in store digital display network pilot will launch during summer 2025 in select Albertsons Company's stores in two key regions.

Featuring large format premium displays in high traffic areas at selected touch points throughout the the store such as store entry and the produce department.

Albertsons expects this initiative will enhance the shopping experience for customers while also providing insights through advanced measurement capabilities for brand partners, allowing for proof of play, direct sales attribution and sales lift.

Bryson, given your steep grocery background, what are the chances that Albertson regrets deploying these digital screens?

Or do you think it is a no regret decision?

So it's interesting question and I would lead off and say that, you know, I don't think that it's a, it's not necessarily a no regret decision yet.

Okay.

Okay.

Quite honestly, you know, being able to disprove that, you know, fall squarely on Albertsons and what they're able to do here.

So I think kind of breaking down a few areas.

Right.

So there's, you know, no arguing that retail media is one of the fastest growing ad segments.

So as you know, retailers are now competing for more share of that spend on behalf of their brand partners.

You know, they've got to put forward the compelling value proposition.

You know, historically it's largely been in the online platform, you know, driving traffic to branded products.

This now you know, is a more meaningful way to kind of bridge that gap and bring the digital into the physical.

But with that being said, what's going to be imperative for Albertsons to succeed in is demonstrating that they're in lockstep with the brand's vision.

They know who the target customer is and they're able to put forward relevant and meaningful content that truly does engage and drive that point of sale conversion, which really was kind of what they're pinning their hopes on here, I think with this investment.

So to be able to, you know, craft that in a meaningful manner, I think is one of the biggest hurdles that's going to have to be unlocked here.

Because you're going from, you know, online where you can be very niche and targeted to now in the physical space where it's mass.

Right.

And you're, you know, casting a wider net in hopes of catching, you know, the meaningful fish.

But the ability to, you know, frequently cycle that content, make sure it's right relevant in engaging with those customers, I think is going to be a bit of a challenge, right?

In putting forward that direct meaningful and then tying that directly to an ROI and lift that you can quantify, you know, intake to the General Mills, to the Kellogg's of the worlds and demonstrate that, you know, we are moving the needle, this is a viable investment path for you.

So I wouldn't say that it's no regret.

I think, you know, this test and learn approach is the meaningful way that certainly I would engage with it.

I do see that there's upside, but I do see a lot of operational risk and get rights that are critical in the early stages in terms of upper, upper funnel identification and being able to translate that into the meaningful endpoints of engagement with the customers.

Right.

Addition to the capital costs and the execution of this in this at the store level too.

Let me ask you a follow up question then, because it seems like the grocery industry, if you step back 30,000 foot level, like it seems like the grocery industry in total is moving in this direction.

Do you think that's.

And in fairness to Albertsons, they also talked about increasing their in store audio play too.

Like if you were a grocery executive, would you be advising them to go and invest in digital screens to the degree that they're talking about it, or would you, or would you actually advise them to take make what seem like easier to execute approaches via like things like in store audio instead?

How do you think about that, Bryson?

Yeah, I think, you know, to answer that, I think you have to think that kind of how dynamic can you be with these screens?

Right.

And what can you do?

I think, you know, just comparing it to the audio, you know, it's, I'm probably not, you know, a sample size of 1 here, but you know, my objective as a shopper, not, you know, somebody in the industry as a shopper is really to get in and get out as fast as I can.

So to chin out kind of that ancillary noise around.

So, you know, I question how much that messaging is really resonating and captured with the customer.

Coming back to the digital screens, I think, you know, it's not just about advertising and awareness.

I think one of the unlocks in the article they were focusing on was generating new ideas.

Right.

With ingredients, recipes, solutions.

So if they can convert that into, you know, true value add for the customer.

Not just a point of display in the sense of, you know, here's a great promotion on product X but really, you know, here's a secondary use for a product that, you know, you may be familiar with or you may not be, but something that you can then incorporate into your, you know, routines in terms of recipes and solutions.

I think there is an opportunity there to, you know, drive that surprise and delight on behalf of the consumer.

But it's going to come back to the relevance, the, you know, understanding of what the consumer is really looking for and then translating that into meaningful content that's going to capture their eyeballs.

Right.

I mean, just think about the visual cues.

Walking into a grocery store, there's so much stimulus around you.

Right.

Whether it's the point of sale, signage, the secondary displays, the primary displays, the number of customers shopping around you.

So to be able to compete with that mind share, it really is going to speak to the relevance as well as the, you know, engaging content that's going to come forward on the screens.

Yeah.

Listening to talk, it sounds like there's still a lot to figure out to make this execute correctly.

And what do you think about this?

This?

Yeah, I mean I, I called out what you mentioned earlier.

Like, I think it's, it's a good move when done in conjunction with in store audio, other retail media promotions on the, you know, on an app in, on, in the hands of your consumers.

So that if there surround sound approach kind of thing.

Yeah.

Just like if so if there is a fail point with the screens which we've seen happen time and time again, I think that you, you have other things, things to fall back on.

But I guess this is where I, I think about things and companies that We've talked to recently, Chris, were like E Ink or like some other things that are not as dependent on like a digital screen could have similar impact, but with less concern about having a fail point because there's just no denying it.

A dark screen is bad.

It's a bad experience for the consumer.

It's great when they work, but when they don't or something doesn't get programmed correctly, I think it, it actually has a more impactful poor experience than it does a good one when it, when they're working.

So, yeah, I agree with you.

I mean, I'm kind of like, I mean, you always, you always give me grief when I ask you to put, you know, bets on things.

I'm like 50, 50 on this.

Like that.

Yeah.

I think, you know, there's a, there's an equally likely chance that, that Albertsons could be looking back on this years from now and being like, man, we just went too fast on this.

Or we thought it was something and it wasn't.

Because to your point, you need two things to happen for this idea to ultimately work.

The screens have to work day in and day out, which is no mean feat, and you have to get them repaired and replaced and, and all that kind of thing.

And it's just, it is much more difficult than people realize.

There's also the electrical issues that have to come in.

It costs more to run these things.

So.

And then the last point is you have to attribute the sale, which is what Bryson also said, because otherwise you're just investing in overwhelmingly large amount of capital for what is essentially just, just a video billboard in your store.

And that doesn't do anybody any good.

So, Brooks, what do you think here though?

Last word?

A last word.

It's not about the screens, it's about what's going to be on the screens.

I think Bryson said that extremely well.

I can't think of a sector with a worse track record in, quote, digital advertising than grocery.

So this has got to be a lot better than just the 12 page circular cut and paste it onto a screen and call it digital advertising.

I think there's an opportunity here, but look, I think it depends on what actually is executed on that screen.

Got it.

So, net.

Net a lot more to learn in terms of how to make this work.

And yes, your flashback to digital circulars.

Oh, man, Brooks, that's like frightening.

That's like Halloween part 12 for me.

Part 13.

Yeah.

All right, let's go on to headline number five.

Costco is building its.

Its first standalone gas station according To USA Today.

Costco plans to open a standalone gas station in Mission Viejo, California in the spring of 2026 in a bid to drive sales.

The new site comes as Costco works to expand its gas station offerings to members who pay $65 to $130 per year to shop at the warehouse.

Giant cheaper gas, on top of the 5% rewards that Costco gives credit card holders is one of the top membership draws for Costco.

And standalone stations could help alleviate traffic at existing warehouses, which often face, and I can attest to this, snarled parking lots and long lines at the pump.

Brooks, are you pro or con?

The idea of Costco building standalone gas stations both for the consumer and for Costco?

Both points of view, please.

Oh, this feels like the biggest no brainer today.

I mean I'm a big.

Really Costco?

Yeah, this is a, this is a big no brainer.

Greater.

I mean, look, add more hours, extend the hours, expand the footprint that you have.

But look, I think the next step here has to be standalone stations.

These are so popular.

To me it's just a matter of simple economics.

This is supply and demand.

This is economics 101.

You've got all kinds of demand given the member pricing, the benefits that you described in, but just not nearly enough supply.

I mean this is, I can't think of a more loyal customer base for gas than what Costco has built.

Love the idea.

I also love the buck 50 hot dogs too.

So don't give that up.

We might have a lightning round question that you're going to have to answer too.

Brooks.

Bryson.

Bryson, what about you?

No, so I agree.

I think this really does fall into no regret and I think it is a smart play.

I think the one element that I would add to it, and I think there's two kind of points of consideration here is one kind of the role of the, the fuel centers.

Right.

I think it is one that does drive traffic into the warehouse.

So, you know, they're going to have to compete with that in the sense of knowing that, you know, customers in this aspect are just coming in for the fuel.

We're not going to get the added benefit of the high margin basket items as they're going through at the warehouse.

But conversely, I think too, you know, understanding the dynamics of the Costco shopper, they really engage with the warehouses 1.6 to 2 times in a given month.

So this now presents an opportunity to increase that traffic and engagement with the customers, improving and enhancing Costco's, you know, top of mind mentality with those consumers.

So the frequency of engagement with the customer I think is also an incremental benefit that's going to be important for the members.

Absolutely.

Bryson.

I mean you think about just how many more people are more inclined to get a membership when gas, you know, which is for, for most people is even a weekly type thing that they need to do to be able to get these savings and then to have that in addition to, you know, their, their Costco club experience.

I think especially when you look at Sam's Club and Walmart who are also making a play and feel here too and they're going to start having their more of independent stations.

You have to as Costco I think be.

Be going up against them and being prepared, especially with a fuel strategy.

But Chris, close us out.

What are your thoughts here?

Yeah, I mean my thought, I 100 agree with everyone.

I think my thoughts are I wish I had Costco's problems, you know, at the end of the day like because I think when you layer this in, like Brooks said, with also the extending hours for, for their, you know, their most exact for their executive members.

I mean.

Yeah, this is also, this is also an operational, you know, idea.

You know, it goes back to my first year at business school with the technology and operations management class.

You want to smooth out your traffic flow and so that's why we're doing this.

This isn't the standard playbook from a retailer to build a standalone site that keeps people out of the store.

But what it does is it gets back to the subscription of why do people want to come to Costco and and the one thing they want is gas discounts.

But the one thing they also don't want that they don't want, which is a reason not to buy the Costco membership is when they not being able to find a parking space when you go there and being just burdened by how, how much, how many people are there.

So, so yeah, I think net net.

It's a great idea.

All right you guys, let's go to the lightning round.

We're going to continue a Costco conversation.

Bryson, this first one's going to you, but Brooks will let you answer it too because of your love of Costco, the hot dogs and all of the above.

Bryson, Costco is in the news a lot this week.

What's your favorite Costco product and is it worth worth getting inside Costco an extra hour early to procure it?

Yeah, no, absolutely.

Great question.

So.

And an exciting one too.

So you know, first off, caveat that with I have four children under the age of 14.

So I am in Costco a lot, Right.

Quite a bit.

If I had to break it down, though, what's my absolute favorite item to buy there?

You know, I really go for the brisket.

I've really, you know, kind of got into smoking meats over the past number of years and really trying to hone that as a skill.

You know, love all things Texas when it comes to barbecue.

And in trying to emulate that as best I can in Arizona, albeit, you know, it's still a struggle and still learning, but that is probably, you know, my favorite item when I go shop there amongst, you know, a multitude of others.

The shift to offering, you know, one hour earlier shopping convenience, you know, for the.

The business members, you know, is that a value proposition that I would go in to buy that product early enough?

No.

But, you know, it is compelling enough for me to avoid the congestion in the lines.

You know, given the, you know, affinity I have for Costco and the frequency I'm there.

I kind of have an endearing term for Costco.

I call it Zombieland.

You get in there in the high peak areas, you got everybody just meandering around with their cards, trying all the samples.

You know, if you just want to get in and get out, becomes a bit of a challenge.

So, yeah, the ability to kind of avoid that congestion would be compelling enough for me.

All right, Brooks, are you.

Is the hot dog your favorite product, or do you have another product that you'd buy?

Hey, my family still goes to Costco just for lunch.

We don't even go back.

Well, maybe lunch.

And the produce.

Well, maybe lunch, produce and the gas.

Those three things.

Nice, Nice.

You know, the interesting subtle theme of this, too, is, you know, makes me wonder if Costco's getting severe customer survey feedback or data that the parking lots are too congested, you know, and it's.

It's hampering them.

It's.

It's.

It's potentially a real tell here.

All right, question two to Bryson.

GM unveiled the quickest Corvette ever with its ZR1X hypercar, which goes from zero to 60 miles per hour in less than two seconds earlier this week.

Where does the Corvette rank for you in the pantheon of great automobiles?

So, Brooks, I think you were the one passionate about this, actually, given your affinity for automobiles.

So I'll let you take that one.

Hey, for me, Nothing beats the 1982 Pontiac Firebird Trans Am from Knight Rider.

Does anybody remember that?

Of course.

Of course.

Or maybe even my first car, which was a 1978 baby blue Ford Fairmont station wagon.

Oh my God.

That had a aftermarket JVC cassette deck.

Oh my gosh.

Oh my God.

I think I'd skip that one, but I take the Corvette Stingray every day of the week and twice on Sundays.

Go ahead, Bryson.

So.

So, Brooks, fun fact that I don't think we've talked about, but you know, my cousin's husband was involved with the reboot of Knight Rider in lead and they shift the Ford, the.

The Mustang in that regards.

What are your thoughts there?

Well, you just created some sadness for me.

Just died a little bit.

Just died a little bit.

I'm headed to Costco now.

Oh my gosh.

Well, I have a.

I have another option for you, brooks.

Question number three.

This year McDonald's is celebrating 50 years of the egg McMuffin.

In case that sounds more appealing to you than the hot dog, if not the egg McMuffin, describe your perfect breakfast sandwich.

Oh, hey, I'll be right back.

I'm going out right now to get an egg McMuffin.

I want that.

Hey, from New Jersey.

Everything starts and ends with Bagel Masters Egg everything Bagel.

They used to sell T shirts at Bagel Masters with the words I love Gl.

Nice.

I think I'm with you.

My perfect breakfast sandwich also has a bagel.

All right, last one.

Cheerios.

Has recently pulled and discontinued Honey Nut Cheerios Medley Crunch, Chocolate Peanut butter Cheerios and Honey Nut Cheerios minis from its from store shelves.

Let's see.

Bryson, I think this one goes to you.

If not, we'll just figure it out.

How saddened are you by this news and given the choice, are you more straight up Cheerios or more Honey Nut?

So I'm not affected by this one.

So I am straight up Honey Nut Cheerios bowl of Honey Nut Cheerios.

You know, I've been feeling crazy.

A little SL Banana in there.

It's kind of the perfect little breakfast if I'm on the go.

I think, you know, what I am saddened by and surprised by at the same time is just the proliferation of SKUs that, you know, Cheerios has introduced.

I think you know, last looking at the website, there's over 23 different varieties.

Again, being that long term, you know, loyalist to Honey Nut, I didn't realize their extensive.

The extensivity of their portfolio went that deep.

So it was a bit surprised to see kind of the, the number of extensions.

But I think also too it speaks to, you know, know them staying close to the consumer trends and understanding what's top of mind for consumer.

I think, you know, recently they've launched into a protein based cereal so capturing in on that health and wellness aspect.

So I think, you know, kudos to Cheerios for staying relevant, staying top of mind, you know, being willing to take those risks and identify potential new opportunities in test and learn.

So I think it's a natural evolution.

Am I saddened by it?

You know, not directly because I think it also speaks to, you know, them being at the forefront of trying new options and bringing different flavor combinations forward.

Yeah, you and me both.

I went on the website yesterday too.

I couldn't believe how many SKUs they had.

And yeah, and interesting news from General Mills overnight too, that they're going to remove artificial colors and flavorings in their products by I think 2027 if I'm not mistaken.

So yeah, a lot of, lot of lot happening in the food industry right now.

All right, that closes us up.

Happy birthday today to Richard Madden, Isabella Rossellini and to the woman who nearly upstaged Billy Crystal in the Princess Bride, nearly the great Carol Kate.

And remember, if you can only read or listen to one retail blog in the business, make it Omniton, the only retail media outlet run by two former executives from a current top 10 US retailer.

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You can follow us today by simply going to YouTube.com omnitalkretail Bryson, if people were listening and they're saying, hey, I want to get in touch with the A and M consumer and retail group, what's the best way for them to do that?

Yeah, I think the best way is to get that through our website.

It's www.alvarez and marcel.com and there, you know, you can find all, all of our bios, you know, compelled in reach out directly to Brook Brooks, you know, by all means, he's there.

And the easiest way to reach out myself as well.

All right.

All right.

Well, thank you both for joining us.

It's always a great show, always a lively debate too.

And we definitely have, we definitely had some disagreement today too, which is something we always love on this show.

So until next week, Omnitok fans, on behalf of all of us, as always, be careful out there.