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

To Omnitalk's Retail Fast Five, ranked in the top 10% of all podcasts globally and currently the only retail podcast ranked in the top 100 of all business podcasts on Apple Podcasts.

The Retail Fast Five is the podcast that we hope makes you feel a little smarter, but most importantly, a little happier each week too.

And the Fast 5 is just one of the many great podcasts that you can find from OmniTalk Retail's podcast network.

Alongside our Retail Daily Minute, which brings.

You a curated selection of the most most important retail headlines every morning and our Retail Technology Spotlight series, which goes deep each week on the latest retail technology Trends.

Today is December 11, 2024.

I'm one of your hosts, Ann Mazinga.

And 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 retailing.

Chris we only have two weeks left of the year.

Believe it or not, this is our last regularly scheduled Omnitalk Fast Five.

Are you excited for next week's episode?

Of course, Ann.

I mean, I love next week's episode.

Next week's episode is by far and away my favorite fast five to record every year.

I'm sure it is yours too, because, you know, we invite David Brown and David river from the A and M Consumer Retail Group to join us, which I think this is our third year they've done our holiday award show.

Right?

Like our annual third year.

They've done it.

Yeah, yeah, this is.

I can't remember how many years this is for us though.

I mean this has got to be.

Oh, yeah, we've been doing it since 2018.

So yeah, this is probably.

Yeah, yeah.

So we've done it for a long time.

But yeah, it's become an annual tradition with the two Dave's.

And I love when they come on because we touch everything.

We do, you know, CEO of the Year, Retail Headline of the year, Retailer of the Year.

And you know, my favorite category that you came up with last year too is retail headline you'd most want to turn into a movie, which I think is awesome.

I've got some, I've got some teas too.

And like, I think, you know, my Retail of the year, it's, it's a, it's a, it's still a race.

I don't know who I'm going to pick.

It's between Walmart Sprouts and Abercrombie.

Those are, those are my leaders right now.

They're sitting near the pole position, I guess you would say.

And, but we know who your CEO of the Year is going to be.

I mean, seven years strong, I think.

Seven years in a row.

Yeah, maybe, maybe you'll diverge this year, but I highly doubt it based on your history.

Absolutely not.

Absolutely not.

And there's not even a.

There's not even a 1A and a 1B.

For those listening.

And for those listening, she's referencing Doug McMillan.

Because I, I enabered with Doug and all he's done at Walmart.

But, but yeah, and the other thing about it too, Ann, is it's a salute to the A and M consumer Retail Group because they, we have such a unique partnership with them in terms of how they ask us the put you on the spot question every week.

They're very candid, Frank.

They appear on our podcast and talk about different retailers and give their opinions on it very candidly and point blankly.

It's just so unique and so testament to them.

And thank you to all their, their help and support over the year as well.

Yeah, it's going to be fun.

So make sure you either catch that one when we release it Next Wednesday or.

It's a good.

It's also a good listen for your holiday travels, right?

Yeah.

I mean, yeah.

And.

Yeah, and we cut it up into shorts.

We got 10 awards.

10 awards slated.

We'll cut them all up into shorts so you can take them however you want.

Bite size.

You can watch the full episode, whatever you want.

But.

All right, as we get to the headlines.

Let's get to the headlines, Chris.

Let's do it.

All right.

Today's headlines are brought to you by E Tail west in just 76 days and.

Wow, 76 days.

I know.

I'm counting it down already.

Yeah.

You can join Ann.

Ann is doing this show solo.

She's doing this solo.

But you can join Ann in sunny Palm Springs with the best in retail, brand and technology, including H M Skims, Zappos, Fabletics, and more.

Head to etailwest.com and use code etail partner.

All one word, etail partner to get 20% off this must attend event.

And you and Ann can sit and enjoy the sunny confines of Springs.

Yes, we can.

Yes, we can.

Just book it now.

That's right.

In this week's Fast5, we've got news on tractor supplies, growing store expansion plans, Porch pals, new porch piracy insurance.

That's 4P words for those keeping score.

Store.

I can't.

I'm stumbling over the p alliteration.

And 4p words for those keeping score at home.

Dollar General slowing its rollout of fresh food.

Elf Cosmetics creating a 3D shopping experience for its loyalty members.

And Kroger's Director of digital marketplaces, Brooke Chambers joins us for five insightful minutes.

But we begin today.

Or should I say rev up today's podcast.

Oh, God.

With big news out of Amazon.

Oh, my God, Chris.

Headline number one.

Amazon is officially in the online car sales business.

According to TechCrunch, Amazon expanded Monday into online car sales with the launch of Amazon Autos, an e commerce business that lets customers find, order and buy new cars, trucks, and SUVs from dealerships.

Amazon is kicking off the new endeavor with Hyundai.

Hyundai.

I never say that.

Right, Hyun?

Hyundai.

Hyundai.

I don't know.

In 48.

Hyundai?

I don't think so, but Hyundai, I think Hyundai.

Hyundai.

I.

We're going to have to, like, cut a clip of us trying to say this because it is ridiculous.

I.

I want to say Hyundai, but it's not right.

Okay.

Anyway, yeah.

48 U.S.

cities now, including Atlanta, Boston, Chicago, L.A.

new York.

And the launch comes more than a year since the e commerce giant announced plans to start Selling vehicles on its website.

In the second half of 2024, Amazon Autos will function in many ways like the rest of the broader Amazon e commerce ecosystem.

Shoppers will be able to search for available vehicles from participating dealers by model, trim, color, and features.

Notably, customers will also be able to secure financing and e sign paperwork via the Amazon Auto site.

Once the payment is finalized, customers can schedule when to pick up their vehicle from that dealership.

Chris, could you ever see yourself buying a Hyundai or any other car from Amazon?

Stumble down on the joke.

I love it.

All right.

Yes, I actually could.

I actually could see myself doing this.

I.

Okay, Yeah, I think this.

I 100.

I think this is pretty freaking sweet.

I think it's a great move by Amazon.

I don't.

Did you try it out yet?

Did you go on the site?

I did, yeah.

Yeah, yeah, yeah.

I can't wait to hear what you thought.

But I thought it was.

I thought it was pretty darn good.

I mean, it'll coordinate financing for you.

The pricing's transparent.

You can see all the features of the car you're buying.

And you can schedule the pickup, too, at the dealership.

So.

And the other part about it and which you talked about in the headline, read it.

It works just like Amazon's garden variety marketplace.

And so for that reason, I love it.

I think it's great.

And once there's more inventory than just Hyundai, look out, Ann.

I mean, that's what's so great about this.

Like, you know, if they get this off the ground, it's just going to keep rolling.

But the thing I really love about it, Anne, and this is the thing I really like, and this, the last point I'll make on this is, you know, who spends a lot of money on advertising?

Oh, yeah, yes.

The car companies, right?

Yeah, car companies.

And to this day, the car companies via Amazon's traditional online portal have not spent any money on advertising.

So, you know, and so why shouldn't ads exist in the same way they have traditionally existed on Amazon for cars?

And so this is a big, big play when you combine the fact that consumers can shop this way, but also Amazon could get significantly more advertising revenue from this play too.

So.

So, net.

Net, I'm, I'm in love with Amazon Auto.

And yeah, I didn't even really, I don't know how I didn't think about the advertising angle, but that's huge.

I mean, when I was in advertising the car, like, having an auto client was like the biggest deal on, like, you had to have an auto client to sustain an entire agency.

So I think, yeah, that's massive.

I agree.

I love this too.

But I came at it from the customer experience.

And actually what I thought the coolest part of this was, Chris, is the Rufus integration.

Like how you can use Gen AI now because that's, to me, that's like the logical process of going through.

Like, I'm looking for an suv.

I need to have five seats because I, you know, have three kids and two whatever.

Like all those questions that you typically would be searching on your own, you know, spending hours doing or talking to a car salesperson to kind of get to the right car for your family.

Like, now that can all be done on the Amazon platform.

And it brings in the advertising eagle that you're talking about too.

Like, what, what an even better opportunity for some of these car companies to start targeting or serving up, you know, their cars in that moment when you're really looking at it or being able to pull unique features.

So I that, that alone, to me it was like, that's really cool.

Plus, I've said this a million times, like, the car buying experience needs to be disrupted.

I've purchased two cars in the last five years.

Like, there's no re.

There's.

There's not even haggling on price anymore.

It's just like, this is the price.

It's all stupid stuff like warranty stuff and all kinds of things that take hours of your life that you're never going to get back.

And like, that stuff is out of the way.

You just go, you pick up the car and you're done.

And I love this.

I love it.

Yeah, that's a great point.

Yeah.

I'd rather sit in front of my computer doing all that stuff than sit in right in the office of some sales guy or finance guy while he prints out everything on a dot matrix printer.

And I gotta wait for him to do everything.

Yeah.

The other point I bring up about the ads and too, which I think is really interesting, is for new cars, particularly personalized ads do not exist in the automotive world.

Like, they don't.

Like, that's not something that we as consumers get served up.

So when I think about that and the potential here, this just, this gets really big, really big, really fast in my mind.

Yes.

All right.

Headline number two.

Tractor Supply has raised its store expansion plan goals and now says it will open 90 additional new stores in 2025 as part of its quote, Life Out Here 2030 strategy.

According to Chainsaw Age, the nation's largest rural lifestyle retailer.

Has increased its long term store count goal to 3,200 locations.

Wow.

Up from its previously announced target of 3,000.

Tractor Supply expects to open 90 new namesake stores in 2025, along with an approximately 10 new pet scents by Tractor Supply stores as well.

According to Tractor Supply's website, as of 9, 24, 2024.

Because I looked it up and it currently operates 2270 stores across 49 states.

Tractor supply also updated its total addressable market size to approximately 225 billion, up from 180 billion.

It aims to achieve a net sales increase of 6 to 8% and comparable store sales growth of 3 to 5% and expects earnings per share to grow 8 to 11% as well.

Whoa, lots of big, big, big data points there.

And yes, I'm curious, do you think Tractor Supplies expansion plans make you stop and go?

Huh?

I never thought about Tractor Supply in this way.

Oh, I thought you were going with the.

I thought you were going to go with the song like things that make you go home or we could do.

We could do that.

Two things.

Remember that?

Yes.

You know that one.

See this?

I know that one.

I need to stop referencing like 2000 bone thugs and harmony rap and I just need to go to like 90s club hits and then I will then be able to like collaborate with me a little bit more on that.

Yes, if it was on 97 FM and I probably know it, I probably know it.

But if it's anything, if it wasn't played on that, not happen, not have.

Well, to answer your question, yes, it absolutely did make me stop.

And the more I think about it, Chris, the more that I'm very intrigued by this headline.

I mean first of all, 90 new stores in this year alone, just the Tractor Supply banner and then 10 of their petsense stores which are like a Petco competitor or Pet Pet Smart competitor, that's pretty ambitious for one year.

And I especially think this is interesting because we've interviewed the Tractor Supply team, many members of their executive team and they get how to do omnichannel retailing.

I had already associated them with being more of like a rural retailer, but to see if you dive into the numbers to see the addressable market that they still think they have.

And do you remember when we talked to Colin Yankee a while ago and he said, you know, we have to zero in on inventory, we have to make sure our supply chain's in check because some of their customers are still driving, you know, 20 minutes to get to the store.

So like the more that I thought about this was like, yeah, they still do have a lot of opportunity.

And so I think that's a huge, huge thing to start to pay attention to.

And as they continue, I mean, 20, 2700 stores is what you said already.

Right?

Like that's, that's, I believe, 2200, 2200 stores, but then just adding another hundred this year, like this is starting to get to some significant volume.

And I think Tractor Supply is kind of this sleeper retailer out here that, that we need to all be paying more attention to.

But what do you think?

Are you, were you surprised by this?

Oh, yeah, yeah.

This, this, this headline definitely made me go, huh?

You know, like, wow, I had nothing thought about Tractor Supply in this way before.

And I think, you know, for that reason, I almost think it's the retail to watch of the next decade.

And I say that, I say that for three reasons.

I think, number one, 3,000 stores.

And you're talking Walmart scale at 3,000 stores there, right?

I don't, I don't even know if there's another retailer that, you know, of the same size and scope.

Certainly not in that category.

No.

Yeah.

And then two, the pets angle is really interesting as well.

You know, how do they, how do they think about that?

But then three, this is what I think is really fascinating with that size and scope comes back to retail media again, because retail media can become a real profit enhancer.

There are only so many retailers that can actually promise and provide their advertising partners a national retail media network.

And at 3,000 stores, even 2,000 stores, Trek just Reply is one of them.

And to your point, let's not forget CEO Hal Lawton's background is steeped in digital.

Like he, he was a digital leader before even becoming the CEO.

So.

Right.

He, he like understands how to capitalize on the retail media angle as well as anyone, if not better than any CEO out there, possibly.

So, so yes, I'm, I'm, I'm, I'm, I'm, I'm buying in on this one.

Like, go ahead.

Yeah.

And the retail media angle is interesting too, because unlike, you know, the typical B2C retail media like that you're offering, like Tractor Supply does a huge B2B.

And so I think, like, there's a.

There, Yeah, I guess, you know, the, the point being or point to end on is really there is so much more opportunity for Tractor Supply and they seem like the right team to execute it in absolutely the right way.

So.

Yeah, and we're gonna be talking about, we're gonna be talking about marketplaces with Kroger later.

Like, you know, how does that come into play in their strategy as well?

Like, yeah, absolutely, man.

Yeah, I would.

Yeah.

All right, T1 to watch.

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

According to retail dive, Porch Pals, an insurance product designed to cover the loss of stolen packages, has opened a wait list to subscribe.

Chris.

Which is now available nationally.

In the US last year, according to Capital One Research, one of every 180 packages delivered was stolen, totaling 119 million US consumers who lost $13.4 billion to package theft, with each package being worth $112.3 on average per the same report.

Wow.

Torch Pals protection, which costs $15 per month, or $120 total with an annual subscription, is linked to a customer's debit or credit card.

The company touts the coverage as broad and efficient, noting that it applies to deliveries from a variety of retailers that.

And that a claim can be filed in minutes and that reimbursement is sent within 72 hours of an approved claim.

The coverage also does not require victims of package theft to file a police report.

There are also some limits to the Porch Pals coverage, though.

Subscribers can only make up to three claims each year, totaling $2,000 or less.

Chris, this is also the A and M put you on the spot question this week.

Geez, I feel like I'm on a streak with these questions.

You are.

You are.

You keep getting them.

Chris, A and M wants to know who should bear the financial burden of package theft.

Is it a cost of doing business for retailers, or should consumers take it on, as the Porch Pals model inherently suggests asking a different way given former New York Giant player Adore Jackson.

Did I say his name right?

Adore.

You did, Ann.

You nailed it.

Okay, okay.

Who co founded Porch Pals?

Is the one thing that the New York Giants have gotten right this year?

Or is it yet another fumble and organizational debacle?

Affectionately yours, a tortured New York Giants fan.

I'm going to.

I'm really glad you got this one, because I do not follow sports closely enough to know what the hell they're talking about.

So, Chris, the floor is yours.

Oh, man, that's such a great question.

I love when they personalize the questions like that, too.

From the tortured New York Giants fan that wrote it.

All right.

Sadly.

And I think you know how to answer that question.

I think.

I think this is.

That this is right for the consumers to take on.

Really?

I really do.

Yeah.

I'm curious what you Think too.

But you know, retailers have borne the brunt of E commerce and all its additional costs for a long time now.

And consumers are still loving E commerce.

It's still growing, they're still demanding it even more.

And so for the business model to work in the long run and to keep retailers in business, I think if this is an issue then, then yes, I think it only makes sense for the, for the consumers to bear the cost now.

Of course, not every address is created equal.

I understand that not everyone has the ability to afford porch piracy insurance, but I think this is a starting point and the model can still morph over time to be more democratic for everyone.

But this is a good start.

And there's other models to this as well, you know, that, that you, you can use here, you know, you know, depending on the degree of severity too.

But this is the one that's been called out recently.

So, so net net.

So net net.

To answer the question fully, I think this is clearly, clearly in bold capital letters and the best scene to come out of any New York giant, past or present this year.

That is my statement.

I have nothing to compare that to, so I'm going to have to take your word for it.

But I do, I do agree with you that, you know, another survey that I saw in researching this was that, you know, it's $16 billion of annual loss that retailers are facing because of poor piracy.

And that's, it's just, it's too big of a number for retailers to try to, to cover off on.

And so I do agree, I think the customers are going to end up paying for this no matter what.

Now I am.

And ultimately the customers pay anyway, no matter what.

Right, Exactly.

Exactly.

Get right down to it.

Exactly.

I don't know though that I see this taking off.

I think that we're going to see it actually.

Other things happen.

One, I think that we'll start to see retailers the same way that we're seeing changes to return policies where they're charging for returns.

They're, you know, they're, they're including certain return restrictions.

Especially when we start to look at these subscription programs where it's like, okay, you know, we cover as part of your subscription program.

We'll cover, you know, any package theft that happens because they, the retailer gets the recurring revenue from the subscription program that might help offset that, that large line item of theft that's happening.

But I like me as a consumer, I'm not paying for this coverage.

There's just, I just, I could not see myself spending another $15 a month in the event that, you know, three times a year I'd need this, this coverage, this.

But I also haven't lost any major packages and haven't had to deal with the situation where, like, I'm out tons of money.

So I think this might be like a, a situation where you don't buy it until it's happened to you or you need it.

And I think that retailers will end up figuring out how to handle this with customers in their own ways.

So.

Yes.

So I guess I'm not buying it.

You're not buying it.

So I got two, I got two, I got two points to this, I think one to the question today and Emory, is like the other option is you can still just go to the store.

Right.

In theory.

Right.

So like, you know, or pick it.

Up at a location, right?

Yes, pick it up.

A secure location.

My question for you though, and this is what I allude to in the other models too.

Yeah.

The other model that I've seen or talked to people about is the model that's akin to like when you book an airline ticket and it says, do you want flight insurance at your.

Yes.

At the point of purchase.

Like, do you think that is something you could see yourself doing?

Because you wouldn't want it all the time.

You want to, want to pay monthly, but maybe for a specific item, like a big screen television.

Yep.

Would you see.

You know, you could see yourself doing that though, for sure.

Like, I think that's the difference here.

And that gets back to like what I think we're going to start to see retailers doing like Cozy Earth, it's one of my favorite brands and they, they automatically elect for you to pay $8 for insurance in case your, your package gets stolen or something happens in transit.

So you have to like, as, as the purchaser, you have to go and unselect that if you don't want the coverage.

And so I think that that makes total sense.

Or in that case, you know, you give people the option to pick up in store so that they're not having something of high value sitting outside on their porch.

But I, so that makes sense to me.

I, I just, I'm not, I'm not paying for extra coverage in, in this situation.

I just, I still don't see myself doing that.

I just, I change how, how I pick up the item or how I collect the item.

That's really interesting.

So for you, the consumer still pays.

You just don't like this model that Porch Pals is putting out there that's basically what you're saying.

Okay.

Right.

Or I mean, I also think that you look at, like, even headlines this week that came out like Best Buy, who's like, working now more closely on getting targeted drop off windows where you can elect, like, I think it's, it's going to fall on the retailers to give customers a myriad of options of how they get their things before they start, you know, before we start to see customers really roll over and start pay a $15 a month fee.

Yeah, I think I'm with you.

I think I like that.

The design of that model a little bit better as well.

All right.

And well, let's bring Brooke onto today's podcast.

Joining us now for five insightful minutes is Brooke Chambers, the director of digital marketplaces at Kroger to share her expertise on just that topic, marketplaces.

Brooke, your background is very interesting.

So let's start off by having you share a little bit about yourself.

I have been in marketplaces since 2013.

It's an exciting time for me.

It's over a decade.

I started my retail career at Sears and spent some time at Walmart at Kroger now.

So it's really exciting.

A little bit about the journey from a company perspective and managed and worked in a variety of different facets in marketplaces, which is exciting.

So that depth of knowledge and experience, experiences there.

And I'm also a student of retail, so I appreciate marketplaces and the representation that it gives in the space of retail, both online and in stores.

Brooke, let's get started with this.

Give us the lay of the land.

What's the current state of platforms and marketplaces?

We are now at a space where platforms and marketplaces are partners.

And it's so synergy.

It's so much synergy between the two of them.

If you go back, you know, to 2013, you know, when I started in marketplaces, it was a seller acquisition and business development, really funnel.

And now it's so much more than that.

You have a partner, a consultant, someone to walk you through that journey, both from a technical standpoint, but it's also helping usher in that seller experience component at the same time.

That's why you see so many new marketplaces going the route of a platform platform.

And Miracle has done a phenomenal job.

Adrian and team with how they're articulating that message with Miracle.

Right.

It's other, you know, platforms in the space, but they're doing such a phenomenal job.

But it's going to continue to get interesting.

And I think that's why you've seen the shift of so many of the more new emerging marketplaces in the United States, specifically and globally have been going the platform route for that reason.

So, yeah, and Adrian, the CEO of Miracle.

So I'm curious because, you know, you've been in, you've been in retail a long time.

You've been in digital commerce a long time.

You know, retailers can.

There's a lot of different investment opportunities in digital commerce, particularly.

So when you think about it, why, compared to other investments in digital commerce, what is the value that a marketplace brings?

Why should retailers invest there?

You think, one, it's customer retention.

It is the stickiness both offline and online.

And when you think about it, that offline component isn't talked about enough about, you know, the marketplaces who have fully scaled and said, hey, we're going to bring the customer to the store to keep that experience tight with returns.

Just as an example.

Think about it.

You have a customer walking in the door and they may do a return, but they're going to walk back and figure out, man, I may need to get X item for my home or whatever that is.

So that that whole synergy is there and really it's a fight for the customer right now.

Right?

Everyone going into marketplaces is how do I keep my customer, how do I expand my offering?

Right?

And that is the key.

And that's why it's such an important component to any online strategy right now.

Anyone in retail entering that space understands that.

Well, Brooke, with the fight for the customer going on right now, what advice do you have for other e commerce leaders who are kind of considering a marketplace platform model right now to accelerate their growth and reach those customers?

Do it.

Do it.

There's no question it's such an important facet of any retailer strategy right now because it is low investment, high profit, and the fight for the customer is going to win as long as you're keeping that customer experience tight and really understanding the ethos of your customer while you're going down that path.

So it's not really a question about should you do it, you should do it.

And I think a lot we're starting to see that in the space and.

There'S so many areas it's still expanding into.

Like, we haven't even touched on the retail media aspect as well.

So I want to get you out here on this.

What are your thoughts on the future?

Like, how do you think marketplaces are going to continue to evolve?

I think about social selling, you think about TikTok and what they're doing right now is really interesting.

I think the interesting debate between TEMU and what Amazon is doing to fight for that lower price point apparel customer is really interesting as well.

But I also think that it's going to continue to evolve into new categories specifically with retailers who were online and offline with brick and mortar presence that could expand and do so much more.

Like David.

David's Bridal is a great example.

I just think that's a really interesting space.

It would be really interesting to see if they were to go into the marketplace space because I think it would be amazing.

And then it's going to continue to evolve just using them as an example because Bridal is so specific.

But, but I think it's going to continue to bridge the gap with online offline social selling.

And listen, the United States specifically, we have a new generation that's about to evolve into a more mature spender and their whole mindset is really different towards shopping.

So it's going to continue to evolve as retail evolves, but it will be a staple in retail strategies for the very long term.

Brooke, that was great.

Thanks so much.

All right.

And I, and I really enjoyed that conversation with Brooke and I got to tell you, and too I've been getting inspired by all kinds of conversations we've been having about marketplaces recently.

And so I also decided.

News flash everyone.

I decided to write a manifesto and I'm calling it.

Oh my God, the Marketplace Manifesto.

How much time do we need for this manifesto?

Give us estimated article read time.

Here it is.

It's actually a pretty quick read given you know, my normal article length.

But, but yeah, I wrote it.

I wrote an actual manifesto for all e commerce leaders that they can share with their bosses to help push through chains for all those that have being beating their heads against the wall to expand their assortment and keep running against online traditional merchants that just can't understand the value of an expanded online digital assortment.

So I call Anne, you know what I called?

I called it don't leave money on the table.

How to rethink your marketplace strategy.

Okay.

Okay.

Pretty straightforward, right?

Where can we find that that manifest show?

Funny you should ask.

And I will put it in the link.

I will put a link in the podcast, show notes and as well as you can find it on, on Omnitalk on the blog.

Right on the homepage too for those interested.

But it's a fun article.

It's a fun read and I definitely it was very personal because there's a lot of A lot of past experience in that article.

A lot of past battle scars and all right, headline number four.

Dollar General is slowing down its fresh produce rollout.

According to Grocery Dive.

Dollar General's efforts to bring fresh produce, not produce produce to locations will continue into the new year, but at a slower pace compared to years prior.

Dollar General's plan.

Dollar General plans to begin selling fresh produce at approximately 300 more locations in 2025, bringing the total number of stores that have this offering to roughly 7000, which is still a lot of stores.

From 2022 to 2023, Dollar General added produce to more than 1800 stores, bringing the store count that offered fresh fruits and vegetables to more than 5,000 locations.

However, $ General still has ambitious store update plans in the new year.

During the fiscal year 2025, the retailer aims to complete around 4,885 projects.

That sounds like an exact number.

Very specific.

Yeah.

Including 575 store openings in the US and 2000 full remodels.

And is Dollar General's fresh rollout slowdown just an example of good capital allocation or do you think there's more going on here?

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

I think that, number one, this shows me that operating a grocery concept, especially one that includes fresh produce, isn't as easy as it might seem.

And even though you have the best financial modelers at Dollar General, I think you still can't predict, you know, how consumers buy the cost of food, like inflation.

Especially, you know, with Dollar General kind of bringing this, it's still relatively new to some of the Dollar General stores being able to purchase these things.

So I actually think that, you know, they've already got a good pilot going with 5,000 stores and I think they're smart to kind of slow roll the rest of the rollout because they, they're still learning from it and they're still having to develop.

And like I said at the beginning, like there's, it's still a very volatile and low margin industry grocery.

So I think like you have to be really able to flex and learn as you continue to expand, especially at the pace that they were going to do that.

So I'd be doing the same thing if I was Dollar General.

I'd be kind of phasing this out slowly.

And the other thing I'd be watching too is, you know, as Walmart is still gaining share in grocery and that's a lot of the other retailers that's closest to people in these Dollar General Geographies like, that's something.

They're low.

Low pricing is something that you're going to have to contend with, too.

So that's something else that kind of plays into this as a.

As a tertiary factor.

So I think it's.

It's both like modeling the financial component of this and then figuring out operations of, of running a grocery concept inside of a dollar store.

But where do you.

What do you think about this?

I mean, is this.

Do you think it's.

It can be modeled correctly?

Like, where.

Yeah, yeah.

No, yeah.

In reality, the question I ask you is kind of silly, you know, because in reality, like, if you're going to.

If you're going to reallocate your capital, it's probably both.

Right.

It's probably.

It's clearly not doing or not producing the ROI that they initially thought it was.

And so especially compared to the standard remodels.

So they're reinvesting their capital.

They're smart and, you know, and I think.

And is that common, Chris?

Like, you worked on Fresh, like putting Target Fresh together.

Like, where does.

How does that.

It's actually, it's actually not that common, I would say, because, okay, retailers double down on things they've said.

So I actually give a lot of kudos to them for saying, okay, you know, we're still going to do it.

We're going to slow it down.

We're going to do it in the stores.

We think, sure, you know, we're still going to do 300 stores.

We're going to do it in the stores where I think it's going to have the biggest impact.

The other thing, I'll say, because I think we talked about this when they first announced strategy.

Zach Brining is there.

He's former army star Zach Burning.

He was actually in charge of Target's fresh rollout, so.

So they have people inside Dollar General that know how to do this as well as anyone out there.

So I just think.

I just think Net Net, to me, it actually feels like a smart move on paper.

And I don't think I'd read anything more into it than that, honestly.

Yeah.

Yeah.

All right, well, let's.

That's.

That.

It's.

It's all wrapped up there.

We gotta check the box.

Check done.

All right.

Pragmatic discussion.

Yeah, right.

Headline number five.

Elf loyalty members now have access to a 3D virtual experience lounge.

Chris.

According to Internet Retailing, Elf Beauty has opened a digital shopping lounge for its beauty squad members in the UK and US which enables them to shop new product drops for the holiday season and access exclusive offers.

Partnering with immersive virtual shopping platform, Obsessed Elf has introduced a speakeasy themed 3D store for members of its loyalty program.

The Virtual Luxe Lounge is designed to offer a virtual experience exclusive to Elf's most engaged audience, giving them a new way to shop.

Ekta Chopra, the chief digital officer at Elf Beauty, had this to say about the effort.

Quote, elf Beauty Squad members are incredibly important to us, and we're excited to bring them an exclusive shopping experience that will give them new ways to earn and redeem rewards.

End quote.

Chris, are you buying or selling Elf Beauty's Virtual Luxe Lounge?

Oh, man.

And if I was pragmatic on the last headline, this one I'm going to get unhinged on.

I'm.

I'm selling.

I'm selling this about as hard as anything I've ever sold on this show before.

That's.

That's.

That's what I'd say.

Okay.

I checked out the experience on YouTube too, because not surprising, I'm not an ELF loyalty member, so I can't access it.

And it's.

It's.

Honestly, I couldn't even access it as an Elf Loyalty member either.

Oh, man.

Wow.

Brutal.

It's.

It's.

And, And.

But I got a good sense of what it is on YouTube.

And sure, it's nothing.

It's nothing to write home about, in fact.

And I'm so tired of the 3D gimmicks that everyone puts out every single year.

I'm so tired of it.

Because the question I always ask is, how are you getting traffic?

Feels like it's a waste of time, money, resources to me compared to so many other options you could do, especially when you're putting it on a standalone experience, like, off your website.

Just makes no sense, like.

But compared to, like, live streaming broadcasts for your loyalty members or, you know, other initiatives inside of TikTok or Roblox even, where the traffic's already built in.

So for me, and honestly, the day can't come soon enough when I stop seeing these ridiculous standalone 3D shopping experiences powered by obsess, Penetro or whoever the heck else someone sold somebody on their unique 3D platform, which.

God, it feels like there's so many of those, too.

Yeah, that's my take.

And do you agree?

Disagree?

What angles am I missing?

Or are you.

Or am I.

Am I converting you?

I'm curious.

I mean, I think I'm trying to find the angles that we might be missing.

Scene one.

This is not for us.

Like, we just are.

I don't know if we're too old.

We're outside of the generation that's interested in these 3D experiences.

Like maybe there's somebody that's interested in them.

It's not me.

I agree with you wholeheartedly.

Like I'm a be, I'm a, a reward.

It's not working for you.

Probably not that many other people are.

I couldn't even find it on the site or app.

Right.

Like, that's the part like I, I was like, maybe, you know, traffic driver.

Yeah, as long as you can access it.

Well, you can't access it.

As far as I could, I could see in the app.

But here's the thing, here's one.

I like the loyalty play here.

I do think that retailers are smart to be investing in unique experiences for your loyalty members.

Because when I go into Elf does have a few stores, but when I go into a Sephora or an Ulta or a Target or a Walmart, like if I'm a rewards member, they're calling attention to that in the store.

They know that I'm a rewards member.

I get points, I get offers.

Like they're targeting me in that way.

And I think as we heard again from when we interviewed Sarah Patempa from Beachwaver, she, she stressed this when she was talking about the importance of live video on your site.

Like this is you have to create a similar experience online that your customers are getting when they go into a store.

And I think they're, you know, I don't think that 3D, you know, a virtual showroom is how I would do it.

I would go with exactly what you said, which is doing live, putting live video on your site to kind of replicate or really good Jenny search on your site to kind of replicate that experience that you'd get with someone in store.

But I do think that it's worth retailers really taking a look at investing in.

How do you give me the same loyalty experience that I have in your store on.

In an online environment?

So yeah, those are the things that.

I'm trying to dig up here.

But, but the funny thing about that is like that kind of goes without saying, you know, like, of course, I mean that's.

It kind of goes without saying.

Like you need to, you're going to want to make your loyal customers feel special, right?

Yeah.

Well, that's my point.

That's my point.

Why I don't like it is like for the money it costs to do this, you could probably hire a great celebrity influencer.

Do a live stream exclusive for your loyalty members and pound out a lot more volume and make them feel a lot more special and interactive.

Yeah, but I'm not just saying you could actually probably do something very, very cool for your loyalty members that make them feel way more special than looking at some 3D thing that, you know, you and I have seen countless times.

You could probably.

Yeah, you could probably with.

I don't know exactly how much the 3D showroom cost, but my guess is you'd be able to invest in putting a video that you had either, you know, you source from user generated content or your own employees on every single product page for that same amount of money.

And that would.

You'd see much higher engagement and much.

More value, but just for the items that are in the 3D showroom.

Yeah, maybe.

I don't know.

It's hard to say, but I was just thinking, like, you could pay somebody $100,000 to do.

You know, I got to think this costs at least $100,000.

You could pay some celebrity $100,000 to show your products and, and depends interactive with them, like, like we saw Dolly do last week.

So.

So anyway.

All right, well, I bet Dolly's making more than a hundred grand.

But, but yes, you could get.

You could get somebody off a cameo.

That's real good.

She is, for sure.

But $100,000 for an hour is pretty damn good.

So that's.

I mean, that's more than some of the.

The bands make at the conferences we go to.

So I don't know.

But, but yeah, sorry, actor, like, not liking this one.

Not liking this one at all.

I think it's a bad move.

All right, let's see the lighting round.

All right, Headline number one in the lightning round, Chris.

Dolly Parton, Speak of the Devil, is holding an open casting call for her Broadway production about her life.

Chris, anyone.

I said anyone can audition, including for the role of Dolly herself.

If you were to audition, Chris, which would you choose to sing?

Oh, man.

Oh, man.

I think I'd go Islands in the Stream.

Actually, Aaron, not nine to five.

I'd go island in the Stream.

The gambler.

I kind of man, yeah.

I kind of man crush on Kenny.

I kind of man crush on Kenny Rogers.

I've got the beard now.

I've got the theater background, so.

So Dolly, give me a call.

I'm here.

Oh, my God.

Oh, my God.

Chris Walton as Kenny Rogers on Broadway.

I'm going to see it.

Forget on.

I definitely would need a wig.

I got the beard, but I don't have the flow.

I don't have the flow.

We can definitely be arranged.

Yeah, right, right.

Yeah.

In today's world, there's a lot of.

A lot of fake flow going on.

Oxford University Press named brain rot as the dictionary word of the year.

The phrase shot to popularity in 2024 with a 230% increase in frequency of use from the year prior.

And how much has brain rot upended your daily life?

Oh, my God.

Whatever.

The exact number of minutes is that I spend on social media, that's brain rot.

That's how much brain rot has impacted my life.

That many minutes.

Oh, yeah.

But this is.

I think this is also the brain.

The, like, the skibidi stuff and all that kind of stuff.

Like, has that infiltrated your house as well?

Yes, but I guess I don't equate that to brain rot.

I feel like that's just, like, the vernacular of the kids.

These kids these days, you know?

Oh, yeah, it's actually that.

It's actually the name that catches, like, all of that language as well.

So that's why I was wondering, like, how much it's impacted you, because it has definitely thwarted the quality of life in the Walton household.

And, oh, my God.

Yes, the kids.

My kids have been very disruptive using brain rot.

Ish language at school, and I've been talked to by the teachers many times about that usage, so I was curious if it's impacted your.

I thought brain rot was, like.

When I think of brain rot, I think of, like, wasted time.

Like, what, your brain is rotting from this, like, bad television or whatever.

Like, some brain rot is related to language.

Okay, well, I'd have to rethink that one because I don't know the answer.

We have a lot of skibidi, and I can't even think of the other words right now, but, yes, that's definitely happening in my house.

Yeah, like, there's just crazy words like Ohio and.

And Riz and.

And simp and.

I don't know.

I don't know.

Oh, yeah.

Okay.

Well, let's go to question number three.

Hopefully you know more about this one than I did about the last one.

Shabuzi just set a record for the most consecutive weeks with a number one hit song for Bar Song, which contains the lyrics, pour me up another shot of whiskey.

You know, me and Jack Daniels got a history, Chris.

If not Jack Daniels, which spirit do you have a history with?

Oh, I definitely don't.

I'm definitely not pouring myself a shot of Dak Daniels.

Yeah, because I have a history with Jack Daniels, and I can never go back.

In fact, I can't even smell Jack Daniels.

And.

No, really, why?

What happened?

Oh, God, do I want to tell this story?

Okay, so I was 18.

I went on a lake trip to Lake Nasimiento in California.

Went on a lake trip with some ASU guys that I had met that summer who are much older than me, all over 21.

And we started.

We were out on the lake all day, and then went back to the lake house and started playing bumper pool.

And I was, like, out of my mind with bumper play.

And I was pulling off shots like no one would believe.

And I was.

And so.

And I was drinking more shots of Jack Dallas than anything.

And then.

And so there's a video.

It's not even, like, Jack and Coke or anything.

No, just shots.

Shots.

And I'm, like, new to drinking, like, relatively three months into drinking, and.

And there's a video of it.

I think I still have it.

It's, like, on vhs.

I think I still have it.

You just watch me just at one point, just fall over.

Like, I'm just flat out, like, I'm.

I'm lucky I didn't have to go to the hospital.

And so the next morning, I wake up.

The next morning I wake up, everyone's super.

Why were they videoing you?

Oh, we were all videoing everything.

You know, it's back with camcorders and stuff, you know?

And so the next morning, I wake up and everyone's asleep.

And I burge.

I bar.

I barge into the house.

I'm like, did I jump into the lake yesterday?

Was I so drunk that I jumped into the lake?

And they're like, dude, no.

And I'm like, oh, right.

And so.

So let's just say I was washing mattresses the rest of the day.

So anyway, I cannot smell Jack Daniels anymore.

And so to answer your question, if I had to pour myself anything, it would be a shot of Don Julio.

That's middle of the road.

Tequila.

Oh, my God.

Oh.

All right, let's get out of here before we.

Before this show goes any more off the rails, defunct restaurant chain Chichi's is piloting a comeback in 2025.

I actually have two questions for you on this end.

First, when I say Chichis, what is the first thing that comes to your mind?

And then second, fried ice.

Wow, really quick on that one.

Yeah.

Okay.

And then second, in the pantheon of chain restaurants, do you think Chi Chi's is over underrated or properly rated?

I haven't been there in so long.

I feel like I'm not equipped to correctly answer this question.

What do you think?

Well, I see.

I thought chichi.

I mean, I remember my first chichi's experience in like the 80s and it was pretty baller.

Like I thought it was pretty, pretty decent.

And you know, like all the, like TGI Fridays too.

Like all these chain restaurants that were one time awesome, they just get destroyed.

Yeah.

So I actually think chichi's, when I think about all my chain restaurant experiences is actually underrated.

Underrated?

Yeah.

Like Red Lobster, I would say properly rated, you know.

Oh, God.

Over.

Yeah.

Or overrated properly to overrated.

But chichi's, I would say underrated.

TGI Fridays probably properly rated now, but I don't know.

But that's why, that's why I think.

What do you think?

I mean, yeah, by 1980s standards, underrated for sure.

That place is amazing.

I loved Chi Chi's.

Like I always wanted to go.

I think I only got to go like twice.

And one was right for the fried ice cream that you always saw the like advertisements for on tv.

But yeah, I don't know.

I mean, I like their, I buy their salsa today.

Like they still have products on shelves that are.

Oh, yeah, that's right.

So I think of their salsa, I.

Would try it out.

I would definitely go, why not?

Like, it's a, it's a Mexican place that, you know, you get, you know what you're going to get, I think, and then you'll be properly surprised if it's a good experience.

It's a great point.

It's a great point.

And I like the standard Mexican.

Good.

Standard Mexican.

Like, I like good.

There's too much fruit, fruity Mexican food right now.

Too much high end, expensive Mexican food restaurant, particularly in Minneapolis too.

We don't have a good.

Just go to Mexican restaurant.

You haven't been to La Cadre.

Yeah, yeah, we'll get you, we'll find you some.

We gotta do, right?

I have it, actually.

I did find a good Mexican restaurant that's very, very authentic too and very affordable, which I'll have to tell you about.

But I will keep that from our national audience here and all right.

Happy birthday today to writer Strong.

Our international audience, actually.

Happy birthday today to writer strong, Donna Mills and to Josh Allen's new fiance, Haley Steinfield.

Stein.

Ah, shoot.

Is it Steinfield?

Steinfeld, Right?

Yeah.

I don't know if I wrote that wrong or not.

Steinfeld.

Sorry.

And remember, it's so hard.

It's Yes, I should have gotten that right.

And remember, if you can only read or listen to one read, you know who that is though.

That's good.

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

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