Latest / Omni Talk Retail / Heritage Grocers COO: Regional Grocery Consolidation, Fresh Theater & From-Scratch Tortillas

Transcript

Heritage Grocers COO: Regional Grocery Consolidation, Fresh Theater & From-Scratch Tortillas · Omni Talk Retail

• 0:00
  Hello,
• 0:00
  everyone.
• 0:00
  This
• 0:00
  is
• 0:01
  Omnitalk
• 0:01
  Retail.
• 0:01
  I'm
• 0:02
  Chris
• 0:02
  Walton.
• 0:02
  And
• 0:02
  I'm
• 0:02
  Anne
• 0:03
  Mazinga.
• 0:03
  And
• 0:03
  we
• 0:03
  are
• 0:03
  coming
• 0:04
  to
• 0:04
  you
• 0:04
  live
• 0:04
  from
• 0:04
  the
• 0:05
  Fusion
• 0:05
  Group's
• 0:05
  podcast
• 0:06
  studio
• 0:06
  at
• 0:07
  Grocery
• 0:07
  Shop.
• 0:08
  And
• 0:08
  I
• 0:08
  am
• 0:08
  pleased
• 0:09
  to
• 0:09
  introduce
• 0:09
  our
• 0:09
  next
• 0:10
  guest,
• 0:10
  Prabhash
• 0:11
  Khaskwati,
• 0:12
  the
• 0:12
  COO
• 0:13
  of
• 0:13
  Heritage
• 0:13
  Grocers
• 0:14
  Group.
• 0:14
  Prabhash,
• 0:15
  welcome
• 0:15
  to
• 0:15
  omnitalk.
• 0:16
  Thank
• 0:16
  you
• 0:16
  very
• 0:16
  much
• 0:17
  for
• 0:17
  having
• 0:17
  me.
• 0:17
  I
• 0:17
  appreciate
• 0:18
  you
• 0:18
  guys
• 0:18
  doing
• 0:18
  this.
• 0:19
  We
• 0:19
  already
• 0:19
  kicked
• 0:20
  off
• 0:20
  a
• 0:20
  fiery
• 0:21
  chat
• 0:21
  right
• 0:22
  as
• 0:22
  soon
• 0:22
  as
• 0:22
  you
• 0:22
  got
• 0:22
  in
• 0:23
  the
• 0:23
  room,
• 0:23
  so
• 0:23
  I'm
• 0:24
  excited
• 0:24
  for
• 0:24
  this
• 0:24
  conversation.
• 0:25
  I'd
• 0:26
  love
• 0:26
  to
• 0:26
  hear
• 0:27
  from
• 0:27
  your
• 0:27
  perspective,
• 0:28
  though.
• 0:28
  First,
• 0:28
  Prabhash,
• 0:29
  a
• 0:29
  little
• 0:29
  bit
• 0:30
  about
• 0:30
  your
• 0:30
  background,
• 0:31
  and
• 0:31
  then
• 0:31
  if
• 0:31
  you
• 0:32
  can
• 0:32
  share
• 0:32
  with
• 0:32
  our
• 0:32
  audience
• 0:32
  who
• 0:33
  might
• 0:33
  not
• 0:33
  be
• 0:33
  familiar
• 0:34
  about
• 0:34
  Heritage
• 0:35
  grocers,
• 0:35
  too.
• 0:36
  Absolutely.
• 0:37
  So,
• 0:38
  Prabhash
• 0:38
  Kaswati,
• 0:39
  chief
• 0:39
  operating
• 0:39
  officer
• 0:40
  for
• 0:40
  Heritage.
• 0:42
  I
• 0:42
  grew
• 0:42
  up
• 0:42
  in
• 0:43
  technology.
• 0:43
  I
• 0:43
  would
• 0:43
  say
• 0:44
  both
• 0:46
  started
• 0:46
  in
• 0:46
  retail
• 0:47
  almost
• 0:47
  18
• 0:48
  years
• 0:48
  ago.
• 0:49
  Told
• 0:50
  myself,
• 0:50
  I'm
• 0:50
  probably
• 0:50
  gonna
• 0:51
  be
• 0:51
  here
• 0:51
  for
• 0:51
  six
• 0:51
  months.
• 0:52
  Ended
• 0:52
  up
• 0:52
  spending
• 0:53
  eight
• 0:53
  and
• 0:53
  a
• 0:53
  half
• 0:54
  years
• 0:54
  at
• 0:54
  my
• 0:55
  first
• 0:55
  retail
• 0:55
  organization
• 0:56
  that
• 0:56
  was
• 0:56
  99
• 0:56
  cents
• 0:57
  only
• 0:57
  stores.
• 0:57
  Okay.
• 0:58
  Then
• 0:59
  grew
• 1:00
  from
• 1:00
  there.
• 1:01
  Technology
• 1:01
  was
• 1:01
  my
• 1:02
  passion
• 1:02
  and
• 1:02
  always
• 1:02
  been
• 1:02
  in
• 1:03
  technology.
• 1:04
  Once
• 1:04
  I
• 1:04
  got
• 1:05
  to
• 1:05
  what
• 1:05
  was
• 1:05
  at
• 1:06
  that
• 1:06
  point,
• 1:06
  Cardenas
• 1:07
  Markets,
• 1:07
  which
• 1:07
  we
• 1:07
  still
• 1:07
  are,
• 1:08
  Cardenas
• 1:08
  Markets
• 1:08
  in
• 1:09
  California,
• 1:09
  Arizona,
• 1:10
  and
• 1:10
  Nevada,
• 1:11
  I
• 1:11
  was
• 1:11
  given
• 1:12
  the
• 1:12
  opportunity
• 1:12
  to
• 1:12
  keep
• 1:12
  going
• 1:12
  in
• 1:13
  the
• 1:13
  organization.
• 1:13
  So
• 1:13
  I
• 1:13
  grew
• 1:14
  from
• 1:14
  just
• 1:14
  being
• 1:14
  an
• 1:15
  IT
• 1:15
  guy
• 1:15
  to
• 1:16
  being
• 1:16
  chief
• 1:17
  administrative
• 1:17
  officer.
• 1:18
  I
• 1:18
  took
• 1:18
  over
• 1:19
  real
• 1:19
  estate,
• 1:19
  construction,
• 1:20
  maintenance,
• 1:22
  administration,
• 1:23
  loss
• 1:23
  prevention,
• 1:24
  and
• 1:24
  then
• 1:24
  ended
• 1:24
  up
• 1:24
  taking
• 1:25
  over
• 1:25
  operations
• 1:26
  and
• 1:26
  became
• 1:26
  chief
• 1:26
  operating
• 1:27
  officer.
• 1:28
  Role
• 1:28
  has
• 1:28
  changed
• 1:29
  a
• 1:29
  little
• 1:29
  bit.
• 1:29
  So
• 1:29
  I've
• 1:30
  given
• 1:30
  up
• 1:31
  real
• 1:32
  estate
• 1:32
  and
• 1:32
  I've
• 1:33
  given
• 1:33
  up
• 1:33
  loss
• 1:33
  prevention,
• 1:34
  but
• 1:35
  I've
• 1:35
  inherited
• 1:35
  manufacturing.
• 1:36
  We
• 1:36
  do
• 1:36
  have
• 1:36
  a
• 1:36
  manufacturing
• 1:37
  plant
• 1:37
  that
• 1:37
  we
• 1:38
  produce
• 1:38
  baked
• 1:39
  goods
• 1:39
  in
• 1:39
  Texas.
• 1:40
  And
• 1:40
  then
• 1:40
  I
• 1:40
  also
• 1:40
  own
• 1:42
  warehouse
• 1:42
  and
• 1:42
  logistics.
• 1:43
  And
• 1:44
  I
• 1:44
  have
• 1:44
  to
• 1:44
  say,
• 1:45
  I
• 1:45
  have
• 1:45
  an
• 1:46
  amazing
• 1:46
  team
• 1:46
  that
• 1:47
  what
• 1:47
  makes
• 1:47
  my
• 1:47
  life
• 1:47
  easier,
• 1:48
  you
• 1:49
  know?
• 1:49
  And
• 1:49
  then,
• 1:49
  you
• 1:49
  know,
• 1:50
  maybe
• 1:50
  I'll
• 1:50
  grow
• 1:50
  my
• 1:50
  hair
• 1:50
  back.
• 1:52
  If
• 1:53
  you
• 1:53
  figure
• 1:53
  that
• 1:53
  out,
• 1:53
  let
• 1:53
  me
• 1:53
  know.
• 1:54
  Let
• 1:54
  me
• 1:54
  know
• 1:54
  how
• 1:54
  many.
• 1:55
  So
• 1:55
  what
• 1:55
  are
• 1:55
  all
• 1:55
  the
• 1:56
  banners
• 1:56
  that
• 1:56
  Heritage
• 1:57
  Group
• 1:57
  operates?
• 1:57
  So
• 1:58
  we
• 1:58
  have
• 1:58
  four
• 1:58
  banners.
• 1:59
  So
• 1:59
  we
• 1:59
  are
• 2:00
  here
• 2:00
  in
• 2:00
  Vegas.
• 2:00
  Vegas.
• 2:01
  We
• 2:01
  operate
• 2:01
  in
• 2:01
  Cardenas
• 2:02
  Vegas,
• 2:02
  California
• 2:03
  and
• 2:03
  Nevada,
• 2:04
  we
• 2:04
  operate
• 2:04
  under
• 2:04
  the
• 2:04
  Cardinal
• 2:05
  banner.
• 2:06
  And
• 2:07
  in
• 2:07
  Arizona,
• 2:07
  we
• 2:08
  operate
• 2:08
  on
• 2:08
  the
• 2:08
  Los
• 2:08
  Altos
• 2:09
  banner.
• 2:09
  In
• 2:10
  Chicago,
• 2:10
  we
• 2:10
  are
• 2:10
  Tony's.
• 2:11
  And
• 2:12
  in
• 2:12
  Texas
• 2:12
  and
• 2:12
  one
• 2:13
  lonely
• 2:13
  store
• 2:13
  in
• 2:13
  Kansas,
• 2:14
  we
• 2:14
  are
• 2:15
  a
• 2:15
  ranch
• 2:16
  of
• 2:16
  supermarkets.
• 2:16
  Oh,
• 2:17
  wow.
• 2:17
  So
• 2:18
  I'm
• 2:18
  curious,
• 2:18
  as
• 2:18
  coo,
• 2:19
  how
• 2:20
  do
• 2:20
  you
• 2:20
  balance,
• 2:20
  like,
• 2:21
  the
• 2:21
  back
• 2:21
  office
• 2:22
  streamlined
• 2:23
  scale
• 2:23
  efficiency
• 2:24
  with,
• 2:24
  you
• 2:24
  know,
• 2:25
  everything
• 2:25
  that
• 2:25
  those.
• 2:26
  Those
• 2:26
  different
• 2:26
  banners
• 2:27
  need?
• 2:27
  Yeah.
• 2:28
  And
• 2:28
  I
• 2:28
  think
• 2:28
  two.
• 2:29
  Two
• 2:29
  parts,
• 2:29
  right.
• 2:29
  To
• 2:29
  answer
• 2:30
  that
• 2:30
  question,
• 2:30
  I
• 2:30
  think
• 2:31
  every
• 2:31
  retailer,
• 2:32
  whether
• 2:32
  it's
• 2:32
  us.
• 2:33
  Anybody
• 2:33
  else,
• 2:33
  hopefully,
• 2:33
  should
• 2:34
  be
• 2:34
  just
• 2:34
  thinking
• 2:34
  about
• 2:34
  the
• 2:34
  customer
• 2:35
  first,
• 2:35
  right?
• 2:35
  At
• 2:35
  the
• 2:35
  end
• 2:35
  of
• 2:36
  the
• 2:36
  day,
• 2:36
  that's
• 2:36
  who
• 2:36
  pays
• 2:36
  your
• 2:36
  paycheck.
• 2:37
  And
• 2:37
  every
• 2:38
  decision
• 2:38
  you
• 2:38
  do
• 2:38
  and
• 2:39
  you
• 2:39
  make,
• 2:39
  how
• 2:40
  does
• 2:40
  it
• 2:40
  affect
• 2:40
  that
• 2:41
  customer
• 2:41
  and
• 2:41
  what
• 2:42
  drives
• 2:42
  them
• 2:42
  back
• 2:42
  into
• 2:43
  your
• 2:43
  store?
• 2:43
  Number
• 2:44
  two
• 2:44
  is
• 2:45
  every
• 2:45
  other
• 2:45
  function
• 2:45
  that
• 2:46
  I
• 2:46
  mentioned
• 2:46
  outside
• 2:47
  of
• 2:47
  my
• 2:47
  stores
• 2:48
  should
• 2:48
  be
• 2:48
  working
• 2:48
  to
• 2:49
  support
• 2:49
  the
• 2:49
  stores,
• 2:50
  right?
• 2:50
  That
• 2:50
  is
• 2:50
  the
• 2:51
  bread
• 2:51
  and
• 2:51
  butter.
• 2:51
  That's
• 2:52
  who
• 2:52
  then
• 2:52
  keeps
• 2:52
  the
• 2:52
  customer
• 2:53
  happy.
• 2:53
  And
• 2:53
  I
• 2:53
  always
• 2:54
  say,
• 2:54
  hey,
• 2:54
  look,
• 2:55
  we
• 2:55
  need
• 2:55
  to
• 2:55
  make
• 2:55
  sure
• 2:55
  the
• 2:55
  team
• 2:55
  members
• 2:56
  are
• 2:56
  happy
• 2:56
  because
• 2:56
  they
• 2:57
  set
• 2:57
  the
• 2:57
  vibe
• 2:57
  in
• 2:58
  the
• 2:58
  store,
• 2:58
  if
• 2:58
  you
• 2:58
  will,
• 2:59
  and
• 2:59
  that
• 2:59
  gets
• 2:59
  everybody
• 3:00
  excited.
• 3:00
  If
• 3:00
  you're
• 3:00
  coming
• 3:00
  into
• 3:01
  a
• 3:01
  store
• 3:01
  where
• 3:01
  everybody's
• 3:01
  like,
• 3:02
  oh,
• 3:02
  I
• 3:02
  don't.
• 3:02
  What
• 3:02
  time
• 3:03
  do
• 3:03
  I
• 3:03
  get
• 3:03
  off?
• 3:03
  I
• 3:03
  want
• 3:03
  to
• 3:03
  go
• 3:04
  home.
• 3:04
  That's
• 3:04
  not
• 3:04
  exciting.
• 3:05
  We
• 3:05
  want
• 3:05
  to
• 3:05
  keep
• 3:05
  it
• 3:06
  exciting
• 3:06
  and
• 3:06
  energetic
• 3:07
  and
• 3:07
  people
• 3:08
  to
• 3:08
  come
• 3:08
  in.
• 3:08
  And
• 3:09
  our
• 3:09
  stores
• 3:09
  are,
• 3:10
  I
• 3:10
  call
• 3:11
  them
• 3:11
  grocerants,
• 3:11
  right?
• 3:12
  We
• 3:12
  have
• 3:12
  a
• 3:13
  restaurant,
• 3:13
  it's
• 3:14
  full
• 3:14
  theater.
• 3:15
  We
• 3:15
  are
• 3:15
  majority
• 3:16
  fresh,
• 3:17
  right?
• 3:17
  We
• 3:17
  lead
• 3:17
  with
• 3:18
  produce.
• 3:18
  That's
• 3:18
  the
• 3:18
  tip
• 3:19
  of
• 3:19
  our
• 3:19
  sphere.
• 3:19
  When
• 3:20
  you
• 3:20
  walk
• 3:20
  into
• 3:20
  our
• 3:20
  stores,
• 3:20
  you'll
• 3:21
  see
• 3:21
  a
• 3:21
  fresh
• 3:22
  breakery.
• 3:22
  You'll
• 3:22
  smell
• 3:23
  the
• 3:23
  bolillos.
• 3:23
  You
• 3:24
  go
• 3:24
  into
• 3:25
  seeing
• 3:25
  fresh
• 3:26
  cakes,
• 3:26
  the
• 3:26
  pasta
• 3:27
  ria,
• 3:28
  you
• 3:28
  go
• 3:28
  into
• 3:28
  a
• 3:28
  full
• 3:29
  butcher
• 3:29
  and
• 3:29
  meat
• 3:29
  market
• 3:30
  where
• 3:30
  we
• 3:30
  break
• 3:30
  down
• 3:30
  the
• 3:31
  meat
• 3:31
  in
• 3:31
  our
• 3:31
  stores
• 3:31
  ourselves.
• 3:33
  And
• 3:33
  then
• 3:33
  in
• 3:33
  most
• 3:34
  of
• 3:34
  the
• 3:34
  stores,
• 3:34
  especially
• 3:34
  in
• 3:34
  Cardenas,
• 3:35
  we
• 3:35
  go
• 3:36
  from
• 3:36
  the
• 3:36
  corn
• 3:36
  kernel
• 3:37
  all
• 3:37
  the
• 3:37
  way
• 3:37
  to
• 3:38
  masa
• 3:39
  to
• 3:39
  the
• 3:39
  tortilla
• 3:40
  and
• 3:40
  sometimes
• 3:40
  the
• 3:40
  chips
• 3:41
  the
• 3:41
  next
• 3:41
  day
• 3:42
  in
• 3:42
  the
• 3:42
  store.
• 3:42
  Hungry.
• 3:43
  In
• 3:43
  the
• 3:43
  store.
• 3:43
  In
• 3:43
  the
• 3:44
  store.
• 3:44
  So
• 3:44
  it's
• 3:45
  amazing.
• 3:45
  It's
• 3:45
  exciting.
• 3:47
  And
• 3:47
  then
• 3:47
  the
• 3:47
  kitchen,
• 3:48
  I
• 3:48
  started
• 3:49
  with
• 3:49
  that,
• 3:49
  but,
• 3:49
  you
• 3:49
  know,
• 3:49
  the
• 3:49
  kitchen
• 3:50
  is
• 3:50
  important.
• 3:50
  So
• 3:50
  it's,
• 3:51
  you
• 3:51
  know,
• 3:51
  we
• 3:51
  go
• 3:52
  for
• 3:52
  in
• 3:52
  some.
• 3:52
  Some
• 3:52
  things
• 3:52
  are
• 3:53
  from
• 3:53
  scratch,
• 3:53
  some
• 3:53
  things
• 3:53
  are
• 3:54
  not.
• 3:54
  But
• 3:54
  it
• 3:55
  does
• 3:55
  not
• 3:55
  help
• 3:55
  me
• 3:56
  trying
• 3:56
  to
• 3:56
  lose
• 3:56
  my
• 3:56
  weight.
• 3:57
  But
• 3:57
  Taco
• 3:57
  Tuesday
• 3:57
  is
• 3:58
  amazing.
• 3:58
  $25
• 3:59
  tacos.
• 3:59
  Oh,
• 4:00
  wow.
• 4:00
  All
• 4:00
  right.
• 4:01
  $tos
• 4:02
  if
• 4:02
  you're
• 4:02
  in
• 4:02
  Texas.
• 4:03
  Oh,
• 4:03
  my
• 4:03
  gosh.
• 4:04
  All
• 4:04
  right,
• 4:05
  well,
• 4:05
  Prabhash,
• 4:06
  I'm
• 4:06
  curious
• 4:06
  how
• 4:07
  you
• 4:07
  track
• 4:08
  then,
• 4:08
  like
• 4:09
  you.
• 4:09
  You
• 4:09
  oversee
• 4:10
  four,
• 4:11
  five,
• 4:11
  four
• 4:11
  banners.
• 4:12
  You're
• 4:12
  looking
• 4:13
  at
• 4:13
  operational
• 4:16
  metrics
• 4:16
  across
• 4:17
  all
• 4:17
  of
• 4:17
  those
• 4:18
  of
• 4:18
  those
• 4:19
  banners.
• 4:20
  What
• 4:20
  are
• 4:20
  some
• 4:20
  of
• 4:20
  the
• 4:20
  most
• 4:21
  important
• 4:21
  ones
• 4:21
  that
• 4:21
  you're
• 4:22
  tracking
• 4:22
  and
• 4:22
  how
• 4:22
  do
• 4:23
  they
• 4:23
  vary
• 4:23
  based
• 4:23
  on
• 4:24
  each
• 4:24
  of
• 4:24
  those
• 4:24
  banners
• 4:25
  or
• 4:25
  locations?
• 4:27
  So
• 4:27
  I
• 4:28
  think
• 4:28
  the
• 4:28
  metrics
• 4:28
  tend
• 4:29
  to
• 4:29
  be
• 4:29
  somewhat
• 4:30
  standardized
• 4:30
  as
• 4:30
  you
• 4:31
  grow,
• 4:31
  what
• 4:31
  they
• 4:32
  need
• 4:32
  to
• 4:32
  be.
• 4:33
  But
• 4:33
  I
• 4:33
  would
• 4:33
  say
• 4:34
  high
• 4:34
  level,
• 4:34
  obviously,
• 4:35
  sales
• 4:36
  items
• 4:36
  for
• 4:36
  basket,
• 4:38
  what
• 4:38
  the
• 4:38
  basket
• 4:39
  composition
• 4:40
  is
• 4:40
  average
• 4:41
  item
• 4:41
  price.
• 4:42
  But
• 4:42
  you
• 4:42
  benchmark
• 4:42
  it
• 4:42
  to
• 4:43
  the
• 4:43
  banner,
• 4:43
  right?
• 4:43
  You
• 4:43
  benchmark
• 4:44
  it
• 4:44
  to
• 4:44
  the
• 4:44
  geography.
• 4:45
  So
• 4:45
  you
• 4:45
  can
• 4:45
  compare
• 4:46
  El
• 4:46
  rancho
• 4:47
  To
• 4:47
  Cardinals,
• 4:48
  to
• 4:48
  Tony's,
• 4:49
  because
• 4:49
  those
• 4:49
  are
• 4:49
  different
• 4:50
  concepts
• 4:50
  and
• 4:50
  how
• 4:51
  we
• 4:51
  go
• 4:51
  to
• 4:51
  market
• 4:51
  in
• 4:51
  those
• 4:52
  concepts
• 4:52
  are
• 4:52
  different.
• 4:53
  But
• 4:53
  then
• 4:53
  you
• 4:53
  also
• 4:54
  got
• 4:54
  the
• 4:54
  within
• 4:55
  the
• 4:55
  store
• 4:55
  labor
• 4:56
  metrics
• 4:56
  that
• 4:56
  you
• 4:56
  would
• 4:56
  look
• 4:57
  at,
• 4:57
  you
• 4:57
  know,
• 4:57
  items
• 4:58
  per
• 4:58
  minute,
• 4:59
  self
• 4:59
  checkout
• 5:00
  utilization,
• 5:02
  you
• 5:02
  know,
• 5:02
  stocking
• 5:03
  rates,
• 5:04
  receiving
• 5:04
  how,
• 5:05
  receiving
• 5:05
  accuracy,
• 5:06
  we'll
• 5:06
  look
• 5:06
  at.
• 5:07
  But
• 5:07
  I
• 5:08
  essentially,
• 5:08
  that
• 5:08
  gives
• 5:08
  you
• 5:08
  a
• 5:08
  high
• 5:08
  level
• 5:09
  dashboard
• 5:10
  to
• 5:10
  look
• 5:10
  at
• 5:10
  and
• 5:11
  say,
• 5:11
  how
• 5:11
  well
• 5:11
  are
• 5:12
  we
• 5:12
  operating?
• 5:13
  Where
• 5:14
  are
• 5:14
  the
• 5:14
  opportunities?
• 5:15
  What
• 5:15
  should
• 5:15
  I
• 5:15
  focus
• 5:15
  on
• 5:16
  from
• 5:16
  an
• 5:16
  operator
• 5:17
  perspective?
• 5:18
  What
• 5:18
  do
• 5:18
  I
• 5:18
  need
• 5:19
  the
• 5:19
  merchandising
• 5:20
  help
• 5:20
  from?
• 5:20
  On
• 5:21
  how
• 5:21
  we
• 5:21
  go
• 5:21
  to
• 5:21
  market?
• 5:22
  What
• 5:22
  do
• 5:22
  we
• 5:23
  need
• 5:23
  to
• 5:23
  change?
• 5:23
  So
• 5:23
  it
• 5:23
  gives
• 5:24
  you
• 5:24
  a
• 5:24
  really
• 5:24
  good
• 5:24
  sense
• 5:25
  and
• 5:25
  a
• 5:25
  pulse
• 5:25
  of
• 5:25
  what
• 5:26
  we
• 5:26
  need
• 5:26
  to
• 5:26
  do.
• 5:27
  But
• 5:28
  from
• 5:28
  a
• 5:28
  metric
• 5:29
  perspective,
• 5:29
  we
• 5:30
  don't
• 5:30
  track
• 5:32
  banner
• 5:32
  level
• 5:33
  or
• 5:33
  geography
• 5:34
  specific
• 5:34
  metrics
• 5:35
  because
• 5:35
  those
• 5:35
  metrics
• 5:36
  tend
• 5:36
  to
• 5:36
  be
• 5:36
  overall,
• 5:37
  because
• 5:37
  you're
• 5:38
  usually
• 5:38
  benchmarking
• 5:38
  yourself
• 5:39
  against
• 5:39
  somebody.
• 5:39
  Right,
• 5:40
  right.
• 5:40
  So
• 5:41
  that
• 5:41
  helps
• 5:41
  kind
• 5:41
  of
• 5:41
  say,
• 5:42
  hey,
• 5:42
  and
• 5:42
  in
• 5:43
  stores,
• 5:43
  all
• 5:44
  stores,
• 5:44
  I
• 5:44
  think
• 5:44
  all
• 5:44
  retailers,
• 5:45
  we're
• 5:45
  very
• 5:45
  competitive.
• 5:46
  Not
• 5:46
  only
• 5:47
  retailer
• 5:47
  against
• 5:47
  retailer,
• 5:48
  but
• 5:48
  just
• 5:48
  a
• 5:48
  banner
• 5:49
  against
• 5:49
  banner,
• 5:49
  store
• 5:50
  against
• 5:50
  store.
• 5:50
  Yeah.
• 5:51
  This
• 5:51
  morning,
• 5:52
  one
• 5:52
  of
• 5:52
  my
• 5:52
  favorite
• 5:52
  things
• 5:52
  to
• 5:53
  do
• 5:53
  every
• 5:53
  morning,
• 5:53
  every
• 5:54
  Monday
• 5:54
  morning
• 5:55
  is
• 5:55
  by
• 5:55
  6
• 5:56
  o',
• 5:56
  clock,
• 5:56
  I've
• 5:56
  committed,
• 5:57
  depending
• 5:58
  on
• 5:58
  where
• 5:58
  I
• 5:58
  am,
• 5:59
  6
• 5:59
  o',
• 6:00
  clock,
• 6:00
  East
• 6:00
  Coast
• 6:00
  Time,
• 6:01
  getting
• 6:01
  the,
• 6:03
  getting
• 6:03
  a
• 6:03
  report,
• 6:03
  getting
• 6:04
  an
• 6:04
  email
• 6:04
  out
• 6:04
  to
• 6:04
  the
• 6:04
  whole
• 6:05
  company.
• 6:05
  So
• 6:05
  I
• 6:05
  sent
• 6:05
  an
• 6:06
  email
• 6:06
  summarizing
• 6:07
  a
• 6:07
  sales
• 6:07
  recap
• 6:08
  for
• 6:09
  the
• 6:09
  banner.
• 6:09
  How
• 6:09
  did
• 6:10
  we
• 6:10
  perform
• 6:11
  overall
• 6:11
  at
• 6:11
  Heritage?
• 6:12
  How
• 6:12
  do
• 6:12
  we
• 6:12
  do
• 6:12
  as
• 6:12
  Cardinals?
• 6:13
  How
• 6:13
  do
• 6:13
  we
• 6:13
  do
• 6:13
  at
• 6:13
  Tony's?
• 6:14
  And
• 6:14
  then
• 6:15
  double
• 6:15
  clicking
• 6:15
  in
• 6:16
  and
• 6:16
  saying
• 6:16
  which
• 6:16
  stores
• 6:17
  are
• 6:17
  spotlight?
• 6:17
  Like,
• 6:17
  hey,
• 6:18
  how
• 6:18
  did
• 6:18
  you
• 6:18
  know?
• 6:18
  Did
• 6:19
  one
• 6:19
  store
• 6:19
  do
• 6:19
  exceptionally
• 6:20
  well
• 6:20
  and
• 6:20
  they
• 6:20
  got
• 6:20
  called
• 6:21
  out.
• 6:21
  And
• 6:21
  at
• 6:21
  first
• 6:21
  when
• 6:21
  I
• 6:21
  started
• 6:22
  doing
• 6:22
  this,
• 6:23
  I
• 6:23
  thought,
• 6:23
  I'm
• 6:23
  like,
• 6:23
  maybe
• 6:24
  nobody's
• 6:24
  reading
• 6:24
  it.
• 6:24
  Then
• 6:24
  I
• 6:25
  started
• 6:25
  going
• 6:25
  into
• 6:25
  stores
• 6:25
  and
• 6:25
  they're
• 6:26
  like,
• 6:26
  oh
• 6:26
  my
• 6:26
  God,
• 6:26
  Prabhash,
• 6:27
  I
• 6:27
  want
• 6:27
  to
• 6:27
  be
• 6:27
  the
• 6:27
  store
• 6:27
  that's
• 6:28
  on
• 6:28
  that
• 6:28
  email
• 6:29
  that
• 6:29
  you
• 6:29
  sent
• 6:29
  out.
• 6:29
  I
• 6:30
  want
• 6:30
  to
• 6:30
  beat
• 6:30
  out
• 6:30
  that
• 6:31
  person.
• 6:31
  So
• 6:31
  that's
• 6:31
  exciting.
• 6:32
  And
• 6:32
  I'm
• 6:32
  like,
• 6:32
  wow,
• 6:32
  this
• 6:33
  is
• 6:33
  good.
• 6:33
  Number
• 6:33
  one,
• 6:34
  people
• 6:34
  are
• 6:34
  reading
• 6:34
  my
• 6:34
  email.
• 6:34
  That
• 6:35
  was
• 6:35
  exciting.
• 6:36
  Number
• 6:36
  two,
• 6:36
  they
• 6:36
  care
• 6:37
  and
• 6:37
  they
• 6:37
  want
• 6:37
  to
• 6:37
  compete.
• 6:38
  So.
• 6:38
  So
• 6:38
  those
• 6:38
  metrics,
• 6:39
  I
• 6:39
  think
• 6:39
  when
• 6:39
  you're
• 6:39
  standardized,
• 6:40
  it
• 6:40
  levels
• 6:41
  the
• 6:41
  playing
• 6:41
  field
• 6:41
  a
• 6:42
  little
• 6:42
  bit.
• 6:42
  And
• 6:42
  we,
• 6:43
  you
• 6:43
  know,
• 6:43
  as
• 6:43
  grocers,
• 6:44
  I
• 6:44
  think
• 6:44
  those
• 6:44
  are
• 6:44
  some
• 6:45
  of
• 6:45
  the
• 6:45
  basic
• 6:45
  metrics.
• 6:46
  Now
• 6:46
  I'm
• 6:46
  not
• 6:46
  even
• 6:46
  going
• 6:47
  into
• 6:47
  like
• 6:47
  warehouse
• 6:47
  metrics,
• 6:48
  you
• 6:48
  know,
• 6:48
  cases,
• 6:48
  shipping,
• 6:49
  all
• 6:49
  that
• 6:49
  stuff.
• 6:50
  But
• 6:50
  from
• 6:50
  a
• 6:50
  grocery
• 6:50
  store
• 6:51
  perspective,
• 6:51
  I
• 6:51
  think
• 6:51
  those
• 6:51
  are
• 6:52
  some
• 6:52
  high
• 6:52
  level,
• 6:52
  you
• 6:53
  know,
• 6:53
  you
• 6:54
  want
• 6:54
  to
• 6:54
  control
• 6:54
  the
• 6:54
  controllables,
• 6:55
  if
• 6:55
  you
• 6:55
  will,
• 6:55
  and
• 6:56
  you
• 6:56
  want
• 6:56
  to
• 6:56
  measure
• 6:56
  the
• 6:56
  controllables.
• 6:57
  If
• 6:57
  you
• 6:57
  Want
• 6:57
  to
• 6:57
  control
• 6:58
  them.
• 6:58
  Yeah.
• 6:58
  And
• 6:59
  as
• 6:59
  a
• 6:59
  store
• 6:59
  level
• 6:59
  executive,
• 6:59
  your
• 7:00
  point
• 7:00
  about
• 7:00
  the
• 7:00
  stores
• 7:01
  being
• 7:01
  incredibly
• 7:02
  competitive
• 7:02
  is
• 7:03
  dead
• 7:03
  on.
• 7:03
  And
• 7:03
  so,
• 7:03
  yeah,
• 7:04
  I
• 7:04
  could
• 7:04
  see
• 7:04
  them
• 7:04
  getting
• 7:05
  very
• 7:05
  excited
• 7:05
  to
• 7:05
  see
• 7:05
  that
• 7:06
  email
• 7:06
  arrive
• 7:06
  in
• 7:06
  their
• 7:06
  inbox,
• 7:07
  especially
• 7:07
  if
• 7:07
  they're
• 7:07
  the
• 7:07
  ones
• 7:07
  that
• 7:08
  are
• 7:08
  called
• 7:08
  out.
• 7:08
  Right.
• 7:10
  All
• 7:10
  right,
• 7:10
  so
• 7:10
  you
• 7:10
  mentioned
• 7:10
  you
• 7:11
  have
• 7:11
  warehousing
• 7:12
  and
• 7:12
  logistics
• 7:12
  under
• 7:13
  your
• 7:13
  purview
• 7:13
  too.
• 7:14
  How
• 7:14
  are
• 7:14
  you
• 7:15
  thinking
• 7:15
  about
• 7:15
  that?
• 7:15
  You
• 7:16
  know,
• 7:16
  because
• 7:16
  there's,
• 7:16
  I
• 7:16
  mean,
• 7:16
  you're
• 7:17
  here
• 7:17
  at
• 7:17
  this
• 7:17
  conference,
• 7:18
  there's
• 7:18
  a
• 7:18
  lot
• 7:18
  of
• 7:19
  conversation
• 7:19
  about
• 7:19
  the
• 7:20
  evolution
• 7:20
  of
• 7:20
  grocery
• 7:21
  last
• 7:21
  mile
• 7:21
  delivery.
• 7:22
  You
• 7:22
  know,
• 7:22
  how
• 7:23
  do
• 7:23
  you
• 7:23
  think
• 7:23
  about
• 7:23
  supporting
• 7:23
  your
• 7:23
  stores
• 7:24
  as
• 7:24
  well
• 7:24
  as,
• 7:24
  you
• 7:24
  know,
• 7:25
  creating
• 7:25
  the
• 7:25
  fulfillment
• 7:26
  network
• 7:26
  of
• 7:26
  the
• 7:26
  future
• 7:26
  for
• 7:27
  you.
• 7:27
  Yeah.
• 7:27
  So
• 7:27
  we
• 7:28
  are
• 7:28
  fortunate
• 7:28
  enough,
• 7:29
  we
• 7:29
  started
• 7:29
  the
• 7:29
  journey
• 7:30
  about
• 7:30
  three
• 7:30
  years
• 7:30
  ago
• 7:30
  to
• 7:31
  do
• 7:31
  CGO
• 7:33
  with
• 7:33
  the
• 7:33
  focus
• 7:33
  primarily
• 7:34
  on
• 7:34
  optimizing
• 7:34
  store
• 7:35
  level
• 7:35
  inventory.
• 7:36
  So
• 7:36
  we
• 7:36
  want
• 7:36
  to
• 7:36
  make
• 7:36
  sure,
• 7:37
  hey,
• 7:37
  look,
• 7:37
  if
• 7:37
  you
• 7:37
  have
• 7:37
  shelf
• 7:38
  items
• 7:39
  sitting
• 7:39
  in
• 7:39
  shelves,
• 7:39
  how
• 7:40
  do
• 7:40
  you
• 7:40
  make
• 7:40
  sure
• 7:40
  that
• 7:40
  it's
• 7:40
  productive?
• 7:41
  Because
• 7:41
  that's
• 7:42
  capital
• 7:42
  that
• 7:42
  you
• 7:42
  could,
• 7:42
  you
• 7:43
  know,
• 7:43
  that's
• 7:43
  cash
• 7:43
  actually,
• 7:43
  you
• 7:44
  can
• 7:44
  free
• 7:44
  up,
• 7:44
  put
• 7:45
  into
• 7:45
  use.
• 7:45
  Right.
• 7:46
  That's
• 7:46
  number
• 7:46
  one.
• 7:46
  So
• 7:46
  then
• 7:46
  we
• 7:47
  take
• 7:47
  it
• 7:47
  upstream
• 7:47
  into
• 7:47
  the
• 7:48
  warehouse
• 7:48
  and
• 7:48
  said,
• 7:48
  okay,
• 7:49
  what
• 7:49
  is
• 7:49
  the
• 7:49
  optimal
• 7:50
  inventory
• 7:50
  level
• 7:51
  that
• 7:51
  we
• 7:51
  want
• 7:51
  to
• 7:51
  have
• 7:51
  inside
• 7:52
  the
• 7:52
  warehouse?
• 7:53
  Inside,
• 7:53
  within
• 7:53
  the
• 7:54
  four
• 7:54
  walls
• 7:54
  and
• 7:55
  how
• 7:55
  do
• 7:55
  we
• 7:55
  optimize
• 7:55
  that?
• 7:56
  We
• 7:56
  have
• 7:57
  done
• 7:57
  a
• 7:57
  tremendous
• 7:57
  job
• 7:58
  of,
• 7:58
  you
• 7:58
  know,
• 7:58
  what
• 7:59
  do
• 7:59
  we
• 7:59
  keep
• 7:59
  within
• 8:00
  the
• 8:00
  warehouse?
• 8:00
  What
• 8:00
  do
• 8:01
  we
• 8:01
  give
• 8:01
  it
• 8:01
  to
• 8:01
  our
• 8:01
  wholesalers?
• 8:02
  We
• 8:02
  partner
• 8:02
  with
• 8:02
  both
• 8:02
  UNFI
• 8:03
  and
• 8:03
  AWG
• 8:04
  as
• 8:04
  a
• 8:04
  wholesalers.
• 8:05
  And
• 8:05
  then,
• 8:06
  you
• 8:06
  know,
• 8:06
  also.
• 8:07
  Right.
• 8:07
  Sizing
• 8:08
  what
• 8:08
  the
• 8:08
  store
• 8:09
  can
• 8:09
  handle.
• 8:09
  We
• 8:09
  are,
• 8:09
  we
• 8:10
  have
• 8:10
  stores
• 8:10
  that
• 8:10
  are
• 8:10
  60,000
• 8:11
  square
• 8:11
  feet.
• 8:12
  We
• 8:12
  have
• 8:12
  stores
• 8:12
  that
• 8:12
  are
• 8:13
  30,
• 8:14
  maybe,
• 8:14
  no,
• 8:15
  25,
• 8:15
  maybe
• 8:16
  a
• 8:16
  little
• 8:16
  bit
• 8:16
  less
• 8:16
  square
• 8:17
  feet.
• 8:17
  So
• 8:17
  you
• 8:18
  can
• 8:18
  send
• 8:18
  the
• 8:18
  same
• 8:19
  level
• 8:19
  of
• 8:19
  inventory.
• 8:19
  You
• 8:20
  can
• 8:20
  have
• 8:20
  this.
• 8:20
  It
• 8:21
  doesn't
• 8:21
  sometimes
• 8:22
  justify
• 8:22
  the
• 8:22
  same
• 8:23
  number
• 8:23
  of
• 8:23
  frequency
• 8:24
  of
• 8:24
  delivery.
• 8:25
  So
• 8:25
  you
• 8:25
  adjust
• 8:26
  and
• 8:26
  adapt
• 8:27
  to
• 8:27
  optimize
• 8:28
  kind
• 8:28
  of
• 8:28
  your
• 8:28
  delivery
• 8:29
  schedules.
• 8:29
  We're
• 8:29
  actually
• 8:30
  changing
• 8:30
  our
• 8:30
  delivery
• 8:30
  schedule
• 8:31
  in
• 8:31
  Texas,
• 8:31
  like
• 8:31
  next
• 8:32
  week,
• 8:32
  for
• 8:32
  example.
• 8:33
  We're
• 8:33
  trying
• 8:33
  to
• 8:33
  do
• 8:33
  that.
• 8:34
  You're
• 8:34
  not
• 8:34
  just
• 8:34
  thinking
• 8:34
  about.
• 8:35
  And
• 8:35
  again,
• 8:35
  this
• 8:35
  goes
• 8:35
  back
• 8:35
  to
• 8:36
  my
• 8:36
  comment
• 8:36
  early
• 8:36
  on.
• 8:37
  If
• 8:37
  you're
• 8:37
  doing
• 8:38
  something,
• 8:38
  how
• 8:38
  are
• 8:38
  you
• 8:38
  focusing
• 8:39
  on
• 8:39
  the
• 8:39
  store?
• 8:40
  So
• 8:40
  we
• 8:40
  thought
• 8:41
  about
• 8:41
  the
• 8:41
  store
• 8:41
  and
• 8:41
  said,
• 8:41
  hey,
• 8:42
  you
• 8:42
  know,
• 8:43
  Texas
• 8:43
  wasn't
• 8:44
  getting
• 8:44
  a
• 8:44
  delivery
• 8:44
  on
• 8:45
  Monday.
• 8:45
  We
• 8:45
  sell
• 8:46
  out,
• 8:46
  you
• 8:46
  know,
• 8:47
  over
• 8:47
  the
• 8:47
  weekend.
• 8:47
  It's
• 8:47
  busy
• 8:48
  weekend.
• 8:48
  Right.
• 8:48
  You're
• 8:48
  coming
• 8:49
  into
• 8:49
  Monday.
• 8:49
  And
• 8:49
  if
• 8:49
  you
• 8:49
  don't
• 8:49
  have
• 8:50
  enough
• 8:50
  inventory,
• 8:50
  how
• 8:51
  does
• 8:51
  the
• 8:51
  store
• 8:51
  team
• 8:52
  member
• 8:52
  know
• 8:53
  fresh
• 8:53
  and
• 8:53
  fresh,
• 8:54
  what
• 8:54
  to
• 8:54
  order
• 8:55
  to
• 8:55
  last
• 8:55
  you
• 8:56
  through
• 8:56
  Monday
• 8:56
  to
• 8:57
  get
• 8:57
  a
• 8:57
  Monday
• 8:57
  night
• 8:57
  delivery?
• 8:58
  So
• 8:58
  we
• 8:58
  are
• 8:58
  making
• 8:59
  that
• 8:59
  adjustment.
• 8:59
  So
• 8:59
  those
• 9:00
  are
• 9:00
  kind
• 9:00
  of
• 9:00
  tweaks
• 9:00
  that
• 9:01
  we
• 9:01
  constantly
• 9:01
  keep
• 9:01
  making.
• 9:02
  And
• 9:02
  we'll
• 9:02
  continue
• 9:02
  to
• 9:02
  adjust
• 9:03
  and
• 9:03
  evolve
• 9:04
  as
• 9:04
  we,
• 9:04
  you
• 9:05
  know,
• 9:05
  learn
• 9:05
  more.
• 9:07
  So,
• 9:07
  Prabhash,
• 9:07
  I'm
• 9:08
  curious
• 9:08
  with
• 9:08
  the.
• 9:09
  With
• 9:09
  an
• 9:09
  experience
• 9:10
  that
• 9:10
  is
• 9:11
  as
• 9:11
  important
• 9:12
  as
• 9:12
  your
• 9:12
  stores
• 9:13
  are
• 9:13
  for
• 9:13
  your
• 9:14
  customers,
• 9:15
  going
• 9:15
  in
• 9:15
  person
• 9:16
  and
• 9:16
  getting,
• 9:17
  you
• 9:17
  know,
• 9:17
  getting
• 9:18
  food,
• 9:18
  the
• 9:18
  grocerant
• 9:19
  that
• 9:19
  you're
• 9:19
  talking
• 9:20
  about,
• 9:21
  how
• 9:21
  are
• 9:21
  you
• 9:21
  looking
• 9:21
  at
• 9:22
  technology
• 9:23
  as
• 9:23
  a
• 9:24
  means
• 9:24
  to
• 9:24
  kind
• 9:24
  of
• 9:25
  create
• 9:25
  efficiencies
• 9:26
  there,
• 9:26
  but
• 9:26
  then
• 9:26
  still
• 9:27
  maintain
• 9:27
  this
• 9:28
  experience
• 9:28
  when
• 9:29
  you're
• 9:29
  going
• 9:29
  in
• 9:29
  store?
• 9:30
  Yeah,
• 9:30
  I
• 9:30
  mean,
• 9:31
  I
• 9:31
  think
• 9:31
  technology
• 9:32
  is
• 9:32
  important
• 9:33
  layer
• 9:33
  today.
• 9:34
  So
• 9:34
  it's
• 9:34
  enabling.
• 9:35
  So
• 9:35
  two
• 9:35
  part
• 9:35
  one
• 9:36
  is
• 9:36
  how
• 9:36
  do
• 9:36
  you
• 9:36
  make
• 9:36
  the
• 9:36
  associates
• 9:37
  or
• 9:37
  team
• 9:38
  members
• 9:38
  life
• 9:39
  easier?
• 9:39
  That's
• 9:40
  a
• 9:40
  big
• 9:40
  part
• 9:40
  of
• 9:40
  it.
• 9:42
  That's
• 9:42
  the
• 9:42
  first
• 9:42
  one.
• 9:43
  And
• 9:43
  then
• 9:43
  the
• 9:43
  second
• 9:43
  part
• 9:43
  is
• 9:44
  how
• 9:45
  do
• 9:45
  you
• 9:45
  make
• 9:45
  the
• 9:45
  product
• 9:45
  fresh?
• 9:46
  Right.
• 9:46
  So
• 9:46
  we
• 9:46
  partner
• 9:47
  with
• 9:48
  Up
• 9:48
  Shop.
• 9:49
  We
• 9:49
  have
• 9:49
  Itasca
• 9:50
  for
• 9:50
  inventory.
• 9:51
  We're
• 9:51
  doing
• 9:51
  fresh
• 9:51
  item
• 9:52
  management.
• 9:53
  So
• 9:53
  it's
• 9:53
  not
• 9:53
  just
• 9:54
  to
• 9:54
  save,
• 9:54
  shrink
• 9:55
  and
• 9:55
  save
• 9:55
  money,
• 9:56
  but
• 9:56
  also
• 9:56
  you're
• 9:57
  getting
• 9:57
  a
• 9:57
  fresh
• 9:57
  product
• 9:57
  for
• 9:58
  the
• 9:58
  customer.
• 9:58
  Right.
• 9:58
  So
• 9:58
  whenever
• 9:59
  I've
• 9:59
  done
• 9:59
  things
• 10:00
  like
• 10:00
  that
• 10:00
  in
• 10:00
  my
• 10:00
  past
• 10:01
  and
• 10:01
  we're
• 10:01
  doing
• 10:01
  it
• 10:01
  right
• 10:02
  now,
• 10:02
  we
• 10:02
  actually,
• 10:03
  you
• 10:03
  do
• 10:03
  it
• 10:04
  for
• 10:04
  shrink
• 10:04
  savings
• 10:05
  and
• 10:05
  you
• 10:05
  end
• 10:05
  up
• 10:05
  going,
• 10:05
  wow,
• 10:06
  my
• 10:06
  sales
• 10:06
  had
• 10:06
  a
• 10:06
  lift.
• 10:07
  Why
• 10:07
  is
• 10:07
  that?
• 10:07
  Then
• 10:08
  you're
• 10:08
  like,
• 10:08
  oh,
• 10:08
  the
• 10:08
  customer
• 10:08
  noticed
• 10:09
  that
• 10:09
  the
• 10:09
  product
• 10:09
  was
• 10:10
  fresh.
• 10:10
  Yeah.
• 10:10
  So
• 10:11
  again,
• 10:11
  I
• 10:11
  know
• 10:11
  it's
• 10:12
  not
• 10:12
  rocket
• 10:12
  science,
• 10:12
  but
• 10:13
  it's
• 10:14
  like,
• 10:14
  wow,
• 10:14
  it's
• 10:14
  amazing.
• 10:15
  You
• 10:15
  go
• 10:15
  into
• 10:15
  it
• 10:16
  in
• 10:16
  a
• 10:16
  cost
• 10:16
  savings
• 10:18
  approach
• 10:18
  and
• 10:18
  then
• 10:18
  you
• 10:18
  find
• 10:19
  out,
• 10:19
  you're
• 10:19
  like,
• 10:19
  wait,
• 10:19
  there
• 10:20
  is
• 10:20
  another
• 10:20
  benefit,
• 10:20
  but
• 10:21
  it's
• 10:21
  to
• 10:21
  our
• 10:21
  customers.
• 10:21
  And
• 10:22
  you
• 10:22
  get,
• 10:22
  you
• 10:22
  know,
• 10:22
  you
• 10:22
  get,
• 10:22
  you
• 10:23
  know,
• 10:23
  your
• 10:23
  top
• 10:23
  side
• 10:24
  benefit
• 10:24
  and
• 10:24
  you
• 10:24
  get
• 10:24
  your
• 10:25
  bottom
• 10:25
  line
• 10:25
  benefit
• 10:25
  as
• 10:26
  well.
• 10:26
  Right,
• 10:26
  right.
• 10:26
  Are
• 10:27
  there
• 10:27
  any
• 10:27
  other
• 10:27
  infrastructural
• 10:28
  investments
• 10:28
  you
• 10:28
  guys
• 10:28
  are
• 10:29
  looking
• 10:29
  at
• 10:29
  as
• 10:29
  you
• 10:29
  look
• 10:29
  to
• 10:30
  start,
• 10:30
  you
• 10:30
  know,
• 10:30
  end
• 10:30
  2025
• 10:31
  and
• 10:31
  go
• 10:31
  into
• 10:31
  2026?
• 10:33
  So
• 10:33
  we
• 10:33
  are
• 10:33
  working
• 10:34
  on
• 10:34
  pricing
• 10:34
  and
• 10:34
  promotion
• 10:35
  right
• 10:35
  now.
• 10:35
  Pricing
• 10:36
  is
• 10:36
  very
• 10:36
  important.
• 10:37
  You
• 10:37
  know,
• 10:38
  the
• 10:38
  economy
• 10:38
  is
• 10:39
  getting
• 10:39
  challenged.
• 10:40
  I
• 10:40
  think
• 10:40
  there
• 10:40
  was
• 10:40
  a
• 10:41
  presentation
• 10:42
  yesterday,
• 10:42
  I
• 10:42
  believe
• 10:42
  from
• 10:43
  Nielsen
• 10:43
  that
• 10:43
  goes
• 10:43
  into
• 10:44
  a
• 10:44
  lot
• 10:44
  of
• 10:44
  the
• 10:44
  headwinds
• 10:44
  that
• 10:44
  are
• 10:45
  there.
• 10:45
  I
• 10:45
  mean,
• 10:45
  we're
• 10:45
  talking
• 10:45
  about
• 10:46
  a
• 10:46
  possible
• 10:47
  looming
• 10:48
  government
• 10:48
  shutdown
• 10:49
  tomorrow.
• 10:49
  Tomorrow.
• 10:51
  What
• 10:51
  does
• 10:51
  that
• 10:51
  mean
• 10:51
  to
• 10:52
  like.
• 10:52
  So
• 10:52
  we
• 10:52
  support
• 10:53
  a
• 10:53
  lot
• 10:53
  of
• 10:54
  consumers
• 10:55
  who
• 10:55
  are
• 10:55
  strapped.
• 10:55
  So
• 10:55
  if
• 10:55
  you're
• 10:56
  dependent
• 10:56
  on
• 10:56
  government
• 10:56
  benefits,
• 10:57
  that
• 10:57
  might
• 10:58
  not
• 10:58
  be
• 10:58
  there
• 10:58
  Wednesday
• 10:59
  morning.
• 10:59
  Right.
• 11:00
  So
• 11:00
  what
• 11:00
  does
• 11:00
  that
• 11:00
  mean?
• 11:00
  So
• 11:01
  now
• 11:01
  you
• 11:01
  need
• 11:01
  to
• 11:01
  stretch
• 11:01
  your
• 11:02
  dollar.
• 11:02
  How
• 11:02
  do
• 11:02
  you
• 11:02
  stretch
• 11:02
  your
• 11:03
  dollar?
• 11:04
  What
• 11:04
  if
• 11:04
  those
• 11:04
  government
• 11:04
  workers
• 11:05
  don't
• 11:05
  get
• 11:05
  a
• 11:05
  paycheck
• 11:06
  the
• 11:06
  next
• 11:06
  day?
• 11:07
  Right.
• 11:07
  So
• 11:07
  everybody,
• 11:08
  and
• 11:08
  irrespective
• 11:09
  of
• 11:09
  that,
• 11:11
  people
• 11:11
  are
• 11:11
  really
• 11:11
  watching
• 11:12
  their
• 11:12
  spend.
• 11:13
  So
• 11:13
  we
• 11:13
  want
• 11:13
  to
• 11:13
  make
• 11:14
  sure
• 11:14
  that
• 11:14
  we
• 11:14
  are
• 11:14
  priced
• 11:14
  correctly
• 11:16
  and
• 11:16
  also
• 11:16
  with
• 11:16
  the
• 11:17
  agility
• 11:17
  to
• 11:17
  kind
• 11:18
  of
• 11:18
  change.
• 11:18
  Right.
• 11:19
  And
• 11:19
  that's
• 11:19
  fusion
• 11:20
  comes
• 11:20
  into
• 11:20
  play
• 11:21
  as
• 11:21
  a
• 11:21
  result.
• 11:21
  I
• 11:21
  mean
• 11:21
  that's
• 11:22
  what
• 11:22
  we
• 11:22
  were
• 11:22
  talking
• 11:22
  to
• 11:22
  them
• 11:23
  just
• 11:24
  five
• 11:24
  minutes
• 11:24
  ago
• 11:24
  before
• 11:24
  I
• 11:25
  walked
• 11:25
  into
• 11:25
  this
• 11:25
  interview,
• 11:25
  right.
• 11:26
  To
• 11:26
  say,
• 11:26
  hey,
• 11:26
  how
• 11:27
  do
• 11:27
  I
• 11:27
  effect
• 11:27
  change
• 11:28
  today?
• 11:28
  I
• 11:29
  do
• 11:29
  my
• 11:29
  competitive
• 11:29
  price
• 11:30
  checks
• 11:30
  on
• 11:30
  Wednesday.
• 11:31
  I
• 11:31
  make
• 11:31
  sure
• 11:31
  that
• 11:32
  the
• 11:32
  KVI
• 11:33
  is
• 11:33
  the
• 11:33
  no
• 11:33
  lose
• 11:34
  proposition.
• 11:34
  Items
• 11:35
  are
• 11:35
  priced
• 11:36
  competitively
• 11:36
  the
• 11:37
  next
• 11:37
  day,
• 11:37
  which
• 11:37
  is
• 11:37
  Thursday.
• 11:38
  But
• 11:38
  what
• 11:39
  if
• 11:39
  I
• 11:39
  can
• 11:39
  affect
• 11:39
  that
• 11:39
  change
• 11:40
  Wednesday
• 11:40
  itself?
• 11:41
  I
• 11:41
  already
• 11:41
  know
• 11:42
  what
• 11:42
  I
• 11:42
  need
• 11:42
  to
• 11:42
  change.
• 11:43
  I
• 11:43
  don't
• 11:43
  have
• 11:43
  sometimes
• 11:44
  in
• 11:44
  some
• 11:45
  banners,
• 11:45
  scan
• 11:45
  coordinators
• 11:46
  working
• 11:46
  on
• 11:46
  the
• 11:47
  weekends.
• 11:47
  So
• 11:48
  now
• 11:48
  I
• 11:48
  don't
• 11:48
  need
• 11:48
  to
• 11:48
  wait
• 11:49
  until.
• 11:49
  So
• 11:49
  those
• 11:49
  are
• 11:50
  things
• 11:50
  that
• 11:50
  we
• 11:50
  are
• 11:50
  working
• 11:50
  on
• 11:51
  and
• 11:51
  also
• 11:51
  promoting.
• 11:52
  Right?
• 11:52
  Promoting
• 11:52
  the
• 11:52
  right
• 11:52
  items,
• 11:53
  killing
• 11:54
  the
• 11:54
  items
• 11:54
  that
• 11:54
  you
• 11:55
  might
• 11:55
  be
• 11:55
  promoting.
• 11:55
  You
• 11:56
  think
• 11:56
  that
• 11:56
  has
• 11:56
  benefit
• 11:56
  but
• 11:57
  don't
• 11:57
  really
• 11:57
  have
• 11:57
  a
• 11:57
  benefit.
• 11:58
  So
• 11:58
  how
• 11:58
  do
• 11:58
  you
• 11:58
  do
• 11:59
  that?
• 11:59
  So
• 11:59
  pricing
• 11:59
  and
• 11:59
  promotion
• 12:00
  becomes
• 12:01
  really
• 12:01
  important
• 12:01
  for
• 12:02
  not
• 12:02
  only
• 12:02
  driving
• 12:03
  topside
• 12:03
  benefit
• 12:04
  but
• 12:04
  also
• 12:04
  protecting
• 12:04
  your
• 12:05
  profit.
• 12:06
  Well,
• 12:07
  let's
• 12:07
  close
• 12:07
  with
• 12:08
  this
• 12:08
  question.
• 12:09
  You've
• 12:10
  been
• 12:10
  with
• 12:10
  heritage
• 12:11
  grocers
• 12:12
  for
• 12:12
  a
• 12:12
  while.
• 12:13
  Six
• 12:13
  years.
• 12:14
  Six
• 12:14
  years.
• 12:15
  You've
• 12:15
  seen
• 12:16
  a
• 12:16
  lot.
• 12:17
  Yes.
• 12:18
  So
• 12:18
  what
• 12:19
  do
• 12:19
  you
• 12:19
  think
• 12:19
  the
• 12:19
  future
• 12:20
  looks
• 12:20
  like
• 12:21
  for
• 12:21
  regional
• 12:21
  grocers?
• 12:23
  It's
• 12:23
  a
• 12:23
  good
• 12:23
  question.
• 12:24
  I
• 12:24
  mean,
• 12:24
  I
• 12:24
  think
• 12:24
  the
• 12:25
  regional
• 12:25
  grocers
• 12:26
  are
• 12:27
  definitely
• 12:27
  challenged
• 12:29
  in
• 12:29
  the
• 12:29
  sense
• 12:29
  that
• 12:30
  the
• 12:30
  larger
• 12:30
  retailers
• 12:32
  have
• 12:32
  a
• 12:32
  arsenal
• 12:33
  of
• 12:33
  weapons,
• 12:34
  whether
• 12:34
  it's
• 12:34
  capital,
• 12:35
  whether
• 12:36
  it's
• 12:36
  technology
• 12:37
  that's
• 12:37
  available
• 12:37
  to
• 12:38
  them.
• 12:38
  So
• 12:38
  for
• 12:39
  us
• 12:39
  we
• 12:40
  look
• 12:40
  at,
• 12:40
  you
• 12:40
  know,
• 12:40
  we
• 12:40
  feel
• 12:41
  like
• 12:41
  we're
• 12:41
  fairly
• 12:41
  decent
• 12:42
  size
• 12:42
  at
• 12:42
  $3
• 12:42
  billion.
• 12:43
  But
• 12:43
  when
• 12:43
  you
• 12:43
  look
• 12:43
  at
• 12:44
  a
• 12:44
  Walmart,
• 12:45
  you
• 12:45
  know,
• 12:45
  you
• 12:45
  know
• 12:46
  the
• 12:47
  competitors,
• 12:47
  the
• 12:48
  Kroger's,
• 12:48
  Albertsons,
• 12:49
  relatively
• 12:49
  smaller.
• 12:50
  Right.
• 12:50
  So
• 12:50
  how
• 12:50
  do
• 12:50
  we
• 12:50
  go
• 12:51
  to
• 12:51
  market
• 12:51
  that
• 12:51
  becomes
• 12:52
  challenging
• 12:54
  pricing.
• 12:55
  You
• 12:55
  look
• 12:56
  at
• 12:56
  your
• 12:56
  profits
• 12:57
  and
• 12:57
  you
• 12:57
  say,
• 12:57
  okay,
• 12:57
  where
• 12:58
  do
• 12:58
  you
• 12:58
  invest?
• 12:59
  Do
• 12:59
  you
• 12:59
  invest
• 12:59
  in
• 13:00
  item
• 13:00
  price
• 13:01
  to
• 13:01
  make
• 13:01
  the
• 13:01
  customer
• 13:02
  happy?
• 13:02
  Do
• 13:02
  you
• 13:02
  invest
• 13:02
  in
• 13:03
  technologies?
• 13:04
  So
• 13:04
  I
• 13:04
  think
• 13:05
  that's
• 13:05
  where
• 13:05
  you
• 13:05
  need
• 13:05
  to
• 13:05
  become
• 13:05
  really
• 13:06
  smart
• 13:06
  and
• 13:06
  really
• 13:07
  strategic
• 13:08
  on
• 13:08
  where
• 13:08
  you
• 13:08
  make
• 13:09
  the
• 13:09
  investments.
• 13:10
  I
• 13:11
  do
• 13:11
  think
• 13:11
  that
• 13:11
  there
• 13:11
  is
• 13:11
  gonna
• 13:12
  be
• 13:12
  some,
• 13:12
  this
• 13:12
  is
• 13:12
  more
• 13:12
  forward
• 13:13
  looking
• 13:14
  theory,
• 13:14
  if
• 13:15
  you
• 13:15
  will,
• 13:15
  that
• 13:15
  there'll
• 13:15
  be
• 13:16
  some
• 13:16
  consolidation
• 13:17
  within
• 13:18
  the
• 13:18
  mid
• 13:18
  tier
• 13:21
  retailers.
• 13:22
  It
• 13:22
  has
• 13:23
  to
• 13:23
  happen.
• 13:24
  That's
• 13:24
  probably
• 13:24
  the
• 13:25
  only
• 13:25
  way
• 13:25
  forward.
• 13:26
  But
• 13:26
  I
• 13:26
  don't
• 13:27
  think
• 13:27
  that's
• 13:27
  a
• 13:27
  bad
• 13:27
  thing.
• 13:27
  I
• 13:27
  think
• 13:28
  at
• 13:28
  the
• 13:28
  end
• 13:28
  of
• 13:28
  the
• 13:29
  day
• 13:29
  we're
• 13:29
  here
• 13:29
  to
• 13:29
  serve
• 13:29
  our
• 13:29
  communities
• 13:30
  and
• 13:30
  our
• 13:30
  customers.
• 13:31
  That
• 13:32
  leverage
• 13:32
  and
• 13:33
  larger
• 13:33
  size
• 13:33
  will
• 13:34
  give
• 13:34
  the
• 13:34
  customers
• 13:34
  a
• 13:35
  better
• 13:35
  service,
• 13:35
  if
• 13:35
  you
• 13:36
  will
• 13:37
  and
• 13:37
  better
• 13:38
  item
• 13:38
  price
• 13:39
  because
• 13:39
  you
• 13:39
  now
• 13:39
  have
• 13:39
  better
• 13:40
  leverage.
• 13:40
  So
• 13:40
  I
• 13:41
  don't
• 13:41
  think
• 13:41
  it's
• 13:41
  a
• 13:41
  bad
• 13:41
  thing.
• 13:42
  But
• 13:43
  as
• 13:43
  long
• 13:43
  as
• 13:44
  whoever
• 13:44
  the
• 13:44
  acquirer
• 13:45
  of
• 13:46
  those
• 13:46
  banners,
• 13:46
  like,
• 13:46
  that's
• 13:47
  what
• 13:47
  we've
• 13:47
  done
• 13:47
  as
• 13:47
  heritage,
• 13:48
  when
• 13:48
  we've
• 13:48
  done
• 13:48
  our
• 13:48
  acquisitions,
• 13:49
  you
• 13:50
  need
• 13:50
  to
• 13:50
  keep
• 13:50
  what
• 13:51
  made
• 13:51
  that
• 13:51
  banner
• 13:51
  special
• 13:52
  still
• 13:52
  intact.
• 13:53
  Right.
• 13:53
  There's
• 13:53
  a
• 13:54
  reason
• 13:54
  why
• 13:54
  that
• 13:54
  customer
• 13:55
  decided
• 13:55
  to
• 13:55
  shop.
• 13:55
  You
• 13:56
  versus
• 13:56
  somebody
• 13:57
  else.
• 13:57
  So
• 13:57
  how
• 13:57
  do
• 13:57
  you
• 13:57
  keep
• 13:58
  that
• 13:58
  special
• 13:58
  thing
• 13:59
  still
• 13:59
  going?
• 14:00
  And
• 14:00
  you
• 14:00
  got
• 14:00
  to
• 14:00
  be
• 14:00
  very
• 14:00
  sharp
• 14:01
  in
• 14:01
  how
• 14:01
  you
• 14:01
  invest.
• 14:01
  That's
• 14:02
  my
• 14:02
  takeaway
• 14:02
  from
• 14:02
  what
• 14:03
  you
• 14:03
  just
• 14:03
  said.
• 14:03
  Right.
• 14:03
  You
• 14:04
  know,
• 14:04
  it's
• 14:04
  not
• 14:04
  an
• 14:04
  easy
• 14:04
  equation
• 14:05
  to
• 14:05
  decide
• 14:05
  all
• 14:05
  the
• 14:06
  time.
• 14:06
  Well,
• 14:06
  Pripash,
• 14:06
  thank
• 14:07
  you
• 14:07
  so
• 14:07
  much
• 14:08
  for
• 14:08
  joining
• 14:08
  us.
• 14:08
  Thank
• 14:08
  you
• 14:09
  to
• 14:09
  the
• 14:09
  Fusion
• 14:09
  Group
• 14:09
  for
• 14:10
  sponsoring
• 14:10
  our
• 14:11
  coverage
• 14:11
  here
• 14:11
  at
• 14:11
  Grocery
• 14:12
  Shop
• 14:12
  2025.
• 14:13
  And
• 14:13
  until
• 14:13
  next
• 14:13
  time,
• 14:14
  and
• 14:14
  be
• 14:14
  careful
• 14:15
  out
• 14:15
  there.