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Amazon Exits UK Grocery: What It Means | Fast Five Shorts · Omni Talk Retail

• 0:00
  Amazon
• 0:00
  is
• 0:00
  closing
• 0:01
  all
• 0:01
  of
• 0:01
  its
• 0:01
  fresh
• 0:02
  grocery
• 0:02
  stores
• 0:02
  in
• 0:03
  the
• 0:03
  U.K.
• 0:03
  chris.
• 0:04
  All
• 0:04
  of
• 0:04
  them.
• 0:05
  According
• 0:06
  to
• 0:06
  CNBC,
• 0:08
  the
• 0:08
  company
• 0:08
  said
• 0:09
  in
• 0:09
  a
• 0:09
  Tuesday
• 0:09
  blog
• 0:09
  that
• 0:10
  it
• 0:10
  is
• 0:10
  preparing
• 0:10
  to
• 0:10
  close
• 0:11
  all
• 0:11
  19
• 0:12
  of
• 0:12
  its
• 0:12
  fresh
• 0:12
  UK
• 0:13
  stores,
• 0:13
  quote,
• 0:14
  following
• 0:14
  a
• 0:15
  thorough
• 0:15
  evaluation
• 0:16
  of
• 0:16
  business
• 0:16
  operations
• 0:17
  and
• 0:17
  the
• 0:17
  very
• 0:17
  substantial
• 0:18
  growth
• 0:18
  opportunities
• 0:19
  in
• 0:19
  online
• 0:20
  delivery,
• 0:20
  end
• 0:21
  quote.
• 0:21
  Five
• 0:22
  of
• 0:22
  the
• 0:22
  fresh
• 0:22
  locations
• 0:23
  are
• 0:23
  expected
• 0:24
  to
• 0:24
  be
• 0:24
  converted
• 0:24
  into
• 0:25
  Whole
• 0:25
  Foods
• 0:25
  stores,
• 0:26
  Amazon
• 0:26
  said.
• 0:27
  Chris,
• 0:28
  what
• 0:28
  do
• 0:28
  you
• 0:28
  think
• 0:28
  of
• 0:28
  Amazon
• 0:29
  closing
• 0:29
  its
• 0:29
  fresh
• 0:30
  stores
• 0:30
  in
• 0:30
  the
• 0:30
  uk?
• 0:31
  Do
• 0:31
  you
• 0:31
  think
• 0:31
  the
• 0:31
  move
• 0:32
  says
• 0:32
  anything
• 0:33
  about
• 0:33
  Amazon's
• 0:34
  grocery
• 0:34
  ambitions
• 0:35
  here
• 0:35
  in
• 0:35
  the
• 0:36
  us?
• 0:37
  Oh,
• 0:37
  wow,
• 0:37
  this
• 0:38
  is,
• 0:38
  yeah,
• 0:38
  there's
• 0:38
  a
• 0:38
  lot
• 0:39
  of
• 0:39
  great
• 0:39
  stories
• 0:39
  this
• 0:39
  week.
• 0:40
  I
• 0:40
  got
• 0:40
  a
• 0:40
  number
• 0:40
  of
• 0:41
  thoughts
• 0:41
  on
• 0:41
  this
• 0:41
  one
• 0:41
  too.
• 0:41
  And
• 0:41
  I
• 0:42
  mean,
• 0:42
  I
• 0:42
  think
• 0:42
  first,
• 0:43
  first
• 0:43
  off,
• 0:43
  it
• 0:43
  confirms
• 0:44
  what
• 0:44
  we've
• 0:44
  always
• 0:45
  said
• 0:45
  on
• 0:45
  this
• 0:45
  show,
• 0:45
  which
• 0:46
  is
• 0:46
  grocery
• 0:47
  is
• 0:47
  incredibly
• 0:48
  hard.
• 0:48
  It's
• 0:49
  incredibly
• 0:49
  difficult
• 0:50
  to
• 0:50
  unseat
• 0:50
  the
• 0:51
  incumbents
• 0:52
  with
• 0:52
  well
• 0:52
  established
• 0:53
  value
• 0:53
  propositions
• 0:54
  and
• 0:54
  scale
• 0:54
  already
• 0:55
  under
• 0:55
  their
• 0:55
  belt.
• 0:55
  Like
• 0:55
  it's,
• 0:56
  it's
• 0:56
  damn
• 0:56
  near
• 0:57
  impossible
• 0:57
  when
• 0:57
  you
• 0:58
  think
• 0:58
  about
• 0:58
  it.
• 0:58
  Like
• 0:58
  there'
• 0:59
  very
• 0:59
  few
• 0:59
  examples
• 1:00
  of
• 1:00
  people
• 1:00
  doing
• 1:00
  it
• 1:00
  successfully.
• 1:01
  In
• 1:01
  fact,
• 1:01
  I
• 1:01
  can't
• 1:02
  even
• 1:02
  really
• 1:02
  name
• 1:02
  one.
• 1:04
  And
• 1:04
  then
• 1:04
  the
• 1:04
  second
• 1:05
  part
• 1:05
  I'd
• 1:05
  make,
• 1:06
  which
• 1:06
  is
• 1:07
  why
• 1:07
  I'm
• 1:07
  personally
• 1:08
  short
• 1:08
  on
• 1:08
  Amazon's
• 1:09
  grocery
• 1:09
  ambitions
• 1:09
  here
• 1:10
  in
• 1:10
  the
• 1:10
  States,
• 1:10
  is
• 1:12
  they
• 1:12
  can't
• 1:12
  win
• 1:12
  on
• 1:12
  freshness
• 1:13
  and
• 1:13
  quality
• 1:14
  because
• 1:14
  they
• 1:14
  don't
• 1:15
  have
• 1:15
  the
• 1:15
  scale
• 1:15
  of
• 1:15
  their
• 1:15
  operations
• 1:16
  to
• 1:16
  get
• 1:16
  the
• 1:16
  best
• 1:17
  produce
• 1:17
  right
• 1:18
  and
• 1:18
  the
• 1:18
  best
• 1:18
  fresh
• 1:19
  meat.
• 1:19
  They
• 1:20
  can't
• 1:20
  win
• 1:20
  on
• 1:20
  price
• 1:21
  because
• 1:21
  they're
• 1:22
  going
• 1:22
  up
• 1:22
  against
• 1:23
  Aldi,
• 1:24
  Walmart,
• 1:25
  Costco,
• 1:25
  Sam's
• 1:26
  Club,
• 1:26
  you
• 1:26
  name
• 1:27
  it.
• 1:27
  It's
• 1:27
  going
• 1:27
  to
• 1:27
  be
• 1:27
  hard
• 1:27
  to
• 1:28
  break
• 1:28
  into
• 1:28
  that.
• 1:28
  They
• 1:29
  could
• 1:29
  try,
• 1:29
  but
• 1:30
  it's
• 1:30
  not,
• 1:30
  it's
• 1:31
  going
• 1:31
  to
• 1:31
  be
• 1:31
  hard
• 1:31
  to
• 1:31
  get
• 1:31
  the
• 1:31
  brand
• 1:31
  recognition
• 1:32
  for
• 1:32
  that.
• 1:33
  And
• 1:33
  then
• 1:33
  it's
• 1:33
  impossible
• 1:34
  to
• 1:34
  win
• 1:34
  on
• 1:34
  experience
• 1:35
  or
• 1:35
  like
• 1:36
  or,
• 1:36
  you
• 1:36
  know,
• 1:37
  anything
• 1:37
  of
• 1:37
  that
• 1:37
  nature
• 1:37
  because
• 1:37
  you
• 1:38
  don't
• 1:38
  have
• 1:38
  stores.
• 1:39
  And
• 1:39
  grocery
• 1:39
  shopping
• 1:40
  is
• 1:40
  a
• 1:40
  very
• 1:41
  local
• 1:41
  and
• 1:42
  personal
• 1:42
  experience
• 1:43
  for
• 1:43
  many
• 1:43
  folks.
• 1:44
  So
• 1:44
  I
• 1:44
  just
• 1:44
  look
• 1:44
  at
• 1:45
  Lidl,
• 1:45
  who
• 1:45
  we
• 1:45
  interviewed,
• 1:46
  their
• 1:46
  CEO
• 1:46
  of
• 1:46
  the
• 1:47
  US
• 1:47
  here,
• 1:47
  you
• 1:48
  know,
• 1:48
  at
• 1:48
  grocery
• 1:48
  shop
• 1:48
  Joel
• 1:49
  Rampel,
• 1:49
  and
• 1:50
  they're
• 1:50
  having
• 1:50
  trouble
• 1:51
  establishing
• 1:52
  their
• 1:52
  value
• 1:52
  proposition
• 1:53
  in
• 1:53
  the
• 1:53
  United
• 1:54
  States
• 1:54
  for
• 1:54
  those
• 1:54
  very
• 1:55
  same
• 1:55
  reasons.
• 1:55
  And,
• 1:56
  and
• 1:56
  here's
• 1:56
  the
• 1:56
  thing,
• 1:57
  they
• 1:57
  have
• 1:57
  200
• 1:58
  stores
• 1:58
  already,
• 1:59
  right,
• 1:59
  and
• 1:59
  have
• 2:00
  been
• 2:00
  at
• 2:00
  it
• 2:00
  for
• 2:00
  a
• 2:00
  long
• 2:01
  time.
• 2:01
  So,
• 2:02
  so
• 2:02
  Amazon
• 2:03
  Fresh
• 2:03
  in
• 2:03
  the
• 2:03
  US
• 2:04
  to
• 2:04
  me
• 2:04
  is
• 2:04
  dead
• 2:05
  on
• 2:05
  arrival.
• 2:05
  It's
• 2:05
  doa.
• 2:06
  And,
• 2:07
  and
• 2:08
  here's
• 2:08
  the
• 2:08
  other
• 2:09
  point
• 2:09
  though.
• 2:09
  I
• 2:09
  think
• 2:09
  this
• 2:09
  is
• 2:09
  important
• 2:10
  too,
• 2:10
  and
• 2:10
  I'm
• 2:10
  curious
• 2:10
  what
• 2:11
  you
• 2:11
  think
• 2:11
  on
• 2:11
  this.
• 2:12
  I
• 2:12
  think
• 2:12
  they're
• 2:13
  making
• 2:13
  similar
• 2:13
  mistakes
• 2:13
  with
• 2:14
  Whole
• 2:14
  Foods.
• 2:14
  Like
• 2:15
  this
• 2:15
  week
• 2:15
  they
• 2:15
  said
• 2:15
  a
• 2:16
  grocery
• 2:16
  shop,
• 2:16
  they're
• 2:16
  going
• 2:16
  away
• 2:17
  from
• 2:17
  the
• 2:17
  Whole
• 2:17
  paycheck
• 2:18
  connotation,
• 2:18
  which
• 2:19
  I
• 2:19
  think
• 2:19
  that
• 2:19
  actually
• 2:20
  is
• 2:20
  what
• 2:20
  you
• 2:21
  want
• 2:21
  people
• 2:21
  to
• 2:21
  say
• 2:21
  about
• 2:22
  your
• 2:22
  brand.
• 2:22
  You
• 2:23
  want
• 2:23
  it
• 2:23
  to
• 2:23
  be
• 2:24
  prestigious,
• 2:24
  you
• 2:24
  want
• 2:24
  it
• 2:25
  to
• 2:25
  be
• 2:25
  something
• 2:25
  aspirational.
• 2:26
  And
• 2:26
  now
• 2:26
  you're
• 2:27
  trying
• 2:27
  to
• 2:27
  go
• 2:27
  away
• 2:28
  from
• 2:28
  that.
• 2:28
  It
• 2:28
  just
• 2:29
  shows
• 2:29
  me
• 2:29
  that
• 2:29
  you're,
• 2:30
  you're
• 2:30
  so
• 2:30
  frickin
• 2:31
  lost
• 2:31
  here
• 2:31
  in
• 2:32
  terms
• 2:32
  of
• 2:32
  what's
• 2:32
  going
• 2:32
  on.
• 2:33
  Yeah,
• 2:34
  I
• 2:34
  think
• 2:34
  that,
• 2:35
  I
• 2:36
  mean,
• 2:36
  you
• 2:36
  made
• 2:36
  some
• 2:36
  great
• 2:37
  points
• 2:37
  there.
• 2:37
  I
• 2:37
  think
• 2:38
  the,
• 2:38
  the
• 2:39
  real
• 2:39
  point
• 2:39
  of
• 2:40
  contention,
• 2:40
  I
• 2:40
  think
• 2:41
  for
• 2:41
  Amazon
• 2:41
  here
• 2:42
  is
• 2:42
  that
• 2:43
  Sprouts,
• 2:44
  Lidl,
• 2:44
  Aldi,
• 2:45
  all
• 2:46
  of
• 2:46
  these
• 2:46
  players
• 2:47
  are
• 2:47
  beating
• 2:48
  their
• 2:49
  main
• 2:49
  mission.
• 2:50
  We
• 2:50
  heard
• 2:50
  from,
• 2:50
  you
• 2:51
  know,
• 2:51
  all
• 2:51
  of
• 2:51
  them
• 2:52
  that
• 2:52
  they're
• 2:53
  really
• 2:53
  focused
• 2:54
  on
• 2:54
  only
• 2:54
  opening
• 2:55
  in
• 2:55
  locations
• 2:55
  where
• 2:56
  they
• 2:56
  can
• 2:56
  have
• 2:56
  distribution
• 2:57
  centers
• 2:57
  close
• 2:57
  by
• 2:58
  where
• 2:58
  they
• 2:58
  can
• 2:58
  ensure
• 2:59
  that
• 2:59
  they're
• 2:59
  getting
• 2:59
  you
• 3:00
  the
• 3:00
  freshest,
• 3:01
  most
• 3:01
  local
• 3:02
  as
• 3:02
  possible
• 3:03
  product
• 3:04
  for
• 3:04
  the
• 3:04
  lowest
• 3:05
  price.
• 3:05
  And
• 3:05
  if,
• 3:06
  I
• 3:06
  mean,
• 3:06
  Whole
• 3:07
  Foods
• 3:07
  isn't
• 3:07
  going
• 3:07
  to
• 3:07
  be
• 3:07
  able
• 3:08
  to
• 3:08
  compete
• 3:08
  with
• 3:08
  that.
• 3:08
  Their
• 3:09
  model
• 3:09
  is
• 3:09
  just
• 3:09
  not
• 3:10
  set
• 3:10
  up
• 3:10
  that
• 3:10
  way
• 3:11
  either.
• 3:11
  And
• 3:12
  these
• 3:12
  new
• 3:12
  players
• 3:13
  are
• 3:14
  already
• 3:14
  the
• 3:14
  go
• 3:15
  to
• 3:15
  on
• 3:15
  price.
• 3:16
  And
• 3:16
  so
• 3:16
  I
• 3:16
  think
• 3:17
  that
• 3:17
  that's
• 3:17
  the,
• 3:18
  that's
• 3:18
  the
• 3:18
  challenge
• 3:18
  here.
• 3:19
  Amazon
• 3:19
  can't
• 3:20
  survive
• 3:20
  on
• 3:20
  tech.
• 3:21
  Convenience
• 3:21
  and
• 3:21
  tech
• 3:22
  is
• 3:22
  not
• 3:22
  enough.
• 3:22
  It's
• 3:23
  about
• 3:23
  price,
• 3:23
  it's
• 3:23
  about
• 3:24
  qual
• 3:24
  quality.
• 3:24
  And
• 3:25
  as
• 3:25
  you
• 3:25
  mentioned,
• 3:26
  Amazon
• 3:26
  just
• 3:26
  doesn't
• 3:27
  have
• 3:27
  the
• 3:27
  scale
• 3:28
  or
• 3:28
  the
• 3:28
  infrastructure
• 3:29
  to
• 3:29
  do
• 3:29
  either
• 3:29
  one
• 3:30
  of
• 3:30
  those.
• 3:30
  Well
• 3:30
  right
• 3:31
  now.
• 3:31
  So
• 3:31
  I'm,
• 3:32
  I'm,
• 3:32
  I'm
• 3:33
  in
• 3:33
  agreement.
• 3:33
  I
• 3:33
  think
• 3:33
  it's
• 3:34
  very
• 3:34
  concerning.
• 3:35
  I,
• 3:35
  the
• 3:36
  one
• 3:36
  thing
• 3:36
  question
• 3:36
  that
• 3:36
  I
• 3:37
  had
• 3:37
  for
• 3:37
  you
• 3:37
  though
• 3:37
  is
• 3:37
  like,
• 3:38
  why
• 3:38
  the
• 3:39
  move
• 3:39
  towards
• 3:39
  Whole
• 3:40
  Foods,
• 3:40
  do
• 3:40
  you
• 3:40
  think?
• 3:41
  Why
• 3:41
  are
• 3:41
  they
• 3:41
  keeping
• 3:41
  these
• 3:42
  five
• 3:42
  stores
• 3:42
  in
• 3:43
  the
• 3:43
  UK
• 3:43
  and
• 3:44
  doing
• 3:44
  a
• 3:44
  Whole
• 3:44
  Foods
• 3:45
  concept?
• 3:45
  Like
• 3:46
  what
• 3:46
  benefit
• 3:46
  is
• 3:47
  there
• 3:47
  there?
• 3:47
  Are
• 3:48
  they
• 3:48
  trying
• 3:48
  to
• 3:49
  see
• 3:49
  if
• 3:49
  they
• 3:49
  can
• 3:49
  test,
• 3:50
  you
• 3:50
  know,
• 3:50
  this
• 3:51
  low
• 3:51
  price
• 3:51
  freshness
• 3:52
  like
• 3:52
  the
• 3:53
  new
• 3:53
  Whole
• 3:53
  Foods,
• 3:54
  not
• 3:54
  whole
• 3:54
  paycheck
• 3:55
  concept?
• 3:56
  Like.
• 3:56
  Yeah,
• 3:57
  I
• 3:57
  don't
• 3:57
  know.
• 3:57
  My,
• 3:57
  my
• 3:57
  hunch
• 3:58
  is
• 3:58
  some
• 3:58
  consultant
• 3:59
  did
• 3:59
  some
• 3:59
  Venn
• 3:59
  diagram
• 4:00
  of
• 4:00
  the
• 4:00
  opportunity
• 4:00
  of
• 4:00
  Whole
• 4:01
  Foods
• 4:01
  in
• 4:01
  the,
• 4:01
  in
• 4:01
  the
• 4:01
  UK
• 4:02
  market
• 4:02
  and
• 4:02
  they
• 4:02
  said,
• 4:03
  okay,
• 4:03
  let's
• 4:03
  try
• 4:04
  it
• 4:04
  here.
• 4:04
  And
• 4:04
  you
• 4:05
  know,
• 4:05
  Amazon's
• 4:05
  famous
• 4:06
  for
• 4:06
  experimenting,
• 4:06
  so
• 4:06
  who
• 4:06
  knows
• 4:07
  if
• 4:07
  it'll
• 4:07
  work
• 4:07
  too.
• 4:07
  And
• 4:08
  sure,
• 4:08
  who
• 4:08
  knows
• 4:08
  what
• 4:08
  concept
• 4:09
  they're
• 4:09
  doing?
• 4:09
  Maybe
• 4:09
  they're
• 4:09
  trying
• 4:10
  their
• 4:10
  daily
• 4:10
  shop
• 4:10
  concept
• 4:11
  that
• 4:11
  they're
• 4:11
  all
• 4:11
  big
• 4:11
  on
• 4:11
  here
• 4:12
  too,
• 4:12
  you
• 4:12
  know,
• 4:12
  I
• 4:12
  don't
• 4:12
  know.
• 4:12
  Yeah,
• 4:13
  the
• 4:13
  one
• 4:13
  caveat
• 4:14
  I
• 4:14
  would
• 4:14
  have
• 4:14
  in
• 4:14
  terms
• 4:14
  of
• 4:14
  what
• 4:15
  we're
• 4:15
  saying,
• 4:15
  it
• 4:15
  goes
• 4:15
  back
• 4:15
  to,
• 4:15
  we
• 4:16
  said
• 4:16
  at
• 4:16
  the
• 4:16
  outset
• 4:16
  too,
• 4:17
  which
• 4:17
  is
• 4:17
  like,
• 4:18
  you
• 4:18
  know,
• 4:19
  it
• 4:19
  seems
• 4:20
  like
• 4:20
  Amazon,
• 4:22
  as
• 4:22
  much
• 4:22
  as
• 4:22
  they
• 4:22
  don't
• 4:23
  want
• 4:23
  to
• 4:23
  admit
• 4:23
  it,
• 4:23
  I
• 4:23
  think
• 4:23
  Amazon
• 4:24
  already
• 4:24
  knows
• 4:24
  what
• 4:24
  we're
• 4:25
  saying
• 4:25
  and
• 4:25
  that's
• 4:25
  why
• 4:26
  they're
• 4:26
  pushing
• 4:26
  the
• 4:26
  online
• 4:27
  side
• 4:27
  of
• 4:27
  the
• 4:27
  business
• 4:27
  so
• 4:28
  hard.
• 4:28
  Yeah
• 4:28
  the
• 4:29
  online
• 4:29
  side
• 4:29
  of
• 4:29
  the
• 4:29
  business
• 4:30
  is
• 4:30
  still
• 4:30
  so
• 4:30
  hard
• 4:30
  for
• 4:30
  the
• 4:30
  reasons
• 4:31
  we
• 4:31
  said.
• 4:31
  It's
• 4:31
  you
• 4:32
  still
• 4:32
  face
• 4:32
  all
• 4:32
  the
• 4:33
  same
• 4:33
  factors
• 4:34
  in
• 4:34
  terms
• 4:34
  of
• 4:34
  differentiation
• 4:35
  but
• 4:36
  at
• 4:36
  the
• 4:36
  end
• 4:36
  of
• 4:36
  the
• 4:36
  day
• 4:36
  like
• 4:37
  you
• 4:37
  know
• 4:37
  you
• 4:37
  go
• 4:37
  back
• 4:37
  to
• 4:38
  Tim
• 4:38
  Center's
• 4:38
  comment
• 4:39
  can
• 4:39
  they
• 4:39
  get
• 4:39
  to
• 4:40
  a
• 4:40
  point
• 4:40
  where
• 4:40
  it
• 4:40
  is
• 4:40
  the
• 4:41
  cheapest,
• 4:41
  most
• 4:42
  preferred
• 4:42
  way
• 4:42
  for
• 4:42
  consumers
• 4:43
  to
• 4:43
  shop
• 4:43
  not
• 4:43
  now
• 4:44
  but
• 4:44
  10
• 4:44
  to
• 4:44
  15
• 4:45
  years
• 4:45
  out.
• 4:46
  But
• 4:46
  I
• 4:46
  still
• 4:46
  think
• 4:46
  Amazon
• 4:47
  has
• 4:47
  a
• 4:47
  tough
• 4:48
  challenge
• 4:48
  to
• 4:48
  win
• 4:49
  that
• 4:49
  battle
• 4:49
  because
• 4:50
  Walmart
• 4:50
  is
• 4:50
  better
• 4:51
  positioned
• 4:52
  in
• 4:52
  the
• 4:52
  US
• 4:52
  Even
• 4:53
  you
• 4:53
  know
• 4:53
  even
• 4:54
  Walmart,
• 4:54
  maybe
• 4:54
  even
• 4:55
  Kroger
• 4:55
  or
• 4:55
  maybe
• 4:55
  even
• 4:56
  the
• 4:56
  Re
• 4:56
  you
• 4:56
  know
• 4:56
  somebody
• 4:57
  in
• 4:57
  that
• 4:57
  realm
• 4:57
  is
• 4:58
  better
• 4:58
  positioned
• 4:59
  for
• 4:59
  all
• 4:59
  the
• 4:59
  reasons
• 4:59
  we
• 4:59
  said
• 5:00
  so.
• 5:00
  Right.
• 5:01
  It
• 5:01
  just
• 5:01
  I
• 5:01
  just
• 5:02
  think
• 5:02
  it's
• 5:02
  going
• 5:02
  to
• 5:02
  be
• 5:02
  a
• 5:02
  hard
• 5:02
  battle.
• 5:03
  Yeah,
• 5:04
  yeah
• 5:04
  I
• 5:04
  agree.
• 5:05
  Another
• 5:06
  fun
• 5:06
  one
• 5:06
  to
• 5:07
  watch
• 5:07
  though
• 5:07
  for
• 5:07
  the
• 5:08
  next
• 5:08
  couple
• 5:08
  months
• 5:08
  here.
• 5:09
  Yeah
• 5:09
  what
• 5:09
  a
• 5:09
  great
• 5:10
  show
• 5:10
  so
• 5:10
  far.