Latest / Omni Talk Retail / Inside Amazon Grocery: A New Concept or Confusing Strategy?

Transcript

Inside Amazon Grocery: A New Concept or Confusing Strategy? · Omni Talk Retail

• 0:00
  Amazon
• 0:00
  is
• 0:00
  testing
• 0:01
  a
• 0:01
  new
• 0:01
  small
• 0:02
  format
• 0:02
  grocery
• 0:02
  store
• 0:03
  concept
• 0:03
  in
• 0:04
  Chicago.
• 0:05
  According
• 0:05
  to
• 0:05
  Chain
• 0:05
  Storage,
• 0:06
  the
• 0:06
  company
• 0:06
  has
• 0:07
  opened
• 0:07
  a
• 0:07
  3,800
• 0:08
  square
• 0:09
  foot
• 0:09
  small
• 0:10
  format
• 0:10
  grocery
• 0:11
  store
• 0:11
  concept
• 0:11
  in
• 0:12
  downtown
• 0:12
  Chicago
• 0:13
  in
• 0:13
  a
• 0:13
  building
• 0:14
  that
• 0:14
  also
• 0:14
  houses
• 0:14
  a
• 0:15
  Whole
• 0:15
  Foods
• 0:15
  market
• 0:16
  in
• 0:16
  Amazon.
• 0:17
  Spokesperson
• 0:18
  spokesperson
• 0:19
  confirmed
• 0:20
  the
• 0:20
  new
• 0:20
  store
• 0:21
  called
• 0:21
  Amazon
• 0:22
  Grocery.
• 0:23
  Gotta
• 0:23
  love
• 0:23
  that
• 0:23
  name.
• 0:24
  Amazon
• 0:24
  Grocery
• 0:25
  and
• 0:25
  not
• 0:25
  to
• 0:25
  be
• 0:26
  confused
• 0:26
  with
• 0:26
  Amazon
• 0:27
  Fresh
• 0:27
  or
• 0:27
  Amazon
• 0:28
  Go
• 0:28
  features
• 0:29
  a
• 0:29
  selection
• 0:29
  of
• 0:30
  approximately
• 0:30
  3,500
• 0:31
  products
• 0:32
  and
• 0:32
  is
• 0:32
  located
• 0:32
  in
• 0:33
  the
• 0:33
  One
• 0:33
  Chicago
• 0:34
  building.
• 0:34
  The
• 0:35
  new
• 0:35
  store
• 0:35
  allows
• 0:36
  customers
• 0:36
  to
• 0:36
  complete
• 0:37
  quick
• 0:37
  trips
• 0:37
  like
• 0:38
  grocery
• 0:38
  top
• 0:38
  ups,
• 0:39
  coffee
• 0:39
  and
• 0:40
  Grab
• 0:40
  and
• 0:40
  go
• 0:40
  meals
• 0:41
  all
• 0:41
  during
• 0:41
  their
• 0:42
  regular
• 0:42
  trip
• 0:42
  to
• 0:43
  Whole
• 0:43
  Foods.
• 0:44
  It
• 0:44
  also
• 0:44
  offers
• 0:45
  national
• 0:45
  grocery
• 0:45
  brands
• 0:46
  or
• 0:46
  household
• 0:47
  essentials
• 0:47
  that
• 0:48
  are
• 0:48
  not
• 0:48
  available
• 0:49
  at
• 0:49
  Whole
• 0:49
  Foods.
• 0:51
  Lakshman,
• 0:52
  I'm
• 0:52
  going
• 0:52
  to
• 0:52
  go
• 0:52
  to
• 0:52
  you
• 0:53
  first
• 0:53
  on
• 0:53
  this.
• 0:55
  What
• 0:55
  in
• 0:55
  the
• 0:55
  heck
• 0:56
  is
• 0:56
  Amazon's
• 0:57
  grocery
• 0:57
  strategy?
• 0:58
  Like
• 0:58
  I
• 0:58
  just
• 0:58
  cannot
• 0:59
  put
• 0:59
  my
• 0:59
  finger
• 0:59
  on
• 0:59
  it
• 1:00
  at
• 1:00
  all.
• 1:00
  Like
• 1:00
  wtf?
• 1:01
  What
• 1:01
  are
• 1:02
  they
• 1:02
  doing
• 1:02
  here
• 1:02
  and
• 1:02
  what
• 1:02
  do
• 1:03
  you
• 1:03
  think
• 1:03
  of
• 1:03
  this
• 1:03
  new
• 1:03
  concept?
• 1:04
  Does
• 1:04
  it
• 1:04
  help
• 1:05
  things
• 1:05
  at
• 1:05
  all
• 1:05
  or
• 1:05
  does
• 1:06
  it
• 1:06
  just
• 1:06
  muddy
• 1:06
  the
• 1:06
  waters?
• 1:07
  Yeah,
• 1:08
  let's
• 1:08
  add
• 1:08
  another
• 1:10
  banner
• 1:11
  under
• 1:11
  the
• 1:11
  grocery
• 1:13
  experiments
• 1:13
  that
• 1:14
  are
• 1:14
  happening
• 1:14
  right
• 1:15
  now
• 1:15
  with
• 1:15
  Amazon.
• 1:18
  Listen,
• 1:18
  this
• 1:18
  is
• 1:18
  a
• 1:19
  walled
• 1:19
  garden,
• 1:20
  right?
• 1:20
  You
• 1:20
  cannot
• 1:21
  have.
• 1:22
  It's
• 1:22
  a
• 1:22
  small
• 1:22
  store
• 1:23
  format,
• 1:23
  3500
• 1:24
  SKUs,
• 1:25
  very
• 1:25
  limited
• 1:26
  national
• 1:26
  brands.
• 1:29
  They
• 1:29
  do
• 1:29
  not
• 1:30
  allow
• 1:30
  the
• 1:30
  customer
• 1:30
  to
• 1:31
  go
• 1:31
  and
• 1:31
  transact
• 1:31
  between
• 1:32
  the
• 1:32
  two.
• 1:33
  They
• 1:33
  cannot
• 1:34
  have
• 1:35
  one
• 1:35
  single
• 1:36
  cart
• 1:36
  that
• 1:36
  moves
• 1:37
  up
• 1:37
  and
• 1:37
  down.
• 1:38
  So
• 1:39
  from
• 1:39
  a.
• 1:40
  It
• 1:41
  is
• 1:41
  going
• 1:41
  to
• 1:41
  be
• 1:41
  a
• 1:41
  walled
• 1:42
  garden
• 1:42
  because
• 1:42
  the
• 1:42
  private
• 1:43
  labels
• 1:43
  they
• 1:43
  cannot
• 1:43
  place
• 1:44
  it.
• 1:44
  They
• 1:44
  cannot
• 1:45
  increase
• 1:46
  the
• 1:46
  penetration
• 1:46
  of
• 1:46
  their
• 1:46
  own
• 1:47
  products.
• 1:48
  They
• 1:48
  have
• 1:48
  to
• 1:48
  rely
• 1:49
  on
• 1:49
  trade
• 1:49
  funds
• 1:50
  and
• 1:51
  everything
• 1:51
  that's
• 1:51
  coming
• 1:52
  from
• 1:52
  the
• 1:52
  national
• 1:53
  brands
• 1:54
  to
• 1:54
  fund
• 1:55
  their
• 1:55
  marketing
• 1:56
  expense
• 1:56
  for
• 1:56
  this
• 1:57
  particular
• 1:57
  channel,
• 1:58
  which
• 1:58
  is
• 1:58
  quite
• 1:58
  expensive.
• 1:59
  Shall
• 1:59
  I
• 1:59
  say
• 2:00
  the
• 2:00
  name
• 2:00
  of
• 2:00
  the
• 2:00
  game
• 2:00
  here
• 2:01
  is
• 2:01
  convenience,
• 2:02
  right?
• 2:02
  Looking
• 2:03
  at
• 2:03
  the
• 2:04
  age
• 2:04
  group
• 2:05
  of
• 2:05
  about
• 2:05
  25
• 2:06
  to
• 2:06
  35
• 2:07
  people
• 2:07
  living
• 2:07
  in
• 2:08
  the
• 2:08
  cities
• 2:09
  with
• 2:09
  an
• 2:09
  income
• 2:10
  of
• 2:10
  80
• 2:11
  to
• 2:11
  120k
• 2:12
  who
• 2:12
  just
• 2:12
  need
• 2:12
  to
• 2:13
  go
• 2:13
  and
• 2:13
  buy
• 2:13
  or
• 2:14
  get
• 2:14
  that
• 2:14
  one
• 2:15
  small
• 2:15
  item
• 2:16
  that
• 2:16
  they
• 2:16
  forgot
• 2:17
  to
• 2:17
  get.
• 2:18
  Whether
• 2:18
  it's
• 2:18
  Coke
• 2:19
  or
• 2:19
  it's
• 2:19
  a
• 2:20
  packed
• 2:21
  sandwich.
• 2:22
  That's
• 2:22
  a
• 2:23
  convenience
• 2:23
  thing.
• 2:23
  Play
• 2:24
  here.
• 2:24
  It
• 2:25
  squarely
• 2:25
  goes
• 2:25
  against
• 2:26
  what
• 2:26
  711
• 2:27
  is
• 2:27
  trying
• 2:27
  to
• 2:27
  do
• 2:28
  which
• 2:28
  is
• 2:28
  upscale
• 2:29
  their
• 2:29
  convenience
• 2:30
  format
• 2:30
  and
• 2:30
  make
• 2:31
  it
• 2:31
  more
• 2:31
  interesting.
• 2:32
  I
• 2:33
  think
• 2:33
  it's
• 2:33
  got
• 2:33
  very
• 2:34
  limited
• 2:34
  shelf
• 2:35
  life.
• 2:36
  It
• 2:36
  is
• 2:36
  an
• 2:36
  experiment.
• 2:37
  I
• 2:38
  feel
• 2:38
  like
• 2:38
  they
• 2:39
  probably
• 2:39
  are
• 2:39
  going
• 2:40
  to
• 2:40
  try
• 2:40
  a
• 2:40
  couple
• 2:40
  of
• 2:40
  other
• 2:41
  huge
• 2:41
  city
• 2:42
  centers
• 2:42
  locations
• 2:44
  and
• 2:44
  likely
• 2:45
  it
• 2:45
  will
• 2:45
  saturate
• 2:46
  at
• 2:46
  that
• 2:46
  point.
• 2:47
  Is
• 2:47
  it
• 2:48
  a
• 2:48
  good
• 2:48
  experiment
• 2:48
  though?
• 2:48
  Is
• 2:49
  it
• 2:49
  an
• 2:49
  experiment
• 2:49
  worth
• 2:50
  running
• 2:51
  just
• 2:51
  by
• 2:51
  the
• 2:52
  fact
• 2:52
  that
• 2:52
  you
• 2:52
  have
• 2:52
  to
• 2:52
  put
• 2:52
  it
• 2:52
  next
• 2:53
  to
• 2:53
  a
• 2:53
  Whole
• 2:53
  Foods
• 2:53
  and
• 2:53
  the
• 2:54
  whole
• 2:54
  strategic
• 2:55
  premise
• 2:55
  that
• 2:55
  you're
• 2:55
  pitching
• 2:56
  in
• 2:56
  this
• 2:56
  article
• 2:56
  is
• 2:57
  that
• 2:57
  it's
• 2:57
  next
• 2:57
  to
• 2:57
  a
• 2:58
  Whole
• 2:58
  Foods.
• 2:59
  Yeah.
• 3:00
  And,
• 3:01
  and
• 3:01
  think
• 3:01
  about
• 3:01
  the
• 3:02
  cost
• 3:02
  delta
• 3:02
  between
• 3:02
  the
• 3:03
  two.
• 3:03
  Right.
• 3:03
  You
• 3:03
  have
• 3:03
  to
• 3:04
  have
• 3:04
  a
• 3:04
  separation
• 3:04
  of
• 3:04
  at
• 3:05
  least,
• 3:05
  you
• 3:05
  know,
• 3:05
  20
• 3:05
  to
• 3:06
  40%.
• 3:06
  If
• 3:07
  not,
• 3:07
  the
• 3:07
  customer
• 3:07
  is
• 3:07
  not
• 3:08
  going
• 3:08
  to
• 3:08
  walk
• 3:08
  in.
• 3:09
  And
• 3:09
  the
• 3:09
  other
• 3:09
  thing
• 3:10
  is
• 3:10
  you're
• 3:10
  likely
• 3:11
  cannibalizing
• 3:12
  your
• 3:12
  own
• 3:12
  sales.
• 3:12
  If
• 3:13
  there
• 3:13
  is
• 3:13
  an
• 3:13
  equivalent
• 3:14
  national
• 3:14
  brand,
• 3:15
  same
• 3:15
  quality
• 3:16
  price
• 3:16
  point
• 3:17
  is
• 3:17
  20%
• 3:17
  higher,
• 3:19
  then
• 3:19
  you
• 3:19
  are
• 3:20
  competing
• 3:20
  against
• 3:20
  your
• 3:20
  own
• 3:21
  private
• 3:21
  label
• 3:21
  in
• 3:21
  some
• 3:22
  ways
• 3:22
  and
• 3:22
  you
• 3:22
  are
• 3:23
  competing
• 3:23
  against,
• 3:23
  you
• 3:24
  know,
• 3:24
  your
• 3:24
  higher
• 3:24
  end
• 3:24
  Whole
• 3:25
  Food
• 3:25
  products
• 3:26
  themselves.
• 3:26
  Right.
• 3:27
  So
• 3:27
  it's
• 3:27
  a
• 3:27
  very
• 3:28
  interesting
• 3:28
  assortment
• 3:29
  tiering
• 3:29
  problem,
• 3:31
  which
• 3:31
  is
• 3:31
  why
• 3:31
  this
• 3:32
  is
• 3:32
  very
• 3:32
  baffling
• 3:32
  for
• 3:33
  me
• 3:33
  to
• 3:33
  co
• 3:33
  locate
• 3:33
  it
• 3:34
  in
• 3:34
  the
• 3:34
  same
• 3:35
  spot.
• 3:35
  If
• 3:36
  it
• 3:36
  were
• 3:36
  at
• 3:36
  least
• 3:36
  a
• 3:37
  mile
• 3:37
  away
• 3:37
  and
• 3:38
  there
• 3:38
  was
• 3:38
  some
• 3:39
  separation
• 3:39
  between
• 3:40
  the
• 3:40
  two.
• 3:40
  It
• 3:41
  makes
• 3:41
  a
• 3:41
  ton
• 3:41
  of
• 3:41
  sense
• 3:42
  that
• 3:42
  they're
• 3:42
  trying
• 3:42
  to
• 3:42
  get
• 3:43
  entry
• 3:43
  into
• 3:44
  this
• 3:44
  particular
• 3:44
  fast
• 3:45
  moving
• 3:45
  segment.
• 3:46
  But
• 3:46
  to
• 3:46
  co
• 3:47
  locate
• 3:47
  it
• 3:47
  is
• 3:47
  what
• 3:48
  is
• 3:48
  really
• 3:48
  the
• 3:48
  baffler
• 3:49
  here.
• 3:49
  Interesting,
• 3:50
  interesting.
• 3:50
  Chris,
• 3:50
  I
• 3:51
  saw
• 3:51
  you
• 3:51
  shaking
• 3:51
  your
• 3:51
  head.
• 3:52
  What,
• 3:52
  what's
• 3:52
  your
• 3:52
  points
• 3:53
  that
• 3:53
  you'd
• 3:53
  add
• 3:53
  here?
• 3:54
  No,
• 3:54
  I
• 3:54
  mean
• 3:54
  I
• 3:55
  actually
• 3:55
  just
• 3:55
  had
• 3:55
  a
• 3:56
  different
• 3:56
  take
• 3:56
  on.
• 3:56
  I
• 3:56
  thought
• 3:57
  Lakshman's
• 3:57
  take
• 3:57
  was
• 3:58
  really
• 3:58
  interesting.
• 3:59
  I
• 3:59
  kind
• 3:59
  of
• 3:59
  thought
• 3:59
  about
• 4:00
  it
• 4:00
  differently.
• 4:01
  Okay.
• 4:01
  I
• 4:02
  think
• 4:02
  the
• 4:02
  whole
• 4:02
  point
• 4:03
  was
• 4:03
  co
• 4:03
  locating
• 4:04
  it
• 4:04
  or
• 4:04
  what
• 4:05
  I
• 4:05
  wonder
• 4:05
  is,
• 4:05
  is
• 4:05
  the
• 4:06
  whole
• 4:06
  point
• 4:06
  co
• 4:06
  locating
• 4:07
  it?
• 4:07
  I
• 4:08
  agree
• 4:08
  with
• 4:08
  Lakshman.
• 4:08
  It's
• 4:09
  not
• 4:09
  a
• 4:09
  concept
• 4:09
  that's
• 4:10
  designed
• 4:10
  to
• 4:11
  scale.
• 4:11
  I
• 4:12
  kind
• 4:12
  of
• 4:12
  see
• 4:13
  this
• 4:13
  one
• 4:13
  as
• 4:13
  a
• 4:13
  data
• 4:14
  gathering
• 4:14
  experiment,
• 4:15
  a
• 4:15
  pet
• 4:16
  project
• 4:16
  from
• 4:16
  someone
• 4:17
  there.
• 4:17
  And
• 4:17
  I
• 4:17
  think
• 4:17
  it's
• 4:18
  all
• 4:18
  about
• 4:18
  exploring
• 4:19
  like
• 4:20
  the,
• 4:20
  the,
• 4:21
  the
• 4:21
  whole
• 4:22
  Amazon
• 4:23
  Whole
• 4:23
  Foods
• 4:24
  piece
• 4:24
  where
• 4:25
  you
• 4:25
  can't
• 4:25
  have
• 4:25
  national
• 4:26
  brands
• 4:26
  in
• 4:26
  the
• 4:26
  store.
• 4:27
  There's
• 4:27
  a
• 4:27
  big
• 4:27
  customer
• 4:28
  problem
• 4:28
  that
• 4:28
  that
• 4:29
  customer
• 4:29
  now
• 4:29
  has
• 4:29
  to
• 4:30
  make
• 4:30
  two
• 4:30
  shopping
• 4:31
  trips
• 4:31
  to
• 4:31
  do
• 4:31
  their
• 4:31
  grocery
• 4:32
  shopping.
• 4:33
  So
• 4:33
  I
• 4:33
  think
• 4:33
  it's
• 4:34
  an
• 4:34
  experiment
• 4:34
  to
• 4:35
  place
• 4:35
  national
• 4:35
  brands
• 4:36
  in
• 4:36
  close
• 4:36
  proximity
• 4:37
  without
• 4:38
  violating
• 4:38
  that
• 4:40
  and
• 4:40
  see
• 4:41
  how
• 4:42
  many
• 4:42
  of
• 4:42
  those
• 4:42
  customers
• 4:43
  you
• 4:43
  can
• 4:43
  actually
• 4:43
  get
• 4:44
  to
• 4:44
  shop
• 4:44
  in
• 4:44
  Whole
• 4:45
  Foods
• 4:45
  then
• 4:45
  buy
• 4:46
  national
• 4:46
  brands
• 4:47
  right
• 4:47
  next
• 4:47
  door
• 4:48
  on
• 4:48
  the
• 4:48
  same
• 4:49
  shopping
• 4:49
  trip.
• 4:49
  Because
• 4:50
  Amazon's
• 4:51
  actually
• 4:51
  experimenting
• 4:51
  with
• 4:52
  other
• 4:52
  concepts
• 4:52
  that
• 4:53
  are
• 4:53
  similar.
• 4:53
  So
• 4:53
  in
• 4:54
  Pennsylvania
• 4:54
  they
• 4:54
  have
• 4:55
  like
• 4:55
  a
• 4:55
  micro
• 4:56
  fulfillment
• 4:56
  center
• 4:57
  tied
• 4:58
  to
• 4:58
  a
• 4:58
  Whole
• 4:59
  Foods
• 4:59
  where
• 5:00
  the
• 5:00
  idea
• 5:00
  is
• 5:01
  you
• 5:01
  place
• 5:01
  your
• 5:01
  Amazon
• 5:02
  order
• 5:02
  on
• 5:02
  your
• 5:02
  phone
• 5:03
  and
• 5:03
  you
• 5:03
  can
• 5:03
  get
• 5:03
  your
• 5:04
  national
• 5:04
  brands
• 5:05
  products
• 5:05
  right
• 5:06
  outside
• 5:06
  the
• 5:07
  door
• 5:07
  of
• 5:07
  the
• 5:07
  Whole
• 5:07
  Food.
• 5:08
  So
• 5:08
  you
• 5:08
  can
• 5:08
  do
• 5:08
  one
• 5:09
  trip.
• 5:09
  So
• 5:09
  I
• 5:09
  kind
• 5:10
  of
• 5:10
  see
• 5:10
  it
• 5:10
  as
• 5:10
  more
• 5:10
  of
• 5:11
  like
• 5:11
  a
• 5:11
  similar
• 5:12
  very
• 5:12
  small
• 5:13
  scale
• 5:13
  test
• 5:13
  concept
• 5:14
  to,
• 5:15
  you
• 5:15
  know,
• 5:15
  further
• 5:15
  discussions
• 5:16
  and
• 5:17
  test
• 5:17
  data
• 5:18
  on
• 5:18
  how
• 5:19
  do
• 5:19
  you
• 5:19
  integrate
• 5:20
  national
• 5:20
  brands
• 5:21
  within
• 5:21
  the
• 5:22
  Whole
• 5:22
  Foods
• 5:22
  channel.
• 5:23
  But
• 5:23
  you
• 5:23
  know,
• 5:23
  I
• 5:23
  could
• 5:24
  be
• 5:24
  wrong.
• 5:24
  It's
• 5:24
  a
• 5:24
  weird
• 5:24
  spot
• 5:25
  to
• 5:25
  do
• 5:25
  it
• 5:25
  too
• 5:25
  because
• 5:26
  to
• 5:26
  lock
• 5:27
  like
• 5:27
  the
• 5:27
  one
• 5:28
  Chicago
• 5:28
  It's
• 5:28
  a
• 5:28
  residential
• 5:29
  building
• 5:31
  and
• 5:31
  you
• 5:31
  have
• 5:31
  to
• 5:31
  imagine
• 5:32
  a
• 5:32
  lot
• 5:32
  of
• 5:32
  those
• 5:32
  3500
• 5:33
  SKUs
• 5:34
  are
• 5:34
  just
• 5:34
  convenience
• 5:35
  focused,
• 5:36
  like
• 5:36
  quick
• 5:36
  grab
• 5:36
  and
• 5:36
  go
• 5:37
  stuff.
• 5:37
  So.
• 5:37
  So
• 5:38
  that's
• 5:38
  the
• 5:38
  part
• 5:38
  that
• 5:38
  doesn't
• 5:39
  quite
• 5:39
  tie
• 5:39
  for
• 5:40
  me.
• 5:40
  Yeah,
• 5:40
  yeah.
• 5:41
  Okay,
• 5:41
  so.
• 5:41
  So
• 5:41
  you're
• 5:42
  kind
• 5:42
  of
• 5:42
  liking
• 5:42
  it.
• 5:42
  Lakshman's
• 5:43
  a
• 5:43
  little
• 5:43
  more
• 5:43
  baffled
• 5:44
  by
• 5:44
  it.
• 5:44
  And
• 5:45
  what
• 5:45
  do
• 5:45
  you
• 5:45
  think
• 5:45
  here?
• 5:46
  Yeah,
• 5:47
  I
• 5:47
  mean,
• 5:48
  I
• 5:48
  agree
• 5:49
  with
• 5:49
  Chris.
• 5:49
  I
• 5:49
  think
• 5:50
  this
• 5:50
  is
• 5:50
  just
• 5:50
  another
• 5:51
  version
• 5:52
  of
• 5:52
  the
• 5:52
  test
• 5:52
  that
• 5:53
  is
• 5:53
  happening
• 5:53
  in
• 5:53
  Pennsylvania
• 5:54
  right
• 5:54
  now.
• 5:54
  Like
• 5:55
  what's
• 5:55
  the
• 5:56
  threshold
• 5:56
  ultimately?
• 5:57
  What
• 5:57
  do
• 5:57
  I
• 5:57
  think
• 5:57
  is
• 5:58
  going
• 5:58
  to
• 5:58
  happen?
• 5:58
  I
• 5:59
  think
• 5:59
  that
• 5:59
  this
• 6:00
  is
• 6:00
  a
• 6:00
  continuation
• 6:00
  of
• 6:01
  our
• 6:02
  conversation
• 6:02
  last
• 6:02
  week,
• 6:03
  Chris.
• 6:03
  I
• 6:03
  think
• 6:03
  this
• 6:04
  is
• 6:04
  the
• 6:05
  death
• 6:05
  of
• 6:05
  Whole
• 6:05
  Foods
• 6:06
  as
• 6:06
  we
• 6:06
  know
• 6:06
  it
• 6:06
  right
• 6:06
  now.
• 6:07
  I
• 6:07
  think
• 6:07
  that
• 6:08
  eventually
• 6:08
  Amazon'
• 6:09
  going
• 6:09
  to
• 6:09
  see
• 6:10
  people
• 6:10
  want
• 6:10
  to
• 6:11
  get
• 6:11
  all
• 6:11
  their
• 6:11
  private
• 6:12
  brands
• 6:12
  or
• 6:12
  sorry,
• 6:13
  all
• 6:13
  their
• 6:13
  keep
• 6:14
  saying
• 6:14
  private
• 6:14
  brands,
• 6:15
  all
• 6:15
  of
• 6:15
  their
• 6:16
  national
• 6:16
  brands
• 6:17
  and
• 6:17
  their
• 6:17
  Whole
• 6:17
  Foods
• 6:18
  brands
• 6:18
  in
• 6:18
  one
• 6:18
  place.
• 6:19
  But
• 6:19
  I'm
• 6:19
  wondering,
• 6:20
  and
• 6:20
  I
• 6:20
  think
• 6:21
  that
• 6:21
  this
• 6:21
  store,
• 6:21
  Whole
• 6:22
  Foods
• 6:22
  is
• 6:22
  going
• 6:22
  to
• 6:22
  go
• 6:22
  away
• 6:23
  and
• 6:23
  eventually
• 6:23
  it's
• 6:23
  just
• 6:23
  going
• 6:23
  to
• 6:24
  be
• 6:24
  called
• 6:24
  Amazon
• 6:24
  Grocery
• 6:25
  because
• 6:25
  I
• 6:25
  think
• 6:26
  it's
• 6:26
  just
• 6:26
  going
• 6:26
  to
• 6:26
  be
• 6:26
  easier
• 6:26
  to
• 6:27
  put
• 6:27
  all
• 6:27
  those
• 6:27
  brands
• 6:28
  side
• 6:28
  by
• 6:28
  side
• 6:28
  inside
• 6:29
  the
• 6:29
  Whole
• 6:29
  Foods.
• 6:30
  Now.
• 6:30
  Yes,
• 6:30
  you
• 6:31
  lose
• 6:31
  this
• 6:31
  coveted
• 6:32
  Whole
• 6:32
  Foods,
• 6:32
  you
• 6:33
  know,
• 6:33
  experience.
• 6:34
  But
• 6:34
  I
• 6:35
  honestly
• 6:35
  am
• 6:36
  wondering
• 6:36
  if
• 6:36
  this
• 6:37
  is
• 6:37
  the
• 6:37
  only
• 6:37
  opportunity
• 6:38
  that
• 6:38
  Amazon
• 6:38
  has
• 6:39
  in
• 6:39
  Grocery.
• 6:39
  If
• 6:40
  it
• 6:40
  seems
• 6:40
  like
• 6:40
  it
• 6:41
  may
• 6:41
  be
• 6:41
  the,
• 6:41
  the
• 6:41
  winningest
• 6:42
  strategy
• 6:42
  where
• 6:43
  you
• 6:43
  know,
• 6:43
  yes,
• 6:43
  you
• 6:43
  have
• 6:44
  other
• 6:44
  competition
• 6:44
  from
• 6:45
  some
• 6:45
  of
• 6:45
  these
• 6:46
  nicer
• 6:46
  upscale
• 6:47
  groceries
• 6:47
  where
• 6:48
  that
• 6:48
  have
• 6:48
  this
• 6:48
  access
• 6:49
  to
• 6:49
  some
• 6:50
  of
• 6:50
  the
• 6:50
  organic
• 6:51
  foods.
• 6:52
  But
• 6:52
  will
• 6:53
  Amazon
• 6:53
  be
• 6:54
  able
• 6:54
  to
• 6:54
  offer
• 6:54
  some
• 6:55
  of
• 6:55
  these
• 6:55
  brands
• 6:56
  at
• 6:56
  a
• 6:56
  more
• 6:56
  affordable
• 6:57
  price
• 6:57
  because
• 6:58
  of
• 6:58
  the
• 6:58
  scale
• 6:58
  that
• 6:59
  they
• 6:59
  have
• 7:00
  with
• 7:00
  delivery
• 7:01
  with
• 7:01
  Grocery?
• 7:02
  Like
• 7:02
  to
• 7:02
  me
• 7:03
  it
• 7:03
  seems
• 7:03
  like
• 7:03
  this
• 7:04
  could
• 7:04
  be
• 7:04
  the
• 7:05
  only
• 7:05
  chance
• 7:06
  that
• 7:06
  Amazon
• 7:06
  has
• 7:06
  a
• 7:07
  success
• 7:07
  in
• 7:07
  Grocery
• 7:08
  which
• 7:08
  is,
• 7:08
  is
• 7:09
  combining
• 7:09
  everything,
• 7:10
  the
• 7:10
  Whole
• 7:10
  Foods,
• 7:10
  the
• 7:10
  national
• 7:11
  brands
• 7:11
  and
• 7:11
  him
• 7:11
  having
• 7:12
  this
• 7:12
  Amazon
• 7:12
  Grocery
• 7:13
  experience.
• 7:14
  But
• 7:15
  wow,
• 7:16
  you
• 7:16
  are
• 7:16
  not
• 7:17
  in
• 7:17
  the
• 7:17
  camp.
• 7:18
  No,
• 7:18
  I
• 7:18
  mean
• 7:19
  I
• 7:19
  think
• 7:19
  if,
• 7:19
  I
• 7:19
  think
• 7:20
  if
• 7:20
  you
• 7:20
  play
• 7:20
  that
• 7:20
  out,
• 7:21
  you
• 7:21
  know
• 7:21
  who
• 7:21
  wins
• 7:21
  in
• 7:21
  that
• 7:22
  game?
• 7:22
  Sprouts.
• 7:23
  Because
• 7:24
  all
• 7:24
  the
• 7:24
  Whole
• 7:24
  Foods
• 7:24
  shoppers
• 7:25
  start
• 7:25
  going
• 7:25
  to
• 7:25
  Sprouts
• 7:25
  and
• 7:26
  Sprouts
• 7:26
  explodes
• 7:27
  nationally.
• 7:28
  Because
• 7:29
  Sprouts
• 7:29
  have
• 7:29
  the
• 7:30
  national
• 7:30
  brands
• 7:30
  though
• 7:31
  to
• 7:31
  the
• 7:31
  effect.
• 7:32
  But
• 7:32
  that's
• 7:32
  why
• 7:32
  I'm
• 7:32
  saying
• 7:33
  that
• 7:33
  those
• 7:33
  people
• 7:33
  don't
• 7:34
  want
• 7:34
  that.
• 7:34
  So
• 7:34
  Sprouts
• 7:35
  gets
• 7:35
  it.
• 7:35
  Because
• 7:35
  if
• 7:36
  you
• 7:36
  stop
• 7:36
  back
• 7:36
  and
• 7:37
  you
• 7:37
  look
• 7:37
  at
• 7:37
  grocery
• 7:37
  from
• 7:38
  a
• 7:38
  mass
• 7:38
  market
• 7:38
  perspective,
• 7:39
  the
• 7:39
  mass
• 7:40
  market
• 7:40
  already
• 7:41
  determines
• 7:41
  what
• 7:42
  products
• 7:42
  are
• 7:42
  going
• 7:43
  into.
• 7:43
  Kroger,
• 7:44
  Target,
• 7:45
  Walmart,
• 7:45
  Safeway,
• 7:46
  Albertsons,
• 7:47
  they're
• 7:47
  already
• 7:47
  doing
• 7:48
  that.
• 7:48
  So
• 7:49
  Amazon's
• 7:49
  got
• 7:49
  to
• 7:49
  come
• 7:49
  in
• 7:50
  with
• 7:50
  an
• 7:50
  entirely
• 7:51
  new
• 7:51
  concept
• 7:52
  to
• 7:52
  make
• 7:52
  this
• 7:52
  work.
• 7:52
  So
• 7:53
  that's
• 7:53
  why?
• 7:53
  That's
• 7:53
  why
• 7:54
  I
• 7:54
  think
• 7:54
  this
• 7:54
  idea
• 7:54
  is.
• 7:55
  This
• 7:55
  test
• 7:55
  particularly
• 7:56
  is
• 7:56
  the
• 7:57
  dumbest
• 7:57
  idea
• 7:57
  I've
• 7:57
  heard
• 7:58
  in
• 7:58
  a
• 7:58
  long
• 7:58
  time.
• 7:59
  To
• 7:59
  your
• 7:59
  point,
• 7:59
  if
• 8:00
  people
• 8:00
  want,
• 8:00
  if
• 8:00
  you,
• 8:00
  if
• 8:01
  you
• 8:01
  really
• 8:01
  think
• 8:01
  people
• 8:01
  want
• 8:02
  to
• 8:02
  buy,
• 8:03
  you
• 8:03
  know,
• 8:03
  general
• 8:04
  national
• 8:04
  brand
• 8:04
  products
• 8:05
  next
• 8:05
  to
• 8:05
  Whole
• 8:06
  Foods,
• 8:06
  just
• 8:06
  put
• 8:06
  them
• 8:06
  in
• 8:06
  freaking
• 8:07
  Whole
• 8:07
  Foods
• 8:07
  and
• 8:07
  run
• 8:08
  that
• 8:08
  experiment.
• 8:08
  Like,
• 8:09
  what's
• 8:09
  the
• 8:09
  point
• 8:09
  of
• 8:10
  doing
• 8:10
  this?
• 8:10
  The
• 8:11
  small
• 8:11
  format
• 8:11
  is
• 8:11
  going
• 8:11
  to
• 8:11
  give
• 8:12
  you
• 8:12
  fake
• 8:12
  false
• 8:13
  positives
• 8:13
  or
• 8:13
  false
• 8:13
  negatives
• 8:14
  too,
• 8:14
  because
• 8:15
  it's
• 8:15
  a
• 8:15
  separate
• 8:16
  location.
• 8:16
  And
• 8:16
  like,
• 8:17
  why,
• 8:17
  if
• 8:17
  I
• 8:17
  need
• 8:18
  to
• 8:18
  make
• 8:18
  another
• 8:18
  trip,
• 8:19
  I
• 8:20
  already
• 8:20
  go
• 8:20
  to
• 8:20
  Whole
• 8:20
  Foods.
• 8:20
  And
• 8:21
  most
• 8:21
  of
• 8:21
  the
• 8:21
  time
• 8:21
  I
• 8:21
  have
• 8:21
  to
• 8:21
  compliment
• 8:22
  my
• 8:22
  trip
• 8:22
  by
• 8:23
  going
• 8:23
  to
• 8:23
  another
• 8:23
  store.
• 8:23
  Why
• 8:24
  would
• 8:24
  I
• 8:24
  go
• 8:24
  to
• 8:24
  a
• 8:24
  store
• 8:24
  that
• 8:25
  has
• 8:25
  3,500
• 8:25
  items
• 8:26
  when
• 8:26
  I
• 8:26
  can
• 8:26
  go
• 8:26
  to
• 8:26
  my
• 8:27
  local
• 8:27
  grocery
• 8:27
  store
• 8:27
  that
• 8:27
  has
• 8:28
  a
• 8:28
  broader
• 8:28
  assortment
• 8:29
  and
• 8:29
  all
• 8:30
  the
• 8:30
  other
• 8:30
  options
• 8:30
  that,
• 8:31
  that
• 8:31
  are
• 8:31
  available
• 8:31
  to
• 8:31
  me
• 8:31
  that
• 8:32
  I
• 8:32
  can't
• 8:32
  get
• 8:32
  at
• 8:32
  a
• 8:32
  Whole
• 8:32
  Foods?
• 8:33
  So
• 8:33
  this
• 8:33
  just
• 8:33
  makes
• 8:34
  no
• 8:34
  sense
• 8:34
  to
• 8:35
  me
• 8:35
  from
• 8:35
  a
• 8:35
  testing
• 8:36
  perspective
• 8:36
  and
• 8:36
  why
• 8:36
  you
• 8:37
  would
• 8:37
  waste
• 8:37
  your
• 8:37
  time
• 8:37
  on
• 8:37
  it.
• 8:38
  But
• 8:38
  I
• 8:38
  don't
• 8:38
  know,
• 8:39
  somebody
• 8:39
  else
• 8:39
  take
• 8:39
  the
• 8:39
  last
• 8:40
  word
• 8:40
  on
• 8:40
  it
• 8:40
  because
• 8:40
  I
• 8:41
  got
• 8:41
  on
• 8:41
  my
• 8:41
  soapbox
• 8:42
  pretty
• 8:42
  quickly
• 8:42
  on
• 8:42
  this
• 8:42
  one.
• 8:44
  Well.
• 8:47
  I
• 8:47
  just
• 8:47
  questioned
• 8:48
  then,
• 8:48
  like,
• 8:48
  does
• 8:49
  Amazon
• 8:50
  Grocery
• 8:50
  really
• 8:50
  just
• 8:51
  become
• 8:51
  Amazon,
• 8:51
  the
• 8:52
  mass
• 8:52
  retailer
• 8:53
  where
• 8:53
  they,
• 8:53
  like,
• 8:53
  is
• 8:54
  that
• 8:54
  where
• 8:54
  they
• 8:54
  are
• 8:55
  successful?
• 8:55
  You
• 8:56
  don't
• 8:56
  think
• 8:56
  so?
• 8:56
  Yeah.
• 8:57
  I
• 8:57
  mean,
• 8:57
  good
• 8:57
  luck.
• 8:57
  I
• 8:58
  mean,
• 8:58
  people
• 8:58
  are
• 8:58
  trying
• 8:58
  to
• 8:58
  do
• 8:58
  that
• 8:59
  all
• 8:59
  the
• 8:59
  time.
• 8:59
  Good.
• 8:59
  I
• 9:00
  mean,
• 9:00
  I
• 9:00
  just
• 9:00
  think
• 9:00
  that's
• 9:00
  a,
• 9:00
  that's,
• 9:01
  that's
• 9:01
  a
• 9:01
  tough,
• 9:02
  tough
• 9:02
  game.
• 9:02
  And
• 9:03
  they've
• 9:03
  shown
• 9:03
  that
• 9:03
  they
• 9:03
  haven't
• 9:04
  been
• 9:04
  able
• 9:04
  to
• 9:04
  create
• 9:05
  their
• 9:05
  own
• 9:05
  grocery
• 9:06
  concept,
• 9:06
  which
• 9:07
  if,
• 9:07
  correct
• 9:07
  me
• 9:07
  if
• 9:07
  I'm
• 9:08
  wrong,
• 9:08
  but
• 9:08
  Amazon
• 9:08
  Fresh
• 9:09
  has
• 9:09
  some
• 9:10
  of
• 9:10
  the,
• 9:10
  I
• 9:11
  don't
• 9:11
  remember,
• 9:11
  but
• 9:11
  doesn't
• 9:12
  it
• 9:12
  have
• 9:12
  some
• 9:12
  of
• 9:12
  the
• 9:13
  Whole
• 9:13
  Foods
• 9:13
  elements
• 9:14
  inside
• 9:14
  of
• 9:14
  it
• 9:14
  already?
• 9:15
  So
• 9:15
  they've
• 9:15
  kind
• 9:15
  of
• 9:16
  been
• 9:16
  running
• 9:16
  this
• 9:16
  experiment
• 9:17
  too.
• 9:17
  And
• 9:18
  that's
• 9:18
  not
• 9:18
  blowing
• 9:18
  the
• 9:18
  doors
• 9:18
  off
• 9:19
  anyone
• 9:19
  from
• 9:19
  a
• 9:19
  consumer
• 9:20
  love
• 9:20
  standpoint
• 9:21
  either.
• 9:21
  So
• 9:21
  I
• 9:22
  don't,
• 9:22
  I
• 9:22
  don't
• 9:22
  know.
• 9:22
  I
• 9:23
  just
• 9:23
  don't
• 9:23
  get
• 9:23
  it.