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Walmart's Depot Play Comes Right After Amazon Now | Fast Five Shorts · Omni Talk Retail

• 0:00
  Potentially
• 0:00
  not
• 0:00
  to
• 0:00
  be
• 0:01
  outdone,
• 0:01
  Walmart
• 0:02
  is
• 0:02
  quietly
• 0:02
  piloting
• 0:03
  small
• 0:03
  neighborhood
• 0:04
  delivery
• 0:04
  depots
• 0:05
  of
• 0:05
  their
• 0:05
  own,
• 0:06
  converting
• 0:06
  vacant
• 0:07
  retail
• 0:07
  spaces
• 0:07
  into
• 0:08
  compact
• 0:08
  neighborhood
• 0:09
  level
• 0:09
  stockrooms
• 0:09
  designed
• 0:10
  to
• 0:10
  speed
• 0:10
  up
• 0:10
  home
• 0:10
  delivery
• 0:11
  across
• 0:11
  the
• 0:11
  U.S.
• 0:12
  according
• 0:13
  to
• 0:13
  a
• 0:13
  Financial
• 0:14
  Times
• 0:14
  report
• 0:14
  covered
• 0:15
  by
• 0:15
  the
• 0:15
  Retail
• 0:15
  Insight
• 0:16
  Network,
• 0:16
  Walmart
• 0:17
  has
• 0:17
  already
• 0:17
  established
• 0:18
  at
• 0:18
  least
• 0:18
  three
• 0:18
  of
• 0:18
  these
• 0:19
  facilities,
• 0:19
  branded
• 0:20
  Walmart
• 0:20
  Depots,
• 0:21
  over
• 0:22
  the
• 0:22
  past
• 0:22
  year
• 0:22
  in
• 0:22
  Dallas,
• 0:23
  New
• 0:23
  Jersey
• 0:24
  and
• 0:24
  Arkansas.
• 0:25
  Each
• 0:25
  depot
• 0:26
  covers
• 0:26
  approximately
• 0:27
  20,000
• 0:28
  square
• 0:28
  feet,
• 0:29
  stocks
• 0:29
  high
• 0:29
  demand
• 0:30
  household
• 0:30
  items
• 0:30
  and
• 0:31
  is
• 0:31
  managed
• 0:31
  by
• 0:31
  a
• 0:32
  nearby
• 0:32
  Supercenter,
• 0:33
  which
• 0:33
  is
• 0:33
  also
• 0:33
  interesting
• 0:33
  to
• 0:33
  me.
• 0:34
  The
• 0:34
  sites
• 0:34
  are
• 0:35
  not
• 0:35
  open
• 0:35
  to
• 0:35
  the
• 0:35
  public
• 0:35
  and
• 0:36
  are
• 0:36
  exclusively
• 0:36
  accessible
• 0:37
  to
• 0:37
  gig
• 0:38
  workers
• 0:38
  operating
• 0:38
  through
• 0:39
  Walmart's
• 0:39
  Spark
• 0:40
  delivery
• 0:41
  driver
• 0:41
  app.
• 0:42
  Additional
• 0:43
  sites
• 0:43
  are
• 0:43
  under
• 0:43
  consideration
• 0:44
  in
• 0:44
  California,
• 0:45
  New
• 0:45
  York,
• 0:46
  Florida,
• 0:46
  Nevada,
• 0:47
  the
• 0:47
  Pacific
• 0:48
  Northwest
• 0:48
  and
• 0:49
  Virginia,
• 0:50
  with
• 0:50
  several
• 0:51
  earmarked
• 0:51
  in
• 0:51
  former
• 0:52
  Rite
• 0:52
  Aid,
• 0:52
  Walgreens
• 0:53
  and
• 0:53
  Goodwill
• 0:54
  locations.
• 0:55
  Chad,
• 0:55
  I'm
• 0:56
  going
• 0:56
  back
• 0:56
  to
• 0:56
  you
• 0:56
  again.
• 0:56
  I
• 0:57
  said
• 0:57
  you're
• 0:57
  getting
• 0:57
  all
• 0:57
  the
• 0:57
  Amazon
• 0:58
  related
• 0:58
  questions.
• 0:59
  Do
• 0:59
  you
• 0:59
  think
• 1:00
  it
• 1:00
  is
• 1:00
  a
• 1:00
  coincidence
• 1:00
  that
• 1:01
  this
• 1:01
  headline
• 1:01
  broke
• 1:02
  less
• 1:02
  than
• 1:02
  two
• 1:02
  days
• 1:02
  after
• 1:03
  Amazon's
• 1:03
  30
• 1:04
  minute
• 1:04
  delivery
• 1:05
  announcement?
• 1:05
  If
• 1:06
  yes,
• 1:06
  why?
• 1:06
  And
• 1:07
  if
• 1:07
  not,
• 1:07
  why
• 1:07
  not?
• 1:09
  I
• 1:09
  mean,
• 1:09
  no,
• 1:10
  it
• 1:10
  can't
• 1:10
  be
• 1:11
  a
• 1:11
  coincidence,
• 1:12
  it
• 1:12
  can't
• 1:12
  be,
• 1:12
  right?
• 1:13
  No,
• 1:13
  I
• 1:14
  mean
• 1:14
  I,
• 1:14
  I,
• 1:15
  as
• 1:15
  I
• 1:15
  said
• 1:16
  in
• 1:16
  the
• 1:16
  last
• 1:16
  one,
• 1:16
  right,
• 1:17
  like
• 1:17
  immediately
• 1:18
  retailers,
• 1:19
  CEOs
• 1:19
  and
• 1:19
  teams
• 1:20
  have
• 1:20
  to
• 1:20
  be
• 1:20
  looking
• 1:20
  at
• 1:20
  this
• 1:21
  going
• 1:21
  what,
• 1:21
  what
• 1:22
  are
• 1:22
  we
• 1:22
  doing?
• 1:22
  Right?
• 1:22
  And
• 1:23
  I
• 1:23
  can't
• 1:24
  recall
• 1:25
  in
• 1:25
  what
• 1:25
  you
• 1:25
  just
• 1:25
  read
• 1:25
  if
• 1:26
  that
• 1:26
  if
• 1:26
  this
• 1:26
  depot
• 1:27
  pilot
• 1:27
  was
• 1:27
  already
• 1:28
  underway
• 1:28
  or
• 1:29
  they
• 1:30
  were
• 1:30
  announcing
• 1:30
  getting
• 1:31
  started.
• 1:31
  Like
• 1:32
  either
• 1:32
  way,
• 1:32
  like
• 1:33
  Walmart's
• 1:34
  been
• 1:34
  plotting
• 1:34
  this,
• 1:34
  right?
• 1:35
  They,
• 1:36
  they
• 1:36
  need
• 1:37
  that.
• 1:37
  Like
• 1:37
  Walmart
• 1:37
  can't
• 1:38
  afford
• 1:38
  to
• 1:38
  look
• 1:38
  passive,
• 1:39
  right?
• 1:39
  And
• 1:40
  so
• 1:40
  given
• 1:40
  that
• 1:41
  this
• 1:41
  is
• 1:41
  in
• 1:41
  the
• 1:41
  works,
• 1:42
  given
• 1:42
  that
• 1:42
  it
• 1:43
  made
• 1:43
  a,
• 1:44
  a,
• 1:45
  you
• 1:46
  know,
• 1:46
  legitimate
• 1:47
  like
• 1:48
  move
• 1:48
  that
• 1:48
  they
• 1:48
  were
• 1:49
  going
• 1:49
  to
• 1:49
  move
• 1:49
  toward
• 1:49
  anyway,
• 1:50
  right?
• 1:50
  They
• 1:50
  have
• 1:50
  to
• 1:50
  tell
• 1:50
  everyone
• 1:51
  look,
• 1:51
  we're
• 1:51
  doing
• 1:51
  that
• 1:52
  thing
• 1:52
  that
• 1:52
  those
• 1:52
  guys
• 1:53
  over
• 1:53
  doing
• 1:54
  too,
• 1:54
  right?
• 1:55
  Again,
• 1:55
  it's
• 1:55
  all
• 1:55
  around
• 1:55
  this
• 1:56
  psychological
• 1:57
  battle
• 1:57
  that
• 1:58
  I
• 1:58
  said
• 1:58
  Amazon
• 1:59
  was
• 1:59
  waging,
• 1:59
  right?
• 2:00
  And
• 2:00
  again
• 2:00
  not
• 2:01
  about
• 2:01
  30
• 2:01
  minutes.
• 2:01
  Walmart
• 2:02
  didn't
• 2:02
  even
• 2:02
  mention
• 2:02
  30
• 2:03
  minute
• 2:03
  window,
• 2:03
  right?
• 2:04
  But
• 2:04
  like
• 2:04
  each
• 2:05
  of
• 2:05
  these
• 2:05
  companies
• 2:06
  are
• 2:06
  vying
• 2:06
  for
• 2:07
  that
• 2:07
  pole
• 2:07
  position
• 2:08
  of
• 2:08
  consideration
• 2:09
  when
• 2:10
  the
• 2:10
  need
• 2:10
  of
• 2:10
  something
• 2:11
  fast
• 2:11
  does
• 2:12
  arrive,
• 2:12
  right?
• 2:13
  Like
• 2:14
  the
• 2:14
  irony
• 2:15
  here
• 2:15
  is
• 2:15
  that
• 2:15
  Walmart
• 2:16
  may
• 2:16
  have
• 2:16
  the
• 2:17
  more
• 2:17
  scalable
• 2:18
  long
• 2:18
  term
• 2:18
  advantage
• 2:19
  here
• 2:19
  because
• 2:20
  Walmart
• 2:20
  already
• 2:21
  has
• 2:22
  physical
• 2:22
  store
• 2:23
  proximity.
• 2:23
  So
• 2:23
  it's
• 2:24
  kind
• 2:24
  of
• 2:24
  how
• 2:24
  we
• 2:24
  ended
• 2:24
  the,
• 2:25
  the
• 2:26
  last
• 2:26
  headline.
• 2:27
  You
• 2:27
  know
• 2:27
  this
• 2:27
  feels
• 2:28
  like
• 2:29
  more
• 2:29
  filling
• 2:29
  the
• 2:30
  gaps
• 2:31
  because
• 2:31
  fulfilling
• 2:32
  at
• 2:32
  a
• 2:32
  super
• 2:32
  centers
• 2:33
  like
• 2:34
  is
• 2:34
  kind
• 2:34
  of
• 2:34
  hard
• 2:35
  today,
• 2:35
  right?
• 2:36
  And
• 2:36
  putting
• 2:36
  these
• 2:36
  near
• 2:37
  the
• 2:37
  super
• 2:37
  centers
• 2:37
  like
• 2:38
  is
• 2:38
  an
• 2:38
  interesting
• 2:39
  dichotomy
• 2:40
  in
• 2:40
  terms
• 2:40
  of
• 2:40
  like,
• 2:41
  all
• 2:41
  right,
• 2:41
  filling
• 2:41
  this
• 2:42
  quickly
• 2:42
  out
• 2:42
  of
• 2:42
  these
• 2:43
  Mega
• 2:43
  places
• 2:44
  and
• 2:44
  not
• 2:44
  interrupting
• 2:44
  the
• 2:45
  customer
• 2:45
  experience.
• 2:46
  Like,
• 2:46
  all
• 2:47
  right,
• 2:47
  we
• 2:47
  need
• 2:47
  to
• 2:47
  learn
• 2:48
  something
• 2:48
  more
• 2:48
  about
• 2:49
  how
• 2:49
  that
• 2:49
  evolves.
• 2:51
  So
• 2:51
  I
• 2:51
  don't
• 2:51
  know,
• 2:51
  I
• 2:51
  mean,
• 2:52
  buckle
• 2:52
  up,
• 2:52
  right?
• 2:53
  Like
• 2:53
  you
• 2:53
  got
• 2:54
  centralized
• 2:55
  E
• 2:56
  commerce
• 2:56
  versus
• 2:57
  these
• 2:57
  distributed
• 2:59
  physical
• 2:59
  and
• 2:59
  commerce
• 3:00
  network.
• 3:00
  Like
• 3:01
  who
• 3:01
  wins
• 3:01
  the
• 3:01
  mind
• 3:02
  of
• 3:02
  the
• 3:02
  consumer
• 3:03
  when
• 3:04
  someone
• 3:04
  needs
• 3:04
  something
• 3:05
  in
• 3:05
  immediacy
• 3:06
  and
• 3:06
  you're
• 3:06
  not
• 3:07
  really
• 3:07
  going
• 3:07
  to
• 3:07
  go
• 3:07
  do
• 3:07
  a
• 3:08
  thorough
• 3:08
  search
• 3:09
  and
• 3:09
  comparison.
• 3:10
  If,
• 3:10
  if
• 3:11
  I
• 3:11
  need
• 3:11
  something
• 3:11
  in
• 3:12
  the
• 3:12
  next
• 3:12
  30
• 3:12
  minutes
• 3:12
  to
• 3:13
  an
• 3:13
  hour,
• 3:13
  I'm
• 3:13
  going
• 3:13
  to
• 3:13
  go
• 3:13
  to
• 3:14
  my
• 3:14
  go
• 3:14
  to.
• 3:14
  Who's
• 3:15
  the
• 3:15
  go
• 3:15
  to?
• 3:15
  Like,
• 3:16
  you
• 3:16
  know,
• 3:16
  it's
• 3:17
  going
• 3:17
  to
• 3:17
  be
• 3:17
  really
• 3:17
  interesting.
• 3:18
  Yeah.
• 3:19
  So
• 3:19
  buckle
• 3:19
  up,
• 3:20
  buttercup.
• 3:20
  That's.
• 3:23
  Let's
• 3:24
  get
• 3:24
  it
• 3:24
  on.
• 3:24
  Yeah,
• 3:24
  I
• 3:24
  mean
• 3:25
  There's,
• 3:25
  I
• 3:26
  100%
• 3:26
  agree
• 3:26
  with
• 3:26
  you.
• 3:27
  It's
• 3:27
  definitely
• 3:27
  not
• 3:27
  a
• 3:27
  coincidence.
• 3:28
  I
• 3:28
  mean,
• 3:28
  and
• 3:29
  that's
• 3:29
  why
• 3:29
  I
• 3:29
  love
• 3:29
  doing
• 3:30
  this
• 3:30
  show.
• 3:31
  But
• 3:31
  there's
• 3:31
  two
• 3:31
  points
• 3:32
  that
• 3:32
  stuck
• 3:32
  out
• 3:32
  to
• 3:32
  me
• 3:33
  as
• 3:33
  one.
• 3:34
  One,
• 3:34
  the
• 3:35
  fact
• 3:35
  that
• 3:35
  this
• 3:35
  is
• 3:35
  being
• 3:36
  managed
• 3:36
  by
• 3:36
  the
• 3:36
  supercenter
• 3:37
  I
• 3:37
  think
• 3:37
  is
• 3:37
  really
• 3:37
  interesting
• 3:38
  because
• 3:38
  I
• 3:38
  go
• 3:38
  back
• 3:38
  to
• 3:39
  like
• 3:39
  equating
• 3:39
  it
• 3:39
  to
• 3:40
  like
• 3:40
  when
• 3:40
  I
• 3:40
  used
• 3:40
  to
• 3:40
  have
• 3:41
  a
• 3:41
  trailer
• 3:41
  in
• 3:42
  my
• 3:42
  backyard
• 3:42
  for
• 3:43
  extra
• 3:43
  back
• 3:43
  to
• 3:43
  college
• 3:44
  product.
• 3:44
  You
• 3:44
  know,
• 3:45
  it's,
• 3:45
  it's
• 3:46
  something
• 3:46
  that
• 3:46
  the
• 3:46
  store
• 3:47
  teams
• 3:47
  can
• 3:47
  actually
• 3:47
  manage
• 3:48
  probably
• 3:48
  pretty
• 3:49
  efficiently.
• 3:49
  They
• 3:49
  just
• 3:50
  got
• 3:50
  to
• 3:50
  do
• 3:50
  it
• 3:50
  at
• 3:50
  a
• 3:50
  different
• 3:50
  site.
• 3:51
  Depending
• 3:51
  of
• 3:52
  course
• 3:52
  on
• 3:52
  the
• 3:52
  fact
• 3:52
  that
• 3:52
  maybe
• 3:53
  the
• 3:53
  site's
• 3:53
  not
• 3:53
  that
• 3:53
  far
• 3:53
  away.
• 3:54
  But
• 3:54
  if
• 3:54
  you
• 3:54
  think
• 3:54
  about
• 3:55
  it
• 3:55
  that
• 3:55
  way,
• 3:55
  it's
• 3:56
  very
• 3:56
  manageable.
• 3:57
  And
• 3:57
  then
• 3:58
  the
• 3:58
  other
• 3:58
  point
• 3:58
  about
• 3:58
  this,
• 3:59
  given
• 3:59
  that
• 3:59
  Amazon
• 4:00
  is
• 4:00
  taking
• 4:00
  the
• 4:00
  same
• 4:00
  approach,
• 4:01
  I'm
• 4:01
  starting
• 4:02
  to
• 4:02
  wonder
• 4:02
  if
• 4:02
  this
• 4:02
  is
• 4:02
  the
• 4:02
  right
• 4:03
  approach.
• 4:04
  And
• 4:04
  the
• 4:04
  reason
• 4:04
  I
• 4:04
  say
• 4:04
  that
• 4:05
  is,
• 4:05
  you
• 4:05
  know,
• 4:05
  you
• 4:06
  look
• 4:06
  to
• 4:06
  Europe,
• 4:06
  you
• 4:06
  got
• 4:07
  the
• 4:07
  success
• 4:07
  of
• 4:07
  companies
• 4:07
  like
• 4:08
  Roelik
• 4:08
  who've
• 4:08
  already
• 4:09
  made
• 4:09
  E
• 4:09
  groceries
• 4:10
  work
• 4:10
  profitably
• 4:10
  doing
• 4:11
  ultra
• 4:11
  fast
• 4:12
  delivery
• 4:12
  in
• 4:12
  this
• 4:13
  realm.
• 4:14
  And
• 4:14
  it's
• 4:15
  a
• 4:15
  much
• 4:15
  more
• 4:16
  easy
• 4:16
  to
• 4:16
  implement
• 4:17
  approach
• 4:17
  than
• 4:18
  it
• 4:18
  is
• 4:18
  say
• 4:18
  networking
• 4:19
  your
• 4:19
  existing
• 4:19
  store
• 4:20
  operations,
• 4:20
  your
• 4:21
  existing
• 4:21
  back
• 4:21
  rooms
• 4:22
  to
• 4:22
  be
• 4:22
  able
• 4:22
  to
• 4:22
  handle
• 4:23
  all
• 4:23
  of
• 4:23
  this.
• 4:24
  So
• 4:24
  yes,
• 4:25
  I
• 4:25
  mean
• 4:25
  the
• 4:26
  whole
• 4:26
  idea
• 4:26
  is
• 4:26
  yes,
• 4:26
  in
• 4:26
  theory
• 4:27
  that
• 4:27
  is
• 4:27
  a
• 4:27
  better
• 4:27
  way
• 4:28
  to
• 4:28
  do
• 4:28
  it
• 4:28
  because
• 4:28
  you
• 4:28
  get
• 4:28
  more
• 4:29
  economies
• 4:29
  of
• 4:29
  scale.
• 4:30
  But
• 4:30
  the
• 4:31
  practice
• 4:31
  of
• 4:31
  actually
• 4:31
  doing
• 4:32
  it
• 4:32
  that
• 4:32
  way
• 4:33
  is
• 4:33
  still
• 4:34
  so
• 4:34
  unproven.
• 4:35
  So
• 4:36
  that
• 4:36
  outside
• 4:37
  of
• 4:37
  on
• 4:37
  shelf
• 4:38
  pickers,
• 4:38
  this
• 4:39
  dark
• 4:39
  store
• 4:40
  approach
• 4:40
  could
• 4:40
  actually
• 4:41
  be
• 4:41
  the
• 4:41
  best,
• 4:42
  most
• 4:43
  expedient
• 4:44
  way
• 4:44
  to
• 4:44
  go
• 4:44
  about
• 4:45
  solving
• 4:45
  this
• 4:45
  problem.
• 4:46
  And
• 4:47
  it
• 4:47
  seems
• 4:47
  like
• 4:48
  the
• 4:48
  industry
• 4:49
  as
• 4:49
  a
• 4:49
  whole
• 4:49
  kind
• 4:49
  of
• 4:49
  knows
• 4:50
  that
• 4:50
  this
• 4:50
  potentially
• 4:51
  works
• 4:51
  now
• 4:51
  too.
• 4:52
  And
• 4:52
  like
• 4:52
  I
• 4:52
  said,
• 4:53
  it's
• 4:53
  how
• 4:53
  Amazon's
• 4:53
  been
• 4:54
  doing
• 4:54
  it.
• 4:54
  But
• 4:54
  Kelly,
• 4:54
  what
• 4:54
  do
• 4:55
  you
• 4:55
  think?
• 4:56
  Yeah,
• 4:56
  I
• 4:57
  think
• 4:57
  it
• 4:57
  jumps
• 4:58
  off
• 4:58
  of
• 4:58
  the
• 4:58
  point
• 4:59
  that
• 4:59
  Chad
• 4:59
  was
• 4:59
  just
• 4:59
  making
• 5:00
  on
• 5:00
  the
• 5:00
  last
• 5:00
  headline.
• 5:01
  The
• 5:02
  physical
• 5:04
  locations
• 5:04
  of
• 5:05
  stores
• 5:05
  the,
• 5:07
  you
• 5:07
  know,
• 5:07
  distance
• 5:08
  store
• 5:08
  to
• 5:08
  consumer
• 5:09
  can
• 5:09
  be
• 5:09
  really
• 5:10
  limiting.
• 5:11
  If
• 5:11
  you
• 5:12
  do
• 5:12
  not
• 5:12
  have
• 5:12
  the
• 5:13
  right
• 5:13
  store
• 5:13
  network
• 5:14
  in
• 5:14
  place
• 5:15
  to
• 5:15
  do
• 5:15
  these
• 5:15
  30
• 5:16
  minute
• 5:16
  deliveries,
• 5:16
  that's
• 5:17
  a
• 5:17
  very
• 5:17
  short
• 5:17
  window.
• 5:18
  So
• 5:18
  if
• 5:18
  you're
• 5:18
  able
• 5:18
  to
• 5:19
  have
• 5:19
  a
• 5:20
  dark
• 5:20
  store
• 5:20
  hub
• 5:21
  site
• 5:21
  that
• 5:21
  gives
• 5:22
  you
• 5:22
  that
• 5:22
  speed,
• 5:23
  it
• 5:24
  definitely
• 5:24
  seems
• 5:24
  to
• 5:24
  me
• 5:25
  a
• 5:25
  way
• 5:25
  to
• 5:25
  accelerate
• 5:26
  the
• 5:26
  delivery
• 5:27
  timing.
• 5:28
  Yeah,
• 5:28
  right.
• 5:29
  Yep.
• 5:29
  Yeah.
• 5:29
  And
• 5:29
  then
• 5:29
  you
• 5:30
  could
• 5:30
  batch
• 5:30
  the
• 5:30
  loads
• 5:31
  from
• 5:31
  that
• 5:31
  site
• 5:31
  with
• 5:32
  the
• 5:32
  drivers,
• 5:32
  too,
• 5:33
  very
• 5:33
  efficiently
• 5:33
  and
• 5:34
  easily,
• 5:34
  depending
• 5:34
  on
• 5:34
  how
• 5:34
  many
• 5:35
  are
• 5:35
  coming
• 5:35
  in
• 5:35
  and
• 5:35
  for
• 5:35
  what
• 5:36
  types
• 5:36
  of
• 5:36
  items,
• 5:37
  you
• 5:37
  know,
• 5:37
  and
• 5:37
  I've
• 5:38
  seen
• 5:38
  this
• 5:38
  live
• 5:38
  in
• 5:38
  practice
• 5:39
  from
• 5:39
  Save
• 5:39
  A
• 5:39
  Lot
• 5:39
  in
• 5:40
  New
• 5:40
  York
• 5:40
  City,
• 5:40
  and
• 5:40
  that
• 5:40
  was
• 5:41
  essentially
• 5:41
  what
• 5:41
  was
• 5:41
  happening
• 5:42
  too,
• 5:42
  so.