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Fast Five Shorts | How Should We Think About Walmart’s “Dark Store” Admission? · Omni Talk Retail

• 0:00
  Walmart
• 0:01
  is
• 0:01
  testing
• 0:01
  dark
• 0:02
  stores.
• 0:02
  According
• 0:03
  to
• 0:03
  Retail
• 0:03
  Dive,
• 0:03
  Walmart
• 0:04
  is
• 0:04
  currently
• 0:04
  piloting
• 0:05
  the
• 0:06
  dark
• 0:06
  store
• 0:06
  concept
• 0:07
  in
• 0:07
  Dallas.
• 0:08
  The
• 0:08
  dark
• 0:08
  stores
• 0:08
  will
• 0:09
  carry
• 0:09
  some
• 0:09
  of
• 0:09
  the
• 0:09
  retailer's
• 0:10
  most
• 0:10
  popular
• 0:11
  products.
• 0:11
  And
• 0:12
  another
• 0:12
  location
• 0:13
  is
• 0:13
  planned
• 0:13
  for
• 0:13
  Bentonville,
• 0:14
  Arkansas,
• 0:14
  the
• 0:14
  retailer's
• 0:15
  hometown.
• 0:16
  What
• 0:16
  is
• 0:16
  a
• 0:16
  dark
• 0:17
  store,
• 0:17
  you
• 0:17
  might
• 0:17
  ask.
• 0:18
  Many
• 0:18
  of
• 0:18
  our
• 0:18
  listeners
• 0:19
  know
• 0:19
  this,
• 0:19
  but
• 0:20
  in
• 0:20
  case
• 0:20
  you
• 0:20
  don't,
• 0:21
  a
• 0:21
  dark
• 0:21
  store
• 0:21
  may
• 0:22
  look
• 0:22
  like
• 0:22
  a
• 0:22
  regular
• 0:22
  shopping
• 0:23
  location,
• 0:23
  but
• 0:23
  there's
• 0:24
  a
• 0:24
  catch.
• 0:24
  The
• 0:24
  public
• 0:25
  won't
• 0:25
  be
• 0:25
  allowed
• 0:26
  inside.
• 0:26
  And
• 0:27
  it
• 0:27
  exists
• 0:27
  only
• 0:28
  to
• 0:28
  speed
• 0:28
  up
• 0:28
  and
• 0:29
  streamline
• 0:29
  online
• 0:30
  fulfillment.
• 0:31
  Chris,
• 0:32
  what
• 0:32
  do
• 0:32
  you
• 0:32
  think
• 0:33
  of
• 0:33
  Walmart
• 0:34
  going
• 0:34
  public
• 0:34
  with
• 0:35
  its
• 0:35
  dark
• 0:35
  store
• 0:36
  plans?
• 0:37
  Hmm.
• 0:38
  Mm.
• 0:39
  You
• 0:39
  know,
• 0:39
  on
• 0:39
  the
• 0:40
  whole,
• 0:40
  I
• 0:40
  like
• 0:40
  the
• 0:41
  move.
• 0:41
  I
• 0:41
  like
• 0:41
  that
• 0:41
  they're
• 0:41
  going
• 0:42
  public
• 0:42
  with
• 0:42
  it.
• 0:42
  But
• 0:42
  at
• 0:42
  the
• 0:43
  same
• 0:43
  time,
• 0:43
  like,
• 0:43
  dark
• 0:43
  stores
• 0:43
  aren't
• 0:44
  really
• 0:44
  anything
• 0:44
  new
• 0:44
  and
• 0:44
  they've
• 0:45
  been
• 0:45
  around
• 0:45
  forever.
• 0:46
  I
• 0:46
  mean,
• 0:46
  at
• 0:46
  the
• 0:47
  end
• 0:47
  of
• 0:47
  the
• 0:47
  day,
• 0:47
  they're
• 0:47
  just
• 0:47
  a
• 0:48
  fancy
• 0:48
  name
• 0:48
  for
• 0:48
  a
• 0:48
  smaller
• 0:49
  warehouse,
• 0:49
  but
• 0:50
  in
• 0:50
  a
• 0:50
  way,
• 0:51
  they
• 0:51
  operate
• 0:51
  differently
• 0:52
  than
• 0:52
  a
• 0:52
  warehouse
• 0:52
  too.
• 0:53
  As
• 0:53
  I
• 0:53
  was
• 0:53
  saying
• 0:53
  to
• 0:53
  my
• 0:53
  buddy
• 0:54
  Greg
• 0:54
  London
• 0:54
  over
• 0:54
  LinkedIn
• 0:55
  this
• 0:55
  week
• 0:56
  as
• 0:56
  he
• 0:56
  was
• 0:56
  describing
• 0:57
  what
• 0:57
  he
• 0:57
  thinks
• 0:57
  this
• 0:57
  operation
• 0:58
  is
• 0:58
  and
• 0:58
  shout
• 0:58
  out
• 0:58
  to
• 0:58
  him
• 0:59
  for
• 0:59
  helping
• 0:59
  me
• 0:59
  through
• 0:59
  this
• 0:59
  headline
• 1:00
  this
• 1:00
  week,
• 1:01
  I
• 1:01
  picture
• 1:01
  this
• 1:01
  installation
• 1:02
  kind
• 1:02
  of
• 1:02
  like
• 1:02
  Walmart's
• 1:03
  warehouse
• 1:03
  operation
• 1:04
  and
• 1:04
  a
• 1:04
  Walmart
• 1:05
  store
• 1:05
  had
• 1:05
  a
• 1:05
  baby.
• 1:06
  That's
• 1:06
  how
• 1:06
  I
• 1:06
  think
• 1:06
  about
• 1:06
  it
• 1:07
  conceptually
• 1:07
  in
• 1:08
  my
• 1:08
  head.
• 1:08
  You
• 1:09
  know,
• 1:09
  it's.
• 1:09
  It's
• 1:09
  an
• 1:10
  operation
• 1:10
  that's
• 1:10
  designed
• 1:11
  for
• 1:11
  maximum
• 1:12
  throughput
• 1:12
  via
• 1:12
  probably
• 1:13
  manual
• 1:13
  picking,
• 1:14
  which,
• 1:14
  you
• 1:15
  know,
• 1:15
  when
• 1:15
  you
• 1:15
  think
• 1:15
  about
• 1:15
  a
• 1:15
  dark
• 1:16
  store,
• 1:16
  it
• 1:16
  has
• 1:16
  a
• 1:16
  number
• 1:16
  of
• 1:17
  benefits.
• 1:17
  Number
• 1:17
  one,
• 1:18
  you
• 1:18
  get
• 1:18
  better
• 1:19
  inventory
• 1:19
  item
• 1:20
  accuracy
• 1:20
  for
• 1:20
  your
• 1:21
  online
• 1:21
  fulfillment
• 1:22
  because
• 1:22
  you
• 1:22
  don't
• 1:22
  have
• 1:22
  shoppers
• 1:23
  coming
• 1:23
  in
• 1:23
  there
• 1:23
  and
• 1:23
  mucking
• 1:24
  with
• 1:24
  shelves.
• 1:25
  You
• 1:25
  don't
• 1:25
  have
• 1:25
  store
• 1:25
  employees
• 1:26
  mucking
• 1:26
  with
• 1:26
  shelves
• 1:27
  too.
• 1:28
  Second,
• 1:28
  secondly,
• 1:29
  it
• 1:29
  also
• 1:29
  potentially
• 1:30
  keeps
• 1:30
  in
• 1:30
  store
• 1:31
  pickers
• 1:31
  out
• 1:31
  of
• 1:32
  your
• 1:32
  aisles
• 1:32
  as
• 1:32
  well,
• 1:33
  which
• 1:33
  is
• 1:33
  just
• 1:33
  good
• 1:34
  from
• 1:34
  a
• 1:34
  customer
• 1:34
  experience
• 1:35
  standpoint,
• 1:36
  in
• 1:36
  addition
• 1:36
  to
• 1:36
  the
• 1:36
  item
• 1:37
  accuracy
• 1:37
  point
• 1:37
  that
• 1:37
  I
• 1:37
  made
• 1:38
  before.
• 1:38
  And
• 1:39
  then
• 1:39
  third,
• 1:39
  longer
• 1:40
  term,
• 1:40
  and
• 1:40
  this
• 1:40
  is,
• 1:41
  I
• 1:41
  give
• 1:41
  Greg
• 1:41
  kudos
• 1:42
  for
• 1:42
  this
• 1:42
  too.
• 1:42
  He
• 1:43
  said
• 1:43
  they
• 1:43
  could
• 1:43
  be
• 1:44
  calling
• 1:44
  it
• 1:44
  a
• 1:44
  dark
• 1:44
  store
• 1:45
  and
• 1:45
  also
• 1:45
  signaling
• 1:46
  that
• 1:46
  it
• 1:46
  has
• 1:47
  a
• 1:47
  Walmart
• 1:47
  storefront
• 1:48
  to
• 1:48
  the
• 1:48
  public.
• 1:49
  Because
• 1:49
  Walmart
• 1:50
  over
• 1:50
  time
• 1:50
  could
• 1:50
  push
• 1:51
  many,
• 1:51
  if
• 1:51
  not
• 1:52
  all,
• 1:52
  of
• 1:52
  its
• 1:52
  curbside
• 1:53
  orders
• 1:53
  through
• 1:54
  these
• 1:54
  locations
• 1:54
  too,
• 1:55
  thereby
• 1:55
  freeing
• 1:56
  up
• 1:56
  their
• 1:56
  store
• 1:57
  staff
• 1:57
  to,
• 1:57
  you
• 1:58
  know,
• 1:58
  be
• 1:58
  more
• 1:58
  productive
• 1:59
  for
• 1:59
  the
• 1:59
  operations
• 1:59
  of
• 2:00
  running
• 2:00
  the
• 2:00
  store.
• 2:00
  Because
• 2:00
  we've
• 2:01
  heard
• 2:01
  from
• 2:01
  a
• 2:01
  lot
• 2:01
  of
• 2:02
  retailers
• 2:02
  that
• 2:02
  that's
• 2:02
  becoming
• 2:03
  a
• 2:03
  problem
• 2:04
  operationally
• 2:05
  for
• 2:05
  stores
• 2:05
  to
• 2:05
  keep
• 2:05
  up
• 2:06
  with
• 2:06
  their
• 2:06
  online
• 2:06
  orders
• 2:06
  and
• 2:07
  they're
• 2:07
  missing
• 2:07
  service
• 2:08
  opportunities
• 2:08
  in
• 2:08
  the
• 2:08
  store
• 2:09
  as
• 2:09
  a
• 2:09
  result
• 2:09
  of
• 2:09
  that
• 2:09
  because
• 2:09
  their
• 2:10
  heads
• 2:10
  are
• 2:10
  down
• 2:10
  trying
• 2:11
  to
• 2:11
  get
• 2:11
  their
• 2:11
  job
• 2:11
  done.
• 2:12
  So
• 2:12
  it's
• 2:12
  an
• 2:13
  idea
• 2:13
  that
• 2:13
  I
• 2:13
  don't
• 2:14
  think
• 2:14
  works
• 2:14
  everywhere,
• 2:16
  but
• 2:16
  it
• 2:16
  is
• 2:16
  a
• 2:16
  potentially
• 2:17
  smart
• 2:17
  utilization
• 2:18
  of
• 2:18
  capital
• 2:18
  where
• 2:18
  the
• 2:19
  market
• 2:19
  dynamics
• 2:20
  and
• 2:20
  the
• 2:20
  online
• 2:20
  volume
• 2:21
  is
• 2:21
  high
• 2:21
  enough.
• 2:21
  So
• 2:22
  I
• 2:22
  think
• 2:22
  it's
• 2:22
  well
• 2:22
  worth
• 2:22
  the
• 2:22
  test.
• 2:23
  That's,
• 2:23
  that's
• 2:23
  my
• 2:23
  take.
• 2:24
  Yeah,
• 2:25
  I,
• 2:25
  I
• 2:25
  completely
• 2:26
  agree.
• 2:26
  I
• 2:26
  mean
• 2:27
  I,
• 2:27
  I'm,
• 2:28
  I
• 2:28
  was
• 2:28
  surprised
• 2:28
  that
• 2:29
  you
• 2:29
  know,
• 2:30
  there
• 2:30
  could,
• 2:30
  they
• 2:30
  could
• 2:30
  do
• 2:31
  this
• 2:31
  even
• 2:31
  faster.
• 2:31
  I
• 2:32
  mean
• 2:32
  I'm
• 2:32
  still
• 2:33
  impressed
• 2:33
  by
• 2:33
  how
• 2:33
  quickly
• 2:34
  I
• 2:34
  get
• 2:34
  product
• 2:34
  from
• 2:34
  Walmart
• 2:35
  and
• 2:35
  we
• 2:35
  only
• 2:35
  have
• 2:36
  a
• 2:36
  handful
• 2:36
  of
• 2:36
  stores
• 2:37
  here
• 2:37
  within,
• 2:38
  you
• 2:38
  know,
• 2:38
  that
• 2:39
  are,
• 2:39
  are,
• 2:39
  are
• 2:40
  within
• 2:40
  a
• 2:40
  reasonable
• 2:41
  distance
• 2:41
  here
• 2:41
  from
• 2:42
  us
• 2:42
  in
• 2:42
  the
• 2:43
  Twin
• 2:43
  Cities.
• 2:43
  And
• 2:44
  I,
• 2:44
  I
• 2:44
  still
• 2:44
  stand
• 2:45
  by
• 2:45
  like
• 2:45
  there
• 2:46
  are
• 2:46
  a
• 2:46
  lot
• 2:46
  of
• 2:46
  people,
• 2:47
  myself
• 2:48
  included,
• 2:48
  who
• 2:49
  don't
• 2:49
  always
• 2:49
  want
• 2:50
  to
• 2:50
  go
• 2:50
  to
• 2:50
  the
• 2:50
  Walmart
• 2:51
  store.
• 2:51
  But
• 2:52
  I
• 2:52
  really
• 2:52
  like
• 2:52
  having
• 2:53
  the
• 2:53
  Walmart
• 2:53
  product
• 2:53
  delivered.
• 2:54
  And
• 2:54
  so
• 2:54
  I
• 2:54
  think
• 2:55
  if,
• 2:57
  especially
• 2:57
  in
• 2:57
  areas
• 2:58
  where
• 2:58
  they're
• 2:58
  starting
• 2:58
  to
• 2:59
  see
• 2:59
  more,
• 3:00
  some
• 3:00
  more
• 3:01
  of
• 3:01
  these
• 3:01
  high
• 3:01
  income
• 3:02
  shoppers
• 3:02
  coming
• 3:02
  in
• 3:03
  more
• 3:03
  online
• 3:03
  orders,
• 3:04
  if
• 3:04
  they
• 3:04
  can
• 3:04
  do
• 3:05
  that
• 3:05
  even
• 3:05
  faster.
• 3:05
  I
• 3:06
  think
• 3:06
  it's
• 3:06
  a
• 3:06
  very
• 3:07
  smart
• 3:07
  strategic
• 3:08
  move
• 3:08
  from
• 3:08
  Walmart
• 3:09
  and
• 3:09
  puts
• 3:09
  them
• 3:10
  even
• 3:11
  more
• 3:11
  closely
• 3:12
  in
• 3:12
  competition
• 3:12
  with
• 3:13
  Amazon
• 3:13
  and
• 3:13
  DoorDash.
• 3:14
  Being
• 3:14
  able
• 3:14
  to
• 3:15
  do
• 3:15
  things
• 3:16
  like
• 3:16
  this
• 3:16
  in
• 3:17
  such
• 3:17
  a
• 3:17
  short
• 3:17
  amount
• 3:18
  of
• 3:18
  time
• 3:18
  because
• 3:19
  they're,
• 3:19
  they're
• 3:19
  optimizing
• 3:21
  their
• 3:21
  operations
• 3:21
  with
• 3:22
  these
• 3:22
  dark
• 3:22
  stores.
• 3:23
  And
• 3:23
  I
• 3:23
  wonder
• 3:23
  what
• 3:24
  we're
• 3:24
  going
• 3:24
  to
• 3:24
  see
• 3:24
  from
• 3:25
  other
• 3:25
  competitors.
• 3:26
  Like
• 3:26
  what
• 3:26
  does
• 3:26
  Target
• 3:27
  do
• 3:27
  now
• 3:28
  that
• 3:28
  Walmart's
• 3:29
  speeding
• 3:29
  this
• 3:29
  up?
• 3:29
  Like
• 3:30
  what
• 3:30
  do
• 3:30
  grocery
• 3:30
  stores
• 3:31
  do
• 3:31
  in
• 3:31
  order
• 3:32
  to
• 3:32
  compete
• 3:32
  here?
• 3:33
  That's
• 3:33
  the
• 3:33
  real
• 3:33
  question
• 3:33
  that
• 3:34
  I
• 3:34
  have
• 3:34
  coming
• 3:34
  out
• 3:34
  of
• 3:34
  this.
• 3:35
  Yeah,
• 3:36
  there's
• 3:36
  another
• 3:37
  important
• 3:37
  subtext
• 3:38
  here
• 3:38
  too
• 3:38
  and
• 3:38
  which
• 3:38
  is
• 3:39
  robotics
• 3:39
  and
• 3:40
  co
• 3:40
  location
• 3:40
  of
• 3:40
  robotics
• 3:41
  in
• 3:41
  the
• 3:41
  stores
• 3:42
  because
• 3:42
  that
• 3:42
  was
• 3:43
  the
• 3:43
  big
• 3:43
  talk
• 3:43
  of
• 3:43
  the
• 3:43
  town
• 3:43
  at
• 3:44
  Walmart
• 3:44
  for
• 3:44
  the
• 3:44
  past
• 3:44
  four
• 3:45
  or
• 3:45
  five
• 3:45
  years,
• 3:46
  you
• 3:46
  know,
• 3:46
  and
• 3:46
  ever
• 3:47
  since
• 3:47
  like
• 3:47
  kind
• 3:47
  of
• 3:48
  January
• 3:48
  when
• 3:49
  you
• 3:49
  know,
• 3:49
  they
• 3:49
  went
• 3:49
  through
• 3:49
  the
• 3:49
  whole
• 3:50
  thing
• 3:50
  with
• 3:50
  alert
• 3:50
  innovation
• 3:51
  that's
• 3:51
  kind
• 3:51
  of
• 3:51
  sloughed
• 3:51
  off
• 3:51
  a
• 3:52
  little
• 3:52
  bit.
• 3:52
  And
• 3:52
  so,
• 3:53
  and
• 3:53
  they're
• 3:53
  not
• 3:53
  talking
• 3:54
  about
• 3:54
  robotics
• 3:54
  being
• 3:54
  deployed
• 3:55
  here
• 3:55
  too.
• 3:55
  And
• 3:55
  you
• 3:56
  know,
• 3:56
  and
• 3:56
  they're
• 3:56
  not
• 3:56
  really
• 3:56
  saying
• 3:57
  it
• 3:57
  too,
• 3:57
  but
• 3:57
  I'm,
• 3:57
  you
• 3:57
  know,
• 3:57
  theorizing
• 3:58
  that
• 3:58
  it's
• 3:58
  probably
• 3:58
  a
• 3:58
  manual
• 3:59
  picking
• 3:59
  process
• 4:00
  just
• 4:00
  given,
• 4:01
  you
• 4:01
  know,
• 4:01
  how
• 4:01
  it's
• 4:01
  set
• 4:01
  up
• 4:02
  and
• 4:02
  how
• 4:02
  it's
• 4:02
  being
• 4:02
  talked
• 4:03
  about.
• 4:03
  So,
• 4:03
  so
• 4:04
  like
• 4:04
  where
• 4:04
  are
• 4:04
  they
• 4:04
  going
• 4:04
  with
• 4:05
  robotics?
• 4:05
  Is
• 4:06
  co
• 4:06
  location
• 4:06
  behind
• 4:07
  the
• 4:07
  store
• 4:07
  in
• 4:07
  the
• 4:07
  warehouse,
• 4:08
  you
• 4:08
  know,
• 4:08
  in
• 4:08
  the
• 4:08
  back
• 4:09
  room
• 4:09
  of
• 4:09
  the
• 4:09
  store?
• 4:10
  Is
• 4:10
  that
• 4:10
  a
• 4:10
  done
• 4:10
  idea?
• 4:11
  I
• 4:11
  don't
• 4:11
  know.
• 4:12
  It
• 4:12
  seems
• 4:12
  like
• 4:12
  it
• 4:13
  may
• 4:13
  be
• 4:13
  now
• 4:13
  given
• 4:14
  that
• 4:14
  we're
• 4:14
  not
• 4:15
  hearing
• 4:15
  about
• 4:15
  that
• 4:15
  anymore.
• 4:16
  So
• 4:16
  it's
• 4:16
  important
• 4:16
  subtext
• 4:17
  here.