Latest / Omni Talk Retail / Breaking: Walmart Signals Major Price Increases - How Will The Retail Industry React?

Transcript

Breaking: Walmart Signals Major Price Increases - How Will The Retail Industry React? · Omni Talk Retail

• 0:00
  Walmart
• 0:00
  CFO
• 0:01
  said
• 0:01
  last
• 0:01
  week
• 0:01
  that
• 0:01
  price
• 0:02
  hikes
• 0:02
  could
• 0:02
  start
• 0:03
  later
• 0:03
  this
• 0:03
  month.
• 0:04
  In
• 0:04
  an
• 0:04
  interview
• 0:04
  with
• 0:05
  cnbc,
• 0:05
  Walmart's
• 0:06
  chief
• 0:06
  financial
• 0:06
  officer
• 0:07
  John
• 0:07
  David
• 0:08
  Rainey
• 0:08
  said
• 0:08
  import
• 0:08
  duties
• 0:09
  are
• 0:09
  still
• 0:10
  too
• 0:10
  high
• 0:11
  even
• 0:11
  with
• 0:11
  a
• 0:11
  recently
• 0:12
  announced
• 0:12
  agreement
• 0:13
  to
• 0:13
  lower
• 0:13
  them
• 0:13
  on
• 0:14
  imports
• 0:14
  from
• 0:14
  China
• 0:15
  to
• 0:15
  30%
• 0:16
  for
• 0:16
  90
• 0:16
  days.
• 0:17
  John
• 0:17
  David
• 0:17
  Rainey
• 0:18
  said,
• 0:18
  quote,
• 0:18
  we're
• 0:19
  wired
• 0:19
  for
• 0:19
  everyday
• 0:20
  low
• 0:20
  prices.
• 0:20
  It's
• 0:21
  more
• 0:21
  than
• 0:21
  any
• 0:21
  supplier
• 0:22
  can
• 0:22
  absorb.
• 0:23
  And
• 0:23
  I'm,
• 0:24
  and
• 0:24
  so
• 0:24
  I'm
• 0:24
  concerned
• 0:25
  that
• 0:25
  the
• 0:25
  consumer
• 0:26
  is
• 0:26
  going
• 0:26
  to
• 0:26
  start
• 0:26
  seeing
• 0:27
  higher
• 0:27
  prices.
• 0:28
  You'll
• 0:28
  begin
• 0:29
  to
• 0:29
  see
• 0:29
  that
• 0:29
  likely
• 0:30
  towards
• 0:30
  the
• 0:31
  tail
• 0:31
  end
• 0:31
  of
• 0:32
  this
• 0:32
  month
• 0:32
  and
• 0:32
  then
• 0:33
  certainly
• 0:33
  much
• 0:34
  more
• 0:34
  in
• 0:34
  June,
• 0:35
  end
• 0:35
  quote.
• 0:36
  Michael,
• 0:37
  we're
• 0:37
  going
• 0:37
  to
• 0:37
  go
• 0:37
  to
• 0:37
  you
• 0:38
  first.
• 0:38
  This
• 0:38
  is
• 0:38
  a
• 0:39
  pretty
• 0:39
  heavy
• 0:40
  statement
• 0:40
  from
• 0:41
  the
• 0:41
  US,
• 0:41
  is
• 0:42
  one
• 0:42
  of
• 0:42
  the
• 0:42
  US's
• 0:42
  largest
• 0:43
  retailers.
• 0:43
  How
• 0:44
  do
• 0:44
  you
• 0:44
  expect
• 0:44
  other
• 0:45
  retailers
• 0:45
  to
• 0:46
  react
• 0:46
  to
• 0:46
  Walmart's
• 0:47
  signal
• 0:47
  of
• 0:48
  price
• 0:48
  increases?
• 0:50
  I
• 0:50
  think
• 0:50
  it's
• 0:50
  you,
• 0:51
  I
• 0:51
  think
• 0:51
  it's
• 0:51
  a
• 0:51
  huge
• 0:52
  statement
• 0:52
  and
• 0:52
  this
• 0:53
  is
• 0:53
  a
• 0:53
  topic
• 0:53
  I
• 0:53
  love
• 0:54
  talking
• 0:54
  about
• 0:54
  right
• 0:55
  now.
• 0:55
  Yeah,
• 0:57
  you
• 0:57
  know
• 0:57
  it's,
• 0:58
  it
• 0:59
  is
• 0:59
  huge
• 1:00
  and
• 1:00
  I
• 1:00
  think
• 1:01
  if
• 1:02
  I
• 1:02
  had
• 1:02
  a
• 1:02
  crystal
• 1:02
  ball
• 1:03
  right
• 1:03
  now
• 1:03
  it
• 1:03
  would
• 1:03
  be
• 1:04
  fabulous.
• 1:04
  I
• 1:05
  think
• 1:05
  we'd
• 1:05
  all
• 1:05
  be
• 1:05
  billionaires.
• 1:06
  Right.
• 1:07
  And
• 1:07
  from
• 1:07
  what
• 1:08
  we're
• 1:08
  hearing
• 1:08
  from
• 1:09
  all
• 1:09
  the
• 1:09
  retailers
• 1:10
  and
• 1:10
  vendors
• 1:11
  that
• 1:11
  we're
• 1:11
  talking
• 1:11
  to.
• 1:12
  Yeah.
• 1:12
  Is
• 1:13
  that
• 1:13
  it's
• 1:13
  an
• 1:13
  absolute
• 1:14
  free
• 1:14
  for
• 1:14
  all
• 1:15
  what
• 1:15
  people
• 1:15
  are
• 1:15
  doing
• 1:16
  with
• 1:16
  pricing.
• 1:17
  So
• 1:17
  I
• 1:17
  think
• 1:17
  it
• 1:17
  was
• 1:18
  pretty
• 1:18
  ambitious
• 1:19
  that
• 1:19
  Walmart
• 1:20
  came
• 1:20
  out
• 1:20
  and
• 1:20
  kind
• 1:20
  of
• 1:21
  planted
• 1:21
  the
• 1:21
  flag
• 1:21
  and
• 1:22
  said
• 1:22
  we
• 1:22
  are
• 1:22
  absolutely
• 1:23
  raising
• 1:23
  prices.
• 1:24
  And
• 1:25
  I
• 1:25
  think
• 1:25
  other
• 1:26
  retailers
• 1:26
  are
• 1:27
  either
• 1:27
  going
• 1:27
  to
• 1:27
  say
• 1:28
  hey,
• 1:29
  we're
• 1:29
  going
• 1:29
  to
• 1:29
  use
• 1:30
  this
• 1:30
  as
• 1:30
  an
• 1:30
  opportunity
• 1:31
  to
• 1:31
  take
• 1:31
  market
• 1:31
  share
• 1:32
  and
• 1:32
  sacrifice
• 1:33
  a
• 1:33
  little
• 1:33
  margin
• 1:34
  or,
• 1:35
  and
• 1:35
  keep
• 1:36
  prices
• 1:36
  where
• 1:36
  they
• 1:36
  are
• 1:37
  or
• 1:38
  other
• 1:38
  retailers
• 1:39
  are
• 1:39
  going
• 1:39
  to
• 1:39
  say
• 1:40
  well
• 1:40
  if
• 1:40
  Walmart's
• 1:41
  doing
• 1:41
  it,
• 1:41
  we
• 1:42
  have
• 1:42
  a
• 1:42
  license
• 1:42
  to
• 1:42
  do
• 1:42
  it.
• 1:43
  And
• 1:43
  then
• 1:43
  I
• 1:43
  actually
• 1:44
  think
• 1:44
  you'll
• 1:44
  see
• 1:44
  a
• 1:45
  little
• 1:45
  bit
• 1:45
  of
• 1:45
  both
• 1:45
  of
• 1:46
  those
• 1:46
  activities.
• 1:47
  So
• 1:47
  it's
• 1:47
  going
• 1:47
  to
• 1:48
  be
• 1:48
  very,
• 1:48
  very
• 1:48
  interesting
• 1:49
  to
• 1:49
  see
• 1:49
  how
• 1:49
  other
• 1:50
  retailers
• 1:50
  react.
• 1:51
  The
• 1:51
  other
• 1:52
  interesting
• 1:52
  thing
• 1:52
  that
• 1:53
  no
• 1:53
  one's
• 1:53
  really
• 1:54
  talking
• 1:54
  about
• 1:54
  and
• 1:55
  you
• 1:55
  hear
• 1:55
  this
• 1:55
  a
• 1:55
  little
• 1:56
  bit
• 1:56
  is
• 1:57
  it's
• 1:57
  30%
• 1:58
  increase
• 1:59
  on
• 1:59
  top
• 1:59
  of
• 1:59
  the
• 2:00
  301
• 2:00
  tariffs
• 2:01
  that
• 2:01
  on
• 2:01
  average
• 2:02
  were
• 2:02
  21%
• 2:03
  increase.
• 2:04
  So
• 2:04
  over
• 2:04
  a
• 2:04
  three
• 2:05
  year
• 2:05
  basis
• 2:06
  it's
• 2:06
  over
• 2:06
  a
• 2:07
  50%
• 2:07
  increase
• 2:08
  if
• 2:08
  you,
• 2:08
  if
• 2:09
  you
• 2:09
  do
• 2:09
  it
• 2:09
  on
• 2:09
  a
• 2:10
  relative
• 2:10
  basis.
• 2:10
  So
• 2:11
  it's
• 2:11
  not
• 2:12
  for
• 2:12
  the
• 2:12
  faint
• 2:12
  of
• 2:13
  heart
• 2:13
  to
• 2:13
  take
• 2:13
  prices
• 2:14
  up.
• 2:14
  So
• 2:15
  very,
• 2:15
  very
• 2:15
  interesting
• 2:16
  for
• 2:16
  Walmart
• 2:17
  and
• 2:17
  it'll
• 2:17
  be
• 2:17
  very,
• 2:17
  very
• 2:17
  interesting
• 2:18
  to
• 2:18
  see
• 2:18
  what
• 2:19
  other
• 2:19
  retailers
• 2:20
  do
• 2:20
  with
• 2:20
  that.
• 2:21
  Yeah,
• 2:22
  absolutely.
• 2:22
  I
• 2:22
  mean,
• 2:23
  and
• 2:23
  I
• 2:23
  think
• 2:23
  you
• 2:23
  have
• 2:23
  to
• 2:23
  think
• 2:24
  about
• 2:24
  Walmart's
• 2:25
  unique
• 2:25
  position
• 2:25
  too
• 2:26
  being
• 2:26
  a
• 2:26
  mass
• 2:26
  retailer.
• 2:27
  And
• 2:28
  for
• 2:28
  things
• 2:28
  like
• 2:28
  food
• 2:29
  and
• 2:29
  other
• 2:29
  things
• 2:29
  that
• 2:30
  just
• 2:30
  don't
• 2:30
  have
• 2:31
  the
• 2:31
  margins
• 2:31
  like
• 2:32
  you're
• 2:32
  really,
• 2:32
  they're
• 2:32
  really
• 2:33
  going
• 2:33
  to,
• 2:33
  there's
• 2:34
  no
• 2:34
  way
• 2:34
  around
• 2:34
  it,
• 2:35
  it
• 2:35
  sounds
• 2:35
  like.
• 2:36
  But
• 2:37
  yes,
• 2:37
  definitely
• 2:37
  opening
• 2:38
  the
• 2:38
  doors
• 2:38
  for
• 2:38
  some
• 2:39
  other
• 2:39
  retailers
• 2:40
  to
• 2:40
  make,
• 2:40
  make
• 2:41
  some
• 2:41
  concessions
• 2:42
  to.
• 2:43
  Chris
• 2:43
  Disa,
• 2:44
  what
• 2:44
  are
• 2:44
  your
• 2:44
  thoughts
• 2:44
  here?
• 2:45
  Yeah,
• 2:45
  I
• 2:46
  think,
• 2:46
  you
• 2:46
  know,
• 2:46
  I
• 2:46
  agree
• 2:46
  with
• 2:46
  Michael.
• 2:47
  I
• 2:47
  do
• 2:47
  think
• 2:47
  that
• 2:47
  a
• 2:48
  lot
• 2:48
  of
• 2:48
  retailers,
• 2:48
  you
• 2:49
  know,
• 2:49
  for
• 2:49
  a
• 2:49
  lot
• 2:49
  of
• 2:49
  retailers
• 2:50
  this
• 2:50
  is
• 2:50
  going
• 2:50
  to
• 2:50
  bolster
• 2:51
  their
• 2:51
  confidence
• 2:51
  in
• 2:51
  raising
• 2:52
  prices.
• 2:53
  But
• 2:53
  I
• 2:53
  think
• 2:53
  the
• 2:53
  watch
• 2:53
  out
• 2:54
  for
• 2:54
  Walmart
• 2:54
  and
• 2:54
  other
• 2:55
  retailers
• 2:55
  that
• 2:55
  it
• 2:55
  has
• 2:55
  to
• 2:56
  be
• 2:56
  done
• 2:56
  surgically.
• 2:57
  There
• 2:57
  are
• 2:57
  some
• 2:57
  categories
• 2:58
  and
• 2:58
  items
• 2:59
  that
• 2:59
  are
• 2:59
  inelastic
• 3:00
  based
• 3:00
  on
• 3:00
  utility
• 3:01
  value
• 3:01
  or
• 3:02
  necessity
• 3:02
  while
• 3:02
  others
• 3:03
  are
• 3:03
  not.
• 3:03
  And
• 3:04
  I
• 3:04
  think
• 3:04
  the
• 3:04
  cautionary
• 3:05
  tale
• 3:05
  for
• 3:05
  other
• 3:05
  retailers,
• 3:06
  specifically
• 3:07
  apparel
• 3:08
  or
• 3:08
  non
• 3:08
  essential
• 3:09
  merchandise
• 3:09
  retailers,
• 3:10
  that
• 3:10
  if
• 3:10
  you
• 3:11
  raise
• 3:11
  prices
• 3:12
  and
• 3:12
  then
• 3:12
  you
• 3:12
  have
• 3:12
  to
• 3:13
  increase
• 3:13
  your
• 3:13
  discount
• 3:14
  rates
• 3:14
  to
• 3:14
  move
• 3:14
  product
• 3:15
  in
• 3:15
  the
• 3:15
  future,
• 3:16
  then
• 3:16
  you're
• 3:16
  really
• 3:16
  training
• 3:17
  your
• 3:17
  customer
• 3:17
  to
• 3:17
  expect
• 3:18
  a
• 3:18
  higher
• 3:18
  promotional
• 3:19
  value
• 3:19
  or
• 3:20
  activity
• 3:20
  which
• 3:21
  can
• 3:21
  have
• 3:21
  long
• 3:22
  lasting,
• 3:23
  long
• 3:23
  term
• 3:23
  effects.
• 3:24
  So
• 3:24
  definitely
• 3:24
  something
• 3:25
  to
• 3:25
  watch
• 3:25
  out
• 3:25
  for.
• 3:25
  There's
• 3:26
  a
• 3:26
  ying
• 3:26
  and
• 3:26
  a
• 3:26
  yang
• 3:26
  to
• 3:27
  all
• 3:27
  of
• 3:27
  this.
• 3:27
  Yeah,
• 3:28
  without
• 3:28
  a
• 3:28
  doubt.
• 3:29
  Chris
• 3:29
  Walton,
• 3:30
  jump
• 3:30
  in
• 3:31
  here.
• 3:31
  What
• 3:31
  are
• 3:31
  your
• 3:31
  thoughts?
• 3:32
  I
• 3:33
  mean
• 3:33
  my
• 3:33
  question
• 3:33
  for,
• 3:34
  for
• 3:34
  Michael
• 3:34
  since
• 3:35
  he
• 3:35
  started
• 3:35
  out
• 3:35
  would
• 3:35
  be
• 3:35
  do
• 3:36
  you
• 3:36
  think
• 3:36
  the
• 3:36
  entire
• 3:36
  retail
• 3:37
  industry
• 3:37
  breathed
• 3:37
  a
• 3:37
  collective
• 3:38
  sigh
• 3:38
  of
• 3:38
  relief
• 3:38
  this
• 3:39
  week
• 3:39
  with
• 3:39
  this
• 3:39
  announcement
• 3:40
  saying
• 3:40
  oh
• 3:40
  thank
• 3:40
  God
• 3:41
  Walmart
• 3:41
  did
• 3:41
  this
• 3:41
  because
• 3:42
  now
• 3:42
  it
• 3:42
  gives
• 3:42
  us
• 3:42
  some
• 3:43
  room
• 3:43
  to
• 3:43
  move.
• 3:43
  What
• 3:44
  do
• 3:44
  you
• 3:44
  think
• 3:44
  about
• 3:44
  that?
• 3:46
  It's
• 3:46
  an
• 3:46
  interesting
• 3:47
  question.
• 3:48
  I
• 3:49
  don't
• 3:49
  think
• 3:49
  so.
• 3:50
  I
• 3:50
  think
• 3:50
  people
• 3:50
  are
• 3:51
  afraid
• 3:51
  to
• 3:51
  raise
• 3:52
  price
• 3:53
  because
• 3:54
  there
• 3:54
  are
• 3:54
  a
• 3:55
  lot
• 3:55
  of
• 3:55
  retailers
• 3:56
  with
• 3:56
  the
• 3:56
  section
• 3:56
  301
• 3:57
  tariffs
• 3:58
  and
• 3:58
  the
• 3:59
  inflationary
• 4:00
  environment
• 4:01
  Covid
• 4:01
  raised
• 4:02
  price
• 4:03
  and
• 4:03
  they
• 4:03
  saw
• 4:04
  a
• 4:04
  linear
• 4:04
  reduction
• 4:05
  of
• 4:06
  units
• 4:06
  purchased
• 4:07
  and
• 4:07
  they
• 4:07
  also
• 4:08
  saw
• 4:08
  a
• 4:08
  red
• 4:09
  line
• 4:09
  in
• 4:09
  the
• 4:09
  sand
• 4:10
  of
• 4:10
  being
• 4:11
  able
• 4:11
  to
• 4:11
  raise
• 4:11
  price
• 4:12
  to
• 4:12
  a
• 4:12
  certain
• 4:12
  level.
• 4:13
  And
• 4:13
  then
• 4:13
  when
• 4:13
  they
• 4:13
  got
• 4:13
  over
• 4:14
  that,
• 4:14
  their
• 4:14
  customers
• 4:15
  balked
• 4:15
  at
• 4:15
  it
• 4:16
  and
• 4:16
  said
• 4:16
  we're
• 4:16
  not
• 4:16
  purchasing.
• 4:17
  So
• 4:18
  I
• 4:18
  think
• 4:18
  it's
• 4:18
  sort
• 4:19
  of
• 4:19
  an
• 4:19
  interest.
• 4:20
  My
• 4:20
  point
• 4:20
  of
• 4:20
  view
• 4:20
  is
• 4:21
  it's
• 4:21
  an
• 4:21
  interesting
• 4:21
  thing
• 4:22
  that
• 4:22
  Walmart
• 4:22
  did
• 4:23
  and
• 4:23
  if
• 4:23
  I
• 4:23
  was
• 4:23
  a
• 4:23
  retailer
• 4:24
  I'd
• 4:24
  be
• 4:25
  saying
• 4:25
  okay,
• 4:25
  well
• 4:26
  glad
• 4:26
  they're
• 4:27
  doing
• 4:27
  it,
• 4:28
  we
• 4:28
  can
• 4:28
  potentially
• 4:29
  do
• 4:29
  it,
• 4:29
  but
• 4:30
  we're
• 4:30
  also
• 4:31
  nervous
• 4:31
  about
• 4:31
  doing
• 4:32
  it.
• 4:32
  So
• 4:32
  I
• 4:32
  don't
• 4:33
  think
• 4:33
  it's
• 4:33
  giving
• 4:34
  everyone
• 4:35
  full
• 4:35
  license
• 4:36
  to
• 4:36
  go
• 4:36
  out
• 4:36
  and
• 4:36
  do
• 4:36
  it.
• 4:37
  Yeah,
• 4:37
  that's
• 4:38
  an
• 4:38
  interesting
• 4:38
  point.
• 4:38
  Yeah.
• 4:38
  I
• 4:39
  think
• 4:39
  initially
• 4:39
  I
• 4:39
  thought
• 4:39
  yes,
• 4:40
  but
• 4:40
  now
• 4:40
  as,
• 4:41
  as
• 4:41
  I'm
• 4:41
  talking
• 4:41
  to
• 4:41
  you
• 4:42
  and
• 4:42
  thinking
• 4:42
  out
• 4:42
  loud,
• 4:43
  I'm
• 4:43
  thinking
• 4:43
  maybe
• 4:44
  not.
• 4:44
  It
• 4:44
  kind
• 4:44
  of
• 4:45
  depends
• 4:45
  on
• 4:45
  what
• 4:45
  happens
• 4:45
  from
• 4:46
  here.
• 4:46
  Does
• 4:46
  Walmart
• 4:47
  follow
• 4:47
  through
• 4:47
  on
• 4:48
  this
• 4:48
  or
• 4:48
  not?
• 4:48
  Given
• 4:49
  the
• 4:49
  kerfuffle
• 4:50
  that
• 4:50
  started
• 4:50
  there.
• 4:51
  But
• 4:51
  I
• 4:51
  mean
• 4:51
  the
• 4:51
  other
• 4:52
  point
• 4:52
  I'd
• 4:52
  make
• 4:52
  too
• 4:53
  is,
• 4:53
  is
• 4:53
  the
• 4:53
  gate,
• 4:54
  it
• 4:54
  just
• 4:54
  gives,
• 4:54
  it
• 4:55
  gives
• 4:55
  license
• 4:55
  for
• 4:55
  the
• 4:55
  game
• 4:56
  theory
• 4:56
  to
• 4:56
  start
• 4:57
  around
• 4:57
  this
• 4:57
  across
• 4:58
  the
• 4:58
  industry.
• 4:58
  Right.
• 4:59
  And
• 4:59
  you
• 5:00
  saw
• 5:00
  Home
• 5:00
  Depot
• 5:00
  come
• 5:01
  out
• 5:01
  yesterday
• 5:01
  and
• 5:01
  be
• 5:01
  like,
• 5:02
  we're
• 5:02
  not
• 5:02
  taking
• 5:02
  prices
• 5:03
  up
• 5:03
  because
• 5:03
  they're
• 5:04
  playing
• 5:04
  on
• 5:04
  the
• 5:04
  opposite
• 5:05
  trend
• 5:05
  in
• 5:05
  the
• 5:06
  media
• 5:06
  and
• 5:06
  the
• 5:06
  perception
• 5:07
  that
• 5:07
  they
• 5:07
  have
• 5:07
  there.
• 5:08
  So,
• 5:08
  you
• 5:08
  know,
• 5:08
  but
• 5:09
  at
• 5:09
  the
• 5:09
  end
• 5:09
  of
• 5:09
  the
• 5:09
  day
• 5:09
  like
• 5:10
  Walmart
• 5:10
  sets
• 5:11
  the
• 5:11
  prices
• 5:12
  and
• 5:12
  the
• 5:12
  rest
• 5:12
  of
• 5:12
  industry
• 5:13
  follows.
• 5:13
  So
• 5:13
  if
• 5:13
  Walmart
• 5:14
  brings
• 5:14
  the
• 5:14
  prices
• 5:15
  up,
• 5:15
  then
• 5:16
  I
• 5:16
  think
• 5:16
  that
• 5:16
  gives,
• 5:16
  then
• 5:17
  the
• 5:17
  sigh
• 5:17
  of
• 5:17
  relief
• 5:17
  I
• 5:18
  think
• 5:18
  comes.
• 5:19
  But
• 5:19
  the
• 5:19
  trick
• 5:19
  is,
• 5:19
  I
• 5:20
  agree
• 5:20
  with
• 5:20
  what
• 5:20
  Chris
• 5:21
  said
• 5:21
  too.
• 5:21
  You
• 5:22
  got
• 5:22
  to
• 5:22
  be
• 5:22
  really
• 5:22
  smart
• 5:23
  about
• 5:23
  how
• 5:23
  you
• 5:23
  do
• 5:23
  this.
• 5:23
  You
• 5:24
  don't
• 5:24
  want
• 5:24
  to
• 5:24
  tell
• 5:24
  people,
• 5:24
  I
• 5:25
  think
• 5:25
  either.
• 5:25
  You
• 5:25
  just
• 5:26
  want
• 5:26
  to
• 5:26
  let
• 5:26
  the
• 5:26
  prices
• 5:27
  speak
• 5:27
  for
• 5:27
  themselves.
• 5:28
  At
• 5:28
  shelf.
• 5:28
  I
• 5:29
  think
• 5:29
  that's
• 5:30
  my
• 5:30
  big
• 5:30
  lesson
• 5:30
  here
• 5:30
  for
• 5:31
  all
• 5:31
  retailers
• 5:31
  they're
• 5:31
  going
• 5:31
  to
• 5:31
  take
• 5:32
  away
• 5:32
  from
• 5:32
  this
• 5:32
  past
• 5:32
  week
• 5:32
  is
• 5:33
  like
• 5:33
  you're
• 5:33
  not
• 5:33
  talking
• 5:33
  about
• 5:34
  this
• 5:34
  as
• 5:34
  much
• 5:34
  as
• 5:34
  you
• 5:34
  can,
• 5:35
  you
• 5:35
  know,
• 5:35
  give,
• 5:36
  you
• 5:36
  know,
• 5:36
  depending
• 5:36
  on
• 5:36
  what
• 5:36
  your
• 5:37
  legal
• 5:37
  ramifications
• 5:37
  are
• 5:38
  in
• 5:38
  terms
• 5:38
  of
• 5:38
  what
• 5:38
  you
• 5:38
  got
• 5:38
  to
• 5:38
  report
• 5:38
  to
• 5:39
  the
• 5:39
  financial
• 5:39
  community.
• 5:39
  But,
• 5:40
  and
• 5:40
  curious
• 5:41
  if
• 5:41
  you
• 5:41
  guys
• 5:41
  have
• 5:41
  thoughts
• 5:41
  on
• 5:41
  that
• 5:42
  too.
• 5:42
  But
• 5:42
  you
• 5:42
  know,
• 5:43
  for
• 5:43
  the
• 5:43
  most
• 5:43
  part
• 5:43
  you're
• 5:43
  just
• 5:43
  going
• 5:44
  to
• 5:44
  want
• 5:44
  to
• 5:44
  let
• 5:44
  this
• 5:44
  sit
• 5:45
  and
• 5:45
  let
• 5:45
  the
• 5:45
  customers
• 5:46
  adjust
• 5:46
  it
• 5:46
  over
• 5:46
  time,
• 5:47
  I
• 5:47
  would
• 5:47
  think.
• 5:47
  Right.
• 5:48
  But
• 5:48
  the
• 5:48
  other
• 5:48
  interesting
• 5:49
  thing
• 5:49
  is
• 5:49
  Walmart
• 5:50
  is
• 5:50
  clearly
• 5:51
  the
• 5:51
  gorilla
• 5:51
  in
• 5:51
  the
• 5:51
  marketplace.
• 5:52
  Right.
• 5:52
  And
• 5:53
  the
• 5:54
  hidden
• 5:54
  thing
• 5:54
  in
• 5:55
  this
• 5:55
  is
• 5:56
  Walmart
• 5:57
  can
• 5:57
  do
• 5:57
  whatever
• 5:57
  they,
• 5:58
  whatever
• 5:58
  they
• 5:58
  really
• 5:59
  choose
• 5:59
  to
• 5:59
  do.
• 6:00
  So
• 6:00
  if
• 6:00
  they
• 6:00
  raise
• 6:01
  their
• 6:01
  prices
• 6:01
  and
• 6:02
  it
• 6:02
  doesn't
• 6:02
  work,
• 6:03
  they
• 6:03
  will
• 6:04
  shift
• 6:04
  and
• 6:05
  pivot
• 6:05
  it
• 6:06
  so
• 6:06
  quickly
• 6:06
  it'll
• 6:07
  make
• 6:07
  your
• 6:07
  head
• 6:07
  spin.
• 6:08
  They've
• 6:08
  got
• 6:08
  the
• 6:09
  margin
• 6:09
  then
• 6:10
  to
• 6:10
  cover
• 6:11
  the
• 6:11
  markdowns
• 6:12
  and
• 6:12
  they'll
• 6:12
  kind
• 6:13
  of
• 6:13
  make
• 6:13
  the
• 6:14
  we
• 6:14
  raised
• 6:14
  our
• 6:15
  price
• 6:15
  mistake
• 6:16
  go
• 6:16
  away
• 6:17
  lightning
• 6:17
  fast.
• 6:19
  Not
• 6:19
  everybody
• 6:19
  else
• 6:20
  can
• 6:20
  do
• 6:20
  that
• 6:20
  and
• 6:21
  not
• 6:21
  everybody
• 6:21
  else
• 6:21
  has
• 6:22
  that
• 6:22
  latitude.
• 6:22
  So
• 6:22
  that's
• 6:23
  where
• 6:23
  it's
• 6:23
  a
• 6:23
  little
• 6:23
  scary
• 6:24
  too.
• 6:24
  And
• 6:24
  I
• 6:24
  look,
• 6:25
  I
• 6:25
  think
• 6:25
  it's
• 6:25
  amazing.
• 6:26
  I
• 6:26
  applaud
• 6:26
  them
• 6:26
  for
• 6:26
  doing
• 6:27
  it,
• 6:27
  but
• 6:27
  at
• 6:27
  the
• 6:27
  same
• 6:28
  point,
• 6:28
  like
• 6:29
  they've
• 6:29
  got
• 6:29
  a
• 6:29
  really
• 6:30
  easy
• 6:30
  get
• 6:31
  out
• 6:31
  of
• 6:31
  jail
• 6:31
  free
• 6:31
  card
• 6:32
  and
• 6:32
  their
• 6:32
  customer
• 6:33
  is
• 6:33
  very
• 6:33
  reactionary
• 6:34
  too.
• 6:35
  Based
• 6:35
  on
• 6:36
  the
• 6:36
  everyday
• 6:36
  low
• 6:37
  value
• 6:38
  pricing
• 6:38
  scheme,
• 6:39
  if
• 6:39
  you
• 6:40
  start
• 6:40
  promoting
• 6:40
  on
• 6:41
  top
• 6:41
  of
• 6:41
  that,
• 6:41
  it
• 6:42
  will
• 6:42
  clear
• 6:42
  goods
• 6:42
  immediately
• 6:43
  for
• 6:43
  them
• 6:44
  and
• 6:44
  then
• 6:45
  so
• 6:45
  they
• 6:45
  kind
• 6:46
  of
• 6:46
  have
• 6:46
  a
• 6:47
  very
• 6:48
  easy
• 6:48
  safety
• 6:49
  backup
• 6:49
  plan.
• 6:50
  So
• 6:50
  raise
• 6:50
  prices.
• 6:51
  Great
• 6:51
  point.
• 6:53
  Doesn't
• 6:53
  work.
• 6:54
  Pull
• 6:54
  the
• 6:55
  trigger,
• 6:55
  bring
• 6:55
  it
• 6:56
  down
• 6:56
  a
• 6:56
  little
• 6:56
  bit
• 6:56
  and
• 6:57
  then
• 6:57
  revenues,
• 6:58
  revenues
• 6:58
  go
• 6:58
  through
• 6:58
  the
• 6:59
  roof.
• 6:59
  We
• 7:00
  take
• 7:00
  it
• 7:00
  on
• 7:00
  the
• 7:00
  chin
• 7:01
  from
• 7:01
  a
• 7:01
  margin
• 7:01
  standpoint
• 7:02
  a
• 7:02
  little
• 7:02
  bit.
• 7:02
  But
• 7:03
  in
• 7:03
  the
• 7:03
  quarterly
• 7:03
  calls
• 7:04
  we're
• 7:04
  now
• 7:05
  talking
• 7:05
  about
• 7:06
  a
• 7:06
  revenue
• 7:07
  increase
• 7:07
  with
• 7:07
  a
• 7:07
  little
• 7:08
  bit
• 7:08
  of
• 7:08
  margin
• 7:08
  dilution
• 7:09
  and
• 7:09
  the
• 7:09
  street
• 7:09
  is
• 7:10
  going
• 7:10
  to
• 7:10
  say,
• 7:10
  oh,
• 7:10
  that's
• 7:11
  awesome.
• 7:11
  Super
• 7:12
  psyched.
• 7:12
  So
• 7:12
  Walmart
• 7:12
  is
• 7:13
  kind
• 7:13
  of
• 7:13
  insulated
• 7:13
  in
• 7:13
  my
• 7:14
  opinion.
• 7:14
  Yeah,
• 7:14
  100%,
• 7:15
  Michael.
• 7:15
  I
• 7:15
  mean
• 7:16
  that's
• 7:16
  what
• 7:16
  I
• 7:16
  was
• 7:16
  just
• 7:16
  gonna
• 7:17
  jump
• 7:17
  in
• 7:17
  and
• 7:17
  say
• 7:18
  too.
• 7:18
  Like
• 7:18
  they're
• 7:18
  also
• 7:19
  building
• 7:19
  a
• 7:19
  moat
• 7:19
  with
• 7:20
  retail
• 7:20
  media.
• 7:20
  The
• 7:21
  recurring
• 7:21
  loyalty
• 7:22
  revenue
• 7:22
  that
• 7:22
  they're
• 7:22
  getting
• 7:22
  from
• 7:23
  Walmart,
• 7:23
  plus
• 7:23
  like
• 7:24
  all
• 7:24
  of
• 7:24
  those
• 7:24
  things
• 7:24
  allow
• 7:25
  them
• 7:25
  over
• 7:26
  many
• 7:26
  of
• 7:27
  the
• 7:27
  other
• 7:27
  retailers
• 7:28
  that
• 7:28
  are,
• 7:28
  are
• 7:29
  in
• 7:29
  the
• 7:29
  industries
• 7:29
  and
• 7:30
  in
• 7:30
  the
• 7:30
  space,
• 7:30
  including
• 7:31
  Target,
• 7:31
  you
• 7:32
  know,
• 7:32
  who
• 7:32
  announced
• 7:32
  earnings
• 7:33
  this
• 7:33
  morning.
• 7:33
  Like
• 7:33
  Walmart
• 7:34
  is
• 7:34
  in
• 7:34
  a
• 7:34
  much
• 7:34
  better
• 7:35
  position
• 7:35
  to
• 7:35
  be
• 7:36
  able
• 7:36
  to
• 7:36
  weather
• 7:36
  this
• 7:37
  storm,
• 7:37
  I
• 7:37
  think,
• 7:37
  than
• 7:38
  a
• 7:38
  lot
• 7:38
  of
• 7:38
  the
• 7:38
  other
• 7:38
  retailers
• 7:39
  out
• 7:39
  there.
• 7:39
  So
• 7:40
  I
• 7:40
  don't
• 7:40
  think
• 7:40
  it's
• 7:41
  wrong
• 7:41
  that
• 7:41
  they're
• 7:41
  being
• 7:42
  transparent
• 7:42
  with
• 7:42
  their
• 7:43
  saying,
• 7:44
  look,
• 7:44
  this
• 7:44
  is
• 7:45
  going
• 7:45
  to
• 7:45
  happen
• 7:45
  and
• 7:46
  customers
• 7:47
  know
• 7:47
  they're
• 7:48
  always
• 7:48
  going
• 7:48
  to
• 7:48
  be
• 7:48
  able
• 7:48
  to
• 7:49
  go
• 7:49
  to
• 7:49
  Walmart
• 7:50
  for,
• 7:50
  for
• 7:50
  that
• 7:51
  everyday
• 7:51
  low
• 7:51
  price
• 7:51
  guarantee.
• 7:52
  So
• 7:53
  I
• 7:53
  think
• 7:53
  it's
• 7:53
  just,
• 7:53
  it's,
• 7:54
  it's
• 7:54
  taking
• 7:54
  a
• 7:54
  different
• 7:55
  approach
• 7:55
  that
• 7:55
  we're
• 7:55
  seeing
• 7:55
  in
• 7:56
  the
• 7:56
  market.
• 7:56
  I
• 7:57
  also
• 7:57
  think
• 7:57
  that
• 7:57
  it
• 7:58
  depends
• 7:58
  on,
• 7:59
  you
• 7:59
  know,
• 7:59
  the
• 7:59
  level
• 8:00
  of
• 8:00
  which
• 8:00
  they're
• 8:00
  taking
• 8:01
  the
• 8:01
  prices
• 8:01
  up
• 8:02
  5%,
• 8:02
  10%,
• 8:03
  20%.
• 8:04
  You
• 8:04
  know,
• 8:04
  as
• 8:04
  an
• 8:05
  everyday
• 8:05
  low
• 8:05
  value
• 8:06
  retailer
• 8:06
  taking
• 8:07
  5,
• 8:07
  10,
• 8:07
  15%
• 8:08
  up
• 8:08
  on,
• 8:08
  you
• 8:09
  know,
• 8:09
  certain
• 8:11
  inelastic
• 8:11
  goods
• 8:12
  may
• 8:12
  not
• 8:12
  be
• 8:12
  a
• 8:12
  big
• 8:13
  deal.
• 8:13
  Where
• 8:14
  other
• 8:14
  retailers
• 8:14
  who
• 8:15
  have
• 8:15
  a
• 8:15
  higher
• 8:16
  baseline,
• 8:17
  it's
• 8:17
  much
• 8:17
  more
• 8:17
  impactful.
• 8:18
  Yeah,
• 8:18
  yeah.
• 8:19
  Wow.
• 8:20
  Wow.
• 8:20
  What
• 8:21
  a
• 8:21
  great
• 8:21
  start
• 8:21
  to
• 8:22
  this
• 8:22
  podcast.
• 8:23
  Holy
• 8:23
  cow,
• 8:23
  this
• 8:23
  is.
• 8:24
  Buckle
• 8:24
  up
• 8:24
  on
• 8:24
  this
• 8:25
  one.
• 8:25
  The
• 8:26
  story's
• 8:26
  still
• 8:26
  yet
• 8:27
  to
• 8:27
  be
• 8:27
  written.
• 8:28
  Oh
• 8:28
  my
• 8:28
  God.
• 8:28
  Yes.
• 8:29
  The
• 8:29
  game
• 8:29
  theory
• 8:29
  starts
• 8:30
  today.