Latest / Omni Talk Retail / Mark Ibbotson on Navigating Retail Chaos | AI, Black Swans & What Comes Next

Transcript

Mark Ibbotson on Navigating Retail Chaos | AI, Black Swans & What Comes Next · Omni Talk Retail

• 0:00
  Hello,
• 0:00
  everyone,
• 0:00
  this
• 0:01
  is
• 0:01
  Omnitalk
• 0:01
  Retail.
• 0:02
  I'm
• 0:02
  Chris
• 0:02
  Walton.
• 0:02
  And
• 0:03
  I'm
• 0:03
  Anne
• 0:03
  Mazinga.
• 0:04
  And
• 0:04
  we
• 0:04
  are
• 0:04
  coming
• 0:04
  to
• 0:05
  you
• 0:05
  from
• 0:05
  the
• 0:05
  second
• 0:06
  day
• 0:06
  of
• 0:06
  the
• 0:06
  World
• 0:06
  Retail
• 0:07
  Congress
• 0:07
  of
• 0:08
  2025,
• 0:08
  here
• 0:09
  in
• 0:09
  fabulous
• 0:10
  sunny
• 0:10
  London.
• 0:11
  Sunny
• 0:11
  London,
• 0:11
  which
• 0:11
  I
• 0:11
  don't
• 0:12
  think
• 0:12
  anyone's
• 0:12
  ever
• 0:12
  said,
• 0:12
  have
• 0:13
  they,
• 0:13
  Mark?
• 0:14
  Well,
• 0:15
  I'm
• 0:15
  a
• 0:15
  Brit
• 0:16
  and
• 0:16
  I've
• 0:16
  got
• 0:16
  to
• 0:16
  say,
• 0:17
  this
• 0:17
  is
• 0:17
  pretty
• 0:17
  unusual.
• 0:18
  Two
• 0:18
  days
• 0:18
  of
• 0:19
  sun.
• 0:19
  Yeah.
• 0:20
  Incredible.
• 0:20
  Yeah,
• 0:20
  I
• 0:21
  know.
• 0:21
  And
• 0:21
  I'm
• 0:21
  staying
• 0:21
  here
• 0:21
  the
• 0:21
  weekend
• 0:22
  to
• 0:22
  take
• 0:22
  advantage
• 0:22
  of
• 0:22
  it.
• 0:23
  All
• 0:23
  right.
• 0:23
  But
• 0:23
  anyway,
• 0:23
  without
• 0:24
  further
• 0:24
  ado,
• 0:24
  we're
• 0:24
  standing
• 0:25
  in
• 0:25
  the
• 0:25
  Fusion
• 0:25
  Groups
• 0:26
  podcast
• 0:26
  studio.
• 0:27
  Thanks
• 0:27
  to
• 0:27
  them
• 0:27
  for
• 0:28
  their
• 0:28
  support
• 0:28
  of
• 0:28
  our
• 0:28
  work
• 0:29
  here
• 0:29
  at
• 0:29
  the
• 0:29
  show.
• 0:30
  And
• 0:30
  in
• 0:30
  between
• 0:30
  us
• 0:31
  is
• 0:31
  a
• 0:31
  man
• 0:31
  who
• 0:31
  we've
• 0:32
  had
• 0:32
  on
• 0:32
  the
• 0:32
  program
• 0:32
  many
• 0:33
  times,
• 0:33
  and
• 0:33
  I
• 0:34
  believe
• 0:34
  he's
• 0:34
  a
• 0:34
  friend
• 0:34
  of
• 0:34
  the
• 0:34
  show,
• 0:35
  Mark
• 0:35
  Ibbotson.
• 0:36
  Mark,
• 0:36
  welcome
• 0:36
  back
• 0:37
  to
• 0:37
  omnitalk.
• 0:37
  Friend
• 0:38
  of
• 0:38
  the
• 0:38
  show.
• 0:38
  I
• 0:38
  like
• 0:39
  that.
• 0:39
  Friend
• 0:39
  of
• 0:39
  the
• 0:39
  show.
• 0:39
  Friend
• 0:40
  of
• 0:40
  the
• 0:40
  show.
• 0:40
  Os,
• 0:41
  that's
• 0:42
  you,
• 0:42
  my
• 0:42
  friend.
• 0:43
  Well,
• 0:43
  Mark,
• 0:43
  why
• 0:44
  don't
• 0:44
  you
• 0:44
  start
• 0:44
  by
• 0:44
  telling
• 0:45
  people
• 0:45
  who
• 0:45
  may
• 0:45
  be
• 0:46
  meeting
• 0:46
  you
• 0:46
  for
• 0:46
  the
• 0:46
  first
• 0:46
  time
• 0:47
  a
• 0:47
  little
• 0:47
  bit
• 0:47
  about
• 0:48
  you
• 0:48
  and
• 0:48
  your
• 0:48
  background.
• 0:49
  So
• 0:50
  I
• 0:51
  describe
• 0:51
  myself
• 0:51
  as
• 0:52
  a
• 0:52
  grocer.
• 0:53
  I've
• 0:54
  been
• 0:54
  in
• 0:54
  the
• 0:54
  industry
• 0:54
  all
• 0:55
  my
• 0:55
  life.
• 0:56
  Started
• 0:57
  with
• 0:57
  Sainsbury's
• 0:57
  in
• 0:57
  the
• 0:58
  uk,
• 0:58
  then
• 0:58
  Asda,
• 0:59
  and
• 1:00
  then
• 1:00
  finished
• 1:00
  at
• 1:00
  Walmart,
• 1:01
  and
• 1:02
  I
• 1:02
  was
• 1:02
  central
• 1:02
  ops
• 1:02
  in
• 1:03
  real
• 1:03
  estate.
• 1:05
  And
• 1:05
  I
• 1:06
  am
• 1:06
  now
• 1:06
  advising
• 1:07
  a
• 1:07
  number
• 1:07
  of
• 1:07
  companies.
• 1:08
  I'm
• 1:08
  with
• 1:09
  Vision
• 1:10
  Group,
• 1:10
  who
• 1:10
  have
• 1:11
  kindly
• 1:11
  brought
• 1:12
  me
• 1:12
  to
• 1:12
  this
• 1:12
  conference.
• 1:13
  I
• 1:15
  also
• 1:15
  work
• 1:15
  with
• 1:15
  McKinsey
• 1:16
  and
• 1:16
  a
• 1:16
  number
• 1:17
  of
• 1:17
  others.
• 1:17
  So,
• 1:17
  yeah,
• 1:18
  the
• 1:19
  portfolio
• 1:19
  play.
• 1:22
  Well,
• 1:22
  I'd
• 1:23
  love
• 1:23
  to
• 1:23
  hear
• 1:23
  a
• 1:23
  little
• 1:23
  bit
• 1:24
  about
• 1:24
  your
• 1:24
  experience
• 1:24
  so
• 1:25
  far
• 1:25
  at
• 1:25
  the
• 1:25
  conference.
• 1:26
  What
• 1:26
  are
• 1:26
  some
• 1:26
  of
• 1:27
  the
• 1:27
  key
• 1:27
  themes
• 1:27
  that
• 1:28
  are
• 1:28
  really
• 1:28
  being
• 1:29
  drawn
• 1:29
  out
• 1:29
  for
• 1:29
  you?
• 1:30
  So
• 1:31
  I
• 1:31
  think
• 1:33
  I
• 1:33
  was
• 1:33
  super
• 1:33
  interested
• 1:34
  in
• 1:34
  the
• 1:34
  opening
• 1:34
  address
• 1:35
  and
• 1:35
  then
• 1:36
  following
• 1:36
  the
• 1:36
  opening
• 1:36
  address,
• 1:37
  the
• 1:37
  keynote
• 1:37
  by
• 1:38
  Tesco.
• 1:39
  Yeah,
• 1:39
  yes.
• 1:39
  And
• 1:40
  then
• 1:40
  following
• 1:41
  that,
• 1:41
  there
• 1:41
  was
• 1:41
  a
• 1:41
  really
• 1:42
  good
• 1:43
  listening
• 1:44
  group
• 1:44
  with
• 1:44
  a
• 1:44
  number
• 1:44
  of
• 1:44
  people,
• 1:45
  Scott
• 1:45
  Price,
• 1:46
  colleague
• 1:47
  of
• 1:47
  mine
• 1:47
  at
• 1:48
  Walmart.
• 1:49
  And
• 1:49
  then
• 1:50
  I
• 1:50
  think
• 1:50
  the
• 1:50
  highlight
• 1:51
  really
• 1:51
  was
• 1:51
  the
• 1:52
  economist
• 1:52
  from
• 1:53
  Deloitte.
• 1:53
  I
• 1:53
  agree.
• 1:54
  You
• 1:54
  know,
• 1:55
  really
• 1:55
  good.
• 1:56
  Yeah,
• 1:56
  really
• 1:56
  good.
• 1:56
  Really
• 1:57
  good.
• 1:57
  What,
• 1:57
  what
• 1:58
  stood
• 1:58
  out
• 1:58
  to
• 1:58
  you
• 1:58
  from
• 1:59
  his
• 1:59
  session?
• 2:00
  I
• 2:00
  mean,
• 2:00
  I've
• 2:01
  seen
• 2:01
  Ira
• 2:01
  before
• 2:01
  and
• 2:02
  I've.
• 2:02
  I've
• 2:02
  listened
• 2:03
  to
• 2:03
  him,
• 2:04
  I've
• 2:04
  listened
• 2:04
  to
• 2:04
  him
• 2:05
  a
• 2:05
  couple
• 2:05
  of
• 2:05
  times
• 2:06
  and
• 2:06
  I
• 2:06
  was
• 2:06
  struck
• 2:07
  by
• 2:08
  he'd
• 2:08
  prepared
• 2:09
  for
• 2:09
  this,
• 2:10
  he
• 2:10
  presented
• 2:11
  for
• 2:11
  this,
• 2:11
  and
• 2:12
  yesterday,
• 2:13
  literally
• 2:13
  everything
• 2:14
  changed.
• 2:14
  Right.
• 2:14
  So
• 2:15
  that,
• 2:15
  you
• 2:15
  know,
• 2:15
  this
• 2:15
  is
• 2:16
  unprecedented.
• 2:18
  The
• 2:18
  tariffs
• 2:18
  were
• 2:18
  on,
• 2:19
  the
• 2:19
  tariffs
• 2:19
  were
• 2:19
  off.
• 2:20
  You
• 2:20
  know,
• 2:21
  I
• 2:21
  think
• 2:21
  I
• 2:21
  saw
• 2:21
  you
• 2:22
  at
• 2:23
  Retail
• 2:23
  Technology
• 2:24
  show
• 2:24
  in
• 2:24
  London
• 2:25
  earlier,
• 2:26
  which
• 2:26
  day
• 2:26
  one
• 2:27
  was
• 2:27
  everybody
• 2:27
  was
• 2:28
  interested
• 2:28
  in
• 2:29
  day
• 2:29
  two,
• 2:29
  the
• 2:30
  Tariffs
• 2:30
  are
• 2:30
  announced,
• 2:31
  you
• 2:31
  know,
• 2:31
  so
• 2:32
  the
• 2:32
  level
• 2:32
  of
• 2:33
  change
• 2:33
  and
• 2:33
  the
• 2:33
  speed
• 2:33
  of
• 2:34
  change
• 2:35
  is
• 2:35
  profound,
• 2:36
  you
• 2:36
  know,
• 2:36
  and,
• 2:37
  and
• 2:37
  having
• 2:38
  the
• 2:38
  ability
• 2:39
  to
• 2:39
  anticipate
• 2:40
  and
• 2:40
  if
• 2:40
  not
• 2:40
  anticipate,
• 2:41
  prepare
• 2:41
  for
• 2:41
  that,
• 2:42
  you
• 2:42
  know.
• 2:43
  Yeah,
• 2:43
  absolutely.
• 2:44
  Yeah,
• 2:44
  it
• 2:44
  was
• 2:45
  pretty
• 2:45
  funny.
• 2:45
  Like,
• 2:45
  yeah,
• 2:45
  the
• 2:46
  guy,
• 2:46
  he
• 2:46
  basically
• 2:46
  got
• 2:46
  on
• 2:47
  stage
• 2:47
  and
• 2:47
  he
• 2:47
  had
• 2:47
  this
• 2:47
  whole
• 2:47
  presentation
• 2:48
  around
• 2:48
  the
• 2:48
  impact
• 2:49
  of
• 2:49
  tariffs,
• 2:49
  and
• 2:49
  then
• 2:49
  all
• 2:50
  of
• 2:50
  a
• 2:50
  sudden
• 2:50
  it's
• 2:51
  totally
• 2:51
  null
• 2:51
  and
• 2:51
  void.
• 2:52
  That's
• 2:52
  just
• 2:52
  the
• 2:52
  way
• 2:52
  it
• 2:52
  was.
• 2:53
  So
• 2:53
  that
• 2:54
  comes,
• 2:54
  that
• 2:54
  calls
• 2:54
  to
• 2:54
  mind,
• 2:55
  too.
• 2:55
  When
• 2:55
  we
• 2:55
  had
• 2:55
  you
• 2:55
  on
• 2:55
  the
• 2:56
  show
• 2:56
  last
• 2:56
  time,
• 2:56
  you
• 2:56
  talked
• 2:57
  about
• 2:57
  black
• 2:57
  swan
• 2:58
  events
• 2:59
  now
• 2:59
  coming,
• 2:59
  and
• 2:59
  that
• 3:00
  was
• 3:00
  around
• 3:00
  when
• 3:00
  we
• 3:00
  were
• 3:00
  coming
• 3:00
  out
• 3:01
  of
• 3:01
  the
• 3:01
  pandemic.
• 3:01
  How
• 3:02
  are
• 3:02
  you
• 3:02
  thinking
• 3:02
  about
• 3:03
  that
• 3:04
  topic
• 3:04
  in
• 3:04
  general?
• 3:05
  You
• 3:05
  know,
• 3:06
  and,
• 3:07
  and
• 3:07
  thanks
• 3:07
  for
• 3:08
  asking
• 3:08
  that.
• 3:08
  I
• 3:08
  mean,
• 3:08
  I,
• 3:09
  if
• 3:09
  I
• 3:09
  look
• 3:09
  back
• 3:09
  to,
• 3:11
  you
• 3:11
  know,
• 3:11
  pre
• 3:11
  Covid
• 3:12
  and
• 3:12
  the
• 3:12
  financial
• 3:12
  crisis,
• 3:14
  which
• 3:14
  seems
• 3:15
  a
• 3:15
  long
• 3:15
  way
• 3:15
  off,
• 3:16
  but
• 3:16
  cast
• 3:17
  its
• 3:17
  shadow
• 3:17
  for
• 3:18
  so
• 3:18
  long,
• 3:18
  for
• 3:18
  so
• 3:19
  far,
• 3:19
  we
• 3:19
  then
• 3:20
  had
• 3:20
  Covid.
• 3:21
  We
• 3:21
  then
• 3:21
  came
• 3:21
  out
• 3:21
  of
• 3:22
  COVID
• 3:22
  with
• 3:23
  inflation.
• 3:23
  We
• 3:24
  come
• 3:24
  out
• 3:24
  of
• 3:24
  inflation
• 3:25
  to.
• 3:26
  We
• 3:26
  mentioned
• 3:26
  the
• 3:27
  last
• 3:27
  time
• 3:27
  there,
• 3:27
  there
• 3:28
  was
• 3:28
  potentially
• 3:29
  last
• 3:29
  week,
• 3:30
  three
• 3:30
  hot
• 3:30
  wars.
• 3:31
  Yeah,
• 3:31
  there's
• 3:32
  a.
• 3:32
  Yeah,
• 3:32
  that's
• 3:32
  true
• 3:33
  too.
• 3:33
  Yeah,
• 3:33
  there's
• 3:33
  a
• 3:33
  war
• 3:33
  in
• 3:34
  Europe,
• 3:34
  there's
• 3:34
  a
• 3:34
  war
• 3:34
  in
• 3:35
  the
• 3:35
  Middle
• 3:35
  east,
• 3:35
  and
• 3:36
  then
• 3:36
  suddenly
• 3:37
  India
• 3:37
  and
• 3:37
  Pakistan
• 3:39
  and
• 3:39
  the,
• 3:39
  you
• 3:40
  know,
• 3:40
  as
• 3:40
  you
• 3:40
  drop
• 3:40
  that
• 3:40
  pebble
• 3:41
  in
• 3:41
  the
• 3:41
  pond,
• 3:41
  you
• 3:42
  know,
• 3:42
  the
• 3:42
  ripples
• 3:42
  hit
• 3:43
  everywhere.
• 3:43
  Added
• 3:44
  to
• 3:44
  that,
• 3:45
  you
• 3:45
  know,
• 3:46
  governments
• 3:47
  changing
• 3:47
  priorities,
• 3:48
  how
• 3:48
  they
• 3:48
  are
• 3:48
  spending,
• 3:50
  you
• 3:50
  know,
• 3:50
  I
• 3:50
  mean,
• 3:51
  we're
• 3:51
  in
• 3:51
  the
• 3:51
  UK
• 3:51
  at
• 3:52
  the
• 3:52
  moment.
• 3:52
  Last,
• 3:52
  I
• 3:53
  think
• 3:53
  May
• 3:53
  7
• 3:54
  was
• 3:54
  a
• 3:54
  change
• 3:55
  to
• 3:55
  national
• 3:56
  insurance,
• 3:57
  which
• 3:57
  is
• 3:57
  going
• 3:57
  to
• 3:58
  be
• 3:58
  levied
• 3:58
  by
• 3:58
  the
• 3:58
  employer.
• 4:00
  So
• 4:00
  suddenly,
• 4:00
  you
• 4:01
  know,
• 4:01
  retailers
• 4:02
  have
• 4:02
  got
• 4:02
  to
• 4:02
  deal
• 4:02
  with
• 4:03
  all
• 4:03
  of
• 4:03
  that
• 4:04
  and
• 4:05
  this
• 4:05
  level
• 4:06
  of
• 4:06
  change.
• 4:06
  So
• 4:06
  the
• 4:06
  Tesco
• 4:07
  chief
• 4:07
  exec
• 4:07
  was
• 4:08
  fantastic,
• 4:08
  just
• 4:09
  talking
• 4:09
  through
• 4:09
  what
• 4:09
  that
• 4:10
  meant,
• 4:10
  but
• 4:11
  being
• 4:11
  true
• 4:11
  to
• 4:11
  their
• 4:11
  values
• 4:12
  on
• 4:12
  employment,
• 4:13
  on
• 4:14
  pay,
• 4:14
  on
• 4:15
  pricing,
• 4:16
  you
• 4:16
  know,
• 4:16
  and
• 4:17
  maintaining
• 4:17
  that.
• 4:18
  And
• 4:18
  then
• 4:18
  we
• 4:18
  listened
• 4:18
  to
• 4:18
  Ira
• 4:19
  about,
• 4:19
  you
• 4:20
  know,
• 4:20
  the
• 4:20
  shadow
• 4:21
  of
• 4:22
  all
• 4:22
  this
• 4:23
  added
• 4:23
  together
• 4:24
  as
• 4:24
  a
• 4:24
  stack.
• 4:24
  So
• 4:25
  how
• 4:25
  do
• 4:25
  you
• 4:25
  think
• 4:25
  about
• 4:25
  the
• 4:26
  future?
• 4:26
  Yeah.
• 4:27
  So
• 4:27
  let
• 4:27
  me
• 4:28
  ask
• 4:28
  you,
• 4:28
  how
• 4:28
  do
• 4:28
  you.
• 4:28
  I
• 4:28
  mean,
• 4:28
  because
• 4:29
  what
• 4:29
  I'm
• 4:29
  taking
• 4:29
  from
• 4:29
  what
• 4:29
  you're
• 4:30
  saying
• 4:30
  is
• 4:30
  the
• 4:30
  only
• 4:30
  predictable
• 4:31
  thing
• 4:31
  is
• 4:31
  unpredictability
• 4:32
  at
• 4:32
  this
• 4:32
  point.
• 4:33
  So
• 4:33
  how
• 4:33
  do,
• 4:33
  how
• 4:34
  should
• 4:34
  retailers
• 4:34
  prepare
• 4:35
  for
• 4:35
  the
• 4:36
  unpredictability
• 4:36
  that
• 4:37
  is
• 4:37
  going
• 4:37
  to
• 4:37
  become
• 4:37
  more
• 4:38
  commonplace?
• 4:38
  I
• 4:38
  think
• 4:39
  you
• 4:39
  are,
• 4:40
  you
• 4:40
  are
• 4:40
  comfortable
• 4:41
  being
• 4:42
  uncomfortable.
• 4:43
  This
• 4:43
  isn't
• 4:43
  going
• 4:43
  to
• 4:44
  change.
• 4:44
  And
• 4:45
  you
• 4:45
  know,
• 4:45
  there's
• 4:45
  a
• 4:46
  couple
• 4:46
  of
• 4:46
  quotes
• 4:46
  earlier
• 4:46
  in
• 4:46
  the,
• 4:47
  in
• 4:47
  the
• 4:47
  week,
• 4:47
  and
• 4:47
  I,
• 4:48
  I
• 4:48
  think
• 4:48
  this
• 4:48
  is
• 4:49
  attributed
• 4:49
  to
• 4:50
  Lincoln
• 4:51
  and
• 4:51
  Ducker.
• 4:52
  You
• 4:52
  know,
• 4:52
  how
• 4:53
  do
• 4:53
  you
• 4:53
  anticipate
• 4:54
  the
• 4:54
  future
• 4:54
  you
• 4:55
  create.
• 4:55
  You
• 4:55
  make
• 4:55
  it.
• 4:56
  You
• 4:56
  make
• 4:56
  it.
• 4:56
  Yeah.
• 4:57
  So
• 4:57
  what
• 4:57
  can.
• 4:58
  What
• 4:58
  can
• 4:58
  retailers
• 4:59
  do
• 4:59
  well?
• 4:59
  We
• 4:59
  can
• 5:00
  prepare
• 5:00
  for
• 5:00
  this.
• 5:01
  We
• 5:01
  can
• 5:01
  really
• 5:02
  think
• 5:02
  through
• 5:02
  our
• 5:02
  cost
• 5:03
  base.
• 5:03
  We
• 5:03
  can
• 5:04
  ensure
• 5:04
  our
• 5:04
  supply
• 5:04
  chain
• 5:05
  gets
• 5:05
  down
• 5:05
  to
• 5:05
  a
• 5:05
  level
• 5:05
  of
• 5:06
  precision,
• 5:07
  you
• 5:07
  know,
• 5:07
  and
• 5:07
  technology
• 5:08
  is
• 5:08
  going
• 5:08
  to
• 5:08
  do
• 5:08
  that.
• 5:09
  Scott
• 5:09
  Price
• 5:09
  spoke
• 5:09
  very
• 5:10
  well
• 5:10
  about
• 5:10
  the
• 5:10
  use
• 5:10
  of
• 5:11
  data.
• 5:11
  He
• 5:11
  did.
• 5:12
  The
• 5:12
  use
• 5:12
  of
• 5:13
  AI,
• 5:13
  these
• 5:14
  tools,
• 5:14
  how
• 5:14
  are
• 5:14
  they
• 5:14
  going
• 5:15
  to
• 5:15
  give
• 5:15
  us
• 5:15
  more
• 5:15
  precision,
• 5:16
  potentially
• 5:17
  work
• 5:17
  with
• 5:17
  less
• 5:17
  stock,
• 5:18
  because
• 5:18
  we
• 5:18
  have
• 5:19
  more
• 5:19
  precise
• 5:20
  forecasting,
• 5:21
  you
• 5:21
  know,
• 5:22
  back
• 5:22
  up
• 5:22
  through
• 5:23
  the
• 5:23
  supply
• 5:23
  chain,
• 5:24
  signals
• 5:24
  that
• 5:25
  are
• 5:25
  stronger.
• 5:26
  You
• 5:26
  know,
• 5:26
  the
• 5:26
  vuion
• 5:27
  platform,
• 5:27
  and
• 5:28
  it
• 5:28
  is
• 5:28
  a
• 5:28
  platform
• 5:29
  that
• 5:29
  connects
• 5:30
  everybody
• 5:30
  and
• 5:30
  everything
• 5:31
  gives
• 5:31
  you
• 5:32
  more
• 5:32
  precision,
• 5:32
  more
• 5:33
  accuracy,
• 5:34
  that
• 5:34
  you
• 5:34
  can
• 5:34
  then
• 5:35
  return
• 5:35
  value
• 5:36
  to
• 5:36
  your
• 5:36
  customer,
• 5:37
  principally
• 5:38
  return
• 5:39
  value
• 5:39
  to
• 5:39
  your
• 5:39
  shareholder,
• 5:40
  and
• 5:40
  make
• 5:41
  life
• 5:41
  easier
• 5:41
  for
• 5:42
  your
• 5:42
  colleague.
• 5:42
  You
• 5:43
  know,
• 5:43
  and
• 5:43
  I
• 5:43
  think.
• 5:43
  I
• 5:43
  think
• 5:44
  for
• 5:44
  me,
• 5:44
  that's
• 5:44
  the.
• 5:45
  That's
• 5:45
  the
• 5:46
  big
• 5:46
  tenant.
• 5:47
  That's
• 5:47
  the
• 5:47
  big
• 5:47
  message,
• 5:48
  that
• 5:48
  technology
• 5:49
  is
• 5:49
  going
• 5:50
  to
• 5:50
  liberate
• 5:50
  people
• 5:51
  to
• 5:51
  do
• 5:52
  a
• 5:53
  different
• 5:53
  job,
• 5:54
  but
• 5:54
  that
• 5:54
  job
• 5:54
  will
• 5:55
  be
• 5:55
  serving
• 5:55
  people.
• 5:56
  It
• 5:56
  is
• 5:57
  really
• 5:57
  interesting
• 5:57
  to
• 5:58
  hear
• 5:58
  you
• 5:58
  talk
• 5:58
  about
• 5:58
  it
• 5:58
  because
• 5:59
  it
• 5:59
  is
• 5:59
  a
• 5:59
  complete
• 6:00
  rewiring
• 6:00
  of
• 6:00
  how
• 6:00
  we've
• 6:01
  done
• 6:01
  retail
• 6:01
  for
• 6:01
  the
• 6:02
  past
• 6:02
  30
• 6:02
  years.
• 6:02
  It's
• 6:03
  like
• 6:03
  riding
• 6:04
  a
• 6:04
  new
• 6:04
  bicycle
• 6:04
  that
• 6:05
  goes
• 6:05
  the
• 6:05
  opposite
• 6:05
  direction
• 6:06
  because,
• 6:06
  you
• 6:07
  know,
• 6:07
  so
• 6:07
  much
• 6:07
  of
• 6:07
  it
• 6:07
  was
• 6:07
  like,
• 6:08
  let's
• 6:08
  get
• 6:08
  everything
• 6:08
  just
• 6:09
  in
• 6:09
  time.
• 6:09
  Let's
• 6:09
  have
• 6:09
  our
• 6:10
  processes
• 6:10
  dialed
• 6:10
  in.
• 6:10
  You're
• 6:11
  now
• 6:11
  saying
• 6:11
  the
• 6:11
  opposite
• 6:12
  needs
• 6:12
  to
• 6:12
  happen,
• 6:12
  where
• 6:12
  we
• 6:12
  need
• 6:12
  to
• 6:13
  use
• 6:13
  technology
• 6:14
  to
• 6:14
  account
• 6:15
  for
• 6:15
  the
• 6:15
  variability
• 6:16
  in
• 6:17
  all
• 6:17
  the
• 6:17
  processes
• 6:18
  that
• 6:18
  surround
• 6:18
  us,
• 6:18
  both
• 6:19
  online
• 6:19
  reaching
• 6:20
  our
• 6:20
  customers
• 6:20
  and
• 6:20
  in
• 6:21
  store
• 6:21
  reaching
• 6:21
  our
• 6:21
  customers.
• 6:22
  Yeah.
• 6:22
  And
• 6:22
  I
• 6:23
  think,
• 6:23
  you
• 6:23
  know,
• 6:25
  if
• 6:25
  I
• 6:25
  look
• 6:25
  back
• 6:25
  through
• 6:26
  my
• 6:26
  career,
• 6:27
  we
• 6:27
  didn't
• 6:27
  need
• 6:28
  to
• 6:28
  be
• 6:28
  that
• 6:28
  accurate.
• 6:29
  No,
• 6:29
  you
• 6:30
  know,
• 6:30
  it
• 6:30
  was
• 6:30
  kind
• 6:30
  of
• 6:30
  false
• 6:31
  precision
• 6:31
  in
• 6:31
  a
• 6:31
  lot
• 6:31
  of
• 6:31
  ways.
• 6:32
  You
• 6:32
  know,
• 6:32
  because
• 6:33
  being
• 6:33
  accurate
• 6:33
  is
• 6:33
  very
• 6:33
  expensive,
• 6:34
  and
• 6:35
  the
• 6:35
  technology
• 6:35
  wasn't
• 6:36
  there.
• 6:37
  Now
• 6:37
  the
• 6:37
  technology
• 6:38
  is
• 6:38
  here.
• 6:38
  The
• 6:38
  price
• 6:39
  of
• 6:39
  labor
• 6:39
  is
• 6:39
  going
• 6:39
  up.
• 6:40
  The
• 6:40
  availability
• 6:40
  of
• 6:41
  labor
• 6:41
  is
• 6:41
  very
• 6:41
  different.
• 6:42
  So
• 6:42
  you
• 6:43
  can
• 6:43
  get
• 6:43
  now
• 6:43
  to
• 6:43
  the
• 6:44
  next
• 6:44
  level
• 6:44
  of
• 6:44
  precision
• 6:45
  using
• 6:46
  technology,
• 6:47
  which
• 6:47
  means
• 6:47
  you
• 6:47
  need
• 6:48
  less
• 6:48
  working
• 6:48
  capital,
• 6:49
  which
• 6:49
  you
• 6:50
  have
• 6:50
  better
• 6:50
  accuracy.
• 6:51
  You
• 6:51
  can
• 6:52
  improve
• 6:52
  your
• 6:52
  velocity
• 6:53
  of
• 6:53
  the
• 6:54
  products
• 6:54
  that
• 6:54
  you've
• 6:54
  got.
• 6:54
  You
• 6:55
  know,
• 6:55
  you
• 6:55
  can
• 6:55
  make
• 6:55
  informed
• 6:56
  decisions
• 6:56
  on
• 6:56
  your
• 6:57
  range
• 6:57
  that
• 6:58
  previously,
• 6:58
  you
• 6:59
  know,
• 6:59
  the
• 6:59
  knowledge
• 6:59
  might
• 6:59
  have
• 7:00
  been
• 7:00
  in
• 7:01
  the
• 7:01
  people.
• 7:02
  The
• 7:02
  knowledge
• 7:02
  is
• 7:02
  now
• 7:03
  in
• 7:03
  the
• 7:03
  technology,
• 7:03
  in
• 7:03
  the
• 7:03
  process.
• 7:04
  The
• 7:04
  people
• 7:04
  make
• 7:05
  seasoned
• 7:05
  judgments,
• 7:06
  though,
• 7:06
  on
• 7:07
  what
• 7:07
  to
• 7:07
  do
• 7:07
  with
• 7:07
  that.
• 7:07
  Yeah,
• 7:08
  that's
• 7:08
  a
• 7:08
  whole
• 7:08
  nother
• 7:08
  debate
• 7:09
  we
• 7:09
  could
• 7:09
  get
• 7:09
  into,
• 7:09
  too.
• 7:10
  So,
• 7:10
  Mark,
• 7:11
  maybe
• 7:11
  in
• 7:12
  closing,
• 7:12
  what
• 7:13
  would
• 7:13
  you
• 7:13
  tell
• 7:14
  innovation
• 7:15
  teams
• 7:15
  working
• 7:16
  at
• 7:16
  retailers
• 7:16
  right
• 7:17
  now?
• 7:17
  How
• 7:18
  would
• 7:18
  you
• 7:18
  suggest
• 7:19
  that
• 7:19
  they
• 7:19
  present
• 7:19
  some
• 7:20
  of
• 7:20
  these
• 7:20
  ideas,
• 7:21
  given
• 7:21
  the
• 7:21
  mindset
• 7:22
  and
• 7:22
  the
• 7:23
  approach
• 7:23
  that
• 7:24
  you're
• 7:24
  suggesting?
• 7:27
  You
• 7:27
  know,
• 7:28
  retail
• 7:29
  is
• 7:29
  a
• 7:30
  very,
• 7:30
  very
• 7:30
  efficient
• 7:31
  business
• 7:32
  that's
• 7:33
  created
• 7:33
  a
• 7:33
  lot
• 7:33
  of
• 7:34
  value
• 7:34
  for
• 7:34
  a
• 7:34
  lot
• 7:34
  of
• 7:34
  years.
• 7:35
  I
• 7:35
  think
• 7:36
  people,
• 7:37
  CEOs,
• 7:38
  CFOs,
• 7:39
  CMOs,
• 7:40
  people
• 7:40
  are
• 7:40
  curious,
• 7:42
  interested
• 7:42
  in
• 7:42
  technology,
• 7:43
  but
• 7:44
  they
• 7:44
  need
• 7:44
  to
• 7:44
  demonstrate
• 7:45
  value.
• 7:46
  So
• 7:46
  I
• 7:46
  think
• 7:47
  you've
• 7:47
  asked
• 7:47
  me
• 7:47
  this
• 7:48
  a
• 7:48
  couple
• 7:48
  of
• 7:48
  times
• 7:48
  over
• 7:49
  the
• 7:49
  years
• 7:49
  at
• 7:49
  Walmart.
• 7:50
  Rob
• 7:50
  Walton,
• 7:51
  great
• 7:51
  Rob
• 7:51
  Walton
• 7:52
  line.
• 7:52
  We're
• 7:52
  not
• 7:52
  capital
• 7:53
  constrained,
• 7:53
  we
• 7:54
  are
• 7:54
  return
• 7:54
  constrained.
• 7:55
  If
• 7:55
  you
• 7:56
  can
• 7:56
  show
• 7:56
  a
• 7:56
  return,
• 7:57
  you've
• 7:57
  got
• 7:57
  attention,
• 7:58
  right?
• 7:58
  Absolutely.
• 7:59
  Well,
• 8:00
  wise
• 8:00
  parting
• 8:01
  advice
• 8:01
  from
• 8:02
  our
• 8:02
  friend
• 8:02
  of
• 8:02
  the
• 8:02
  show,
• 8:03
  friend
• 8:03
  of
• 8:03
  the
• 8:03
  show,
• 8:03
  Mark
• 8:04
  Ibbotson.
• 8:04
  Thank
• 8:05
  you
• 8:05
  so
• 8:05
  much.
• 8:05
  Thanks
• 8:05
  again
• 8:06
  to
• 8:06
  Fusion
• 8:06
  Group
• 8:07
  for
• 8:07
  making
• 8:07
  all
• 8:07
  of
• 8:08
  our
• 8:08
  coverage
• 8:08
  today
• 8:08
  possible.
• 8:09
  Stop
• 8:10
  by
• 8:10
  the
• 8:10
  booth,
• 8:10
  will
• 8:10
  be
• 8:11
  here
• 8:11
  for
• 8:11
  a
• 8:11
  little
• 8:11
  while
• 8:12
  longer
• 8:12
  and
• 8:12
  until
• 8:13
  then,
• 8:13
  heating
• 8:14
  up.
• 8:14
  Be
• 8:14
  careful
• 8:14
  out
• 8:14
  there.