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Fast Five Shorts | Buy Or Sell: Target’s “Brown Box Delivery” Pilot? · Omni Talk Retail

• 0:00
  Target
• 0:00
  is
• 0:00
  testing
• 0:01
  a
• 0:01
  new
• 0:01
  delivery
• 0:02
  method
• 0:02
  for
• 0:03
  its
• 0:03
  shipped
• 0:03
  drivers.
• 0:04
  According
• 0:04
  to
• 0:04
  Supply
• 0:05
  Chain
• 0:05
  Dive,
• 0:05
  the
• 0:06
  test
• 0:06
  enables
• 0:06
  brown
• 0:07
  box
• 0:07
  delivery
• 0:08
  or
• 0:08
  shipments
• 0:09
  outside
• 0:09
  of
• 0:09
  same
• 0:10
  day
• 0:10
  delivery
• 0:10
  and
• 0:10
  pickup
• 0:11
  options
• 0:11
  from
• 0:11
  the
• 0:11
  company's
• 0:12
  retail
• 0:12
  locations
• 0:13
  to
• 0:13
  customers
• 0:14
  in
• 0:14
  areas
• 0:14
  without
• 0:15
  a
• 0:15
  sortation
• 0:16
  center
• 0:16
  nearby.
• 0:17
  Executives
• 0:17
  did
• 0:18
  not
• 0:18
  detail
• 0:18
  which
• 0:19
  or
• 0:19
  how
• 0:19
  many
• 0:20
  locations
• 0:20
  are
• 0:20
  participating
• 0:21
  in
• 0:21
  the
• 0:21
  program
• 0:22
  yet
• 0:23
  they
• 0:23
  say,
• 0:24
  quote,
• 0:24
  while
• 0:24
  we're
• 0:24
  in
• 0:25
  the
• 0:25
  early
• 0:25
  stages
• 0:26
  of
• 0:26
  expanding
• 0:26
  this
• 0:26
  test
• 0:27
  to
• 0:27
  more
• 0:27
  markets,
• 0:27
  we're
• 0:28
  very
• 0:28
  encouraged
• 0:28
  by
• 0:29
  the
• 0:29
  early
• 0:29
  results
• 0:29
  as
• 0:30
  it's
• 0:30
  making
• 0:30
  us
• 0:30
  faster
• 0:31
  and
• 0:31
  more
• 0:31
  cost
• 0:31
  efficient.
• 0:32
  And
• 0:32
  quote,
• 0:33
  Target
• 0:33
  EVP
• 0:34
  and
• 0:34
  COO
• 0:34
  Michael
• 0:35
  Fidelke
• 0:35
  said.
• 0:36
  Chris,
• 0:36
  are
• 0:36
  you
• 0:37
  buying
• 0:37
  or
• 0:37
  selling
• 0:38
  Target's
• 0:38
  brown
• 0:39
  box
• 0:39
  delivery
• 0:39
  test?
• 0:40
  Oh,
• 0:40
  man,
• 0:43
  I
• 0:43
  have
• 0:43
  a
• 0:44
  lot
• 0:44
  of
• 0:44
  issues
• 0:44
  with
• 0:44
  this
• 0:44
  story,
• 0:45
  Ann.
• 0:45
  Okay,
• 0:45
  a
• 0:45
  lot
• 0:45
  of
• 0:46
  them.
• 0:46
  What
• 0:46
  are
• 0:46
  they?
• 0:47
  Well,
• 0:48
  let
• 0:48
  me
• 0:48
  get
• 0:48
  back
• 0:48
  to
• 0:48
  the
• 0:48
  answer
• 0:49
  to
• 0:49
  the
• 0:49
  question
• 0:49
  first
• 0:49
  because
• 0:50
  I'll
• 0:50
  unravel
• 0:51
  it
• 0:51
  that
• 0:51
  way.
• 0:51
  I
• 0:51
  think,
• 0:52
  number
• 0:53
  one,
• 0:53
  I
• 0:54
  think
• 0:54
  it's
• 0:54
  a
• 0:54
  smart
• 0:54
  idea.
• 0:55
  Yeah.
• 0:56
  But
• 0:56
  two,
• 0:56
  so
• 0:57
  I'm
• 0:57
  buying
• 0:57
  that
• 0:57
  it's
• 0:58
  a
• 0:58
  smart
• 0:58
  idea,
• 0:58
  but
• 0:58
  I'm
• 0:59
  selling
• 0:59
  the
• 0:59
  fact
• 1:00
  that
• 1:00
  it's
• 1:00
  a,
• 1:00
  it's
• 1:00
  an
• 1:01
  earth
• 1:01
  shattering
• 1:01
  idea.
• 1:02
  Right.
• 1:03
  And
• 1:04
  the
• 1:04
  reason
• 1:04
  I
• 1:04
  say
• 1:04
  that
• 1:04
  is
• 1:05
  because,
• 1:05
  like,
• 1:05
  you
• 1:05
  know,
• 1:05
  Target
• 1:06
  has
• 1:06
  basically
• 1:06
  taken
• 1:06
  the
• 1:06
  approach
• 1:07
  of
• 1:07
  sortation
• 1:07
  centers.
• 1:08
  Yep.
• 1:08
  Walmart
• 1:08
  has
• 1:09
  taken
• 1:09
  this
• 1:09
  approach
• 1:09
  already.
• 1:10
  And
• 1:10
  it's
• 1:10
  basically
• 1:11
  a
• 1:11
  function
• 1:11
  of
• 1:11
  where
• 1:11
  are
• 1:12
  your
• 1:12
  stores?
• 1:12
  Like,
• 1:13
  are
• 1:13
  they
• 1:13
  near,
• 1:13
  are
• 1:13
  they
• 1:14
  near
• 1:14
  a
• 1:14
  location
• 1:14
  where
• 1:14
  a
• 1:15
  sortation
• 1:15
  center
• 1:15
  makes
• 1:16
  sense
• 1:16
  by,
• 1:16
  by
• 1:16
  that,
• 1:17
  I
• 1:17
  mean
• 1:17
  like
• 1:17
  where
• 1:17
  you
• 1:17
  have
• 1:17
  a
• 1:18
  cluster
• 1:18
  of
• 1:18
  stores,
• 1:19
  or
• 1:19
  are
• 1:19
  they
• 1:19
  more
• 1:19
  like
• 1:19
  Walmart
• 1:20
  where
• 1:20
  they're
• 1:20
  probably
• 1:20
  outstanding
• 1:21
  standalone
• 1:21
  on
• 1:21
  their
• 1:21
  own
• 1:22
  and
• 1:22
  a
• 1:22
  sortation
• 1:22
  center
• 1:23
  just
• 1:23
  defeats
• 1:23
  the
• 1:23
  purpose.
• 1:24
  Right.
• 1:24
  That's
• 1:24
  the
• 1:24
  fundamental
• 1:25
  thing
• 1:25
  that
• 1:25
  we
• 1:25
  have
• 1:25
  here.
• 1:26
  So
• 1:26
  to
• 1:26
  me,
• 1:26
  it's
• 1:26
  like,
• 1:27
  okay,
• 1:28
  you're
• 1:28
  testing
• 1:29
  this.
• 1:29
  Like,
• 1:30
  no
• 1:30
  duh.
• 1:31
  Like,
• 1:31
  I'm
• 1:31
  like,
• 1:31
  you
• 1:32
  should
• 1:32
  have
• 1:32
  been
• 1:32
  testing
• 1:32
  this
• 1:33
  already.
• 1:34
  And
• 1:34
  it's
• 1:34
  not
• 1:34
  gonna
• 1:34
  be
• 1:35
  earth
• 1:35
  shattering.
• 1:35
  I
• 1:36
  mean,
• 1:36
  it
• 1:36
  may
• 1:36
  be
• 1:36
  the
• 1:36
  right
• 1:36
  thing
• 1:37
  to
• 1:37
  do,
• 1:38
  but
• 1:38
  it's
• 1:38
  like
• 1:38
  the
• 1:39
  way
• 1:39
  the
• 1:39
  article's
• 1:39
  saying,
• 1:39
  like,
• 1:40
  oh,
• 1:40
  this
• 1:40
  great
• 1:40
  pilot.
• 1:41
  We're
• 1:41
  doing
• 1:41
  all
• 1:41
  these
• 1:41
  things.
• 1:41
  I'm
• 1:42
  like,
• 1:42
  come
• 1:42
  on
• 1:43
  here,
• 1:43
  people.
• 1:43
  Like,
• 1:44
  you
• 1:44
  should
• 1:44
  have
• 1:44
  been
• 1:44
  doing
• 1:44
  this
• 1:45
  already.
• 1:45
  And
• 1:46
  it's
• 1:46
  just,
• 1:46
  it's
• 1:47
  such
• 1:47
  a
• 1:47
  no
• 1:47
  duh
• 1:48
  idea
• 1:48
  that
• 1:48
  I
• 1:48
  can't
• 1:48
  even
• 1:48
  get
• 1:49
  my
• 1:49
  head
• 1:49
  around
• 1:50
  how
• 1:50
  silly
• 1:50
  the
• 1:50
  positioning
• 1:51
  is
• 1:51
  of
• 1:51
  this
• 1:52
  in
• 1:52
  the
• 1:52
  media.
• 1:52
  That.
• 1:53
  That's
• 1:53
  my
• 1:53
  take
• 1:53
  on
• 1:53
  it.
• 1:54
  Yeah,
• 1:54
  this,
• 1:54
  this
• 1:55
  did.
• 1:55
  I
• 1:55
  feel
• 1:56
  like
• 1:56
  this
• 1:56
  was
• 1:56
  definitely
• 1:57
  a
• 1:57
  stretch.
• 1:57
  I
• 1:57
  mean,
• 1:58
  I
• 1:58
  think
• 1:58
  that
• 1:58
  the,
• 1:59
  the
• 1:59
  bigger
• 2:00
  story
• 2:00
  was
• 2:00
  actually
• 2:01
  in
• 2:01
  the
• 2:01
  Wall
• 2:01
  Street
• 2:01
  Journal
• 2:02
  last
• 2:02
  week
• 2:02
  where
• 2:02
  Target
• 2:03
  was
• 2:03
  or
• 2:04
  finally
• 2:04
  announced
• 2:05
  that
• 2:05
  they
• 2:05
  built
• 2:06
  for
• 2:06
  cold
• 2:07
  storage
• 2:07
  facilities.
• 2:08
  Oh,
• 2:08
  that
• 2:08
  was
• 2:08
  baloney
• 2:09
  too
• 2:09
  though.
• 2:09
  Oh
• 2:09
  my
• 2:09
  God.
• 2:10
  Okay.
• 2:10
  I
• 2:10
  don't
• 2:10
  know,
• 2:10
  I
• 2:11
  mean
• 2:11
  that's.
• 2:12
  That
• 2:12
  to
• 2:12
  me
• 2:12
  is
• 2:12
  the
• 2:13
  right
• 2:13
  spot
• 2:14
  to
• 2:14
  start
• 2:14
  to
• 2:14
  talk
• 2:15
  about
• 2:15
  because
• 2:15
  they're
• 2:16
  going
• 2:16
  after
• 2:16
  a
• 2:16
  market
• 2:17
  that
• 2:17
  they're
• 2:17
  losing
• 2:17
  share
• 2:18
  in
• 2:18
  to
• 2:18
  Walmart.
• 2:19
  And
• 2:19
  I
• 2:19
  think
• 2:19
  that
• 2:19
  that
• 2:20
  starting
• 2:20
  to
• 2:20
  put
• 2:21
  in
• 2:21
  more
• 2:22
  facilities
• 2:22
  like
• 2:22
  that
• 2:22
  to
• 2:23
  me
• 2:23
  make
• 2:23
  much
• 2:23
  more
• 2:24
  sense
• 2:24
  than
• 2:24
  talking
• 2:25
  about
• 2:25
  doing
• 2:26
  something
• 2:26
  as
• 2:26
  obvious
• 2:27
  as
• 2:27
  yes,
• 2:28
  testing
• 2:28
  out
• 2:29
  what
• 2:29
  happens
• 2:29
  with
• 2:29
  ship
• 2:30
  drivers.
• 2:30
  Now
• 2:30
  the
• 2:31
  only
• 2:31
  thing
• 2:31
  that
• 2:31
  I
• 2:31
  do
• 2:32
  worry
• 2:32
  about
• 2:32
  here
• 2:33
  is
• 2:33
  that
• 2:33
  like
• 2:34
  we've
• 2:34
  seen
• 2:35
  ship
• 2:35
  drivers,
• 2:36
  I
• 2:36
  told
• 2:36
  you
• 2:36
  about
• 2:36
  this
• 2:37
  when
• 2:37
  like
• 2:37
  I've
• 2:37
  been
• 2:38
  to
• 2:38
  the
• 2:38
  sortation
• 2:38
  center
• 2:39
  outside
• 2:39
  Target,
• 2:39
  I've
• 2:40
  seen
• 2:40
  shift
• 2:40
  drivers
• 2:41
  that
• 2:41
  are
• 2:41
  sitting
• 2:41
  there
• 2:41
  with
• 2:42
  packages
• 2:42
  sitting
• 2:43
  outside
• 2:43
  their
• 2:43
  car
• 2:44
  trying
• 2:44
  to
• 2:44
  rearrange
• 2:45
  this.
• 2:45
  Like
• 2:45
  my
• 2:46
  question
• 2:46
  is
• 2:46
  like
• 2:46
  how
• 2:47
  well
• 2:47
  prepared
• 2:48
  are
• 2:49
  some
• 2:49
  of
• 2:49
  these
• 2:49
  Target
• 2:49
  back
• 2:50
  of
• 2:50
  houses
• 2:50
  and
• 2:50
  back
• 2:51
  rooms?
• 2:52
  How,
• 2:52
  how
• 2:53
  are
• 2:53
  they
• 2:53
  going
• 2:53
  to
• 2:53
  do
• 2:53
  this?
• 2:54
  I
• 2:54
  think
• 2:54
  Target
• 2:54
  needs
• 2:54
  to
• 2:55
  think
• 2:55
  long
• 2:55
  and
• 2:55
  hard
• 2:55
  about
• 2:56
  how
• 2:56
  they're
• 2:56
  rolling
• 2:56
  this
• 2:56
  out
• 2:57
  in
• 2:57
  these
• 2:57
  test
• 2:57
  locations
• 2:58
  so
• 2:58
  that
• 2:58
  it's
• 2:59
  set
• 2:59
  up
• 2:59
  for
• 3:00
  success
• 3:00
  versus
• 3:01
  just
• 3:01
  like
• 3:01
  jamming
• 3:02
  this
• 3:02
  in
• 3:02
  with
• 3:02
  like
• 3:02
  order
• 3:03
  pickup
• 3:03
  on
• 3:03
  the
• 3:04
  side
• 3:04
  or
• 3:04
  like
• 3:04
  you
• 3:05
  know,
• 3:05
  getting
• 3:05
  in
• 3:05
  the
• 3:05
  way
• 3:06
  of
• 3:06
  trucks
• 3:06
  delivering.
• 3:07
  Like
• 3:07
  I
• 3:07
  think
• 3:07
  that
• 3:08
  there's
• 3:08
  more
• 3:08
  to
• 3:08
  this
• 3:08
  test
• 3:09
  and
• 3:09
  I
• 3:09
  just
• 3:09
  hope
• 3:10
  that
• 3:10
  it
• 3:10
  doesn't
• 3:10
  become
• 3:11
  a
• 3:11
  distraction
• 3:11
  or
• 3:12
  doesn't
• 3:12
  get
• 3:12
  kids
• 3:12
  killed
• 3:12
  too
• 3:13
  early
• 3:13
  on
• 3:13
  because
• 3:13
  it
• 3:13
  wasn't
• 3:14
  set
• 3:14
  up
• 3:14
  correctly.
• 3:14
  Well,
• 3:15
  yeah,
• 3:15
  and
• 3:15
  the
• 3:15
  other
• 3:15
  point
• 3:15
  I
• 3:15
  bring
• 3:16
  up
• 3:16
  too
• 3:16
  that
• 3:16
  you're
• 3:16
  kind
• 3:17
  of
• 3:17
  hitting
• 3:17
  on
• 3:17
  is
• 3:17
  there's
• 3:18
  also
• 3:18
  the
• 3:18
  question
• 3:18
  about
• 3:18
  is
• 3:19
  using
• 3:19
  gig
• 3:19
  drivers
• 3:20
  the
• 3:20
  right
• 3:20
  way
• 3:20
  to
• 3:20
  do
• 3:20
  this?
• 3:21
  Like
• 3:21
  should
• 3:21
  you
• 3:22
  actually
• 3:22
  be
• 3:22
  using
• 3:22
  delivery?
• 3:24
  Well,
• 3:24
  I
• 3:24
  think
• 3:24
  for
• 3:24
  an
• 3:24
  economies
• 3:25
  of
• 3:25
  scale
• 3:25
  standpoint,
• 3:26
  from
• 3:26
  what
• 3:26
  I've
• 3:26
  talked
• 3:26
  to
• 3:27
  the
• 3:27
  people
• 3:27
  that
• 3:27
  know
• 3:27
  a
• 3:28
  lot
• 3:28
  more
• 3:28
  about
• 3:28
  this
• 3:28
  than
• 3:28
  I
• 3:29
  do,
• 3:29
  what
• 3:29
  they
• 3:30
  tell
• 3:30
  me
• 3:30
  is
• 3:30
  like
• 3:30
  you
• 3:30
  need
• 3:31
  for
• 3:32
  this
• 3:32
  to
• 3:32
  work,
• 3:32
  the
• 3:33
  stores
• 3:33
  need
• 3:33
  a
• 3:33
  certain
• 3:34
  amount
• 3:34
  of
• 3:34
  orders
• 3:34
  going
• 3:35
  through
• 3:35
  them
• 3:35
  and
• 3:35
  you
• 3:35
  want
• 3:36
  to
• 3:36
  be
• 3:36
  putting
• 3:36
  those
• 3:36
  in
• 3:36
  like
• 3:37
  delivery
• 3:37
  trucks.
• 3:38
  Sure,
• 3:38
  yeah.
• 3:38
  And
• 3:38
  then
• 3:38
  you
• 3:39
  have
• 3:39
  the
• 3:39
  question
• 3:39
  of
• 3:39
  whether
• 3:39
  you're
• 3:40
  better
• 3:40
  equipped
• 3:40
  to
• 3:40
  have
• 3:40
  W2
• 3:41
  drivers
• 3:41
  handling
• 3:42
  those
• 3:42
  loads
• 3:42
  consistently
• 3:43
  regularly
• 3:44
  versus
• 3:44
  versus
• 3:44
  gig
• 3:45
  drivers
• 3:45
  as
• 3:45
  well.
• 3:46
  In
• 3:46
  the
• 3:46
  bunch
• 3:46
  of
• 3:46
  route
• 3:47
  where
• 3:47
  you're
• 3:47
  like
• 3:47
  your
• 3:47
  W2
• 3:48
  drivers,
• 3:48
  they
• 3:49
  have
• 3:49
  vans
• 3:49
  that
• 3:50
  they're
• 3:50
  using
• 3:50
  to
• 3:51
  deliver,
• 3:51
  it's
• 3:52
  more
• 3:52
  systemized
• 3:53
  instead
• 3:53
  of
• 3:53
  just
• 3:54
  pick
• 3:54
  up
• 3:55
  a
• 3:55
  shift
• 3:55
  today.
• 3:56
  That's
• 3:56
  where
• 3:56
  the
• 3:56
  real
• 3:56
  economies
• 3:57
  of
• 3:57
  scale
• 3:57
  come
• 3:57
  from.
• 3:59
  And
• 3:59
  that's
• 3:59
  I
• 4:00
  think
• 4:00
  what
• 4:00
  Walmart
• 4:00
  is
• 4:00
  trying
• 4:01
  to
• 4:01
  do
• 4:01
  with
• 4:01
  their
• 4:01
  approach
• 4:02
  to
• 4:02
  this
• 4:02
  over
• 4:02
  the
• 4:03
  long
• 4:03
  run.
• 4:04
  I
• 4:04
  don't
• 4:04
  know
• 4:04
  the
• 4:04
  exact
• 4:04
  split
• 4:05
  of
• 4:05
  W2,
• 4:05
  but
• 4:05
  I
• 4:05
  know
• 4:07
  from
• 4:08
  an
• 4:08
  order
• 4:08
  fulfillment
• 4:09
  standpoint,
• 4:09
  of
• 4:09
  course
• 4:09
  you
• 4:10
  want
• 4:10
  as
• 4:10
  many
• 4:10
  orders
• 4:10
  coming
• 4:11
  through
• 4:11
  that
• 4:11
  store
• 4:11
  as
• 4:12
  you
• 4:12
  can,
• 4:12
  but
• 4:13
  because
• 4:13
  that's
• 4:13
  what
• 4:13
  makes
• 4:13
  it
• 4:14
  work
• 4:14
  and
• 4:14
  that's
• 4:14
  what
• 4:14
  makes
• 4:14
  you
• 4:15
  drive
• 4:15
  profitability
• 4:16
  in
• 4:16
  the
• 4:16
  long
• 4:17
  run,
• 4:17
  so.
• 4:17
  All
• 4:17
  right,
• 4:17
  well.
• 4:18
  So
• 4:18
  you're
• 4:18
  buying?
• 4:19
  Well,
• 4:19
  I'm
• 4:20
  buying
• 4:20
  the
• 4:20
  idea,
• 4:20
  but
• 4:21
  I
• 4:21
  just.
• 4:21
  I'm
• 4:21
  not.
• 4:21
  I'm
• 4:21
  not.
• 4:22
  I'm
• 4:22
  not.
• 4:23
  It's
• 4:23
  not
• 4:23
  the
• 4:23
  greatest
• 4:24
  thing
• 4:24
  since
• 4:24
  sliced
• 4:24
  bread,
• 4:25
  like,
• 4:25
  it
• 4:25
  was
• 4:25
  pitched
• 4:25
  in
• 4:25
  the
• 4:25
  media.
• 4:26
  It's
• 4:26
  just.
• 4:26
  It's
• 4:26
  just
• 4:26
  like
• 4:27
  I'm
• 4:27
  kind
• 4:27
  of
• 4:27
  pissed
• 4:28
  that
• 4:28
  you're
• 4:28
  just
• 4:28
  now
• 4:28
  talking
• 4:29
  about
• 4:29
  this.
• 4:29
  You
• 4:29
  should
• 4:29
  have
• 4:29
  been
• 4:30
  doing
• 4:30
  this
• 4:30
  five
• 4:30
  years
• 4:30
  ago.
• 4:31
  And
• 4:31
  my
• 4:31
  hunch
• 4:32
  is
• 4:32
  that
• 4:32
  they
• 4:32
  were
• 4:32
  and
• 4:33
  they're
• 4:33
  now
• 4:33
  just
• 4:33
  taking
• 4:34
  credit
• 4:34
  for
• 4:34
  it
• 4:34
  in
• 4:34
  the
• 4:34
  media.
• 4:35
  That's
• 4:36
  probably
• 4:36
  what's
• 4:36
  happening
• 4:36
  here.
• 4:37
  I'm
• 4:37
  shocked
• 4:38
  that
• 4:38
  they're
• 4:38
  just
• 4:38
  now
• 4:39
  testing
• 4:39
  this.
• 4:39
  Honestly,
• 4:40
  as
• 4:40
  I
• 4:40
  think
• 4:40
  about
• 4:40
  it,
• 4:41
  at
• 4:41
  least
• 4:41
  I
• 4:41
  hope
• 4:41
  that's
• 4:42
  the
• 4:42
  case
• 4:42
  to
• 4:43
  credit
• 4:43
  them
• 4:43
  a
• 4:43
  little
• 4:43
  bit.
• 4:44
  All
• 4:44
  right.