Latest / GrocerTalk / Couche-Tard Circles Żabka, Kroger’s Ecom Plans & Did Someone Say Just Eat? | GrocerTalk
Transcript
- 0:00Saying that the pace of change has never been quicker is just resorting to a tired old cliche.
- 0:06But boy, the grocery industry is dynamic right now.
- 0:10From E commerce acceleration to supply chain volatility agent E commerce to rapidly changing customer preferences.
- 0:17Every grocery executive has a lot to manage right now and we're here to help.
- 0:24Every week, this podcast will carefully curate the stories in global grocery retailing for that we feel are worth paying attention to.
- 0:31Focused on trends, innovation and tech.
- 0:34We'll look at what the news really means and how it ladders into the biggest trends in our industry.
- 0:41We'll celebrate what's great and we'll call out potential missteps.
- 0:45We'll do it honestly, authentically, without cliche, and hopefully in good humour.
- 0:52A very, very warm welcome to Grocer Talk.
- 0:59This announcement should scare the pants off US grocery.
- 1:01They've gone from having 30% of their store base in Europe to 60%.
- 1:06The future of US grocery is going to be more automated as opposed to less automated.
- 1:13You have to keep it within your own digital ecosystem.
- 1:17I'm not really sure what his modus operandi is here, Ben.
- 1:22I love what they were saying in this next release about bringing in all the nutritional data as well, but there's.
- 1:28Rarely any smoke without fire.
- 1:30Grocery Talk listeners.
- 1:35Fresh back from his summer vacation, Chris Walton.
- 1:39Welcome, Chris.
- 1:40Hey, Ben, how are you?
- 1:42It's great to see you, man.
- 1:44Starting off Monday morning.
- 1:45This is great.
- 1:46I'm so excited to be here with you.
- 1:48Oh, thank you.
- 1:49I'm really good.
- 1:49How was your break?
- 1:50You're back with friends and ready.
- 1:52It was fantastic.
- 1:53As my English teacher used to say, vacations are meant to be vacated.
- 1:56And I definitely vacated out in California for two weeks.
- 1:59Did almost nothing except sit outside and walk around and get as much sun as I could.
- 2:03As you could probably tell because I'm not as pasty white as I normally am.
- 2:06Ben, you're looking very healthy.
- 2:08Very healthy.
- 2:09Much healthier than I am.
- 2:10Have been locked away in my attic.
- 2:12But.
- 2:12But look, Chris, before we dive into the news of the week, this is our very first episode, so it is.
- 2:19I think we.
- 2:19I think we should properly introduce ourselves, we should introduce the podcast and we should introduce the OMNITALK podcast network.
- 2:26100, 100%.
- 2:27And I think as.
- 2:28As host of Grocery Talk, Ben, I think you should kick us off.
- 2:32I think you should have the honors on that one.
- 2:34So I'm Ben Miller.
- 2:36I'm co founder with Chris of Grocery Talk, and yet I will be your host and editor each week.
- 2:43So I'm A.
- 2:43I'm a retail analyst by trade with my real passion is grocery.
- 2:47That's where I started my career at Safeway here in the uk.
- 2:52I did roles in marketing, in commercial and ultimately in investor relations.
- 2:58From there I joined a global grocery research and consultancy organization, igd.
- 3:04I started first as international retail analyst focused on the US so that's when I started my sort of 20 plus year relationship with US grocery.
- 3:14And look, I did a good stint with them and ended as chief Content officer.
- 3:19And after that I then have spent the last four years as vice president at Shop Talk and Grocery Shop where I led research and insights globally right across the portfolio.
- 3:31So in a nutshell, that's me, Chris, for those who don't know you, go on introduce yourself and the podcast network.
- 3:40Yeah, for sure, Ben.
- 3:41So you know, I mean for many listeners, I mean there's probably many listeners that are very aware of Omnitalk and are familiar with me, but I also imagine, and quite frankly, Ben, I think you'll agree, and I hope
- 3:52we have many new listeners tuning in to today's podcast for the very first time.
- 3:56Because, well, yeah, you know, you and I met at Grocery Shop and Shop Talk, that's where you and I got acquainted.
- 4:01But I myself am a longtime retailer too.
- 4:03Spent over 20 years in industry at both the Gap and Target, held executive level positions in merchandising, e commerce and strategy.
- 4:11And about nine years ago I went out on my own and I founded Omnitalk on a hunch.
- 4:15On a hunch, Ben, that there was a real white space for honest, frank editorial commentary about the headlines impacting the retail industry from the people that have actually done the job, as opposed to journalists who oftentimes, you know,
- 4:28in my opinion, just regurgitate what they are told.
- 4:30And I caught wind of that in your intro today, Ben too.
- 4:33So I really enjoyed that.
- 4:34So, you know, the effort, the effort started out with me writing articles.
- 4:37I later got into podcasting, growing our weekly podcast, Omni Talk Retail Fast five into one of the most listened to podcasts in the industry.
- 4:45And now today, with your help, Ben Miller, we are launching a full fledged podcast network.
- 4:50With the debut of Grocer Talk, I couldn't be more excited, I couldn't be more excited to have you in the full, Ben, and, and, and possibly others.
- 4:58I'm going to tease that possibly others into the fold very soon as well.
- 5:03So yeah, let's do this.
- 5:06Exciting times, Chris.
- 5:07And it's amazing.
- 5:09It's the, it's the editorial approach that you'd always brought.
- 5:12That is what excited me and what I really want to bring to Grocer Talk too.
- 5:16You know, look, I said in my introduction, there is so much to pay attention to right now.
- 5:20If you're a grocery leader, there's, it's like an avalanche of content being thrown at you.
- 5:26And what I want to feel for Grocery Talk is that we're an authentic, a regular voice that helps cut through the noise and helps with insights from across the globe.
- 5:36Chris.
- 5:36On innovation, trends and tech.
- 5:38And I want to bring some good old merchandising best practice to the table as well to, to carefully curate the news and pick out the things that I believe separate the signals from the noise.
- 5:49And I genuinely couldn't be more thrilled.
- 5:52The Grocer Talk is part of the Omnitalk platform family and that we're going to be broadcasting every week on Omnitalk podcast feed and on the YouTube channel.
- 6:02Yeah, 100%.
- 6:03Here, here to everything you said.
- 6:04But the other point that I point out and what you just said that I think is important for the audience to know is we're going to take an international perspective with this podcast, too.
- 6:11We're going to look at grocery globally because, you know, for those that can't tell by your accent, you're actually in the uk, you're based in the UK and you have much more familiarity with the European grocer market as
- 6:23well as the international grocer market.
- 6:24And so we're going to lean into that and that's intentional in terms of, of why we set out to do what we did in the vertical in which we're setting out to do it.
- 6:32So, yeah, brilliant.
- 6:34And look, Chris, you are going to come and you're going to be a regular host on the pod, sharing your expertise about once a month or so.
- 6:42And what I'll also be doing is I'm going to be welcoming and introducing everybody to a wonderful group of other guest hosts.
- 6:48And so it'll be another guest host each week and they will all bring their first retail experience to the show, which I'm really excited about.
- 6:58But Chris, last but absolutely by no means least, in this uniquely extended intro, I did want to give a special call out.
- 7:07And thanks to our launch partners, grocertalk is brought to you with the help and support of, firstly, Instacart Enterprise, which gives grocery businesses the technology to grow online and install with one modular platform built for how grocery actually
- 7:22works and built to scale with you.
- 7:25So learn more at company.instacart.com and Portager a groundbreaking purpose built AI platform for retail negotiations and joint business planning, helping merchants prepare Sparta, negotiate stronger and maximize value.
- 7:43So visit Portager AI that's P O R T a G E R AI to learn more.
- 7:51And finally, Grossertalk is proudly supported by Vusion, the global leader in connected retail solutions, helping grocers improve productivity, execution and customer experience.
- 8:04From shelf to checkout, go to www.fusion.com.
- 8:10Okay.
- 8:11And on to the news.
- 8:13So Chris, in this week's Grocer talk, we have got news on Kroger, Bund grocery and prescription delivery Snooks launching new digital tools for its shoppers.
- 8:25Just eat takeaway.
- 8:27Rolling out its AI voice assistant across Europe and auto stores deal with Amazon.
- 8:34But we begin today with news of Couchtard's plan to buy Zhabka.
- 8:40That's right, Ben.
- 8:41According to Reuters, Canadian retailer Alimentation Couchtard.
- 8:45I hope I said that right.
- 8:47You give me the hardest one here right out of the gate.
- 8:49Bet.
- 8:49Thank you.
- 8:50They plan to buy by Polish sea store retailer Zabka for around US$8.7 billion in its largest ever acquisition.
- 8:58Yeah, it's a big one, folks.
- 9:00Couch chart operates nearly 17,000 gas stations and convenience stores across North America, Northern and Eastern Europe and Asia Pacific, mostly under the well known Circle K banner.
- 9:11Zabka, meanwhile, no relation to William Zabka, is the convenience market leader in Poland with 13,000 convenience stores across the country and Romania.
- 9:20Zabka is expected to maintain its brand name and operate with autonomy with no change to its established franchise model.
- 9:27And the deal is expected to close by December.
- 9:30Now, I'm cheating a little on this one, Ben, as this story broke.
- 9:34How do you say, Ben?
- 9:35A fortnight ago, I think.
- 9:37I believe that's right.
- 9:37Fortnight ago.
- 9:38Two weeks ago.
- 9:39That's right.
- 9:39But it's our launch and I, and I didn't want to miss out.
- 9:42I didn't want to miss the opportunity to slag you a little bit, but.
- 9:45So, Ben, why do you think Couchtard is making the move to acquire Zabka and what are the implications here?
- 9:52Yeah, I'm so glad we started with this one.
- 9:54It's, you know, because the longer and the more time I've spent thinking about this, actually, the bigger I think this is because I think it signposts a really big change in direction from a really big retailer.
- 10:06So, you know, just stepping back, Circle K, it's a really traditional, you know, US convenience format.
- 10:15It's fuel, it's gas, and it's impulse.
- 10:19And Zabca really isn't.
- 10:21So Zabka is a European urban convenience proximity retailer.
- 10:27So no fuel, more grocery, and really well known for its food service.
- 10:32So Zabka has kind of really high urban store density, often overlapping catchments.
- 10:39So it benefits from really high frequency of visits, especially because it's got a really good coffee offer, like very good coffee offer.
- 10:49So much more frequency of visit than the standard Circle K.
- 10:55So it's a really different model.
- 10:57And I think there's a number of things that could be going on to drive this.
- 11:01I think some of this is about Couchetard's forward planning.
- 11:05The impact of EVs mean that traffic to gas stations is going down.
- 11:12So how do you build a convenience business without a driver?
- 11:15And then the other thing I think about a lot is the dynamic of gas, particularly in the US We've got people like Costco who are building sort of whole ecosystems where they use price reductions on the gas to
- 11:29drive that total membership flywheel.
- 11:31So if gas is your driver, it's an even harder model to compete against.
- 11:37And I think the geographic diversification is fascinating.
- 11:41They've gone from having 30% of their store base in Europe to 60% of the combined store base will now be in Europe.
- 11:48So that's a really significant swing.
- 11:51So I think there's some big factors that have led Couchetar to think about actually, what does it want its portfolio look like in the future.
- 11:59But, you know, what do you think Chris got him?
- 12:02Well, what number.
- 12:03What?
- 12:03I'm loving doing this podcast already, Ben, because nothing says the launch of a global weekly podcast on grocery like the acquisition of a Polish retailer.
- 12:10I mean, this is.
- 12:11This is fabulous.
- 12:12But I mean, this, like you said, this story is important, you know, and we want to lead in on this podcast with the stories that matter most, and this one clearly hits the mark.
- 12:20So, I mean, from my take, I think your point about the EV market is.
- 12:24Is actually really brilliant.
- 12:25It's a great diversification play when you think about that growth globally.
- 12:28But the other point about this, that makes this really important is this.
- 12:32This acquisition is huge.
- 12:33I mean, it almost doubles the size of Circle K's footprint, which is.
- 12:37Which was already enormous in store count.
- 12:40And the other thing I'd say too, it's.
- 12:42It's acquiring Circle K or Kushtard, I should say.
- 12:45Couchtard is acquiring a retail operation that is quite respected by those in the industry too, from what I know about Zabka.
- 12:53I mean, I can't tell you how many times in my past years, past, nine years of doing this OmniTok business, somebody has come up to me and told me I need to check out ZABCO when I'm over in
- 13:03Europe.
- 13:04And I'm always like, my answer is always the same, but it's always like, yeah, if I could only get to Poland more regularly.
- 13:09But like, you know, like, it's not the easiest thing for me to go and check out, but it's someplace I've always wanted to check out.
- 13:14And people, you know, you can tell when you talk to a lot of folks where the esteem is held.
- 13:18And it seems like there's a lot of esteem held for that operation.
- 13:21So for that reason, when I look at it in terms of the size and scale of what couchtart is acquiring, this is pretty big news.
- 13:29And I think you're hitting at the points too, in terms of, okay, yeah, you got to start thinking about how does the grocery convenience landscape start to change globally as technologies like EV and others start to impact where
- 13:45people decide to shop and spend their time?
- 13:49And you know, Chris, I think one of the really interesting wrinkles in this story, which I think could be one of the reasons why ZABCA is often held in esteem and people keep saying to you, you should go,
- 13:58is because they are one of the most technologically progressive convenience operators in Europe, if not the world.
- 14:07So they have been on the forefront of autonomous stores, checkout, free automation, front end as well as automation in the back end.
- 14:17But some of that is trial and test and mindset, which is great.
- 14:22One of the things that's really established is that they've got an incredibly highly engaged loyalty app.
- 14:27I think it's like over 11 million digital users.
- 14:31It's a real point of difference.
- 14:33And it feeds into that frequency of visit.
- 14:36And they've done some great things with gamification, AR, etc.
- 14:41To bring that loyalty app into life and activate in store.
- 14:45So I think for somebody like Couchard, you know, a very traditional North American sear operator, I think there's, there's.
- 14:53They will have a lot to learn from that perspective, which is one of the other reasons why I think this is such an interesting story.
- 14:59Yeah, so you think, you really do think this is a one plus one equals three acquisition here, Ben, you know, which is very, you know, because we cover a lot of acquisitions on the weekly retail Fast five.
- 15:08And like, you know, I'd say generally speaking, I'm probably kind of negative on them for the most part.
- 15:13But you really think there's a there there with this one huh?
- 15:16Oh, absolutely.
- 15:17I think what they.
- 15:17Because what they're doing is they're buying something they don't already have.
- 15:21And I think it was.
- 15:22There was some.
- 15:22Look, there was some rumors and who knows where the end and the finish to it was.
- 15:29But just last month there was some talk about seven and I.
- 15:31So seven eleven's parent company potentially taking a stake in Jabka.
- 15:36So there's been a little bit of maybe a come and get me.
- 15:39There's been a little bit of an in play.
- 15:40And I think for Couchard, this is too big a.
- 15:43Too good a retailer to not get after.
- 15:45And do you know one of the other things I mentioned.
- 15:47Look, Chris, you know, next month we're going to be in Paris, aren't we?
- 15:49For.
- 15:50For NRF Europe?
- 15:51Yes.
- 15:51Yeah, we are.
- 15:53Yeah.
- 15:53So.
- 15:53And.
- 15:54And a gentleman called Tomasz.
- 15:56Tomasz Blihaci.
- 15:58And I apologize, I probably murdered his surname, but I said I think that's quite close.
- 16:03Um, he's one of the leadership team at zabca and I think he is in the process of becoming the incoming CEO and I noticed that he's going to be one of the speakers talking about the future of convenience
- 16:13and that's going to be.
- 16:13I think it's going to be super interesting and I.
- 16:15That's right on my radar for next month.
- 16:17Yeah, awesome.
- 16:18Yeah.
- 16:18And you put about seven and I.
- 16:20Makes me think it's good to be the prom queen when you got a lot of suitors.
- 16:23It's a good position to be in.
- 16:25Exactly.
- 16:26Which takes us beautifully onto headline number two, which this week comes from progressive groceries which is reporting that Kroger is now offering its E Commerce shoppers the ability to bundle both grocery and prescription orders together into a single
- 16:44home delivery.
- 16:45So the service is powered by Instacart, which already provides a similar service to Costco and is live in Kroger's Harris Teeter format banner stores.
- 16:56Shoppers enroll in the My Prescriptions program via the Kroger app and then use the app to schedule a combined delivery with which is then made by Instacart.
- 17:07Chris, this news hits the same week that Kroger has announced the arrival of Nate Faust as its new EVP and Chief e Commerce officer.
- 17:16So I'm going to keep you with a two header here.
- 17:19Firstly, this RX move, is it step change or catch up from Kroger?
- 17:24And secondly, what do you think should be top of Nate's new to do list?
- 17:30Oh God, Ben.
- 17:32Oh man.
- 17:34A two parter with so many thoughts.
- 17:36Rumbling through my head.
- 17:37I don't even know where to start, Ben.
- 17:39I'll take the first part first, which you know is natural and sequential.
- 17:43The RX move.
- 17:44I, you know, I think that's just keeping up at the point, at this point, keeping up with the Joneses, so to speak.
- 17:48I like it.
- 17:49It's table stakes.
- 17:50You know, it increases the basket size of deliveries which are essentially being powered by Instacart.
- 17:55What it seems like is be a via white label servicing and delivery.
- 17:59So fine, you know, I'm good with that.
- 18:01Makes sense, let's do it.
- 18:03But your second question, I think your second question is the far more interesting one.
- 18:07What should Faust do on his first day in the job?
- 18:10And I'm going to get a little salacious here, Ben, to start things off on our first grocery podcast.
- 18:15But my honest take, he should march into CEO Greg Forens job or Forens office and tell him, you know what, I don't even think my job should exist.
- 18:23I mean, head of E Commerce, a chief E commerce officer.
- 18:27What is that?
- 18:28I've never heard that before.
- 18:29That's so like 2010, if that, like it's just like it feels like it's a retread, Ben.
- 18:35I mean the best of the best retailers, namely Walmart, where you know, these, both these guys came from, they've gone omnichannel in their organizational design.
- 18:43So I worry that putting so much emphasis on E commerce only plays into a non differentiating hand in the long run for Kroger because it's going to be really hard for Kroger to differentiate itself on the E Commerce
- 18:54side.
- 18:54It's going to breed a ton of inflow.
- 18:56Fighting on the organizational side of things, particularly against the stores, like who's going to lead merchandising now?
- 19:01Is it the online side?
- 19:02Is it the store guys?
- 19:03Is it, you know, who, who gets the investments here when everyone's sitting at the same table in the C suite versus, you know, the E commerce guy reporting into someone that should have the visibility into how everything should
- 19:15operate.
- 19:16So I don't know, you know, say, say not.
- 19:19I'll just leave it there.
- 19:20You can, you can take me off the ledge here, Ben.
- 19:22But I don't, I don't like this at all.
- 19:24Like I, I think this smells from a mil.
- 19:28That's really, I think that's really interesting.
- 19:30I'll tell you what, Chris, the other thing, having just mentioned you and I being on our travels after we've been in Paris, we're hot footing straight over to Vegas for grocery Shop.
- 19:40And I noticed that on the opening keyNote on day one of grocery shop, Yale Cosset.
- 19:46So Chief Digital and AI Officer at Kroger, he's speaking on the opening day.
- 19:52I think that's going to.
- 19:53I've always found Yale fascinating to listen to, so my ears are going to be pricked right up, right up for that one to try and understand how this structure works.
- 20:03But okay.
- 20:04Chris.
- 20:05Yeah, There's a lot to what you just said there.
- 20:07Oh my God.
- 20:09So I'm banking on the fact that on his first day, having worked with Greg Forum before, he's not going to walk in and say make me redundant.
- 20:16I reckon they've got a plan.
- 20:17So.
- 20:18So what do you think should be on a plan?
- 20:20What do you think he's been brought in with this remit to look at Chris.
- 20:25I mean, everything that's getting reported in the media is like the retail media side.
- 20:29Like they're trying to use it as a profit engine now.
- 20:31I don't.
- 20:32I guess, I guess you can understand that.
- 20:34I just.
- 20:34The other thing I worry about, though, I don't know, I hate to say this, but I'm not sure that the chops are there.
- 20:40I mean, it seems like there's a lot of writing of the coattails.
- 20:42If you look at the resume with diapers.com jet.com had a failed startup, what seems like a failed startup for the past three years or four years.
- 20:50So.
- 20:50So I'm not really sure what his modus operandi is here, Ben.
- 20:54Like I'm not sure what his marching orders are, whatever the right term is, you know, other than just basic blocking and tackling in E commerce, which I just don't know how much you're going to get from that other
- 21:08than just doing it well.
- 21:09So I don't understand the elevation of the role for that reason.
- 21:13You know, I mean, it's all the part and parcel.
- 21:16As I try to step back to your question, like it's all the part and parcel things that we talk about every single week, you know, you and I like, you know, how do you get Geneva working on your
- 21:24site?
- 21:24How do you get more options for delivery, you know, so that the customer can get the products when they want.
- 21:29Similar to what you just read with the RX announcement.
- 21:31Like that's a good move.
- 21:32But like, yeah, you know, I don't, I don't understand the elevation here.
- 21:36Yeah, I mean, look, I guess from my side firstly on the RX move.
- 21:41Yeah, great.
- 21:42I think, I think they're the same.
- 21:43I think really good Move.
- 21:45It helps lock customers in, it helps drive repeat.
- 21:48Obviously it seems like a really good tie up.
- 21:50There's a little bit of catch up going on but you know, versus Walmart for example.
- 21:55But look, it's exactly what they should be doing and I'm really pleased to see them doing it.
- 21:58So, you know, that's all good.
- 22:00I think, I think if I was Nate there'd be two things on two things that I'd be looking at.
- 22:04I mean number one, and I think this is interesting and this is where Greg Foreign and Nate Faust worked together previously was around supply chain in E Comm.
- 22:13And I think that's one of the big questions for Kroger is, you know, we've seen the investment go in and then come back from Ricardo.
- 22:22They're now building investment with partners.
- 22:24How do you get the right mix?
- 22:28There has got to be a sweet spot in terms of fulfillment.
- 22:31Turning their back on automation completely can't be the answer.
- 22:35Labor isn't getting any cheaper.
- 22:36The penetration continues to grow.
- 22:39So the fundamentals are moving towards automation.
- 22:44I think we've got another story coming up in a little bit where we're going to be talking about that.
- 22:47So I think that's number one.
- 22:49What does that mix?
- 22:51What's that sweet spot that profitability look like for Kroger?
- 22:54And I obviously feel there's work to be done in that space.
- 22:57And the other bit is about how does Kroger build out a really compelling digital moat and a digital ecosystem?
- 23:04How do they grow, boost, how do they add more into it?
- 23:07I think because if there is a grocer in the country that's got the scale, that's got the data, that's got the potential for retail media platformers as we know, it's Kroger's.
- 23:17I think that's the other area that if I was bringing it ahead of E Comm and somebody to say to ring fence, I'd be looking, I'd be looking at those two things because I do think there is work
- 23:26to be done.
- 23:27But it's also, there's a huge opportunity to get Kroger really, really, really singing from Ecom right now.
- 23:33Yeah, I mean I think I said this on my weekly podcast like, you know, Kroger was talking about its E commerce statistics in its, in its latest earnings report.
- 23:40But as I dug into them, I didn't actually think they were that strong.
- 23:43I felt like they're actually potentially even losing share in the marketplace.
- 23:46When you look at the brick meets click data that gets put out every so often.
- 23:51And so I think, yeah, this is the signal here, Ben.
- 23:53The marching orders are like, we need to grow e commerce.
- 23:56Greg Forehand feels like he's the ones running the reins on the store side and the store improvements.
- 24:01So maybe these two think they're going to be in cahoots in the C suite to drive things together.
- 24:06I mean that.
- 24:07But organizationally, like, I, it's not a place I'd want to work.
- 24:12Organizationally, I'll just say that.
- 24:14All right, headline number three.
- 24:17Headline number three.
- 24:18We're diving into the theme of how AI is being used to influence shoppers, which for sure is one of the big trends in the industry.
- 24:25We'll be watching week over week at Grocery Talk.
- 24:27Grocer Dive is reporting that Schnooks Markets is launching new digital tools for its shoppers.
- 24:33Now Live is a conversational commerce AI tool that helps shoppers build lists, make suggestions, and offer personalized nutritional guidance.
- 24:41Now Live is a conversational commerce AI tool that helps shoppers build lists, make suggestions and offer personalized nutritional guidance.
- 24:49Built in partnership with Vitality ip, the agent can use weekly deals and recommended products to build lists.
- 24:55Based on an intelligence layer of 6 billion lines of shopping, health and nutrition data, Snooks will maintain the ownership of the customer relationship, shopper data and brand experience while levering data from Vitality IP's nutrition guidance and health data
- 25:11platform.
- 25:12Announced just three weeks ago, the tool is now live.
- 25:15And Snooks COO Ted Schnook said in a statement that, quote, it is not a search bar.
- 25:20It will be a personalized digital shopping assistant that understands Snooks aisles, sales promotions and customer lifestyles.
- 25:27End quote.
- 25:28And I kind of like that quote a lot.
- 25:29Ben.
- 25:30Ben, does the world need another personalized digital shopping assistant or is this functionality from Schnooks that is rapidly becoming table stakes for grocers?
- 25:40Yeah, I think there's, there is, there's a lot in it.
- 25:42But for me, it's actually quite a simple.
- 25:44I think, yes, it is becoming table stakes.
- 25:48And what do I mean by that?
- 25:49I think on, on the broader picture, how shoppers are searching, how everybody, consumers, people are shopping is change, searching is changing.
- 26:02The growth of tools like Claude and Gemini, the conversational commerce tools, but they are increasingly teaching people to make contextual conversational searches.
- 26:18And I think that Google spent two decades teaching people to take sentences and squeeze it into words.
- 26:25And now actually everyone's been told, you don't need to do that anymore.
- 26:27So it's just returning to what feels normal.
- 26:31And I think for any retailer, for any grocer, for any brand out there, they need their website to be able to cope with conversational requests, with contextual questions, and within that there is an increased expectation of personalized responses.
- 26:53But really, if you don't provide the ability to be able to answer a contextual question with the detail that's being looked for, you're going to lose the traffic, Chris.
- 27:01You're going to lose it.
- 27:02To answer engines, people just go to Claude and we'll just go to Gemini.
- 27:06So you have to keep it within your own digital ecosystem.
- 27:10I think that's the key thing here.
- 27:13And especially for the retailer, you get to own the transaction.
- 27:17So you can build that memory, you can build that context layer which is so critical in all the AI elements to be able to do things like that.
- 27:26Now, look, I'm not convinced that all of the examples that get trotted out every time we see a press release about this sort of things that people are going to use or building a.
- 27:36Build a shopping list help me for my great Anne's party, who also loves the party.
- 27:43Right?
- 27:44Yeah, we see the same one.
- 27:46I think, put that to one side.
- 27:47The idea of, should every retailer be building the ability to be able to answer queries posed in a conversational style with context?
- 27:56Build that muscle for me, that's critical right now.
- 28:00Yeah, 100% agree, Ben.
- 28:02It's table stakes.
- 28:03I mean, like, the other point I make too is like, you need to have this on your site because you don't want them going and starting to shop at Walmart or Amazon for their online grocery needs, which when,
- 28:11you know, both those retailers are investing heavily in this regard.
- 28:14And Amazon just last week said that they're actually seeing tremendous performance out of their Alexa plus for shopping capabilities on their website.
- 28:23So, you know, so that's, that's what I see.
- 28:25But, you know, when I step back from this, Ben, I think you brought up a good point.
- 28:28Like, what is, what is all, what is all this stuff that's out there in the media around this?
- 28:31To me, this is just the evolution of a product.
- 28:34Like, you know, for.
- 28:35I can remember back in my e commerce days at target, like 2013, 2016, we were investing heavily in like upgrading our search capabilities.
- 28:43Like, there was a product manager over search, you know, and at the time it was like, you know, can you get the autofill going for the customer?
- 28:49Right?
- 28:50This is, this is, in a lot of ways, this is just the next evolution of search as a product.
- 28:55Now, you know, I thought CEO Todd Schnook said, yeah, it may be more than that and I think it is, but it's still the next evolution of how people interact with your website and your web properties and your
- 29:07E commerce properties to find what they're looking for.
- 29:10And it's all the same thing, it's all the same mission for the product manager.
- 29:14So we can just strip all the AI sexiness away.
- 29:17And if we think about it in that, that's what it is, pure and simple.
- 29:20And that's why it's table stakes.
- 29:22And you've got to keep up with the Joneses here too.
- 29:24Yeah, you have to.
- 29:25And I think that for me, that last bit, the keeping up is a slightly different bit because the risk of not doing this creates this sort of sword of Damocles hanging over you in that if you can't do
- 29:38it and you're taking people to a Claude or a Gemini, you're taking them onto a platform that can also do real time cross retail price comparison and et cetera, et cetera.
- 29:48So I think the importance of locking in is critical.
- 29:52And I also, as a minor point, I love what they were saying in this next release about bringing in all the nutritional data as well, because we know that we haven't got a GLP1 story this week that'll be
- 30:06a reoccurring theme on the pod.
- 30:08But people are more interested in nutritional data as diets are dramatically changing.
- 30:12So bringing that information in in a more accessible way, I think that's really important and a really nice move from SN on this one.
- 30:19Yeah.
- 30:19Because searching for like, you know, sugar free items on a website or any, you know, any type of like taxonomical, if that's the word base search on a website is really difficult and this enables that.
- 30:30That's the beauty of, Beauty of AI too, Ben.
- 30:32But I got, I got to give you a shout out sort of Damocles.
- 30:35That's hell of a reference, my friend.
- 30:37Oh my God.
- 30:38What is the sword of Damocles?
- 30:39I don't even.
- 30:40I don't even know that one.
- 30:42Yeah.
- 30:42Oh, it's.
- 30:43This is going back into mythology.
- 30:45It's the.
- 30:45It's a sword that hangs over you should.
- 30:48You made the wrong move at any point will fall fall and ending your death.
- 30:51But I think that's a bit too dark for right now.
- 30:54Until I saw the Odyssey at the weekend, which was brilliant by the way.
- 30:57If you haven't seen it.
- 30:58It was really good.
- 30:58Yeah, really good.
- 30:59Yeah, it's so good.
- 31:00Right, anyway, moving on, Christopher, Headline number four and I want to take us back to the wider theme of AI tools to influence shoppers, because headline number four this week comes straight from a corporate press release from just
- 31:14eat takeaway.com so following successful launches in the UK and Germany earlier this year, Just Eat is rolling out its AI Voice assistant across Europe and we do love a good rollout story.
- 31:28The AI powered voice tool is available on Just eat apps on iOS and Android and allows shoppers to ask questions or request actions from where is open that can deliver for me in under 30 minutes to help me
- 31:45feed my family of four for under €40.
- 31:47Or my personal favorite, please just order me my usual curry.
- 31:53What's really interesting in this story though is the data that was shared as part of it, which actually shows what people are actually saying to Just Eat.
- 32:02Looking at the earlier UK launch of the AI Assistant, customers using Voice found what they were looking for 40% faster than the previous text only AI assistant and were 30% more likely to choose a recommendation compared to traditional
- 32:21search experiences.
- 32:23So Chris, once upon a time Voice was meant to be the answer to all our native search needs, but recently it does look like the food service industry is pushing ahead at finding real use cases and benefits from
- 32:35AI tools.
- 32:36What do you think grocers should be learning from this?
- 32:40Oh man.
- 32:41Oh Ben, you're great.
- 32:43They cracked me up.
- 32:44First of all, I don't actually think there's much groceries should be learning from this one.
- 32:48I'm curious to see what you think.
- 32:49I have no idea what you think on this either, but I'm actually skeptical of this headline.
- 32:55And the reason I say that Ben, is the data sounds a little ginned up to me.
- 32:57It sounds like it's made for a press release to sound sexy and so I'm going to key in on what you said there customer and I want people to listen to this.
- 33:05Customers using Voice found that they were looking found what they were looking for 40% faster than previous text only AI assistants and were 30% more likely to choose a recommendation compared to traditional search experiences.
- 33:18Okay, but what if your traditional search experience wasn't up to par or it quote unquote sucked?
- 33:24Does that mean voice is actually better?
- 33:26And also another point I'd make customers using voice that is in itself biased because it's customers that are electing to use voice so they're going to show that proclivity by default in some ways.
- 33:38So that doesn't necessarily mean to me, as this headline is trying to intimate, that more investments should be going towards voice.
- 33:47So net net Ben, to answer your question, if I was another grocer reading this, listening to this podcast, I wouldn't be rushing out to go back to the Keeping up with the Joneses point from the last headline on
- 33:59this one.
- 34:00That's really interesting.
- 34:01And I think the counterpoint to that, and I don't disagree with what you've said, is that this isn't talking about a test, this is a rollout.
- 34:10So having been operating in Germany and the uk, that's just two of just these biggest markets in Europe, they've seen enough to make them want to, want to roll it.
- 34:21And I think it comes as.
- 34:23For me, it comes as no surprise that voice in using voice to engage with an AI assistant is quicker than text because you don't have to type, has to be quicker.
- 34:37So in a game where speed matters and increasingly speed matters to grocery.
- 34:42I think that's really interesting.
- 34:45I think probably more interesting is some of the things that I've seen in the US that are where the US is definitely ahead of Europe in terms of using AI voice ordering, particularly at drive thrus.
- 34:55And that's, that's another area where I think the food, food service is showing more use cases, which I think is, is.
- 35:02I definitely think there is stuff we can learn from.
- 35:03If you take all that in the round.
- 35:05Yeah.
- 35:06And the way I look at that, see, I see, I see that as a different, I'd see that as a different element.
- 35:09Like I think voice ordering is when we're already using our voice and how do we improve the efficiency and the, the, the quality of the service when that is what we're doing.
- 35:19But investing in voice as the way to interact with a property which isn't necessarily the native way to interact with it, I don't think that's where I'd be investing first and foremost.
- 35:29And I'd go back to spending my money more on the things that we talked about in the previous headlines, like your AI search capabilities, for example.
- 35:36Seems like a much, much better way or a much more important thing to hone than say getting, getting Voice search live on your properties.
- 35:46That's, that's my take, Ben.
- 35:47I see those as two very different examples of voice technology and its applications.
- 35:53Yeah, I, I think that's very fair.
- 35:56You do?
- 35:56Okay.
- 35:57Headline number five comes to us from the retail technology innovation hub, the rtih with news that Autostore has announced a supply agreement with Amazon.
- 36:06Autostore, the Finnish automated fulfillment and warehousing company, has agreed to a framework for the supply of auto stores, products and solutions to Amazon on a global basis.
- 36:18Whilst whilst you can tell who runs this podcast, whilst the agreement defies the terms of procurement, it doesn't actually contain any purchasing commitments at this time.
- 36:28But there's rarely any smoke without fire grocery talk listeners.
- 36:32Amazon has no shortage of automation already in its supply chain and famously usually builds its own solution.
- 36:38So Ben, what forces do you think have led to this agreement between Amazon and Auto Store?
- 36:46Yeah Chris, you and I, we've both recently been to see auto store technology in action and E commerce fulfillment technology is another of the really big films, the really big themes in our industry right now.
- 37:00So though despite actually no procurement having been made, the fact that it's just a framework, I thought it was really important to discuss this one and so I'm really glad and I'm really looking forward to hearing what you
- 37:14think.
- 37:15What do I think?
- 37:16Shaping and firstly Amazon's fulfillment centers, their automated, their robotic fulfillment centers are really impressive.
- 37:25They're really impressive and I'm sure many people listening might have had a chance to go and visit.
- 37:29Often I've open sessions where the public is allowed in or, or going on the trade visit.
- 37:34They're well worth seeing but they the whole flow is based around single item purchases and a single temperature zone in environment so they're not designed around grocery.
- 37:45And Amazon's grocery business is scaling.
- 37:49So what's the first force?
- 37:51I think the first force is that they've needed something specific and this growth in E comm is happening really quickly.
- 37:59Particularly their US business is scaling quick so maybe that's a partner slash buy rather than build because they need to drive the automation in that quickly as well.
- 38:10And Walmart obviously are already there especially because one of the things that's making the point of difference for Amazon is the speed of delivery.
- 38:18You know it's the 30 minute hour to one hour delivery that's really driving the Amazon business.
- 38:22So again that the quicker is required to be delivered, the quicker required it to be fulfilled, the stronger the case for automation.
- 38:30And as that grocery business evolves, so too will be their need for multiple temperature zones for example.
- 38:39And I think one of the things we know about Auto Store they run off a grid system not dissimilar to how Ocado runs, how a number of the other systems run.
- 38:50Autostore is known for the flexibility of the grid so the ability to implement it in a whole range of different environments.
- 38:59So I think that's probably another plus point.
- 39:02And yeah, I think the last thing, and I'd love to hear what you think as well as building out automated warehousing autostore, also build our micro fulfillments.
- 39:12They know how to build store based systems as well.
- 39:15Amazon have already told us they're building this supercenter near Chicago and they've already said that's going to have micro fulfillment for before we even start to think about where they might want to go with, with Whole Foods.
- 39:24So I think there's a range of grocery specialism that they need to bring in and this is a way to do it quickly.
- 39:35But what do you think Chris?
- 39:38Yeah, I mean I think, I think this is a, this is a really important headline.
- 39:41I think we probably, you know, unintentionally or intentionally bookended this podcast with the two probably biggest headlines you know of of the week here for the overall global ghost industry and particularly this one, particularly for the US is
- 39:53really interesting because I think to your point Ben, Auto Store for all the ups and downs of micro fulfillment automation technology in grocery, they've taken their punches and stood in and they appear to be getting the job done
- 40:07where it matters.
- 40:08And they're doing it just about as well as anyone out there.
- 40:11And Amazon generally understands what it does well and what it does not.
- 40:15And for this reason I think, you know, this announcement should scare the pants off us grocers because I would ask the question having seen the operation live myself in Vienna where Auto store is providing the technology for the
- 40:29roll IT group, you know, is this the first step in bringing you know like a roll IT group E commerce like model to the US by way of an auto store Amazon partnership?
- 40:41And if Amazon can pull that off, you know that's, that's a dangerous thought to think about and it very well could be that, you know, as we're looking back on this announcement 10 years from now because Amazon has
- 40:55the storefront that has the traffic to get people that, that bring people back to it day in and day in and day out.
- 41:03And so if it can stand up the operations underneath it to do E groceries like it's being done in Europe, this is a really, really big announcement.
- 41:12Yeah and I think the other thing that I think about is just not taking a single announcement in isolation.
- 41:19So just in the last week there was, there was two other stories about E Com automation and fulfillment in grocers that had this bid in.
- 41:29So you know Walmart is installing its first MFC micro fulfillment center powered by symbotic into a store after they had a not dissimilar tie up last year and Ocado they are Putting their first fully automated warehouse, their CFC
- 41:46customer fulfillment center in South Korea with Lottie Mart.
- 41:50Now they've been partnering with Lottie Mart since 2022.
- 41:54They've learned the market, the requirement for early delivery times and they are now opening their first fully automated warehouse, which I was really interested to read includes fully automated grid based picking for free frozen products as well as
- 42:09fresh and ambient.
- 42:11So it's another, another bit of the jigsaw.
- 42:13You've got to add these bits together to see the investment continuing to be made.
- 42:19Right, Chris, before we go, it's time for a bit of fun.
- 42:24Okay, we're gonna go.
- 42:25We are gonna go to Grossertalk, grab and go.
- 42:29Okay, who's grabbing and who's going?
- 42:32Ben, this is no comment.
- 42:35This.
- 42:35Look, this is where we both get to share a couple of stories that have caught in the world of grocery retailing this week.
- 42:42Stories that, you know, beyond the major headlines we've been discussing, that we still think should be on everybody's radar and that we haven't got a clue what each other has chosen.
- 42:53So Chris, go on.
- 42:54What's your first story?
- 42:55What's the first other thing that we should be paying attention to this week?
- 42:59Yeah, this is great.
- 43:00This shows you how the sausage is made too.
- 43:01Because you would know based on that last headline that Ben has no idea what I'm going to share with him.
- 43:05Because my first grab and go story comes from the file of anything Amazon could do, Walmart will try and do too.
- 43:12So fresh off, pun intended, the auto store partnership, Walmart announced that automation technology Symbotic began installing its first SIM microsystem for e commerce fulfillment in the back of a Walmart store.
- 43:25Ben alluded to it just a few seconds ago.
- 43:28Which tells me again, Ben, the reason I bring this one up in my grab and go call out of the week.
- 43:33It tells me that the future of US Grocery is going to be more automated as opposed to less automated.
- 43:40When you look at the fact that the two biggest players in the market are trying to one up each other on the space Kroger, you know, when you step back and you look at Kroger, Kroger may have just
- 43:50taken the wrong approach for whatever reasons, organizationally, technologically, whatever.
- 43:54I hope they haven't unwound it back so far that they can't keep up with Walmart and Amazon and the rest of the industry needs to pay attention to.
- 44:02Yeah, I think you're, I think you're right.
- 44:03I think the key thing for me is there is There is a mix, there is a sweet spot.
- 44:07There are, you've got to get this, you've got to get the store fulfillment working correctly.
- 44:11You've got to have the right partners, you've got to have the right operating platform.
- 44:15And then when you've got all that going, you then build in the automation.
- 44:19And I think that is something that I think they should be paying a lot of attention to.
- 44:23So look, Chris, the first one I've got is some ownership news.
- 44:28So this, this intrigued me.
- 44:29So C and S Wholesale, so remember them from back in the Albertsons bit, is emerging from the consortium who bought Winn Dixie back from Aldi with a bid to take full control over the Florida operation.
- 44:45So let me, let me unpick all that.
- 44:47So quick reminder, Aldi acquired seven grocers in 2024.
- 44:52They kept about 220 of the stores to the convert into Aldi units and then they sold the rest of the business back to a consortium last year, including CNS Wholesale.
- 45:03And they renamed the new business as Winn Dixie after its core banner.
- 45:09And what we now see is CNS as the company Sports spot and Nash only about a year or so ago saying actually we want to take full control over this oil operation as well.
- 45:18So I think there are interesting vehicles, CNS Wholesale, and I think for me it's just a further indication of their appetite for expansion and acquisitions.
- 45:27Yeah, look out for cns.
- 45:29Yeah, CNS is coming out of the woodwork here in the US and all the headlines of the last few years for sure.
- 45:34All right, Ben, my, my third, my second grab and go story.
- 45:37Our third one of the day.
- 45:38This one's a fun one.
- 45:39Ben.
- 45:39I tried to, I tried to pick something off the beaten path just for you.
- 45:42But according to chain storage, Aho Delez USA is rolling out saving stations saving station kiosks.
- 45:50Now, what is a saving station?
- 45:51Well, they're going to roll them out beyond stop and shop.
- 45:54That's where they started.
- 45:54But they're going to all the giant food locations across Delaware, Maryland, Virginia and Washington D.C.
- 46:00well, a saving station bed is an in store kiosk that allows customers to instantly load digital coupons and personalized offers directly to their loyalty accounts.
- 46:11They're located near store entrances and they enable customers to scan their loyalty cards or enter their phone numbers associated with their accounts to instantly load weekly digital coupons and activate personalized reward offers.
- 46:24And bed and wait for it.
- 46:26But customers can also print a customized savings list and all eligible discounts are automatically applied at checkout when they scan their loyalty card or enter their phone number.
- 46:38I highlighted this today, Ben, we're actually going to talk about this on this Week's OmniTalk Retail Fast 5G because I have to ask because I think it brings up the question, who is ahold designing these saving stations for?
- 46:51Is it not akin to building a better typewriter in some ways?
- 46:54Or if it is, is that okay?
- 46:58That's the question I'm gonna leave you with, Ben, because I don't know the answer to that one right now.
- 47:02I gotta think about it for the in the next two days while I'm prepping the next show.
- 47:06Well, I look forward to dialing in on Wednesday.
- 47:08I think no matter where you answer that, I think anything that puts savings front and center in front of shoppers right now is a positive thing.
- 47:19But yeah, I look forward to hearing that one.
- 47:21So I'm going to leave you with one last story from here in the you in the uk, Chris, where Waitrose is rolling out its AI Assistant app that lets shop floor associates ask questions by voice or text on
- 47:36such things as availability, install locations, nutritional facts, or my favorite, because it's so terribly Waitrose wine pairing suggestions.
- 47:48Waitrose has previously equipped its store staff with Quail digital headsets and Zebra handheld computers.
- 47:55So a voice enabled natural language tool is kind of a great progression.
- 48:01And I think it's really key for us to help keep listeners up to speed with AI deployments to help store associates as well as those that are focused on the shopper.
- 48:11And, and Chris, look, it's got a name.
- 48:14Of course it does.
- 48:15It is called Rosie 2.0.
- 48:18So Chris, I want to leave you with the old advice that you should never give inanimate objects names because they really don't like it 100%.
- 48:28Ben, the question I have to ask you because you know Waitrose better than I do, if you're, if you're standing in the wine section, right, and you go up to get help and you want a wine pairing because
- 48:36the wine pairing is always, you said it in that, in the, in another headline.
- 48:39Like you hear all these same examples over and over again.
- 48:42If you're standing and you're asking a sales associate for hey, what would you pair with this, this, this Berf bourguignon, let's say.
- 48:50And they say, hold on, let me ask the AI assistant, does that give you more or less confidence in your choice?
- 48:57Yeah, well, actually the headsets are being used really extensively.
- 49:02So yeah, I'm a Waitrose main shopper because the biggest supermarket in the town on the edge of London I live is a Waitrose.
- 49:12So I'm used to a constant dialogue from the store associates.
- 49:18Yeah.
- 49:19It's become a very natural way that they operate.
- 49:23So I think if they're being able to add even more value to their shopping experience and your answer more detailed questions because of that.
- 49:30Yeah, I think I'm all in on that.
- 49:32I think it's good.
- 49:33Got it.
- 49:34So you're, like, okay with, like, the virtual sommelier that's just like the mouthpiece of the information being shared back to you because you're used to or accustomed to the fact that all their associates are wearing these devices anyway.
- 49:45Wow.
- 49:45Okay.
- 49:46Interesting.
- 49:46And if it.
- 49:47If it gives you better recommendations, I'm all in.
- 49:50I'm all in.
- 49:51That's true.
- 49:51Yeah.
- 49:52Yeah.
- 49:52If my.
- 49:52If my beef tastes better with my wine.
- 49:55100%.
- 49:57And on that note, Chris, I think that's a wrap for our very first episode of Grocer Talk.
- 50:03Grocer Talk was produced with the help and support of Ella Seard, who has played a huge role in getting Grocer Talk up and running this week.
- 50:12So a massive, massive thanks to Ella, and it's brought to you exclusively as part of the Omnitalk podcast network.
- 50:21Omnitalk exists to highlight the trends, technologies, and innovations shaping retail, and grocertalk now does this specifically for the global grocery and CPG industry.
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