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Fast Five Shorts | What Does Walmart Symbotic Deal Signal About Its Approach To Delivery? · Omni Talk Retail

• 0:00
  Symbotic
• 0:01
  has
• 0:01
  struck
• 0:01
  a
• 0:01
  deal
• 0:01
  to
• 0:02
  expand
• 0:02
  its
• 0:02
  partnership
• 0:03
  with
• 0:03
  Walmart.
• 0:03
  According
• 0:03
  to
• 0:04
  the
• 0:04
  Wall
• 0:04
  Street
• 0:04
  Journal,
• 0:05
  Symbotic
• 0:05
  will
• 0:06
  take
• 0:06
  on
• 0:06
  a
• 0:06
  $520
• 0:07
  million
• 0:08
  program
• 0:08
  to
• 0:08
  develop
• 0:09
  an
• 0:09
  automated
• 0:09
  delivery
• 0:10
  platform
• 0:10
  for
• 0:11
  Walmart
• 0:11
  stores
• 0:12
  while
• 0:12
  also
• 0:13
  agreeing
• 0:13
  to
• 0:13
  buy
• 0:13
  the
• 0:14
  retail
• 0:14
  giant's
• 0:14
  advanced
• 0:15
  systems
• 0:15
  and
• 0:16
  robotics
• 0:16
  business.
• 0:17
  Walmart
• 0:18
  will
• 0:18
  fund
• 0:18
  a
• 0:18
  development
• 0:19
  program
• 0:19
  that
• 0:19
  aims
• 0:20
  to
• 0:20
  leverage
• 0:20
  Symbotics
• 0:21
  artificial
• 0:22
  intelligence
• 0:22
  enabled
• 0:23
  robotics
• 0:23
  platform
• 0:24
  and
• 0:24
  will
• 0:24
  seek
• 0:24
  to
• 0:24
  enhance
• 0:25
  Walmart's
• 0:25
  current
• 0:26
  online
• 0:26
  pickup
• 0:26
  and
• 0:27
  delivery
• 0:27
  fulfillment
• 0:28
  systems
• 0:28
  and
• 0:28
  design
• 0:29
  new
• 0:30
  systems.
• 0:30
  Symbotics
• 0:31
  said
• 0:31
  that
• 0:31
  if
• 0:32
  performance
• 0:32
  criteria
• 0:33
  are
• 0:33
  met,
• 0:33
  Walmart
• 0:34
  is
• 0:34
  committed
• 0:34
  to
• 0:34
  buying
• 0:34
  and
• 0:35
  deploying
• 0:35
  systems
• 0:36
  for
• 0:36
  400
• 0:37
  accelerated
• 0:38
  pickup
• 0:38
  and
• 0:38
  delivery
• 0:38
  centers
• 0:39
  at
• 0:39
  stores
• 0:39
  over
• 0:40
  a
• 0:40
  multi
• 0:40
  year
• 0:41
  period.
• 0:41
  John,
• 0:42
  you're
• 0:42
  Mr.
• 0:42
  Grocery
• 0:43
  here,
• 0:44
  we're
• 0:44
  going
• 0:44
  to
• 0:44
  you
• 0:44
  first.
• 0:45
  Why
• 0:45
  would
• 0:45
  Walmart
• 0:46
  ink
• 0:46
  this
• 0:47
  deal
• 0:47
  with
• 0:47
  Symbiotic
• 0:48
  and
• 0:48
  what
• 0:48
  do
• 0:48
  you
• 0:48
  think
• 0:48
  it
• 0:49
  says
• 0:49
  about
• 0:49
  Walmart's
• 0:50
  approach
• 0:50
  to
• 0:50
  delivery?
• 0:52
  Yeah,
• 0:52
  so
• 0:53
  this
• 0:53
  is
• 0:53
  actually,
• 0:54
  it's
• 0:54
  great
• 0:54
  because
• 0:54
  it's
• 0:54
  like
• 0:55
  the
• 0:55
  only
• 0:55
  grocery
• 0:55
  topic
• 0:56
  we
• 0:56
  have
• 0:56
  almost
• 0:56
  a
• 0:56
  grocery
• 0:57
  Jason
• 0:57
  and
• 0:58
  it's
• 0:58
  still
• 0:58
  not
• 0:58
  quite
• 0:58
  there
• 0:59
  today.
• 0:59
  So
• 0:59
  I'll
• 0:59
  do.
• 0:59
  Right,
• 1:00
  right,
• 1:00
  right.
• 1:01
  And
• 1:01
  I
• 1:02
  do
• 1:02
  have
• 1:02
  to
• 1:02
  just
• 1:02
  before
• 1:03
  I
• 1:03
  start,
• 1:03
  give
• 1:03
  a
• 1:03
  shout
• 1:04
  out
• 1:04
  to
• 1:04
  my
• 1:04
  brother
• 1:04
  David
• 1:05
  who
• 1:05
  works
• 1:05
  for
• 1:05
  a
• 1:05
  company
• 1:06
  called
• 1:06
  Autostore
• 1:07
  who
• 1:07
  are
• 1:07
  also
• 1:07
  in
• 1:07
  the
• 1:07
  robotics
• 1:08
  space.
• 1:08
  So
• 1:08
  I
• 1:08
  was
• 1:08
  able
• 1:09
  to
• 1:09
  get
• 1:09
  a
• 1:09
  good
• 1:09
  insight
• 1:10
  from
• 1:10
  him
• 1:10
  last
• 1:10
  night
• 1:10
  on
• 1:11
  the
• 1:11
  kind
• 1:11
  of
• 1:12
  information
• 1:12
  on
• 1:12
  this
• 1:13
  deal.
• 1:13
  So
• 1:13
  that's
• 1:13
  super
• 1:13
  helpful
• 1:13
  for
• 1:14
  me.
• 1:14
  Competitive
• 1:15
  intelligence,
• 1:16
  I
• 1:16
  love
• 1:16
  it.
• 1:16
  Yeah,
• 1:17
  I'll
• 1:17
  try
• 1:17
  and
• 1:17
  be
• 1:17
  careful
• 1:18
  what
• 1:18
  I
• 1:18
  share.
• 1:18
  Right.
• 1:19
  He
• 1:19
  was
• 1:20
  on
• 1:20
  the
• 1:20
  gossip
• 1:20
  side
• 1:21
  of
• 1:21
  things
• 1:21
  but
• 1:21
  I'll
• 1:21
  try
• 1:21
  and
• 1:21
  keep
• 1:21
  it
• 1:22
  factual
• 1:22
  here.
• 1:22
  Right,
• 1:22
  but,
• 1:23
  but
• 1:24
  I
• 1:24
  do
• 1:24
  think
• 1:24
  generally
• 1:25
  speaking
• 1:25
  if
• 1:26
  you
• 1:26
  look
• 1:26
  at
• 1:26
  it
• 1:26
  first
• 1:26
  of
• 1:26
  all
• 1:27
  from
• 1:27
  like
• 1:27
  the
• 1:27
  industry
• 1:28
  lens,
• 1:29
  one
• 1:30
  of
• 1:30
  their
• 1:30
  key
• 1:31
  kind
• 1:31
  of
• 1:31
  accelerants,
• 1:32
  enablers
• 1:32
  over
• 1:32
  the
• 1:32
  last
• 1:33
  number
• 1:33
  of
• 1:33
  years
• 1:33
  has
• 1:33
  been
• 1:34
  this
• 1:34
  focus
• 1:34
  on
• 1:34
  technology.
• 1:35
  So
• 1:35
  throughout
• 1:36
  their
• 1:36
  organization
• 1:37
  they're
• 1:37
  super
• 1:37
  focused
• 1:38
  on
• 1:38
  technology.
• 1:39
  They
• 1:40
  already
• 1:40
  have
• 1:40
  an
• 1:40
  existing
• 1:41
  deal
• 1:41
  with
• 1:41
  Symbotic
• 1:42
  on
• 1:42
  like
• 1:43
  large
• 1:43
  scale
• 1:44
  DCs
• 1:44
  and
• 1:45
  automation
• 1:45
  of
• 1:45
  their
• 1:45
  DCs
• 1:46
  which
• 1:46
  has
• 1:46
  been
• 1:46
  successful.
• 1:47
  And
• 1:47
  the
• 1:47
  way
• 1:48
  I
• 1:48
  would
• 1:48
  kind
• 1:48
  of
• 1:49
  position
• 1:50
  that
• 1:50
  is
• 1:50
  Symbotic
• 1:51
  have
• 1:51
  been
• 1:51
  pushed
• 1:52
  very
• 1:52
  hard
• 1:53
  by
• 1:53
  Walmart
• 1:53
  to
• 1:53
  improving
• 1:54
  up
• 1:54
  their
• 1:54
  game
• 1:54
  which
• 1:55
  has
• 1:55
  then
• 1:55
  driven
• 1:55
  Symbotics
• 1:56
  growth
• 1:57
  over
• 1:57
  the
• 1:57
  course
• 1:57
  of
• 1:57
  that
• 1:57
  time.
• 1:58
  If
• 1:58
  you
• 1:59
  take
• 1:59
  this
• 1:59
  as
• 1:59
  a
• 1:59
  separate
• 2:00
  piece
• 2:00
  then
• 2:00
  this
• 2:00
  is
• 2:01
  a
• 2:01
  little
• 2:01
  bit
• 2:01
  more
• 2:01
  focused
• 2:02
  on
• 2:02
  their
• 2:03
  what
• 2:03
  I
• 2:03
  think
• 2:03
  used
• 2:03
  to
• 2:04
  be
• 2:04
  called
• 2:04
  MFCs
• 2:05
  but
• 2:05
  people
• 2:05
  have
• 2:05
  slightly
• 2:06
  away
• 2:06
  from
• 2:06
  the
• 2:06
  turn
• 2:07
  MFCS
• 2:07
  I
• 2:07
  think
• 2:07
  because
• 2:08
  there's
• 2:08
  been
• 2:08
  some
• 2:08
  difficulties
• 2:09
  in
• 2:09
  getting
• 2:09
  that
• 2:09
  off
• 2:09
  the
• 2:10
  ground.
• 2:10
  And
• 2:11
  so
• 2:12
  maybe
• 2:12
  not
• 2:12
  to
• 2:13
  get
• 2:13
  into
• 2:13
  too
• 2:13
  much
• 2:13
  detail,
• 2:13
  but
• 2:14
  Walmart
• 2:14
  acquired
• 2:15
  Alert
• 2:16
  a
• 2:16
  number
• 2:16
  of
• 2:16
  years
• 2:16
  ago
• 2:17
  to
• 2:17
  bring
• 2:17
  them
• 2:18
  in
• 2:18
  to
• 2:19
  do
• 2:19
  this
• 2:19
  work.
• 2:20
  And
• 2:20
  now
• 2:20
  they're
• 2:21
  effectively
• 2:21
  spinning
• 2:21
  that
• 2:22
  work
• 2:22
  back
• 2:22
  out
• 2:22
  to
• 2:22
  Symbotic.
• 2:23
  And
• 2:23
  so
• 2:23
  the
• 2:23
  way
• 2:23
  I
• 2:24
  would
• 2:24
  read
• 2:24
  that
• 2:24
  is
• 2:25
  they
• 2:25
  brought
• 2:25
  it
• 2:25
  in
• 2:26
  house,
• 2:26
  maybe
• 2:27
  found
• 2:27
  that
• 2:27
  it
• 2:27
  was
• 2:27
  more
• 2:28
  complicated
• 2:28
  than
• 2:28
  they
• 2:28
  expected
• 2:29
  to
• 2:29
  make
• 2:29
  this
• 2:29
  work
• 2:30
  with
• 2:30
  their
• 2:30
  own
• 2:30
  internal
• 2:31
  capabilities.
• 2:32
  And
• 2:32
  because
• 2:32
  it's
• 2:32
  a
• 2:32
  complicated
• 2:33
  process
• 2:33
  and
• 2:33
  what
• 2:34
  they're
• 2:34
  really
• 2:34
  doing
• 2:34
  is
• 2:35
  I
• 2:35
  think
• 2:35
  doubling
• 2:36
  down
• 2:36
  on
• 2:36
  automation
• 2:37
  as
• 2:37
  a
• 2:37
  key
• 2:37
  pillar
• 2:38
  for
• 2:38
  their
• 2:38
  growth
• 2:39
  by
• 2:39
  going
• 2:39
  to
• 2:39
  an
• 2:40
  industry
• 2:40
  leader
• 2:40
  in
• 2:40
  the
• 2:40
  space
• 2:41
  and
• 2:41
  saying
• 2:41
  to
• 2:42
  them,
• 2:42
  we
• 2:42
  want
• 2:42
  you
• 2:42
  to
• 2:42
  recreate
• 2:43
  the
• 2:43
  success
• 2:43
  you've
• 2:43
  had
• 2:44
  on
• 2:44
  large
• 2:44
  scale
• 2:44
  distribution
• 2:45
  centers
• 2:45
  to
• 2:46
  MFCs
• 2:47
  because
• 2:48
  it's
• 2:48
  obviously
• 2:48
  a
• 2:49
  key
• 2:49
  pillar
• 2:49
  for
• 2:49
  what
• 2:49
  they
• 2:49
  want
• 2:50
  to
• 2:50
  do,
• 2:50
  particularly
• 2:50
  using
• 2:51
  their
• 2:51
  stores
• 2:51
  as
• 2:52
  fulfillment
• 2:52
  nodes.
• 2:53
  Right.
• 2:54
  They
• 2:54
  haven't
• 2:54
  quite
• 2:55
  got
• 2:55
  that
• 2:55
  off
• 2:55
  the
• 2:55
  ground
• 2:56
  in
• 2:56
  the
• 2:56
  way
• 2:56
  that
• 2:56
  everybody
• 2:57
  was
• 2:57
  expecting.
• 2:58
  I
• 2:58
  think
• 2:59
  that
• 2:59
  it,
• 2:59
  the
• 3:00
  structure
• 3:00
  of
• 3:00
  the
• 3:00
  deal
• 3:01
  is
• 3:01
  also
• 3:01
  very
• 3:02
  interesting.
• 3:02
  So
• 3:02
  it's
• 3:02
  being
• 3:03
  quoted
• 3:03
  as
• 3:03
  Symbotic
• 3:04
  have
• 3:04
  bought
• 3:05
  it
• 3:05
  for
• 3:05
  $200
• 3:06
  million.
• 3:06
  But
• 3:07
  when
• 3:07
  you
• 3:07
  go
• 3:07
  below
• 3:07
  the
• 3:08
  surface,
• 3:08
  Walmart
• 3:09
  are
• 3:09
  going
• 3:09
  to
• 3:09
  pay
• 3:10
  them
• 3:10
  500
• 3:10
  million.
• 3:11
  There's
• 3:11
  230
• 3:12
  million
• 3:12
  guaranteed
• 3:12
  at
• 3:13
  closing.
• 3:13
  There's
• 3:13
  100
• 3:14
  stores
• 3:14
  that
• 3:14
  they're
• 3:14
  guaranteed.
• 3:15
  So
• 3:15
  it's
• 3:15
  a
• 3:15
  very
• 3:16
  low
• 3:16
  risk
• 3:16
  deal
• 3:17
  for
• 3:17
  Symbotic
• 3:18
  that
• 3:18
  I
• 3:18
  think
• 3:18
  will
• 3:19
  hopefully
• 3:19
  clean
• 3:19
  up
• 3:20
  some
• 3:20
  potential
• 3:20
  issues
• 3:20
  that
• 3:21
  Walmart
• 3:21
  have
• 3:21
  had
• 3:21
  internally.
• 3:22
  And
• 3:23
  for
• 3:23
  me
• 3:23
  it's
• 3:23
  kind
• 3:23
  of
• 3:24
  another
• 3:24
  example
• 3:24
  of
• 3:24
  Walmart
• 3:25
  betting
• 3:25
  on
• 3:26
  innovation
• 3:26
  to
• 3:26
  continue
• 3:27
  to
• 3:27
  grow
• 3:28
  their
• 3:28
  performance.
• 3:29
  Because
• 3:29
  I
• 3:29
  mean,
• 3:29
  Chris,
• 3:30
  I
• 3:30
  know
• 3:30
  you're
• 3:30
  a
• 3:30
  big
• 3:30
  fan
• 3:30
  of
• 3:30
  Doug
• 3:31
  McMillan,
• 3:31
  but
• 3:32
  it
• 3:32
  has
• 3:32
  been
• 3:32
  a
• 3:33
  huge
• 3:33
  success
• 3:33
  over
• 3:34
  the
• 3:34
  last
• 3:34
  number
• 3:34
  of
• 3:34
  years
• 3:35
  of
• 3:35
  how
• 3:35
  much
• 3:35
  they've
• 3:36
  grown.
• 3:36
  And
• 3:36
  I
• 3:36
  think
• 3:36
  this
• 3:36
  is
• 3:37
  just
• 3:37
  another
• 3:37
  signal
• 3:37
  of
• 3:38
  them
• 3:38
  continuing
• 3:38
  to
• 3:38
  double
• 3:38
  down
• 3:39
  on,
• 3:39
  on
• 3:39
  what
• 3:39
  they've
• 3:40
  seen
• 3:40
  work
• 3:40
  so
• 3:40
  far?
• 3:41
  Yeah,
• 3:42
  I
• 3:42
  mean,
• 3:42
  Chris,
• 3:43
  how
• 3:44
  much
• 3:44
  do
• 3:44
  you
• 3:44
  think
• 3:44
  too,
• 3:45
  with
• 3:45
  John
• 3:45
  saying
• 3:46
  like
• 3:46
  how
• 3:46
  much
• 3:46
  of
• 3:47
  this
• 3:47
  plays
• 3:47
  into
• 3:48
  probably
• 3:48
  the
• 3:48
  acceleration
• 3:49
  that
• 3:49
  Walmart
• 3:50
  has
• 3:50
  seen
• 3:50
  with
• 3:51
  delivery
• 3:51
  with
• 3:52
  grocery
• 3:53
  in
• 3:53
  the
• 3:53
  last
• 3:53
  couple
• 3:53
  of
• 3:53
  years.
• 3:54
  Like
• 3:55
  that's
• 3:55
  causing
• 3:56
  a
• 3:56
  lot
• 3:56
  of
• 3:57
  strain
• 3:57
  on
• 3:57
  their
• 3:57
  systems,
• 3:58
  I'd
• 3:58
  imagine.
• 3:59
  So
• 3:59
  what,
• 4:00
  what
• 4:00
  are
• 4:00
  your
• 4:00
  thoughts
• 4:01
  here
• 4:01
  on
• 4:01
  this
• 4:01
  investment
• 4:02
  and
• 4:02
  what
• 4:03
  John
• 4:03
  had
• 4:03
  to
• 4:03
  say?
• 4:04
  Yeah,
• 4:05
  I
• 4:05
  mean
• 4:05
  I
• 4:05
  gave
• 4:05
  John
• 4:06
  a
• 4:06
  shout
• 4:06
  out
• 4:06
  at
• 4:06
  the
• 4:06
  beginning
• 4:06
  and
• 4:07
  John
• 4:07
  followed
• 4:07
  suit
• 4:08
  very
• 4:08
  well
• 4:08
  and
• 4:08
  got
• 4:08
  the
• 4:09
  great
• 4:09
  competitive
• 4:09
  intelligence
• 4:10
  here.
• 4:10
  I
• 4:10
  mean,
• 4:10
  I
• 4:10
  think,
• 4:11
  I
• 4:11
  think.
• 4:11
  And
• 4:11
  your
• 4:11
  question's
• 4:12
  dead
• 4:12
  on.
• 4:12
  I
• 4:12
  mean,
• 4:13
  I
• 4:13
  think,
• 4:13
  you
• 4:13
  know,
• 4:14
  Walmart
• 4:14
  plays
• 4:14
  the
• 4:14
  long
• 4:15
  game,
• 4:15
  you
• 4:15
  know,
• 4:15
  as
• 4:15
  well
• 4:15
  as
• 4:16
  anyone
• 4:16
  right
• 4:16
  now.
• 4:16
  And
• 4:17
  I
• 4:17
  think
• 4:17
  that's
• 4:17
  really
• 4:17
  what,
• 4:17
  you
• 4:18
  know,
• 4:18
  Doug
• 4:18
  McMillan
• 4:18
  the
• 4:19
  team
• 4:19
  are
• 4:19
  doing
• 4:19
  here
• 4:19
  and
• 4:19
  David
• 4:20
  Gugina,
• 4:20
  the
• 4:20
  head
• 4:20
  of
• 4:20
  supply
• 4:21
  chain
• 4:21
  too.
• 4:22
  Um,
• 4:22
  the,
• 4:23
  the,
• 4:23
  the,
• 4:24
  the
• 4:24
  rap
• 4:24
  I
• 4:25
  would
• 4:25
  put
• 4:25
  on
• 4:25
  this
• 4:26
  in
• 4:26
  terms
• 4:26
  of
• 4:26
  what
• 4:26
  John
• 4:26
  said
• 4:27
  is
• 4:27
  like
• 4:27
  And
• 4:27
  I
• 4:27
  keep
• 4:28
  thinking
• 4:28
  about,
• 4:28
  and
• 4:28
  we
• 4:28
  were
• 4:28
  talking
• 4:29
  about
• 4:29
  this
• 4:29
  even
• 4:29
  before
• 4:29
  we
• 4:30
  got
• 4:30
  on
• 4:30
  the
• 4:30
  show
• 4:30
  today,
• 4:30
  I
• 4:31
  keep
• 4:31
  thinking
• 4:31
  about
• 4:32
  the,
• 4:32
  the
• 4:32
  fabric
• 4:33
  Save
• 4:33
  A
• 4:33
  Lot
• 4:34
  experience
• 4:35
  that
• 4:35
  we
• 4:35
  saw
• 4:35
  in
• 4:35
  Brooklyn,
• 4:35
  New
• 4:36
  York
• 4:36
  and,
• 4:37
  and
• 4:37
  just
• 4:37
  how
• 4:37
  easy
• 4:38
  it
• 4:38
  was
• 4:38
  to
• 4:39
  plug
• 4:40
  into
• 4:40
  a
• 4:40
  community
• 4:40
  that
• 4:41
  you
• 4:41
  don't
• 4:41
  previously
• 4:42
  serve.
• 4:42
  Right.
• 4:43
  And,
• 4:43
  and
• 4:43
  we
• 4:43
  saw
• 4:44
  Uber
• 4:44
  drivers
• 4:44
  coming
• 4:44
  in
• 4:45
  there
• 4:45
  left
• 4:45
  and
• 4:45
  right
• 4:46
  and
• 4:46
  all
• 4:46
  this
• 4:46
  thing
• 4:46
  was,
• 4:47
  was
• 4:47
  stood
• 4:47
  up
• 4:47
  on
• 4:48
  an
• 4:48
  Uber
• 4:48
  Eats
• 4:48
  marketplace
• 4:49
  for
• 4:49
  Save
• 4:49
  A
• 4:49
  Lot
• 4:50
  and
• 4:50
  they
• 4:50
  were
• 4:50
  doing
• 4:50
  business
• 4:51
  out
• 4:51
  of
• 4:51
  it.
• 4:51
  So,
• 4:52
  so
• 4:52
  if
• 4:52
  I'm
• 4:52
  Walmart,
• 4:54
  I
• 4:54
  think
• 4:54
  I'm
• 4:54
  in
• 4:55
  the
• 4:55
  two
• 4:55
  angles
• 4:55
  I
• 4:55
  would
• 4:55
  add
• 4:56
  here
• 4:56
  to
• 4:56
  what
• 4:56
  John
• 4:56
  said
• 4:57
  is
• 4:57
  I
• 4:58
  like
• 4:58
  this
• 4:58
  move,
• 4:58
  number
• 4:59
  one,
• 4:59
  but
• 4:59
  I'm
• 5:00
  thinking
• 5:00
  about
• 5:00
  these
• 5:00
  two
• 5:01
  things.
• 5:01
  I
• 5:01
  think
• 5:01
  number
• 5:01
  one,
• 5:01
  I'm
• 5:02
  thinking
• 5:02
  about
• 5:02
  how
• 5:02
  do
• 5:02
  I
• 5:02
  extend
• 5:03
  Walmart
• 5:04
  plus
• 5:04
  because
• 5:05
  I've
• 5:05
  been
• 5:05
  successful
• 5:06
  extending
• 5:06
  my
• 5:07
  demographic,
• 5:07
  I
• 5:07
  can
• 5:08
  reach
• 5:08
  higher
• 5:08
  incomes.
• 5:10
  It
• 5:10
  brings
• 5:10
  the
• 5:10
  robotics
• 5:11
  play
• 5:11
  into
• 5:12
  the
• 5:12
  cities
• 5:12
  like
• 5:13
  we
• 5:13
  saw
• 5:13
  with
• 5:13
  fabric
• 5:14
  and
• 5:14
  Save
• 5:14
  a
• 5:14
  Lot.
• 5:15
  So
• 5:15
  I
• 5:15
  think
• 5:15
  that's
• 5:15
  a
• 5:15
  piece
• 5:16
  of
• 5:16
  this.
• 5:16
  But
• 5:17
  the
• 5:17
  other
• 5:17
  part
• 5:17
  of
• 5:17
  this
• 5:18
  that
• 5:18
  I
• 5:18
  think
• 5:18
  is
• 5:18
  really
• 5:18
  interesting
• 5:19
  that
• 5:19
  talks
• 5:19
  about
• 5:20
  their
• 5:20
  strategy
• 5:20
  relative
• 5:21
  to
• 5:21
  others
• 5:21
  is
• 5:22
  Walmart
• 5:23
  can't
• 5:23
  really
• 5:24
  take
• 5:24
  the
• 5:24
  sortation
• 5:25
  center
• 5:25
  approach
• 5:26
  that
• 5:26
  like
• 5:27
  Target
• 5:27
  is
• 5:27
  taking
• 5:28
  because
• 5:28
  of
• 5:28
  where
• 5:28
  their
• 5:28
  stores
• 5:29
  are
• 5:29
  located.
• 5:29
  Their
• 5:29
  stores
• 5:30
  are
• 5:30
  very
• 5:30
  rural
• 5:31
  based.
• 5:31
  So
• 5:32
  to
• 5:32
  get
• 5:32
  that
• 5:33
  same
• 5:33
  day
• 5:33
  delivery
• 5:34
  efficiency
• 5:36
  they
• 5:36
  have
• 5:36
  to
• 5:36
  go
• 5:36
  to
• 5:37
  robotics
• 5:37
  and
• 5:37
  they
• 5:37
  have
• 5:37
  to
• 5:37
  go
• 5:38
  to
• 5:38
  robotics
• 5:38
  in
• 5:39
  the
• 5:39
  store
• 5:39
  itself
• 5:40
  via
• 5:40
  micro
• 5:41
  fulfillment.
• 5:41
  So
• 5:42
  that's
• 5:42
  the
• 5:42
  key
• 5:43
  thing
• 5:43
  here.
• 5:43
  And
• 5:43
  I
• 5:43
  think
• 5:43
  that's
• 5:44
  what
• 5:44
  separates
• 5:44
  Walmart
• 5:45
  in
• 5:45
  terms
• 5:45
  of
• 5:45
  how
• 5:45
  they're
• 5:46
  thinking
• 5:46
  about
• 5:46
  the
• 5:46
  landscape
• 5:47
  relative
• 5:48
  to
• 5:48
  Target
• 5:48
  and
• 5:49
  even
• 5:49
  like
• 5:49
  Amazon
• 5:50
  too
• 5:50
  in
• 5:50
  terms
• 5:50
  of
• 5:51
  their
• 5:51
  approach.
• 5:51
  So.
• 5:52
  So
• 5:52
  honestly
• 5:53
  I
• 5:53
  can't
• 5:54
  stop
• 5:54
  thinking
• 5:54
  about
• 5:55
  the
• 5:55
  potential
• 5:55
  here
• 5:56
  that
• 5:56
  if
• 5:56
  Walmart
• 5:56
  cracks
• 5:57
  the
• 5:57
  code
• 5:57
  on
• 5:57
  this,
• 5:57
  this
• 5:58
  is
• 5:58
  why
• 5:58
  it's
• 5:58
  a
• 5:58
  great
• 5:58
  investment.
• 5:59
  If
• 6:00
  they
• 6:00
  crack
• 6:00
  the
• 6:00
  code
• 6:01
  on
• 6:01
  this
• 6:01
  over
• 6:01
  10
• 6:02
  years,
• 6:02
  like
• 6:02
  Walmart
• 6:03
  could
• 6:03
  have
• 6:03
  a
• 6:03
  very
• 6:03
  profound
• 6:04
  presence
• 6:05
  in
• 6:05
  the
• 6:05
  biggest
• 6:06
  cities
• 6:06
  in
• 6:06
  America
• 6:07
  in
• 6:07
  a
• 6:07
  way
• 6:07
  that
• 6:07
  they
• 6:08
  just
• 6:08
  don't
• 6:08
  have
• 6:09
  right
• 6:09
  now.
• 6:10
  Yeah.
• 6:10
  And
• 6:10
  with
• 6:10
  an
• 6:10
  income
• 6:11
  demographic
• 6:11
  that
• 6:12
  they
• 6:12
  just
• 6:12
  don't
• 6:12
  have
• 6:12
  in
• 6:12
  those
• 6:13
  cities.
• 6:13
  So
• 6:13
  that's
• 6:14
  the
• 6:14
  play
• 6:14
  here.
• 6:15
  Yeah,
• 6:15
  I
• 6:15
  agree,
• 6:16
  Chris.
• 6:16
  I
• 6:16
  mean,
• 6:16
  I
• 6:16
  think
• 6:17
  the
• 6:17
  thing
• 6:17
  is
• 6:18
  that
• 6:18
  this
• 6:18
  will
• 6:19
  also
• 6:19
  in
• 6:19
  the
• 6:19
  long
• 6:20
  run
• 6:20
  help
• 6:20
  Walmart
• 6:21
  keep
• 6:21
  prices
• 6:22
  low,
• 6:22
  which
• 6:22
  is
• 6:23
  exactly
• 6:23
  the
• 6:23
  driver
• 6:24
  you're
• 6:24
  talking
• 6:24
  about.
• 6:25
  Like
• 6:25
  you
• 6:25
  think
• 6:26
  about,
• 6:26
  you
• 6:26
  know,
• 6:26
  the
• 6:27
  Save
• 6:27
  A
• 6:27
  Lot
• 6:27
  example.
• 6:28
  If
• 6:28
  I'm
• 6:28
  going
• 6:28
  on
• 6:28
  a
• 6:28
  marketplace
• 6:29
  and
• 6:29
  I'm
• 6:29
  just
• 6:30
  buying
• 6:30
  eggs,
• 6:31
  like
• 6:31
  Save
• 6:32
  A
• 6:32
  Lot
• 6:32
  popped
• 6:32
  up
• 6:33
  as
• 6:33
  the
• 6:33
  cheapest
• 6:33
  place
• 6:34
  to
• 6:34
  buy
• 6:34
  eggs.
• 6:34
  And
• 6:34
  you
• 6:34
  know
• 6:35
  what,
• 6:35
  I
• 6:35
  don't
• 6:35
  really
• 6:35
  care
• 6:36
  where
• 6:36
  I'm
• 6:37
  getting
• 6:37
  which
• 6:37
  retailer
• 6:38
  I'm
• 6:38
  getting
• 6:38
  my
• 6:38
  eggs.
• 6:38
  But
• 6:39
  if
• 6:39
  I
• 6:39
  get
• 6:39
  served
• 6:39
  up
• 6:40
  three
• 6:40
  options
• 6:41
  and
• 6:41
  that's
• 6:41
  the
• 6:41
  cheapest.
• 6:42
  I
• 6:42
  don't
• 6:42
  care
• 6:42
  if
• 6:42
  they
• 6:42
  have
• 6:42
  a
• 6:42
  physical
• 6:43
  presence
• 6:43
  or
• 6:43
  not.
• 6:44
  That's
• 6:44
  where
• 6:44
  I'm
• 6:44
  going
• 6:44
  to
• 6:44
  go.
• 6:45
  And
• 6:45
  I
• 6:45
  think
• 6:46
  that's
• 6:46
  what
• 6:46
  this
• 6:46
  keys
• 6:47
  in
• 6:47
  on
• 6:47
  here.
• 6:47
  That
• 6:48
  Walmart
• 6:48
  will
• 6:48
  be
• 6:48
  able
• 6:49
  to
• 6:49
  do
• 6:49
  things
• 6:49
  more
• 6:49
  efficiently.
• 6:50
  They're
• 6:50
  eliminating
• 6:51
  the
• 6:51
  bottlenecks
• 6:52
  of
• 6:52
  manual
• 6:52
  picking
• 6:53
  from.
• 6:53
  They're,
• 6:54
  they're
• 6:54
  processed
• 6:55
  like
• 6:55
  you
• 6:55
  said
• 6:55
  to
• 6:55
  you
• 6:55
  know,
• 6:56
  ship
• 6:56
  from
• 6:56
  store.
• 6:57
  And
• 6:57
  this
• 6:58
  is
• 6:58
  something
• 6:58
  that
• 6:59
  you
• 6:59
  know
• 6:59
  will
• 6:59
  just
• 6:59
  continue
• 7:00
  to
• 7:00
  develop.
• 7:01
  They'll
• 7:01
  keep
• 7:01
  learning
• 7:02
  from
• 7:02
  and
• 7:02
  be
• 7:02
  able
• 7:02
  to
• 7:02
  serve
• 7:03
  more
• 7:03
  people.
• 7:03
  But
• 7:04
  jump
• 7:05
  back
• 7:05
  in.
• 7:05
  Chris.
• 7:06
  Well,
• 7:06
  no,
• 7:06
  I
• 7:06
  just
• 7:06
  want
• 7:06
  to,
• 7:07
  I
• 7:07
  wanted,
• 7:07
  I
• 7:07
  just
• 7:07
  wanted
• 7:07
  to
• 7:08
  point
• 7:08
  out
• 7:08
  because
• 7:08
  I
• 7:08
  think
• 7:08
  you're
• 7:08
  dead
• 7:09
  right
• 7:09
  like
• 7:09
  just
• 7:10
  because
• 7:10
  you
• 7:10
  were
• 7:10
  there
• 7:10
  with
• 7:10
  me.
• 7:11
  How
• 7:11
  many
• 7:11
  people
• 7:11
  did
• 7:12
  Save
• 7:12
  A
• 7:12
  Lot
• 7:12
  have
• 7:13
  working
• 7:13
  that
• 7:13
  that
• 7:14
  facility
• 7:14
  too?
• 7:15
  Like
• 7:15
  they
• 7:15
  need
• 7:15
  two
• 7:15
  people
• 7:16
  to
• 7:17
  people
• 7:18
  two
• 7:18
  pickers.
• 7:18
  We
• 7:18
  saw
• 7:19
  more
• 7:19
  Uber
• 7:19
  drivers
• 7:20
  coming
• 7:20
  in
• 7:20
  than
• 7:20
  there
• 7:20
  were
• 7:21
  workers
• 7:21
  in
• 7:21
  the,
• 7:22
  in
• 7:22
  the
• 7:22
  three
• 7:23
  hours
• 7:23
  we
• 7:23
  were
• 7:23
  there.
• 7:24
  Yeah.
• 7:24
  Yep.
• 7:24
  And
• 7:25
  picking
• 7:25
  all
• 7:25
  things
• 7:26
  like
• 7:26
  again
• 7:26
  I
• 7:26
  think
• 7:26
  that's
• 7:27
  the
• 7:27
  key
• 7:27
  thing.
• 7:27
  Like
• 7:28
  fresh
• 7:28
  frozen
• 7:29
  ambient.
• 7:30
  There
• 7:30
  was
• 7:30
  no
• 7:31
  manual
• 7:31
  labor
• 7:32
  associated
• 7:33
  with
• 7:33
  the
• 7:33
  picking
• 7:34
  process.
• 7:34
  It
• 7:35
  was
• 7:35
  all
• 7:35
  coming
• 7:35
  to
• 7:36
  those
• 7:36
  two
• 7:36
  individual
• 7:37
  baggers
• 7:37
  and
• 7:37
  that
• 7:37
  was
• 7:38
  it.
• 7:38
  That
• 7:38
  was
• 7:39
  all
• 7:39
  they
• 7:39
  needed.
• 7:39
  But
• 7:40
  Kelly,
• 7:40
  any
• 7:40
  last
• 7:40
  minute
• 7:41
  thoughts
• 7:41
  here
• 7:41
  to
• 7:41
  close
• 7:42
  us
• 7:42
  up?
• 7:44
  Definitely
• 7:44
  excited
• 7:45
  to
• 7:45
  see
• 7:45
  where
• 7:45
  it
• 7:45
  goes.
• 7:46
  I
• 7:46
  think
• 7:46
  that
• 7:47
  the,
• 7:47
  the
• 7:47
  Save
• 7:48
  A
• 7:48
  Lot
• 7:48
  example
• 7:48
  is
• 7:49
  a
• 7:49
  great
• 7:49
  one.
• 7:49
  If
• 7:49
  they
• 7:49
  can
• 7:50
  start
• 7:50
  to
• 7:51
  get
• 7:51
  that
• 7:51
  kind
• 7:51
  of
• 7:51
  scale
• 7:53
  it'll
• 7:53
  be
• 7:53
  really
• 7:53
  interesting.
• 7:54
  The
• 7:54
  city
• 7:55
  play
• 7:55
  that
• 7:55
  you
• 7:55
  mentioned
• 7:56
  is,
• 7:56
  is
• 7:57
  one
• 7:57
  I'm
• 7:57
  excited
• 7:57
  to
• 7:58
  see
• 7:58
  play
• 7:58
  out
• 7:58
  as
• 7:58
  well.
• 8:00
  Right.
• 8:00
  Yeah.
• 8:00
  To
• 8:00
  Save
• 8:01
  A
• 8:01
  lot's
• 8:01
  doing
• 8:01
  serving
• 8:02
  2
• 8:02
  million
• 8:02
  customers
• 8:03
  with
• 8:03
  a
• 8:03
  7,000
• 8:04
  square
• 8:04
  foot
• 8:04
  warehouse.
• 8:05
  I
• 8:05
  mean
• 8:05
  I
• 8:05
  think
• 8:06
  you're
• 8:06
  dead
• 8:06
  on,
• 8:06
  Kelly.
• 8:06
  We
• 8:07
  gotta,
• 8:07
  we
• 8:07
  gotta
• 8:08
  see
• 8:08
  where
• 8:08
  this,
• 8:08
  this
• 8:09
  allows
• 8:09
  Walmart
• 8:10
  to
• 8:10
  go.
• 8:11
  I
• 8:12
  would
• 8:12
  add
• 8:12
  maybe
• 8:12
  just
• 8:12
  one
• 8:13
  final
• 8:13
  thing
• 8:13
  on
• 8:13
  like
• 8:14
  around
• 8:14
  the
• 8:14
  topic
• 8:15
  of
• 8:15
  the
• 8:16
  like
• 8:16
  the
• 8:16
  reduction
• 8:16
  of
• 8:16
  manual
• 8:17
  labor
• 8:17
  is
• 8:17
  that
• 8:17
  the,
• 8:18
  the
• 8:18
  basket
• 8:19
  economics
• 8:19
  of
• 8:20
  like
• 8:20
  home
• 8:21
  delivery
• 8:21
  for
• 8:21
  grocery
• 8:22
  just
• 8:23
  doesn't
• 8:23
  stack
• 8:23
  up.
• 8:23
  Right.
• 8:24
  So
• 8:24
  if
• 8:24
  we've
• 8:24
  done
• 8:24
  some
• 8:25
  recent
• 8:25
  work
• 8:25
  where
• 8:25
  you
• 8:25
  compare
• 8:26
  the
• 8:26
  grocery
• 8:27
  basket
• 8:27
  with
• 8:27
  an
• 8:27
  apparel
• 8:28
  basket
• 8:28
  for
• 8:29
  home
• 8:29
  delivery
• 8:29
  and
• 8:29
  like
• 8:29
  the
• 8:30
  differences
• 8:30
  is
• 8:30
  so
• 8:30
  stark
• 8:31
  because
• 8:31
  everyone's
• 8:31
  losing
• 8:31
  money
• 8:32
  in
• 8:32
  grocery
• 8:32
  and
• 8:33
  so
• 8:33
  that's
• 8:33
  why
• 8:33
  there's
• 8:33
  such
• 8:33
  a
• 8:34
  shift
• 8:34
  to
• 8:35
  kind
• 8:35
  of
• 8:35
  brick
• 8:35
  and
• 8:35
  mortar.
• 8:36
  And
• 8:36
  actually
• 8:36
  interesting
• 8:37
  because
• 8:37
  I
• 8:37
  know
• 8:37
  we
• 8:37
  touched
• 8:37
  on
• 8:37
  it
• 8:38
  before
• 8:38
  we
• 8:38
  talked
• 8:38
  that
• 8:38
  Robert
• 8:39
  Yosef
• 8:39
  from
• 8:39
  the
• 8:39
  Schwarz
• 8:40
  Group
• 8:40
  mentioned
• 8:40
  that
• 8:41
  94%
• 8:41
  of
• 8:41
  sales
• 8:42
  in
• 8:42
  Germany
• 8:42
  are
• 8:43
  still
• 8:43
  brick
• 8:43
  and
• 8:43
  mortar.
• 8:44
  It's
• 8:44
  somewhere
• 8:44
  in
• 8:44
  the
• 8:44
  high
• 8:45
  80s
• 8:45
  in
• 8:46
  the
• 8:46
  US
• 8:46
  of
• 8:46
  how
• 8:46
  much
• 8:47
  sales
• 8:47
  and
• 8:47
  grocery
• 8:47
  are
• 8:48
  still
• 8:48
  brick
• 8:48
  and
• 8:48
  mortar.
• 8:49
  So
• 8:49
  people
• 8:49
  still
• 8:49
  want
• 8:49
  to
• 8:50
  go
• 8:50
  two
• 8:50
  stores
• 8:51
  and
• 8:51
  this
• 8:51
  is
• 8:51
  a
• 8:51
  key
• 8:51
  way
• 8:52
  to
• 8:52
  enable
• 8:52
  that
• 8:52
  to
• 8:53
  still
• 8:53
  have
• 8:53
  pickup.
• 8:54
  And
• 8:54
  then
• 8:54
  maybe
• 8:54
  there's
• 8:55
  some
• 8:55
  component
• 8:55
  of
• 8:55
  last
• 8:56
  mile
• 8:56
  delivery,
• 8:56
  but
• 8:57
  they
• 8:57
  have
• 8:57
  to
• 8:57
  make
• 8:57
  the
• 8:57
  economics
• 8:58
  of
• 8:58
  the
• 8:58
  basket
• 8:58
  make
• 8:59
  sense.
• 8:59
  And
• 8:59
  Walmart
• 8:59
  are
• 8:59
  ahead
• 9:00
  of
• 9:00
  the
• 9:00
  curve
• 9:00
  on
• 9:00
  that
• 9:00
  versus
• 9:01
  everybody.
• 9:01
  Yep.
• 9:02
  Yep.
• 9:03
  The
• 9:03
  other
• 9:03
  point,
• 9:03
  I'd
• 9:04
  say
• 9:04
  too,
• 9:04
  it's
• 9:04
  cool
• 9:04
  to
• 9:04
  see
• 9:04
  MFCS
• 9:05
  getting
• 9:05
  talked
• 9:06
  about
• 9:06
  again
• 9:06
  and
• 9:07
  like,
• 9:07
  you
• 9:07
  know,
• 9:08
  and
• 9:08
  team,
• 9:08
  like,
• 9:08
  it
• 9:09
  seems
• 9:09
  like
• 9:09
  they
• 9:09
  kind
• 9:09
  of
• 9:09
  died
• 9:10
  off
• 9:10
  for
• 9:10
  a
• 9:10
  year
• 9:10
  and
• 9:10
  we're
• 9:10
  all
• 9:11
  kind
• 9:11
  of
• 9:11
  like
• 9:11
  going,
• 9:11
  why
• 9:12
  did
• 9:12
  this
• 9:12
  happen?
• 9:13
  Like
• 9:13
  this
• 9:13
  seems
• 9:13
  like
• 9:13
  a
• 9:14
  good
• 9:14
  idea
• 9:14
  that
• 9:14
  we
• 9:14
  need
• 9:14
  to
• 9:15
  still
• 9:15
  figure
• 9:15
  out
• 9:15
  to
• 9:16
  John's
• 9:16
  point,
• 9:16
  because
• 9:16
  the
• 9:16
  economics
• 9:17
  don't
• 9:17
  work.
• 9:18
  But
• 9:18
  so
• 9:18
  it's
• 9:18
  great
• 9:18
  to
• 9:18
  see.