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Kroger's New E-Commerce Unit – Smart Move or Eventual Disaster? · Omni Talk Retail

• 0:00
  Kroger
• 0:00
  is
• 0:00
  launching
• 0:01
  a
• 0:01
  standalone
• 0:02
  e
• 0:03
  commerce
• 0:03
  business
• 0:04
  unit.
• 0:04
  You
• 0:04
  heard
• 0:05
  it
• 0:05
  right.
• 0:05
  According
• 0:06
  to
• 0:06
  Grocery
• 0:06
  Dive,
• 0:07
  Kroger
• 0:07
  has
• 0:07
  formed
• 0:07
  a
• 0:08
  business
• 0:08
  unit
• 0:08
  centered
• 0:08
  on
• 0:09
  its
• 0:09
  online
• 0:09
  operations
• 0:10
  and
• 0:10
  promoted
• 0:11
  its
• 0:11
  Chief
• 0:12
  information
• 0:12
  officer
• 0:13
  to
• 0:13
  head
• 0:13
  the
• 0:13
  new
• 0:14
  team.
• 0:14
  The
• 0:14
  supermarket
• 0:15
  chain
• 0:15
  announced.
• 0:16
  The
• 0:16
  group
• 0:16
  brings
• 0:16
  together
• 0:17
  the
• 0:17
  personnel,
• 0:18
  quote,
• 0:18
  contributing
• 0:19
  to
• 0:19
  every
• 0:19
  aspect
• 0:20
  of
• 0:20
  the
• 0:20
  online
• 0:20
  customer
• 0:21
  experience.
• 0:21
  End
• 0:22
  quote.
• 0:22
  For
• 0:22
  Kroger.
• 0:23
  Yale
• 0:24
  Cosset,
• 0:24
  who
• 0:25
  previously
• 0:25
  served
• 0:26
  as
• 0:26
  the
• 0:26
  company's
• 0:26
  Chief
• 0:27
  Digital
• 0:27
  officer
• 0:28
  before
• 0:28
  becoming
• 0:28
  Senior
• 0:29
  vice
• 0:29
  president
• 0:29
  and
• 0:29
  CIO
• 0:30
  of
• 0:30
  Kroger
• 0:31
  in
• 0:31
  2019,
• 0:32
  will
• 0:32
  lead
• 0:32
  the
• 0:32
  e
• 0:33
  commerce
• 0:33
  unit
• 0:33
  as
• 0:33
  Executive
• 0:34
  Vice
• 0:34
  President
• 0:35
  and
• 0:35
  Chief
• 0:35
  Digital
• 0:35
  officer.
• 0:36
  Kroger
• 0:37
  Chairman
• 0:37
  and
• 0:38
  newly
• 0:38
  appointed
• 0:39
  CEO
• 0:39
  Ron
• 0:39
  Sargent
• 0:40
  said
• 0:40
  in
• 0:40
  a
• 0:40
  statement,
• 0:41
  quote,
• 0:41
  accelerating
• 0:42
  Kroger's
• 0:42
  e
• 0:43
  commerce
• 0:43
  growth
• 0:43
  is
• 0:43
  a
• 0:43
  top
• 0:44
  priority.
• 0:44
  As
• 0:44
  the
• 0:45
  architect
• 0:45
  of
• 0:45
  Kroger's
• 0:46
  digital
• 0:46
  strategy,
• 0:47
  Yale
• 0:47
  will
• 0:47
  continue
• 0:48
  to
• 0:48
  make
• 0:48
  it
• 0:48
  easier
• 0:49
  for
• 0:49
  customers
• 0:49
  to
• 0:50
  shop
• 0:50
  our
• 0:50
  fresh,
• 0:50
  affordable
• 0:51
  food.
• 0:51
  End
• 0:52
  quote.
• 0:53
  Chris,
• 0:54
  I
• 0:54
  got
• 0:54
  a
• 0:55
  two
• 0:55
  parter
• 0:56
  double
• 0:56
  header
• 0:57
  for
• 0:57
  you.
• 0:58
  Two
• 0:58
  parter
• 0:59
  Number
• 0:59
  one,
• 1:00
  do
• 1:00
  you
• 1:00
  agree
• 1:00
  with
• 1:00
  Kroger's
• 1:01
  decision
• 1:02
  to
• 1:02
  create
• 1:02
  a
• 1:02
  standalone
• 1:03
  e
• 1:03
  commerce
• 1:04
  unit?
• 1:04
  And
• 1:05
  number
• 1:05
  two,
• 1:05
  you're
• 1:05
  getting
• 1:06
  the
• 1:06
  A
• 1:06
  and
• 1:06
  M
• 1:06
  put
• 1:06
  you
• 1:06
  on
• 1:07
  the
• 1:07
  spot
• 1:07
  question,
• 1:08
  which
• 1:08
  is,
• 1:09
  oh,
• 1:10
  it
• 1:10
  seems
• 1:10
  like
• 1:11
  this
• 1:11
  formal
• 1:12
  organization
• 1:12
  of
• 1:12
  Kroger's
• 1:13
  e
• 1:13
  comm
• 1:13
  business
• 1:14
  is
• 1:14
  long
• 1:15
  overdue,
• 1:15
  especially
• 1:16
  with
• 1:16
  the
• 1:16
  ocado
• 1:17
  struggles.
• 1:18
  What
• 1:18
  do
• 1:18
  you
• 1:18
  think
• 1:18
  this
• 1:19
  says?
• 1:19
  That
• 1:19
  they
• 1:19
  put
• 1:19
  their
• 1:20
  chief
• 1:20
  information
• 1:21
  officer
• 1:21
  atop
• 1:22
  it
• 1:22
  versus
• 1:22
  an
• 1:23
  operational
• 1:23
  leader?
• 1:25
  Please.
• 1:26
  All
• 1:26
  right.
• 1:26
  Dazzling.
• 1:27
  Nice
• 1:27
  delivery
• 1:28
  on
• 1:28
  that
• 1:28
  one
• 1:28
  too.
• 1:28
  And
• 1:29
  get
• 1:29
  this
• 1:29
  show
• 1:29
  started
• 1:29
  off
• 1:30
  right.
• 1:30
  All
• 1:30
  right,
• 1:30
  man,
• 1:31
  I,
• 1:31
  I'm
• 1:32
  going
• 1:32
  to
• 1:32
  come
• 1:32
  out
• 1:32
  hot
• 1:32
  on
• 1:33
  this
• 1:33
  one.
• 1:33
  And
• 1:33
  I
• 1:33
  think
• 1:33
  my
• 1:34
  Buddy
• 1:34
  Carl
• 1:35
  on
• 1:35
  LinkedIn
• 1:35
  who
• 1:35
  messaged
• 1:36
  me
• 1:36
  about
• 1:36
  this
• 1:36
  story,
• 1:36
  you
• 1:37
  know,
• 1:37
  I
• 1:37
  have
• 1:37
  two
• 1:37
  friends
• 1:37
  named
• 1:38
  Carl
• 1:38
  on,
• 1:39
  you
• 1:39
  know
• 1:39
  that
• 1:39
  with
• 1:39
  KS2,
• 1:40
  which
• 1:40
  is
• 1:40
  just
• 1:40
  random
• 1:41
  Carl.
• 1:42
  But
• 1:43
  anyway,
• 1:43
  I'm
• 1:43
  coming
• 1:43
  out
• 1:44
  hot.
• 1:44
  I'm
• 1:44
  coming
• 1:44
  out
• 1:44
  of
• 1:44
  the
• 1:44
  gates
• 1:45
  hot
• 1:45
  on
• 1:45
  this
• 1:45
  one.
• 1:45
  And
• 1:46
  first
• 1:46
  off,
• 1:47
  I,
• 1:47
  I
• 1:48
  don't
• 1:48
  like
• 1:48
  this
• 1:48
  move
• 1:48
  at
• 1:48
  all.
• 1:50
  And
• 1:50
  secondly,
• 1:50
  to
• 1:51
  get
• 1:51
  to
• 1:51
  the
• 1:51
  A
• 1:51
  and
• 1:51
  M
• 1:52
  question,
• 1:53
  I
• 1:53
  don't
• 1:53
  agree.
• 1:54
  I
• 1:54
  don't
• 1:54
  agree
• 1:55
  that
• 1:55
  the
• 1:55
  premise
• 1:55
  of
• 1:56
  this
• 1:56
  move
• 1:56
  is
• 1:56
  long
• 1:57
  overdue.
• 1:57
  I
• 1:57
  don't
• 1:57
  agree
• 1:58
  with
• 1:58
  the
• 1:58
  premise
• 1:58
  that
• 1:58
  this
• 1:59
  move
• 1:59
  is
• 1:59
  long
• 1:59
  overdue
• 2:00
  either.
• 2:00
  Really?
• 2:00
  Okay,
• 2:01
  Yeah,
• 2:02
  I
• 2:02
  do,
• 2:02
  100%.
• 2:02
  I
• 2:03
  say
• 2:03
  that
• 2:03
  for
• 2:03
  a
• 2:03
  couple
• 2:03
  of
• 2:03
  reasons.
• 2:03
  So
• 2:04
  one,
• 2:04
  this
• 2:05
  flies
• 2:05
  in
• 2:05
  the
• 2:05
  face
• 2:05
  of
• 2:06
  whatever
• 2:06
  you
• 2:06
  want
• 2:06
  to
• 2:06
  call
• 2:06
  it,
• 2:07
  good
• 2:07
  omnichannel,
• 2:08
  unified
• 2:08
  commerce,
• 2:09
  whatever
• 2:09
  the
• 2:09
  heck
• 2:09
  the
• 2:09
  buzzword
• 2:10
  is
• 2:10
  harmonized
• 2:11
  retail
• 2:11
  shout
• 2:11
  out
• 2:11
  to
• 2:11
  Steve
• 2:12
  Dennis.
• 2:12
  It
• 2:12
  flies
• 2:13
  in
• 2:13
  the
• 2:13
  face
• 2:13
  of
• 2:13
  that.
• 2:13
  It
• 2:14
  just
• 2:14
  does,
• 2:14
  as
• 2:15
  you
• 2:15
  know.
• 2:15
  And
• 2:15
  this
• 2:16
  is
• 2:16
  coming
• 2:16
  from
• 2:16
  someone
• 2:16
  who
• 2:17
  piloted
• 2:17
  an
• 2:18
  Omni
• 2:18
  Channel
• 2:19
  organization
• 2:19
  structure
• 2:20
  at
• 2:20
  Target
• 2:20
  to
• 2:20
  help
• 2:21
  them
• 2:21
  develop
• 2:21
  their
• 2:21
  omnichannel
• 2:22
  approach,
• 2:22
  an
• 2:23
  approach
• 2:23
  that
• 2:23
  others
• 2:24
  Sense
• 2:24
  like
• 2:24
  Walmart
• 2:25
  have
• 2:25
  adopted.
• 2:26
  So
• 2:26
  I
• 2:26
  can
• 2:27
  tell
• 2:27
  you
• 2:27
  firsthand,
• 2:28
  this
• 2:28
  is
• 2:28
  really
• 2:28
  the
• 2:28
  only
• 2:29
  way
• 2:29
  to
• 2:29
  go.
• 2:29
  Because
• 2:30
  doing
• 2:30
  it,
• 2:30
  doing
• 2:30
  it
• 2:31
  the
• 2:31
  opposite
• 2:31
  way
• 2:31
  with
• 2:31
  a
• 2:31
  standalone
• 2:32
  division
• 2:32
  creates
• 2:33
  all
• 2:33
  kinds
• 2:33
  of
• 2:34
  disjointed
• 2:34
  problems
• 2:35
  in
• 2:35
  the
• 2:35
  organization.
• 2:36
  So
• 2:36
  just.
• 2:37
  And
• 2:37
  priorities.
• 2:38
  Yeah,
• 2:38
  yes,
• 2:39
  right.
• 2:39
  Everything.
• 2:39
  Priorities,
• 2:40
  Everything.
• 2:40
  Like,
• 2:41
  yes,
• 2:41
  focus.
• 2:42
  You
• 2:42
  start
• 2:42
  getting
• 2:43
  turf
• 2:43
  battles,
• 2:43
  everything.
• 2:44
  So
• 2:44
  strategically,
• 2:45
  I
• 2:46
  just
• 2:46
  fundamentally
• 2:46
  disagree
• 2:47
  with
• 2:47
  the
• 2:47
  organizational
• 2:48
  approach.
• 2:49
  But
• 2:49
  second,
• 2:50
  I
• 2:50
  think
• 2:50
  there's
• 2:50
  another
• 2:51
  big
• 2:51
  issue
• 2:51
  here
• 2:52
  and
• 2:52
  that
• 2:52
  it's
• 2:53
  that
• 2:53
  I
• 2:53
  worry
• 2:53
  that
• 2:54
  Kroger
• 2:55
  is
• 2:55
  falling
• 2:56
  into
• 2:56
  what
• 2:56
  I
• 2:56
  call
• 2:56
  what
• 2:57
  what
• 2:57
  many
• 2:57
  would
• 2:57
  call
• 2:57
  the
• 2:58
  sunk
• 2:58
  cost
• 2:59
  trap.
• 3:00
  They
• 3:00
  made
• 3:01
  the
• 3:01
  big
• 3:01
  Ocado
• 3:01
  investment.
• 3:02
  They
• 3:02
  don't
• 3:03
  appear
• 3:03
  to
• 3:03
  have
• 3:03
  gotten
• 3:03
  the
• 3:04
  return
• 3:04
  that
• 3:04
  they
• 3:04
  wanted.
• 3:05
  So
• 3:05
  now
• 3:05
  they're
• 3:05
  throwing
• 3:06
  good
• 3:06
  money
• 3:07
  after
• 3:07
  bad
• 3:07
  and
• 3:08
  good
• 3:08
  people
• 3:08
  after
• 3:09
  bad.
• 3:09
  So
• 3:09
  it's
• 3:09
  a
• 3:10
  classic
• 3:10
  case
• 3:11
  from
• 3:11
  the
• 3:11
  first
• 3:11
  year
• 3:11
  of
• 3:12
  business
• 3:12
  school
• 3:12
  of
• 3:12
  what
• 3:13
  not
• 3:13
  to
• 3:13
  do
• 3:14
  because
• 3:14
  you're
• 3:14
  doubling
• 3:15
  down
• 3:15
  on
• 3:15
  trying
• 3:16
  to
• 3:16
  fix
• 3:16
  the
• 3:16
  mistakes
• 3:16
  of
• 3:17
  your
• 3:17
  past.
• 3:17
  Which
• 3:18
  also
• 3:18
  explains
• 3:18
  why
• 3:19
  they're
• 3:19
  putting
• 3:19
  someone
• 3:19
  that
• 3:20
  they
• 3:20
  trust
• 3:21
  with
• 3:21
  a
• 3:21
  good
• 3:21
  track
• 3:21
  record
• 3:22
  to
• 3:22
  try
• 3:22
  to
• 3:22
  fix
• 3:22
  it.
• 3:23
  But
• 3:23
  to
• 3:23
  A
• 3:23
  and
• 3:23
  M's
• 3:23
  question,
• 3:24
  how
• 3:25
  much.
• 3:25
  How
• 3:25
  much
• 3:26
  can
• 3:26
  a
• 3:26
  digital
• 3:26
  guy
• 3:27
  fix
• 3:27
  what
• 3:27
  is
• 3:27
  essentially
• 3:28
  a
• 3:28
  piece,
• 3:29
  that
• 3:29
  being
• 3:29
  Ocado,
• 3:30
  of
• 3:31
  a
• 3:31
  much
• 3:31
  larger
• 3:32
  puzzle
• 3:32
  for
• 3:33
  how
• 3:33
  Kroger
• 3:33
  gives
• 3:34
  its
• 3:34
  consumers
• 3:34
  what
• 3:34
  they
• 3:35
  want.
• 3:35
  So
• 3:36
  this
• 3:36
  move,
• 3:36
  you
• 3:37
  know,
• 3:37
  net.
• 3:37
  Net,
• 3:38
  particularly
• 3:38
  in
• 3:38
  the
• 3:38
  absence
• 3:39
  of
• 3:39
  a
• 3:39
  former
• 3:39
  CEO
• 3:41
  or
• 3:41
  the
• 3:41
  absence,
• 3:42
  there's,
• 3:42
  you
• 3:42
  know,
• 3:43
  they
• 3:43
  just
• 3:43
  had
• 3:43
  to
• 3:43
  get
• 3:43
  rid
• 3:43
  of
• 3:43
  their
• 3:43
  CEO,
• 3:44
  so
• 3:45
  guy
• 3:45
  in
• 3:45
  place.
• 3:46
  Right.
• 3:46
  It
• 3:46
  seems
• 3:46
  like,
• 3:47
  I
• 3:47
  mean,
• 3:47
  this
• 3:47
  seems
• 3:48
  like
• 3:48
  it
• 3:48
  could
• 3:48
  be
• 3:48
  the
• 3:48
  start
• 3:48
  of
• 3:48
  a
• 3:49
  dumpster
• 3:49
  fire.
• 3:49
  To
• 3:50
  be
• 3:50
  honest.
• 3:50
  I
• 3:50
  just
• 3:51
  don't
• 3:51
  get
• 3:51
  this
• 3:52
  at
• 3:52
  all.
• 3:52
  And,
• 3:52
  But
• 3:53
  I
• 3:53
  don't
• 3:53
  know.
• 3:53
  What
• 3:53
  do
• 3:53
  you
• 3:54
  think?
• 3:54
  Talk
• 3:54
  me
• 3:54
  off
• 3:54
  the
• 3:54
  leg.
• 3:55
  No,
• 3:55
  I'm
• 3:57
  not
• 3:57
  going
• 3:57
  to
• 3:57
  talk
• 3:57
  you
• 3:57
  off
• 3:57
  the.
• 3:58
  Chris.
• 3:59
  No.
• 3:59
  Because
• 3:59
  you're
• 3:59
  not
• 3:59
  going
• 4:00
  to
• 4:00
  be
• 4:00
  my
• 4:00
  balance.
• 4:01
  No.
• 4:01
  Because
• 4:02
  this
• 4:02
  to
• 4:02
  me
• 4:03
  felt
• 4:03
  like
• 4:03
  a
• 4:03
  move
• 4:03
  that
• 4:03
  you
• 4:03
  would
• 4:04
  make
• 4:04
  in
• 4:04
  1999.
• 4:05
  Like
• 4:06
  the,
• 4:06
  the
• 4:06
  real
• 4:07
  problem
• 4:08
  for
• 4:08
  me
• 4:09
  in
• 4:09
  this,
• 4:09
  in
• 4:09
  this
• 4:10
  whole
• 4:10
  story
• 4:11
  is
• 4:11
  every
• 4:12
  aspect
• 4:12
  of
• 4:13
  the
• 4:13
  online
• 4:13
  customer
• 4:14
  experience.
• 4:15
  Like,
• 4:15
  yeah,
• 4:16
  that's
• 4:16
  the
• 4:16
  problem
• 4:16
  here.
• 4:17
  It
• 4:17
  should.
• 4:17
  I
• 4:17
  don't
• 4:18
  think
• 4:18
  we
• 4:18
  can
• 4:18
  think
• 4:18
  in
• 4:19
  channels
• 4:19
  like
• 4:19
  this
• 4:20
  anymore.
• 4:20
  I
• 4:20
  mean,
• 4:20
  that's
• 4:21
  the
• 4:21
  whole
• 4:21
  point
• 4:21
  of
• 4:21
  this
• 4:22
  move
• 4:22
  towards
• 4:22
  unified
• 4:23
  commerce.
• 4:23
  Like
• 4:23
  people
• 4:24
  aren't
• 4:24
  just
• 4:24
  doing.
• 4:25
  No,
• 4:26
  no
• 4:26
  consumer
• 4:26
  of
• 4:27
  Kroger
• 4:27
  is
• 4:27
  just
• 4:28
  shopping
• 4:28
  online
• 4:28
  or
• 4:29
  just
• 4:29
  shopping
• 4:29
  in
• 4:29
  store.
• 4:30
  It's
• 4:30
  about
• 4:30
  the
• 4:31
  total
• 4:31
  experience
• 4:32
  and
• 4:32
  the
• 4:33
  success
• 4:33
  of
• 4:33
  any
• 4:34
  of
• 4:34
  these
• 4:34
  grocery
• 4:34
  businesses
• 4:35
  depends
• 4:35
  on
• 4:36
  a
• 4:36
  strategy
• 4:36
  that's
• 4:37
  focused
• 4:37
  on,
• 4:38
  you
• 4:38
  know,
• 4:38
  meeting
• 4:38
  the
• 4:38
  customer
• 4:39
  at
• 4:39
  all
• 4:39
  these
• 4:39
  touch
• 4:40
  points.
• 4:40
  So
• 4:41
  I
• 4:41
  think
• 4:41
  it's.
• 4:41
  It
• 4:42
  just
• 4:42
  seems
• 4:42
  strange.
• 4:43
  The
• 4:43
  other
• 4:43
  thing
• 4:44
  that
• 4:45
  I
• 4:45
  would
• 4:45
  add
• 4:45
  is
• 4:46
  Yale
• 4:47
  has
• 4:47
  been
• 4:47
  in
• 4:47
  this
• 4:48
  role
• 4:48
  at
• 4:48
  Kroger.
• 4:49
  He's
• 4:49
  done
• 4:49
  a
• 4:49
  tremendous
• 4:50
  job,
• 4:50
  but
• 4:51
  look
• 4:51
  at
• 4:51
  all
• 4:51
  the
• 4:51
  stuff
• 4:52
  that
• 4:52
  he
• 4:52
  has
• 4:52
  underneath
• 4:53
  him,
• 4:53
  too.
• 4:54
  Oh,
• 4:54
  go
• 4:54
  ahead.
• 4:55
  No,
• 4:55
  no,
• 4:56
  you
• 4:56
  keep
• 4:56
  going.
• 4:56
  No,
• 4:56
  you
• 4:56
  got.
• 4:57
  No,
• 4:57
  I'm
• 4:57
  right
• 4:57
  with
• 4:57
  you.
• 4:58
  You
• 4:58
  keep
• 4:58
  going.
• 4:58
  Yeah,
• 4:59
  like,
• 4:59
  he's
• 5:00
  in
• 5:00
  charge
• 5:01
  of
• 5:01
  retail
• 5:02
  media,
• 5:02
  8451,
• 5:04
  insights
• 5:04
  and
• 5:04
  content,
• 5:05
  financial
• 5:05
  services,
• 5:06
  personal
• 5:07
  finance.
• 5:07
  Like,
• 5:08
  how
• 5:09
  I
• 5:09
  get
• 5:09
  that
• 5:09
  you
• 5:10
  have
• 5:10
  to
• 5:10
  ladder
• 5:10
  up
• 5:11
  and
• 5:11
  there's
• 5:11
  people
• 5:11
  that
• 5:11
  are
• 5:11
  underneath
• 5:12
  him.
• 5:12
  But
• 5:12
  again,
• 5:13
  this
• 5:13
  just
• 5:13
  seems
• 5:13
  like
• 5:14
  way
• 5:14
  too
• 5:14
  many
• 5:14
  competing
• 5:15
  priorities.
• 5:16
  And
• 5:16
  especially
• 5:16
  when
• 5:16
  you
• 5:17
  throw
• 5:17
  things
• 5:17
  like
• 5:17
  retail
• 5:18
  media
• 5:18
  and
• 5:18
  like,
• 5:19
  insights
• 5:19
  and
• 5:19
  content
• 5:20
  and
• 5:20
  financial
• 5:20
  services
• 5:21
  into
• 5:21
  the
• 5:21
  mix,
• 5:21
  like,
• 5:22
  those
• 5:22
  are
• 5:22
  huge
• 5:23
  sources
• 5:23
  of
• 5:23
  revenue
• 5:24
  for
• 5:24
  Kroger
• 5:25
  and
• 5:25
  for
• 5:25
  any
• 5:25
  future
• 5:26
  that
• 5:26
  Kroger
• 5:26
  has.
• 5:27
  And
• 5:27
  so
• 5:27
  I
• 5:27
  feel
• 5:28
  like
• 5:28
  this
• 5:28
  is,
• 5:29
  this
• 5:29
  is
• 5:29
  just
• 5:29
  asking
• 5:30
  too
• 5:30
  much
• 5:30
  of
• 5:31
  one
• 5:31
  person.
• 5:32
  And
• 5:32
  in
• 5:32
  a
• 5:32
  way
• 5:33
  that
• 5:33
  just
• 5:33
  exactly
• 5:34
  like
• 5:34
  you
• 5:34
  said,
• 5:34
  Chris,
• 5:34
  like,
• 5:35
  there's
• 5:35
  too
• 5:35
  many
• 5:35
  competing
• 5:36
  interests,
• 5:37
  priorities.
• 5:38
  And
• 5:39
  I
• 5:39
  don't
• 5:39
  know
• 5:40
  how
• 5:40
  you
• 5:40
  set
• 5:41
  Yale
• 5:41
  up
• 5:41
  here
• 5:42
  for
• 5:42
  success,
• 5:43
  but
• 5:43
  it
• 5:44
  just,
• 5:44
  it
• 5:44
  seems
• 5:44
  like
• 5:45
  the,
• 5:45
  the
• 5:45
  totally
• 5:46
  wrong
• 5:47
  way
• 5:47
  to
• 5:47
  be
• 5:48
  thinking
• 5:48
  about
• 5:48
  it.
• 5:49
  And
• 5:50
  especially
• 5:50
  given,
• 5:51
  you
• 5:51
  know,
• 5:51
  coming
• 5:51
  out
• 5:51
  of
• 5:52
  all
• 5:52
  of
• 5:52
  the
• 5:53
  news
• 5:53
  that's
• 5:53
  happened
• 5:53
  to
• 5:53
  Kroger,
• 5:54
  with
• 5:54
  the
• 5:54
  CEO
• 5:54
  leaving,
• 5:55
  the
• 5:55
  failed
• 5:55
  merger
• 5:56
  with
• 5:56
  Albertsons,
• 5:56
  like,
• 5:57
  it
• 5:57
  just
• 5:57
  feels
• 5:57
  like
• 5:58
  a
• 5:58
  place
• 5:59
  where
• 5:59
  they're,
• 5:59
  they're
• 5:59
  just
• 6:00
  like,
• 6:00
  putting
• 6:01
  all
• 6:01
  their
• 6:01
  faith
• 6:01
  in
• 6:01
  Yale
• 6:02
  and
• 6:02
  not
• 6:02
  setting
• 6:02
  them
• 6:03
  up
• 6:03
  for
• 6:03
  success.
• 6:04
  Yeah.
• 6:04
  And
• 6:04
  what
• 6:04
  I
• 6:05
  was
• 6:05
  going
• 6:05
  to
• 6:05
  say,
• 6:05
  what
• 6:05
  you
• 6:05
  got
• 6:05
  me
• 6:06
  thinking
• 6:06
  about
• 6:06
  too,
• 6:06
  is
• 6:06
  like,
• 6:07
  I
• 6:07
  actually,
• 6:07
  there's
• 6:08
  a
• 6:08
  little
• 6:08
  bit
• 6:08
  from
• 6:08
  this
• 6:09
  story
• 6:09
  that
• 6:09
  actually
• 6:09
  makes
• 6:09
  me
• 6:09
  question
• 6:10
  how
• 6:10
  well
• 6:11
  Yale
• 6:11
  is
• 6:11
  actually
• 6:11
  done
• 6:11
  in
• 6:12
  his
• 6:12
  job
• 6:12
  too.
• 6:12
  Because
• 6:13
  if
• 6:13
  you
• 6:13
  think
• 6:13
  about,
• 6:13
  if
• 6:14
  you
• 6:14
  think
• 6:14
  about
• 6:14
  meeting
• 6:14
  the
• 6:14
  needs
• 6:15
  of
• 6:15
  the
• 6:15
  omnichannel
• 6:16
  consumer,
• 6:16
  right?
• 6:16
  There's
• 6:17
  the
• 6:17
  front
• 6:17
  end
• 6:17
  side
• 6:18
  of
• 6:18
  it
• 6:18
  and
• 6:18
  there's
• 6:19
  the
• 6:19
  back
• 6:19
  end
• 6:19
  side
• 6:19
  of
• 6:19
  it.
• 6:20
  The
• 6:20
  back
• 6:20
  inside
• 6:21
  of
• 6:21
  it
• 6:21
  clearly
• 6:21
  hasn't
• 6:21
  been
• 6:21
  working.
• 6:22
  But
• 6:22
  you're
• 6:22
  saddled
• 6:23
  with
• 6:23
  a
• 6:23
  big
• 6:23
  investment
• 6:23
  that
• 6:24
  you
• 6:24
  made
• 6:24
  where
• 6:24
  the
• 6:24
  infrastructure
• 6:25
  is
• 6:25
  the
• 6:25
  infrastructure.
• 6:26
  So
• 6:26
  there's
• 6:26
  only
• 6:26
  so
• 6:27
  much
• 6:27
  you
• 6:27
  can
• 6:27
  do
• 6:27
  about
• 6:27
  that.
• 6:28
  So
• 6:28
  then
• 6:28
  you
• 6:28
  get,
• 6:29
  then
• 6:29
  you
• 6:29
  start
• 6:29
  to
• 6:29
  say
• 6:29
  to
• 6:30
  yourself,
• 6:30
  okay,
• 6:30
  was
• 6:31
  it
• 6:31
  not
• 6:31
  working
• 6:31
  because
• 6:31
  they
• 6:31
  haven't
• 6:32
  marketed
• 6:32
  right,
• 6:32
  or
• 6:33
  they
• 6:33
  don't
• 6:33
  have
• 6:33
  the
• 6:33
  experience,
• 6:34
  right.
• 6:34
  To,
• 6:35
  to
• 6:35
  get
• 6:36
  the
• 6:36
  volume
• 6:36
  they
• 6:36
  need
• 6:37
  to
• 6:37
  make
• 6:37
  the
• 6:37
  investment
• 6:38
  pay
• 6:38
  off
• 6:38
  in
• 6:39
  the
• 6:39
  way
• 6:39
  that
• 6:39
  they
• 6:39
  want.
• 6:40
  So,
• 6:40
  so
• 6:41
  it's
• 6:41
  one
• 6:41
  of
• 6:41
  those,
• 6:42
  you
• 6:42
  know,
• 6:42
  it's
• 6:42
  one
• 6:42
  of
• 6:43
  those
• 6:43
  two
• 6:43
  things.
• 6:43
  And
• 6:43
  so
• 6:44
  like,
• 6:44
  if
• 6:44
  it's
• 6:44
  the,
• 6:44
  if
• 6:44
  it's
• 6:45
  the
• 6:45
  latter,
• 6:45
  then
• 6:45
  you're
• 6:45
  like,
• 6:46
  well,
• 6:46
  wait
• 6:46
  a
• 6:46
  second,
• 6:47
  is
• 6:47
  this
• 6:47
  the
• 6:47
  guy,
• 6:47
  the
• 6:47
  right
• 6:47
  guy
• 6:48
  to
• 6:48
  run
• 6:48
  it?
• 6:48
  If
• 6:48
  they
• 6:48
  haven't
• 6:48
  been
• 6:49
  able
• 6:49
  to
• 6:49
  figure
• 6:49
  out
• 6:49
  the
• 6:49
  marketing
• 6:50
  and
• 6:50
  the
• 6:50
  front
• 6:50
  end
• 6:50
  experience
• 6:51
  of
• 6:51
  this
• 6:51
  to
• 6:51
  make
• 6:52
  it
• 6:52
  work
• 6:52
  and
• 6:52
  to
• 6:52
  get
• 6:52
  it
• 6:53
  in
• 6:53
  the
• 6:53
  consumer,
• 6:53
  because
• 6:53
  they've
• 6:54
  tried
• 6:54
  these
• 6:54
  online
• 6:55
  only
• 6:55
  plays
• 6:55
  in
• 6:56
  markets,
• 6:56
  and
• 6:56
  they've
• 6:56
  had
• 6:56
  to
• 6:57
  shut
• 6:57
  those
• 6:57
  down.
• 6:57
  They've
• 6:57
  had
• 6:57
  to
• 6:58
  close
• 6:58
  facilities.
• 6:59
  So
• 6:59
  for
• 6:59
  some
• 6:59
  reason,
• 7:00
  they're
• 7:00
  not
• 7:01
  getting.
• 7:01
  Even
• 7:01
  though
• 7:02
  they're
• 7:02
  talking
• 7:02
  about
• 7:02
  how
• 7:02
  much
• 7:02
  their
• 7:03
  digital
• 7:03
  volume
• 7:04
  is
• 7:04
  growing,
• 7:04
  it's
• 7:04
  not
• 7:05
  growing
• 7:05
  to
• 7:05
  the
• 7:05
  extent
• 7:06
  that
• 7:06
  they
• 7:06
  actually
• 7:06
  want
• 7:07
  to
• 7:07
  make
• 7:08
  this,
• 7:08
  the
• 7:08
  Cardo
• 7:08
  investment,
• 7:09
  pay
• 7:09
  off
• 7:09
  in
• 7:09
  the
• 7:09
  way
• 7:09
  that
• 7:10
  they
• 7:10
  want
• 7:10
  in
• 7:10
  the
• 7:10
  right
• 7:11
  areas
• 7:11
  of
• 7:11
  the
• 7:11
  country.
• 7:11
  So.
• 7:12
  So
• 7:13
  there's
• 7:13
  just
• 7:13
  so
• 7:13
  much
• 7:14
  going
• 7:14
  on
• 7:14
  here,
• 7:14
  which
• 7:15
  makes
• 7:15
  this
• 7:15
  story
• 7:16
  so
• 7:16
  bizarre
• 7:16
  to
• 7:17
  me.
• 7:17
  Yeah,
• 7:18
  I
• 7:18
  totally
• 7:19
  agree.
• 7:19
  Yeah.
• 7:19
  I
• 7:20
  mean.
• 7:20
  Oh,
• 7:21
  good
• 7:21
  luck
• 7:21
  to
• 7:21
  you,
• 7:21
  Kroger
• 7:22
  team.
• 7:22
  I
• 7:22
  don't
• 7:22
  know
• 7:22
  what
• 7:23
  else
• 7:23
  to
• 7:23
  say
• 7:23
  at
• 7:23
  this
• 7:24
  point.
• 7:24
  Yeah,
• 7:25
  it
• 7:25
  sounds
• 7:25
  like,
• 7:25
  I
• 7:25
  mean,
• 7:25
  God,
• 7:25
  they
• 7:26
  got
• 7:26
  to
• 7:26
  get
• 7:26
  somebody
• 7:26
  in
• 7:26
  there
• 7:26
  quick
• 7:27
  now
• 7:27
  because
• 7:27
  this
• 7:28
  could
• 7:28
  just
• 7:28
  blow
• 7:28
  up
• 7:28
  in
• 7:28
  their
• 7:29
  face
• 7:29
  here
• 7:29
  over
• 7:29
  time.