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Fast Five Shorts | Are Costco & Sam’s The Choice Of A New Generation? · Omni Talk Retail

• 0:00
  Costco
• 0:00
  and
• 0:01
  Sam's
• 0:01
  club
• 0:01
  appear
• 0:02
  to
• 0:02
  be
• 0:02
  winning
• 0:02
  over
• 0:02
  the
• 0:02
  younger
• 0:03
  generations.
• 0:04
  According
• 0:04
  to
• 0:04
  Business
• 0:05
  Insider,
• 0:06
  during
• 0:06
  Costco's
• 0:06
  recent
• 0:07
  fourth
• 0:07
  quarter
• 0:07
  earnings
• 0:08
  call,
• 0:08
  CFO
• 0:09
  Gary
• 0:09
  Miller
• 0:10
  Chip
• 0:11
  honestly,
• 0:12
  Ann
• 0:12
  in
• 0:12
  the
• 0:12
  running.
• 0:13
  Ann
• 0:13
  and
• 0:13
  Joe
• 0:13
  in
• 0:13
  the
• 0:13
  running
• 0:14
  for
• 0:14
  my
• 0:14
  favorite
• 0:15
  CFO,
• 0:15
  name
• 0:16
  of
• 0:16
  all
• 0:17
  of
• 0:17
  retail,
• 0:17
  Gary
• 0:17
  Miller
• 0:17
  Miller
• 0:18
  Chip.
• 0:18
  Miller
• 0:19
  Chip.
• 0:19
  I
• 0:19
  just
• 0:19
  like
• 0:20
  saying
• 0:20
  Millard
• 0:20
  ship.
• 0:21
  It's
• 0:22
  Miller
• 0:22
  chip
• 0:22
  time.
• 0:23
  And
• 0:23
  dropped
• 0:24
  a
• 0:24
  bob
• 0:24
  show.
• 0:24
  Approximately
• 0:25
  half
• 0:26
  of
• 0:26
  the
• 0:26
  company's
• 0:27
  new
• 0:27
  signups
• 0:27
  over
• 0:28
  the
• 0:28
  past
• 0:28
  year.
• 0:29
  We're
• 0:29
  under
• 0:29
  40
• 0:29
  years
• 0:30
  old.
• 0:30
  To
• 0:30
  put
• 0:30
  that
• 0:30
  into
• 0:31
  perspective,
• 0:32
  we're
• 0:32
  talking
• 0:32
  about,
• 0:32
  this
• 0:32
  is
• 0:33
  crazy.
• 0:33
  We're
• 0:33
  talking
• 0:33
  about
• 0:34
  two
• 0:34
  and
• 0:34
  a
• 0:34
  half
• 0:34
  million
• 0:35
  millennial
• 0:35
  and
• 0:35
  Gen
• 0:36
  Z
• 0:36
  households
• 0:37
  willingly
• 0:38
  paying
• 0:38
  for
• 0:38
  the
• 0:39
  privilege
• 0:39
  to
• 0:39
  shop
• 0:40
  in
• 0:40
  bulk.
• 0:41
  And
• 0:41
  not
• 0:41
  to
• 0:41
  be
• 0:41
  all
• 0:42
  done.
• 0:42
  Walmart
• 0:43
  owned
• 0:43
  Sam's
• 0:43
  club
• 0:44
  is
• 0:44
  reportedly
• 0:45
  is
• 0:45
  reporting,
• 0:45
  excuse
• 0:46
  me,
• 0:46
  equally
• 0:46
  impressive
• 0:47
  numbers
• 0:48
  saying
• 0:48
  Gen
• 0:48
  Z
• 0:49
  membership
• 0:49
  has
• 0:49
  skyrocketed
• 0:50
  by
• 0:50
  68%
• 0:52
  in
• 0:52
  just
• 0:52
  the
• 0:52
  past
• 0:53
  two
• 0:53
  years.
• 0:54
  And
• 0:54
  let's
• 0:54
  go
• 0:55
  to
• 0:55
  you
• 0:55
  first
• 0:55
  on
• 0:56
  this
• 0:56
  one.
• 0:56
  Do
• 0:56
  you
• 0:57
  think
• 0:57
  Costco
• 0:57
  and
• 0:57
  Sam's
• 0:58
  are
• 0:58
  just
• 0:58
  enjoying
• 0:59
  the
• 0:59
  benefits
• 0:59
  of
• 0:59
  shifting
• 1:00
  demographics,
• 1:01
  or
• 1:01
  is
• 1:01
  there
• 1:02
  something
• 1:02
  also
• 1:02
  in
• 1:03
  the
• 1:03
  water
• 1:03
  here
• 1:04
  that
• 1:04
  is
• 1:04
  making
• 1:05
  these
• 1:05
  two
• 1:05
  the
• 1:06
  Pepsi
• 1:06
  choice
• 1:07
  of
• 1:07
  a
• 1:07
  new
• 1:07
  generation?
• 1:08
  Zachary
• 1:08
  Chris,
• 1:09
  I
• 1:09
  feel
• 1:09
  like
• 1:09
  you're
• 1:09
  asking
• 1:10
  me
• 1:10
  to
• 1:10
  explain
• 1:10
  dad
• 1:11
  core
• 1:11
  and
• 1:11
  why
• 1:12
  this
• 1:12
  has
• 1:12
  gone
• 1:12
  beyond,
• 1:13
  like,
• 1:13
  new
• 1:13
  balance
• 1:14
  sneakers
• 1:15
  and
• 1:15
  Kirkland
• 1:16
  brand
• 1:16
  clothing.
• 1:17
  Like,
• 1:17
  but
• 1:17
  somehow
• 1:18
  this
• 1:18
  is,
• 1:19
  this
• 1:19
  started
• 1:19
  a
• 1:20
  trend
• 1:20
  and
• 1:20
  a
• 1:20
  wave.
• 1:21
  And
• 1:21
  yes,
• 1:21
  Gen
• 1:22
  Z
• 1:22
  wants
• 1:22
  to
• 1:23
  save
• 1:23
  more
• 1:23
  money.
• 1:23
  I
• 1:23
  mean,
• 1:24
  I
• 1:24
  pulled
• 1:24
  up
• 1:24
  a
• 1:25
  couple
• 1:25
  of
• 1:25
  stats
• 1:25
  about
• 1:25
  Gen
• 1:26
  Z
• 1:26
  just
• 1:26
  to
• 1:26
  kind
• 1:26
  of
• 1:27
  give
• 1:27
  our
• 1:27
  audience
• 1:28
  a
• 1:28
  little
• 1:28
  bit
• 1:28
  of
• 1:28
  a
• 1:29
  table
• 1:29
  set,
• 1:30
  I
• 1:30
  guess,
• 1:30
  for,
• 1:30
  you
• 1:31
  know,
• 1:31
  where
• 1:31
  Gen
• 1:31
  Z
• 1:32
  is,
• 1:32
  that
• 1:32
  they
• 1:32
  spend
• 1:33
  more
• 1:33
  on
• 1:33
  housing
• 1:33
  and
• 1:34
  insurance
• 1:34
  than
• 1:34
  millennials
• 1:35
  and
• 1:35
  other
• 1:36
  generations.
• 1:37
  They
• 1:37
  have
• 1:37
  more
• 1:38
  debt
• 1:38
  than
• 1:38
  other
• 1:38
  generations.
• 1:39
  They
• 1:39
  spend
• 1:40
  more
• 1:40
  on
• 1:40
  travel
• 1:40
  and
• 1:40
  experiences,
• 1:41
  and
• 1:42
  they
• 1:42
  are
• 1:42
  more
• 1:42
  value
• 1:43
  driven
• 1:43
  than
• 1:43
  loyalty
• 1:44
  driven,
• 1:44
  which
• 1:44
  all
• 1:45
  adds
• 1:45
  up
• 1:45
  to,
• 1:45
  like,
• 1:46
  yes,
• 1:46
  of
• 1:46
  course.
• 1:47
  Why
• 1:47
  wouldn't
• 1:47
  they
• 1:47
  be
• 1:48
  going
• 1:48
  to
• 1:48
  Costco
• 1:48
  and
• 1:49
  be
• 1:49
  going
• 1:49
  to
• 1:49
  Sam's
• 1:49
  club?
• 1:50
  So
• 1:50
  I
• 1:51
  think
• 1:51
  when
• 1:51
  you
• 1:51
  look
• 1:52
  at
• 1:52
  that
• 1:52
  generation
• 1:53
  and
• 1:54
  you
• 1:54
  know
• 1:54
  how
• 1:54
  they're
• 1:54
  spending
• 1:55
  money,
• 1:55
  where
• 1:55
  they're
• 1:56
  spending
• 1:56
  time,
• 1:56
  they
• 1:56
  want
• 1:57
  quality
• 1:57
  products,
• 1:58
  too.
• 1:58
  And
• 1:58
  Costco
• 1:59
  and
• 1:59
  Sam's
• 1:59
  club
• 1:59
  are
• 1:59
  able
• 2:00
  to
• 2:00
  pay
• 2:00
  this
• 2:00
  off
• 2:00
  at
• 2:01
  a
• 2:01
  rate
• 2:01
  that
• 2:02
  many
• 2:02
  other
• 2:03
  retailers
• 2:03
  cannot
• 2:04
  do.
• 2:04
  They
• 2:04
  can't
• 2:04
  have
• 2:04
  this
• 2:05
  assortment
• 2:05
  in
• 2:05
  this,
• 2:06
  this
• 2:06
  product
• 2:07
  that's
• 2:07
  really
• 2:07
  giving
• 2:08
  them
• 2:08
  the
• 2:08
  value
• 2:09
  for
• 2:09
  their
• 2:09
  money.
• 2:10
  So
• 2:10
  I
• 2:11
  think
• 2:11
  that
• 2:11
  this
• 2:12
  is
• 2:12
  not
• 2:13
  a
• 2:13
  surprise
• 2:13
  at
• 2:13
  all.
• 2:14
  I
• 2:14
  think
• 2:14
  it's
• 2:14
  going
• 2:14
  to
• 2:14
  continue,
• 2:15
  especially
• 2:16
  as
• 2:16
  we
• 2:16
  see,
• 2:16
  you
• 2:17
  know,
• 2:17
  more
• 2:17
  Gen
• 2:18
  Z
• 2:18
  and
• 2:18
  millennials
• 2:19
  spending
• 2:19
  a
• 2:19
  greater
• 2:19
  percentage
• 2:20
  of
• 2:20
  their
• 2:20
  income
• 2:20
  on,
• 2:20
  you
• 2:21
  know,
• 2:21
  housing,
• 2:21
  food,
• 2:22
  apparel,
• 2:22
  and
• 2:22
  personal
• 2:22
  care,
• 2:23
  all
• 2:24
  of
• 2:24
  which
• 2:24
  Costco
• 2:25
  and
• 2:25
  Sam's
• 2:25
  club
• 2:26
  are
• 2:26
  able
• 2:26
  to
• 2:26
  provide
• 2:27
  them.
• 2:27
  So,
• 2:28
  yeah,
• 2:28
  I'm
• 2:29
  in.
• 2:29
  Joe,
• 2:29
  so
• 2:30
  you
• 2:30
  think
• 2:30
  this
• 2:30
  is
• 2:30
  kind.
• 2:30
  Of
• 2:30
  just
• 2:30
  a
• 2:30
  confluence
• 2:31
  of
• 2:31
  factors.
• 2:31
  Macroeconomically,
• 2:32
  what
• 2:33
  Costco
• 2:33
  and
• 2:33
  Sam's
• 2:33
  club
• 2:34
  do?
• 2:34
  Well,
• 2:34
  it's
• 2:34
  just
• 2:34
  kind
• 2:35
  of
• 2:35
  like,
• 2:35
  yep,
• 2:35
  you
• 2:36
  kind
• 2:36
  of
• 2:36
  expect
• 2:36
  this
• 2:37
  going
• 2:37
  in.
• 2:37
  Joe,
• 2:37
  do
• 2:37
  you
• 2:37
  agree
• 2:38
  with
• 2:38
  that?
• 2:38
  And
• 2:39
  Gen
• 2:39
  Z
• 2:39
  and
• 2:39
  millennials
• 2:40
  are
• 2:40
  growing
• 2:40
  up
• 2:40
  and
• 2:41
  starting
• 2:41
  families
• 2:42
  and
• 2:42
  kind
• 2:43
  of
• 2:43
  moving
• 2:43
  out
• 2:43
  of
• 2:43
  their
• 2:44
  small
• 2:44
  starter
• 2:44
  apartments
• 2:45
  to
• 2:45
  larger
• 2:45
  apartments
• 2:46
  or
• 2:46
  to
• 2:46
  the
• 2:46
  suburbs
• 2:47
  as
• 2:47
  well?
• 2:47
  I
• 2:47
  think
• 2:47
  partly
• 2:48
  this
• 2:48
  is
• 2:48
  just
• 2:49
  that
• 2:49
  cohort
• 2:50
  is
• 2:50
  now
• 2:50
  kind
• 2:50
  of
• 2:51
  reaching
• 2:51
  the
• 2:51
  stage
• 2:52
  of
• 2:52
  their
• 2:52
  lives
• 2:53
  where
• 2:53
  they
• 2:53
  can
• 2:54
  buy
• 2:54
  in
• 2:54
  bulk,
• 2:54
  they
• 2:54
  have
• 2:55
  space
• 2:55
  to
• 2:55
  store
• 2:56
  50
• 2:56
  rolls
• 2:56
  of
• 2:56
  toilet
• 2:57
  paper,
• 2:58
  and
• 2:59
  the
• 2:59
  desire
• 2:59
  to
• 2:59
  be
• 2:59
  frugal
• 3:00
  and
• 3:00
  save
• 3:00
  money
• 3:01
  is
• 3:01
  certainly
• 3:02
  a
• 3:02
  contributing
• 3:02
  factor
• 3:03
  as
• 3:03
  well.
• 3:03
  But
• 3:04
  in
• 3:04
  some
• 3:04
  ways,
• 3:04
  this
• 3:05
  isn't
• 3:05
  that
• 3:05
  new.
• 3:05
  I
• 3:05
  was
• 3:06
  looking
• 3:06
  around
• 3:06
  a
• 3:06
  little
• 3:06
  bit
• 3:06
  yesterday.
• 3:07
  I
• 3:07
  found
• 3:07
  a
• 3:07
  2017
• 3:08
  Forbes
• 3:08
  piece
• 3:08
  that
• 3:09
  said
• 3:09
  exactly
• 3:09
  the
• 3:09
  same
• 3:10
  thing,
• 3:10
  that
• 3:10
  Costco
• 3:10
  is
• 3:10
  winning
• 3:11
  over
• 3:11
  millennial
• 3:11
  and
• 3:11
  Gen
• 3:12
  Z
• 3:12
  shoppers.
• 3:13
  But
• 3:14
  then
• 3:14
  it
• 3:14
  was
• 3:14
  probably
• 3:14
  mostly
• 3:15
  millennials,
• 3:15
  not
• 3:16
  so
• 3:16
  much
• 3:16
  Gen
• 3:16
  Z.
• 3:16
  Now
• 3:17
  you'll
• 3:17
  say
• 3:17
  seven
• 3:17
  years
• 3:18
  later,
• 3:18
  it's
• 3:18
  the
• 3:19
  gen
• 3:19
  Zers
• 3:19
  who
• 3:19
  are
• 3:20
  kind
• 3:20
  of
• 3:20
  doing
• 3:20
  that,
• 3:21
  that
• 3:21
  house
• 3:22
  and
• 3:22
  family
• 3:22
  thing.
• 3:24
  Right?
• 3:25
  What
• 3:25
  about
• 3:25
  the
• 3:25
  Sam's
• 3:26
  club
• 3:26
  angle?
• 3:26
  Like,
• 3:26
  are
• 3:26
  you
• 3:27
  surprised
• 3:27
  that
• 3:27
  both
• 3:28
  are
• 3:29
  picking
• 3:29
  up
• 3:29
  share
• 3:29
  here,
• 3:30
  or
• 3:30
  do
• 3:30
  you
• 3:30
  think
• 3:30
  that
• 3:30
  is
• 3:31
  just
• 3:31
  a
• 3:31
  natural
• 3:32
  outgrowth
• 3:32
  of
• 3:33
  everything
• 3:33
  that
• 3:33
  you
• 3:33
  just
• 3:34
  both
• 3:34
  talked
• 3:34
  about?
• 3:35
  What
• 3:35
  do
• 3:35
  each
• 3:36
  of
• 3:36
  you
• 3:36
  think
• 3:36
  about
• 3:36
  that?
• 3:36
  Ann?
• 3:39
  I
• 3:40
  think
• 3:40
  it's
• 3:40
  going
• 3:40
  to
• 3:40
  be
• 3:40
  really
• 3:40
  interesting
• 3:41
  to
• 3:41
  watch
• 3:41
  how
• 3:41
  this
• 3:42
  progresses
• 3:42
  because
• 3:43
  I
• 3:43
  think
• 3:43
  that,
• 3:44
  well,
• 3:45
  Costco
• 3:46
  kind
• 3:46
  of
• 3:46
  is
• 3:46
  like
• 3:46
  the
• 3:47
  target
• 3:47
  in
• 3:47
  this
• 3:48
  case.
• 3:48
  And
• 3:48
  Sam's
• 3:48
  club,
• 3:49
  to
• 3:49
  me,
• 3:49
  is
• 3:49
  kind
• 3:49
  of
• 3:49
  like
• 3:50
  the
• 3:50
  Walmart.
• 3:50
  Like
• 3:50
  they're
• 3:51
  both
• 3:51
  neck
• 3:51
  and
• 3:51
  neck.
• 3:51
  But
• 3:52
  I
• 3:52
  think
• 3:53
  that
• 3:53
  it's
• 3:54
  going
• 3:54
  to
• 3:54
  be
• 3:54
  interesting
• 3:55
  to
• 3:55
  see
• 3:55
  a
• 3:56
  big
• 3:56
  part
• 3:56
  of
• 3:56
  this
• 3:56
  is
• 3:56
  merchandising
• 3:57
  and
• 3:57
  accessibilities
• 3:58
  to
• 3:58
  the
• 3:58
  stores
• 3:59
  and
• 3:59
  Costco,
• 4:00
  unless
• 4:00
  they
• 4:00
  start
• 4:00
  to
• 4:00
  change
• 4:01
  things,
• 4:01
  I
• 4:02
  think
• 4:02
  Sam's
• 4:02
  is
• 4:03
  likely
• 4:03
  to
• 4:03
  kind
• 4:03
  of
• 4:03
  continue
• 4:04
  to
• 4:04
  beat
• 4:05
  them
• 4:05
  because
• 4:06
  of
• 4:06
  the
• 4:06
  things
• 4:06
  that
• 4:06
  you
• 4:06
  were
• 4:07
  talking
• 4:07
  about
• 4:07
  last
• 4:07
  week,
• 4:07
  Chris,
• 4:08
  about
• 4:08
  the
• 4:08
  supply
• 4:09
  chain.
• 4:09
  Like
• 4:10
  convert
• 4:10
  the
• 4:10
  supply
• 4:11
  chains
• 4:11
  converging
• 4:12
  at
• 4:12
  Walmart
• 4:12
  and
• 4:12
  Sam's
• 4:13
  Club.
• 4:13
  Like,
• 4:13
  if
• 4:13
  you
• 4:14
  have
• 4:14
  more
• 4:14
  flexibility,
• 4:15
  more
• 4:15
  convenience
• 4:15
  for
• 4:16
  consumers
• 4:16
  than
• 4:17
  what
• 4:17
  Costco's
• 4:18
  offering,
• 4:18
  like,
• 4:19
  this
• 4:19
  could
• 4:19
  be
• 4:20
  Sam's
• 4:20
  club
• 4:21
  could
• 4:21
  be,
• 4:21
  like,
• 4:21
  coming
• 4:22
  in
• 4:22
  hot
• 4:22
  here.
• 4:22
  And
• 4:23
  I
• 4:23
  think
• 4:23
  really
• 4:23
  starting
• 4:23
  to
• 4:24
  steal
• 4:24
  some
• 4:24
  share
• 4:24
  from
• 4:24
  Costco
• 4:25
  the
• 4:25
  same
• 4:25
  way
• 4:26
  that
• 4:26
  we're
• 4:26
  seeing,
• 4:26
  like
• 4:26
  Walmart
• 4:27
  from
• 4:27
  the
• 4:27
  last
• 4:27
  story
• 4:28
  kind
• 4:28
  of
• 4:28
  come
• 4:28
  in
• 4:28
  and
• 4:29
  steal
• 4:29
  share
• 4:29
  from
• 4:29
  Target.
• 4:30
  But
• 4:30
  what
• 4:31
  do
• 4:31
  you
• 4:31
  think,
• 4:32
  Joe?
• 4:32
  Well,
• 4:33
  let's
• 4:33
  go
• 4:33
  to
• 4:33
  Joe
• 4:33
  first.
• 4:34
  Joe.
• 4:34
  Joe's
• 4:35
  chopping
• 4:35
  at
• 4:35
  the
• 4:35
  bid.
• 4:35
  Here
• 4:36
  I
• 4:36
  am.
• 4:37
  So
• 4:38
  I
• 4:38
  think
• 4:39
  there's
• 4:39
  a
• 4:39
  couple
• 4:39
  of
• 4:39
  factors
• 4:40
  in
• 4:40
  terms
• 4:40
  of
• 4:41
  Sam's
• 4:41
  versus
• 4:42
  Costco.
• 4:42
  Right.
• 4:43
  I
• 4:43
  think
• 4:43
  partly
• 4:43
  it's
• 4:44
  what
• 4:44
  your
• 4:44
  parents
• 4:44
  did.
• 4:45
  Right.
• 4:45
  If
• 4:45
  you're
• 4:45
  a
• 4:45
  Gen
• 4:45
  Z
• 4:46
  and
• 4:46
  you're
• 4:46
  kind
• 4:46
  of
• 4:46
  setting
• 4:46
  up
• 4:46
  your
• 4:47
  own
• 4:47
  household,
• 4:47
  and
• 4:47
  you
• 4:48
  grew
• 4:48
  up
• 4:48
  going
• 4:49
  to
• 4:49
  Costco
• 4:49
  with
• 4:49
  your
• 4:49
  parents,
• 4:50
  that's
• 4:50
  probably
• 4:50
  where
• 4:50
  you'll
• 4:51
  go
• 4:51
  first.
• 4:51
  But
• 4:51
  it's
• 4:51
  also
• 4:51
  what's
• 4:52
  closer
• 4:52
  to
• 4:52
  wherever
• 4:53
  you're
• 4:53
  setting
• 4:53
  up
• 4:53
  your
• 4:53
  household.
• 4:54
  Whatever
• 4:54
  is
• 4:54
  more
• 4:54
  convenient
• 4:55
  to
• 4:55
  you.
• 4:55
  But
• 4:56
  I
• 4:56
  do
• 4:56
  think
• 4:56
  there's
• 4:57
  an
• 4:57
  interesting
• 4:57
  opportunity
• 4:58
  here.
• 4:58
  And
• 4:59
  my
• 4:59
  always
• 5:00
  unscientific
• 5:00
  way
• 5:01
  of
• 5:01
  thinking
• 5:01
  about
• 5:01
  who's
• 5:02
  really
• 5:02
  trying
• 5:03
  to
• 5:03
  appeal
• 5:03
  to
• 5:04
  Gen
• 5:04
  Zers
• 5:04
  is
• 5:04
  to
• 5:04
  look
• 5:05
  at
• 5:05
  TikTok.
• 5:05
  So
• 5:06
  Costco
• 5:06
  has
• 5:07
  an
• 5:07
  official
• 5:07
  TikTok.
• 5:08
  It's
• 5:08
  got
• 5:08
  101,000
• 5:09
  followers.
• 5:10
  They
• 5:10
  haven't
• 5:10
  posted
• 5:10
  anything,
• 5:11
  though.
• 5:11
  It's
• 5:12
  like
• 5:12
  empty.
• 5:13
  Sam's
• 5:13
  club
• 5:13
  has
• 5:13
  183,000
• 5:15
  followers
• 5:15
  on
• 5:15
  TikTok
• 5:16
  and
• 5:16
  1.4
• 5:17
  million
• 5:17
  likes
• 5:18
  on
• 5:18
  videos
• 5:19
  that
• 5:19
  it's
• 5:19
  posted.
• 5:20
  And
• 5:20
  the
• 5:20
  control
• 5:20
  group,
• 5:21
  Target
• 5:21
  Target
• 5:21
  has
• 5:21
  3
• 5:22
  million
• 5:22
  followers
• 5:22
  on
• 5:23
  TikToks
• 5:23
  and
• 5:23
  20.4
• 5:24
  million
• 5:25
  likes.
• 5:26
  So
• 5:26
  I
• 5:26
  think
• 5:26
  either
• 5:27
  of
• 5:27
  them
• 5:27
  could
• 5:28
  boost
• 5:28
  their
• 5:28
  appeal
• 5:29
  with
• 5:29
  the
• 5:29
  youngest
• 5:30
  demographic
• 5:31
  that's
• 5:31
  kind
• 5:31
  of
• 5:31
  in
• 5:32
  that,
• 5:32
  in
• 5:32
  that
• 5:33
  nesting
• 5:33
  phase,
• 5:34
  but
• 5:34
  they
• 5:35
  both
• 5:35
  have
• 5:35
  a
• 5:35
  ways
• 5:35
  to
• 5:35
  go.
• 5:36
  Robert?
• 5:37
  Yeah,
• 5:37
  it's
• 5:37
  interesting.
• 5:37
  I'm
• 5:37
  glad
• 5:37
  I
• 5:38
  got
• 5:38
  the
• 5:38
  question,
• 5:38
  because
• 5:39
  I
• 5:39
  actually
• 5:40
  did
• 5:40
  some
• 5:40
  research
• 5:40
  yesterday,
• 5:40
  too.
• 5:41
  I
• 5:41
  just
• 5:41
  did
• 5:41
  a
• 5:41
  quick
• 5:41
  Google
• 5:41
  search.
• 5:42
  I
• 5:42
  thought
• 5:42
  there
• 5:42
  were
• 5:42
  less
• 5:43
  Sam's
• 5:43
  club
• 5:43
  stores
• 5:43
  throughout
• 5:43
  the
• 5:44
  US
• 5:44
  than
• 5:44
  there
• 5:44
  were
• 5:44
  Costco
• 5:45
  stores,
• 5:45
  but
• 5:45
  roughly,
• 5:46
  they're
• 5:46
  even.
• 5:47
  But
• 5:47
  to
• 5:48
  both
• 5:48
  your
• 5:48
  points,
• 5:49
  and
• 5:49
  Joe,
• 5:49
  I
• 5:49
  love
• 5:49
  the
• 5:50
  TikTok
• 5:50
  statistics
• 5:51
  as
• 5:51
  well.
• 5:51
  And
• 5:52
  I
• 5:52
  love
• 5:52
  the
• 5:52
  points
• 5:52
  you
• 5:52
  brought
• 5:53
  up,
• 5:53
  too,
• 5:53
  is
• 5:53
  if
• 5:54
  I
• 5:54
  was
• 5:54
  to
• 5:54
  bet
• 5:54
  on
• 5:55
  who's
• 5:55
  going
• 5:55
  to
• 5:56
  grow
• 5:56
  more
• 5:56
  or
• 5:57
  return
• 5:57
  more
• 5:57
  money
• 5:58
  to
• 5:58
  their
• 5:58
  shareholders
• 5:58
  here
• 5:59
  in
• 5:59
  the
• 5:59
  next
• 5:59
  ten
• 5:59
  or
• 5:59
  15
• 6:00
  years,
• 6:00
  and
• 6:00
  do
• 6:00
  not
• 6:00
  take
• 6:00
  this
• 6:01
  as
• 6:01
  financial
• 6:01
  advice,
• 6:01
  anyone.
• 6:02
  I'm
• 6:02
  just
• 6:02
  like,
• 6:03
  just
• 6:03
  pontificating
• 6:04
  here.
• 6:04
  I
• 6:05
  would
• 6:05
  bet
• 6:05
  on
• 6:05
  Sam's
• 6:05
  club
• 6:06
  for
• 6:06
  a
• 6:06
  couple
• 6:06
  of
• 6:06
  reasons.
• 6:06
  Like,
• 6:07
  one,
• 6:07
  we
• 6:07
  talked
• 6:08
  about
• 6:08
  it
• 6:08
  last
• 6:08
  week,
• 6:09
  but
• 6:09
  with
• 6:09
  the
• 6:09
  supply
• 6:10
  chain
• 6:10
  merger,
• 6:11
  you
• 6:11
  have
• 6:11
  the
• 6:12
  potentially
• 6:12
  untapped
• 6:13
  combination
• 6:14
  of
• 6:14
  making
• 6:14
  a
• 6:14
  Walmart
• 6:15
  shopper
• 6:15
  a
• 6:16
  digital
• 6:16
  shopper
• 6:16
  at
• 6:16
  Sam's
• 6:17
  club
• 6:17
  and
• 6:17
  vice
• 6:18
  versa,
• 6:19
  which
• 6:19
  is
• 6:19
  the
• 6:19
  crux
• 6:20
  of
• 6:20
  the,
• 6:20
  of
• 6:20
  the
• 6:20
  decision
• 6:21
  last
• 6:21
  week,
• 6:21
  I
• 6:21
  think,
• 6:21
  in
• 6:22
  the
• 6:22
  long
• 6:22
  run,
• 6:22
  and
• 6:22
  that's
• 6:22
  a
• 6:22
  really
• 6:23
  powerful
• 6:23
  statement
• 6:23
  when
• 6:23
  you
• 6:24
  think
• 6:24
  about
• 6:24
  that,
• 6:24
  that
• 6:24
  you
• 6:24
  can
• 6:24
  make
• 6:25
  a
• 6:25
  digital
• 6:25
  shopper
• 6:25
  at
• 6:25
  Walmart
• 6:26
  a
• 6:26
  shopper
• 6:27
  at
• 6:27
  Sam's
• 6:27
  club.
• 6:28
  Think
• 6:28
  about
• 6:28
  that
• 6:28
  for
• 6:28
  a
• 6:28
  sec.
• 6:29
  And
• 6:29
  then
• 6:29
  the
• 6:29
  second
• 6:29
  thing
• 6:29
  is
• 6:30
  there's
• 6:30
  so
• 6:31
  much.
• 6:31
  You
• 6:31
  guys
• 6:31
  hit
• 6:31
  it.
• 6:32
  There's
• 6:32
  so
• 6:32
  much
• 6:32
  more
• 6:33
  technologically
• 6:33
  advanced
• 6:34
  than
• 6:34
  Costco,
• 6:35
  for
• 6:35
  example,
• 6:36
  like
• 6:36
  their
• 6:36
  scan
• 6:36
  and
• 6:36
  go
• 6:36
  application.
• 6:37
  What?
• 6:37
  And
• 6:37
  what
• 6:37
  is
• 6:37
  it?
• 6:38
  50%
• 6:38
  of
• 6:38
  shoppers
• 6:39
  use
• 6:39
  their
• 6:39
  scanning
• 6:40
  applications
• 6:40
  and
• 6:40
  they're
• 6:40
  putting
• 6:41
  retail
• 6:41
  media
• 6:41
  through
• 6:42
  it.
• 6:42
  And
• 6:42
  we
• 6:43
  had,
• 6:43
  we
• 6:43
  had
• 6:43
  discussions
• 6:44
  about
• 6:44
  how
• 6:44
  coke
• 6:44
  can
• 6:44
  now
• 6:45
  incent
• 6:46
  you
• 6:46
  and
• 6:46
  path
• 6:46
  you
• 6:47
  through
• 6:47
  the
• 6:47
  store
• 6:47
  through
• 6:47
  retail
• 6:48
  media
• 6:48
  on
• 6:48
  your
• 6:49
  handheld
• 6:49
  device,
• 6:49
  you
• 6:50
  know,
• 6:50
  in
• 6:50
  theory.
• 6:50
  So
• 6:51
  that's.
• 6:52
  That's
• 6:52
  hugely
• 6:52
  powerful
• 6:53
  and,
• 6:53
  and
• 6:53
  valuable
• 6:54
  to
• 6:54
  this
• 6:54
  shopper
• 6:55
  who
• 6:55
  wants
• 6:55
  to
• 6:56
  shop
• 6:56
  this
• 6:56
  way.
• 6:56
  So
• 6:57
  I'm.
• 6:57
  I'm
• 6:57
  betting
• 6:57
  on
• 6:57
  Sam's,
• 6:58
  like,
• 6:58
  in
• 6:58
  the
• 6:58
  long
• 6:59
  run,
• 6:59
  I
• 6:59
  really
• 6:59
  am.
• 7:00
  Chris.
• 7:00
  I
• 7:00
  think
• 7:00
  the
• 7:00
  other
• 7:01
  thing
• 7:01
  that
• 7:01
  you
• 7:01
  bring
• 7:01
  up,
• 7:01
  too,
• 7:01
  and
• 7:01
  Joe
• 7:02
  mentioned
• 7:02
  this,
• 7:03
  it
• 7:03
  does
• 7:03
  come
• 7:03
  down
• 7:04
  to
• 7:04
  it's
• 7:04
  kind
• 7:04
  of
• 7:04
  like
• 7:04
  Ikea
• 7:05
  in
• 7:05
  this
• 7:05
  way,
• 7:05
  where,
• 7:06
  like,
• 7:06
  this
• 7:06
  Costco
• 7:07
  trip
• 7:07
  is
• 7:07
  like
• 7:08
  a
• 7:08
  trip.
• 7:08
  You,
• 7:08
  if
• 7:09
  you
• 7:09
  are
• 7:09
  an
• 7:09
  urban
• 7:09
  dweller,
• 7:10
  which
• 7:10
  a
• 7:11
  lot
• 7:11
  of
• 7:11
  these,
• 7:11
  this
• 7:12
  young
• 7:12
  generation
• 7:13
  is
• 7:13
  like,
• 7:13
  you
• 7:14
  have
• 7:14
  to
• 7:14
  figure
• 7:14
  out
• 7:14
  how
• 7:14
  you
• 7:15
  get
• 7:15
  a
• 7:15
  car,
• 7:15
  how
• 7:15
  you
• 7:16
  haul
• 7:16
  all
• 7:16
  this
• 7:16
  stuff
• 7:17
  back,
• 7:17
  too.
• 7:17
  And
• 7:17
  I
• 7:17
  think
• 7:18
  that's
• 7:18
  another
• 7:18
  key
• 7:18
  to
• 7:19
  the
• 7:19
  success,
• 7:19
  potentially,
• 7:20
  of
• 7:20
  Walmart,
• 7:21
  is
• 7:21
  that
• 7:21
  if
• 7:21
  you
• 7:22
  are
• 7:22
  able
• 7:22
  to
• 7:22
  go
• 7:22
  on
• 7:23
  Walmart,
• 7:23
  you're
• 7:24
  starting
• 7:24
  your
• 7:24
  grocery
• 7:24
  trip
• 7:25
  there
• 7:25
  and
• 7:25
  you
• 7:25
  see
• 7:25
  like,
• 7:26
  okay,
• 7:26
  my
• 7:27
  kids
• 7:27
  love
• 7:27
  these
• 7:27
  applesauce
• 7:28
  pouches,
• 7:28
  and
• 7:29
  I
• 7:29
  can
• 7:29
  get
• 7:29
  a
• 7:30
  50
• 7:30
  pack
• 7:30
  of
• 7:31
  them
• 7:31
  and
• 7:31
  have
• 7:31
  those
• 7:32
  delivered.
• 7:32
  And
• 7:32
  I
• 7:32
  don't
• 7:33
  have
• 7:33
  to
• 7:33
  make
• 7:33
  the
• 7:33
  trip
• 7:33
  to
• 7:34
  Sam's
• 7:34
  club,
• 7:34
  but
• 7:34
  I
• 7:34
  still
• 7:35
  get
• 7:35
  access
• 7:35
  to
• 7:35
  that
• 7:36
  Sam's
• 7:36
  club,
• 7:36
  you
• 7:37
  know,
• 7:37
  price
• 7:38
  point.
• 7:38
  That
• 7:39
  is
• 7:39
  huge,
• 7:40
  and
• 7:40
  that
• 7:40
  saves
• 7:40
  a
• 7:40
  trip,
• 7:41
  and
• 7:41
  especially
• 7:41
  for
• 7:42
  those
• 7:42
  young
• 7:42
  families,
• 7:42
  like
• 7:43
  Joe
• 7:43
  said,
• 7:43
  like,
• 7:44
  that's
• 7:44
  a
• 7:44
  huge
• 7:44
  savings
• 7:45
  for
• 7:45
  them.
• 7:45
  And
• 7:46
  I
• 7:46
  think,
• 7:46
  to
• 7:46
  your
• 7:47
  point,
• 7:47
  like,
• 7:47
  just
• 7:47
  kind
• 7:47
  of
• 7:47
  catapult
• 7:48
  Sam's
• 7:49
  trajectory
• 7:50
  as
• 7:51
  kind
• 7:51
  of
• 7:51
  sealing
• 7:52
  favor
• 7:52
  for.
• 7:53
  From
• 7:53
  that
• 7:53
  demographic.
• 7:54
  Yeah.
• 7:54
  And
• 7:54
  then
• 7:55
  you
• 7:55
  get
• 7:55
  me
• 7:55
  thinking,
• 7:55
  too.
• 7:55
  And
• 7:57
  Sam's
• 7:57
  club
• 7:58
  membership
• 7:58
  merge
• 7:58
  with
• 7:58
  Walmart.
• 7:59
  Plus,
• 7:59
  in
• 7:59
  the
• 7:59
  long
• 7:59
  run,
• 8:00
  like,
• 8:00
  there's
• 8:00
  so
• 8:00
  many
• 8:01
  options
• 8:01
  here
• 8:02
  and
• 8:02
  so
• 8:02
  much
• 8:02
  option
• 8:03
  value
• 8:03
  in
• 8:03
  this
• 8:03
  discussion.
• 8:04
  Joe,
• 8:04
  you're
• 8:04
  in
• 8:05
  New
• 8:05
  York.
• 8:05
  How
• 8:05
  often
• 8:05
  do
• 8:05
  you
• 8:05
  go
• 8:06
  to
• 8:06
  Costco?
• 8:09
  Once
• 8:10
  a
• 8:10
  year
• 8:10
  when
• 8:10
  I'm
• 8:10
  visiting
• 8:11
  my
• 8:11
  family
• 8:12
  out
• 8:12
  in
• 8:12
  the
• 8:13
  more
• 8:13
  normal
• 8:13
  parts
• 8:13
  of
• 8:14
  the
• 8:14
  United
• 8:14
  States.
• 8:15
  Okay,
• 8:15
  so
• 8:16
  there
• 8:16
  you
• 8:16
  go.
• 8:16
  There
• 8:16
  you
• 8:16
  go.
• 8:17
  You
• 8:17
  could
• 8:17
  become.
• 8:17
  Yep.
• 8:18
  You
• 8:18
  could
• 8:18
  become
• 8:18
  a
• 8:19
  Sam's
• 8:19
  club
• 8:19
  shopper
• 8:20
  digitally
• 8:20
  via
• 8:21
  Walmart.
• 8:21
  Joe's
• 8:22
  just
• 8:22
  got
• 8:22
  to
• 8:22
  wait
• 8:22
  for
• 8:22
  them
• 8:23
  to
• 8:23
  bring
• 8:23
  jet
• 8:23
  black
• 8:24
  back.
• 8:25
  Jet.com
• 8:25
  black
• 8:26
  service
• 8:26
  back.
• 8:27
  Somebody
• 8:28
  run
• 8:29
  talk
• 8:30
  to
• 8:30
  my
• 8:30
  concierge
• 8:31
  about
• 8:31
  bulk
• 8:32
  ordering
• 8:32
  my
• 8:32
  apple.
• 8:32
  Yeah,
• 8:33
  right.
• 8:33
  Exactly.
• 8:34
  Exactly.
• 8:34
  Joe.