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The Rohlik Group's Formula for Profitable Online Grocery | 5IM · Omni Talk Retail

• 0:00
  Foreign.
• 0:08
  Joining
• 0:08
  us
• 0:08
  for
• 0:08
  today's
• 0:09
  five
• 0:09
  insightful
• 0:10
  minute
• 0:10
  segment
• 0:10
  is
• 0:10
  Rita
• 0:11
  Karbage.
• 0:11
  Rita
• 0:12
  is
• 0:12
  the
• 0:12
  Chief
• 0:13
  Strategy
• 0:13
  Officer
• 0:14
  at
• 0:14
  the
• 0:14
  Rolla
• 0:15
  Group,
• 0:15
  as
• 0:15
  I
• 0:15
  know
• 0:15
  many
• 0:16
  omnitalk
• 0:17
  fans
• 0:17
  and
• 0:17
  listeners
• 0:17
  are
• 0:18
  already
• 0:18
  aware.
• 0:18
  And
• 0:19
  she
• 0:19
  is
• 0:19
  here
• 0:19
  to
• 0:19
  talk
• 0:19
  with
• 0:20
  us
• 0:20
  about
• 0:20
  the
• 0:20
  current
• 0:20
  state
• 0:21
  and
• 0:21
  the
• 0:21
  evolving
• 0:22
  economics
• 0:22
  of
• 0:22
  online
• 0:23
  grocery
• 0:23
  and
• 0:24
  what
• 0:24
  it
• 0:24
  really
• 0:24
  takes
• 0:24
  to
• 0:25
  make
• 0:25
  the
• 0:25
  model
• 0:25
  work
• 0:26
  the
• 0:26
  long
• 0:26
  term.
• 0:26
  Rita,
• 0:27
  let's
• 0:27
  get
• 0:27
  you
• 0:28
  started
• 0:28
  off
• 0:28
  with
• 0:28
  this
• 0:29
  question.
• 0:29
  Online
• 0:29
  grocery,
• 0:30
  I
• 0:30
  mean
• 0:31
  I've
• 0:31
  heard
• 0:31
  it
• 0:31
  a
• 0:31
  lot.
• 0:31
  It's
• 0:32
  been
• 0:32
  called
• 0:32
  structurally
• 0:32
  unprofitable
• 0:33
  for
• 0:33
  years
• 0:34
  now.
• 0:35
  But
• 0:35
  what
• 0:35
  has
• 0:35
  actually
• 0:35
  changed
• 0:36
  of
• 0:36
  late
• 0:36
  and
• 0:37
  what
• 0:37
  still
• 0:37
  does
• 0:38
  need
• 0:38
  to
• 0:38
  change
• 0:38
  for
• 0:39
  the
• 0:39
  math
• 0:39
  to
• 0:39
  actually
• 0:40
  work?
• 0:40
  Yeah,
• 0:40
  that
• 0:40
  label
• 0:41
  was
• 0:41
  real
• 0:41
  painful,
• 0:42
  but
• 0:42
  real.
• 0:43
  We're
• 0:43
  talking
• 0:44
  about
• 0:44
  small
• 0:44
  baskets,
• 0:45
  manual
• 0:45
  store
• 0:45
  picking,
• 0:46
  inefficient
• 0:46
  last
• 0:47
  mile.
• 0:47
  And
• 0:47
  that
• 0:47
  meant
• 0:48
  grocers
• 0:48
  were
• 0:48
  losing
• 0:48
  somewhere
• 0:49
  between
• 0:49
  five
• 0:49
  and
• 0:49
  ten
• 0:50
  dollars
• 0:50
  on
• 0:50
  every
• 0:50
  order.
• 0:51
  Nobody
• 0:51
  wants
• 0:51
  a
• 0:51
  business
• 0:51
  like
• 0:52
  that.
• 0:53
  The
• 0:53
  operators
• 0:53
  really
• 0:53
  making
• 0:54
  it
• 0:54
  work
• 0:54
  today
• 0:55
  are
• 0:55
  the
• 0:55
  ones
• 0:55
  who
• 0:55
  have
• 0:55
  shifted
• 0:56
  to
• 0:56
  a
• 0:56
  full
• 0:57
  basket,
• 0:58
  really
• 0:58
  delivering
• 0:58
  a
• 0:59
  weekly
• 0:59
  shop
• 0:59
  at
• 0:59
  over
• 1:00
  $100
• 1:00
  as
• 1:01
  an
• 1:01
  average
• 1:01
  basket.
• 1:02
  And
• 1:02
  they've
• 1:02
  rebuilt
• 1:02
  their
• 1:02
  whole
• 1:03
  infrastructure
• 1:04
  around
• 1:04
  online.
• 1:05
  So
• 1:05
  they've
• 1:05
  rebuilt
• 1:05
  compact,
• 1:06
  high
• 1:06
  throughput
• 1:07
  fulfillment
• 1:08
  centers
• 1:08
  with
• 1:08
  the
• 1:08
  right
• 1:08
  level
• 1:09
  of
• 1:09
  automation.
• 1:10
  We're
• 1:10
  talking
• 1:10
  about
• 1:10
  500
• 1:11
  to
• 1:11
  100,000
• 1:12
  square
• 1:13
  feet
• 1:14
  that
• 1:14
  are
• 1:15
  close
• 1:15
  to
• 1:15
  where
• 1:15
  the
• 1:15
  customers
• 1:16
  are
• 1:16
  with
• 1:16
  concentrated
• 1:17
  demand
• 1:17
  and
• 1:18
  not
• 1:18
  these
• 1:18
  oversized
• 1:19
  monuments
• 1:19
  that
• 1:19
  we
• 1:19
  saw
• 1:20
  in
• 1:20
  the
• 1:20
  early
• 1:20
  days.
• 1:21
  These
• 1:21
  are
• 1:21
  really
• 1:21
  the
• 1:22
  winners
• 1:22
  who
• 1:23
  have
• 1:23
  changed
• 1:23
  this
• 1:23
  discipline
• 1:24
  and
• 1:24
  stopped
• 1:25
  promising
• 1:25
  everything
• 1:26
  everywhere
• 1:26
  for
• 1:26
  free
• 1:27
  to
• 1:27
  their
• 1:27
  customers
• 1:28
  and
• 1:28
  started
• 1:28
  to
• 1:28
  rebuild
• 1:29
  their
• 1:30
  networks
• 1:30
  around
• 1:31
  something
• 1:31
  that
• 1:32
  really
• 1:32
  works
• 1:32
  both
• 1:32
  for
• 1:33
  the
• 1:33
  customer
• 1:33
  promise
• 1:34
  and
• 1:34
  the
• 1:34
  unit
• 1:35
  economics.
• 1:35
  So
• 1:35
  Rita,
• 1:36
  I'm
• 1:36
  curious
• 1:36
  because
• 1:37
  we've
• 1:37
  been
• 1:37
  seeing
• 1:37
  same
• 1:37
  day
• 1:38
  grocery
• 1:38
  delivery,
• 1:38
  particularly
• 1:39
  over
• 1:39
  here
• 1:39
  in
• 1:39
  the
• 1:39
  States.
• 1:39
  I
• 1:39
  think
• 1:39
  it's
• 1:40
  even
• 1:40
  more
• 1:40
  so
• 1:40
  in
• 1:40
  Europe.
• 1:41
  It's
• 1:41
  quickly
• 1:42
  becoming
• 1:42
  the
• 1:43
  default
• 1:43
  grocery
• 1:43
  expectation.
• 1:44
  And
• 1:44
  I
• 1:44
  can
• 1:44
  think
• 1:45
  back
• 1:45
  to
• 1:45
  just
• 1:46
  in
• 1:46
  the
• 1:46
  past
• 1:46
  month
• 1:46
  alone
• 1:47
  we've
• 1:47
  seen
• 1:47
  big
• 1:48
  announcements
• 1:48
  from
• 1:49
  Walmart
• 1:49
  and
• 1:49
  Amazon
• 1:50
  to
• 1:50
  that
• 1:51
  end
• 1:51
  and
• 1:51
  they're
• 1:51
  doing
• 1:51
  it
• 1:52
  by
• 1:52
  way
• 1:52
  of
• 1:52
  quote
• 1:52
  unquote,
• 1:53
  the
• 1:53
  dark
• 1:53
  store
• 1:53
  concept,
• 1:54
  which
• 1:54
  is
• 1:54
  the
• 1:54
  fulfillment
• 1:55
  center
• 1:55
  that
• 1:56
  is,
• 1:56
  you
• 1:56
  know,
• 1:57
  close
• 1:57
  to
• 1:57
  the
• 1:57
  consumer
• 1:58
  locally
• 1:58
  where
• 1:58
  the,
• 1:59
  where
• 1:59
  they
• 1:59
  know
• 1:59
  the
• 1:59
  demand
• 2:00
  is
• 2:00
  going
• 2:00
  to
• 2:00
  be.
• 2:01
  And
• 2:01
  to
• 2:01
  me,
• 2:02
  you
• 2:02
  all
• 2:02
  at
• 2:03
  Veloc
• 2:03
  and
• 2:03
  Roelic
• 2:04
  are
• 2:04
  the
• 2:04
  proof
• 2:04
  point
• 2:05
  that
• 2:05
  that
• 2:05
  model
• 2:05
  actually
• 2:06
  works.
• 2:06
  So,
• 2:07
  so
• 2:07
  how
• 2:07
  do
• 2:07
  you,
• 2:08
  how
• 2:08
  do
• 2:08
  you
• 2:09
  think
• 2:09
  about
• 2:09
  that?
• 2:09
  Is
• 2:09
  that
• 2:09
  a
• 2:10
  requirement,
• 2:10
  the
• 2:10
  dark
• 2:10
  store
• 2:11
  approach?
• 2:11
  Is
• 2:11
  that
• 2:11
  a
• 2:11
  requirement
• 2:12
  to
• 2:12
  making
• 2:12
  this
• 2:12
  model
• 2:13
  work
• 2:13
  in
• 2:13
  the
• 2:13
  long
• 2:13
  term
• 2:13
  to
• 2:14
  get
• 2:14
  to
• 2:14
  same
• 2:14
  day?
• 2:15
  I'm
• 2:15
  a
• 2:15
  firm
• 2:16
  believer
• 2:16
  in
• 2:16
  same
• 2:16
  day.
• 2:17
  For
• 2:17
  a
• 2:17
  long
• 2:17
  time
• 2:17
  people
• 2:18
  said
• 2:18
  customers
• 2:19
  don't
• 2:19
  necessarily
• 2:20
  care
• 2:20
  about
• 2:20
  same
• 2:20
  day,
• 2:20
  but
• 2:21
  they
• 2:21
  actually
• 2:21
  do
• 2:21
  and
• 2:22
  they
• 2:22
  want
• 2:23
  it
• 2:24
  as
• 2:24
  short
• 2:24
  as
• 2:24
  three
• 2:24
  hours
• 2:25
  or
• 2:25
  even
• 2:25
  30
• 2:25
  minutes
• 2:26
  these
• 2:26
  days
• 2:26
  in
• 2:26
  the
• 2:26
  U.S.
• 2:28
  it
• 2:28
  can
• 2:28
  be
• 2:29
  profitable.
• 2:29
  As
• 2:29
  you
• 2:30
  said,
• 2:30
  you're
• 2:30
  thinking
• 2:30
  about
• 2:31
  density
• 2:32
  and
• 2:32
  demand.
• 2:33
  So
• 2:33
  really
• 2:34
  building
• 2:34
  those
• 2:34
  sites
• 2:35
  very,
• 2:35
  very
• 2:36
  efficiently
• 2:37
  around
• 2:37
  where
• 2:37
  the
• 2:38
  customers
• 2:38
  are
• 2:39
  and
• 2:39
  automating
• 2:40
  everything
• 2:40
  from
• 2:41
  picking
• 2:41
  to,
• 2:42
  to
• 2:42
  labor
• 2:42
  management
• 2:43
  to
• 2:43
  how
• 2:44
  the
• 2:44
  route
• 2:45
  is
• 2:45
  distributed
• 2:46
  for
• 2:46
  the
• 2:46
  last
• 2:46
  mile.
• 2:47
  And
• 2:47
  it
• 2:47
  can
• 2:48
  really
• 2:48
  work.
• 2:48
  The
• 2:48
  promise
• 2:49
  itself
• 2:49
  isn't
• 2:49
  the
• 2:49
  problem,
• 2:50
  it's
• 2:50
  how
• 2:50
  you
• 2:50
  execute
• 2:51
  it.
• 2:51
  Yeah.
• 2:52
  And
• 2:52
  to
• 2:52
  get,
• 2:52
  to
• 2:52
  get
• 2:52
  the
• 2:52
  efficiency
• 2:53
  of
• 2:53
  same
• 2:53
  day
• 2:53
  right.
• 2:53
  They
• 2:54
  don't
• 2:54
  need
• 2:54
  to
• 2:54
  be
• 2:54
  necessarily
• 2:55
  located
• 2:55
  in
• 2:56
  the
• 2:56
  store,
• 2:56
  which
• 2:56
  is
• 2:56
  where
• 2:57
  the
• 2:57
  industry
• 2:57
  at
• 2:58
  least
• 2:58
  over
• 2:58
  here
• 2:58
  was
• 2:58
  trying
• 2:59
  to
• 2:59
  go
• 2:59
  initially.
• 3:00
  Because
• 3:00
  you
• 3:00
  guys
• 3:00
  don't
• 3:01
  have
• 3:01
  stores,
• 3:01
  you
• 3:02
  know,
• 3:02
  at
• 3:02
  the
• 3:02
  roll
• 3:02
  it
• 3:02
  group
• 3:02
  and
• 3:03
  you're
• 3:03
  doing
• 3:03
  it
• 3:03
  successfully.
• 3:04
  Absolutely.
• 3:05
  We
• 3:05
  have
• 3:06
  12
• 3:06
  different
• 3:06
  fulfillment
• 3:07
  centers.
• 3:07
  We
• 3:08
  don't
• 3:08
  have
• 3:08
  any
• 3:08
  physical
• 3:09
  stores.
• 3:10
  We've
• 3:10
  really
• 3:11
  built
• 3:11
  the
• 3:11
  model
• 3:12
  around
• 3:12
  online
• 3:13
  and
• 3:13
  this
• 3:13
  is
• 3:13
  where
• 3:13
  the
• 3:14
  grocers
• 3:14
  who
• 3:14
  win
• 3:15
  will
• 3:15
  do
• 3:15
  it.
• 3:15
  It's
• 3:16
  about
• 3:16
  really
• 3:16
  building
• 3:17
  the
• 3:17
  model
• 3:17
  around
• 3:18
  delivery
• 3:19
  and
• 3:19
  not
• 3:19
  trying
• 3:19
  to
• 3:20
  repurpose
• 3:20
  your
• 3:20
  infrastructure
• 3:21
  from
• 3:21
  the
• 3:21
  store
• 3:22
  to
• 3:23
  deliver
• 3:23
  online.
• 3:24
  So
• 3:24
  let's
• 3:24
  roll
• 3:24
  it
• 3:24
  back
• 3:25
  a
• 3:25
  little
• 3:25
  bit.
• 3:25
  Let's
• 3:26
  talk
• 3:26
  about
• 3:26
  store
• 3:26
  based
• 3:27
  picking.
• 3:27
  Does
• 3:27
  that
• 3:27
  model
• 3:28
  still
• 3:28
  make
• 3:28
  sense
• 3:29
  in
• 3:29
  certain
• 3:29
  instances
• 3:30
  and
• 3:30
  how
• 3:31
  do
• 3:31
  you
• 3:31
  decide
• 3:32
  when
• 3:32
  you
• 3:32
  need
• 3:32
  to
• 3:33
  go
• 3:33
  away
• 3:33
  from
• 3:33
  it
• 3:33
  and
• 3:34
  create
• 3:34
  a
• 3:34
  dedicated
• 3:34
  fulfillment
• 3:35
  center
• 3:35
  like
• 3:35
  we
• 3:35
  were
• 3:35
  just
• 3:36
  discussing?
• 3:36
  I
• 3:37
  think
• 3:37
  there's
• 3:37
  still
• 3:37
  a
• 3:37
  case
• 3:37
  for
• 3:37
  store
• 3:38
  based
• 3:38
  picking
• 3:38
  when
• 3:39
  you're
• 3:39
  talking
• 3:39
  about
• 3:40
  an
• 3:40
  online
• 3:41
  penetration
• 3:41
  that's
• 3:42
  still
• 3:42
  slow.
• 3:43
  When
• 3:43
  you
• 3:43
  have
• 3:43
  good
• 3:44
  store
• 3:44
  coverage,
• 3:44
  you
• 3:45
  have
• 3:45
  spare
• 3:45
  capacity
• 3:46
  in
• 3:46
  that
• 3:46
  store
• 3:46
  and
• 3:47
  you're
• 3:47
  promising
• 3:47
  next
• 3:48
  day
• 3:48
  delivery
• 3:49
  or
• 3:49
  delivery
• 3:49
  in
• 3:50
  8,
• 3:50
  10
• 3:50
  hours.
• 3:51
  Reusing
• 3:51
  that
• 3:51
  store
• 3:52
  space
• 3:52
  and
• 3:53
  your
• 3:54
  staff
• 3:54
  and
• 3:54
  your
• 3:54
  stock
• 3:55
  can
• 3:55
  be
• 3:56
  really
• 3:56
  a
• 3:56
  low
• 3:56
  entry
• 3:57
  point
• 3:57
  to
• 3:57
  online.
• 3:59
  You
• 3:59
  start
• 3:59
  to
• 3:59
  need
• 3:59
  more
• 4:00
  capacity
• 4:00
  when
• 4:02
  you're
• 4:02
  exceeding
• 4:03
  about
• 4:03
  300
• 4:04
  orders
• 4:04
  per
• 4:04
  day.
• 4:05
  When
• 4:05
  you're
• 4:05
  hitting
• 4:06
  about
• 4:06
  500,
• 4:06
  you
• 4:07
  have
• 4:07
  to
• 4:07
  start
• 4:07
  thinking
• 4:07
  about
• 4:08
  MFCs
• 4:08
  because
• 4:08
  what
• 4:09
  happens
• 4:09
  is
• 4:09
  your
• 4:10
  physical
• 4:10
  shoppers
• 4:11
  start
• 4:11
  to
• 4:11
  compete
• 4:12
  with
• 4:12
  your
• 4:12
  pickers.
• 4:12
  And
• 4:13
  that's
• 4:13
  about
• 4:13
  experience
• 4:13
  for
• 4:13
  everyone.
• 4:14
  The
• 4:14
  numbers
• 4:15
  start
• 4:15
  to
• 4:15
  really
• 4:15
  make
• 4:16
  sense
• 4:16
  when
• 4:16
  you
• 4:17
  go
• 4:17
  over
• 4:17
  500
• 4:18
  and
• 4:18
  that's
• 4:18
  when
• 4:19
  you
• 4:19
  can
• 4:19
  really
• 4:20
  improve
• 4:20
  your
• 4:20
  UPH.
• 4:21
  You
• 4:21
  can
• 4:21
  really,
• 4:22
  really
• 4:23
  reduce
• 4:23
  your
• 4:24
  picking
• 4:24
  labor
• 4:24
  hours.
• 4:24
  You
• 4:25
  can
• 4:26
  significantly
• 4:26
  improve
• 4:27
  your
• 4:27
  cost
• 4:27
  per
• 4:27
  order
• 4:27
  as
• 4:28
  well.
• 4:29
  Rita,
• 4:29
  is
• 4:29
  it
• 4:30
  all
• 4:30
  about
• 4:30
  order
• 4:30
  volume
• 4:30
  too?
• 4:31
  Or
• 4:31
  does
• 4:31
  the
• 4:31
  control
• 4:31
  of
• 4:32
  the
• 4:32
  customer
• 4:32
  journey
• 4:33
  also
• 4:33
  factor
• 4:33
  into
• 4:34
  when
• 4:34
  you
• 4:34
  think
• 4:34
  you
• 4:34
  need
• 4:35
  to
• 4:35
  kind
• 4:35
  of
• 4:35
  unplug
• 4:36
  from
• 4:36
  the
• 4:37
  third
• 4:37
  party
• 4:37
  platforms
• 4:38
  too?
• 4:38
  The
• 4:39
  way
• 4:39
  that
• 4:39
  we've
• 4:39
  thought
• 4:39
  about
• 4:39
  it
• 4:40
  at
• 4:40
  Rolik
• 4:40
  Group
• 4:41
  is
• 4:41
  we've
• 4:42
  built
• 4:42
  everything
• 4:42
  around
• 4:43
  the
• 4:43
  customer
• 4:44
  proposition
• 4:44
  and
• 4:45
  this
• 4:45
  is
• 4:45
  what
• 4:45
  drives
• 4:46
  the
• 4:46
  service
• 4:46
  that
• 4:46
  we're
• 4:47
  creating
• 4:47
  at
• 4:47
  Veloc.
• 4:48
  Right.
• 4:48
  If
• 4:48
  we're
• 4:48
  promising
• 4:49
  the
• 4:49
  customer
• 4:50
  same
• 4:50
  day.
• 4:51
  We
• 4:51
  need
• 4:51
  to
• 4:51
  build
• 4:51
  an
• 4:51
  infrastructure
• 4:52
  that
• 4:52
  delivers
• 4:53
  on
• 4:53
  same
• 4:53
  day.
• 4:54
  If
• 4:54
  you're
• 4:55
  a
• 4:55
  physical
• 4:56
  grocery
• 4:56
  store,
• 4:57
  you
• 4:57
  need
• 4:57
  to
• 4:57
  be
• 4:57
  thinking
• 4:58
  about
• 4:58
  the
• 4:58
  in
• 4:58
  store
• 4:59
  experience
• 4:59
  for
• 4:59
  your
• 4:59
  customer
• 5:00
  just
• 5:00
  as
• 5:00
  well
• 5:00
  as
• 5:01
  the
• 5:01
  online
• 5:01
  experience
• 5:01
  for
• 5:02
  those
• 5:02
  customers.
• 5:03
  If
• 5:03
  you
• 5:03
  want
• 5:04
  to
• 5:04
  win
• 5:04
  in
• 5:04
  the
• 5:04
  future,
• 5:05
  those
• 5:05
  channels
• 5:05
  have
• 5:06
  to
• 5:06
  work
• 5:06
  side
• 5:06
  by
• 5:06
  side
• 5:06
  and
• 5:07
  not
• 5:07
  in
• 5:07
  silos.
• 5:08
  You
• 5:08
  have
• 5:08
  to
• 5:08
  think
• 5:08
  about
• 5:09
  the
• 5:09
  entire
• 5:09
  customer
• 5:10
  journey
• 5:11
  because
• 5:12
  your
• 5:12
  omnichannel
• 5:13
  has
• 5:13
  to
• 5:13
  be
• 5:14
  one
• 5:14
  operating
• 5:14
  system
• 5:15
  and
• 5:15
  they
• 5:15
  can't
• 5:16
  compete.
• 5:16
  The
• 5:16
  minute
• 5:17
  they
• 5:17
  start
• 5:17
  competing,
• 5:17
  you're
• 5:18
  losing
• 5:18
  the
• 5:18
  customer
• 5:18
  both
• 5:18
  in
• 5:19
  store
• 5:19
  and
• 5:19
  online.
• 5:20
  All
• 5:20
  right,
• 5:20
  well,
• 5:20
  let's
• 5:20
  get
• 5:20
  you
• 5:21
  out
• 5:21
  here
• 5:21
  on
• 5:21
  this
• 5:21
  then.
• 5:21
  I'm
• 5:22
  curious,
• 5:22
  what
• 5:22
  do
• 5:22
  you
• 5:22
  think
• 5:23
  is
• 5:23
  going
• 5:23
  to
• 5:23
  define
• 5:24
  the
• 5:24
  winners
• 5:24
  in
• 5:25
  online
• 5:25
  grocery
• 5:26
  over
• 5:26
  the
• 5:26
  next
• 5:26
  decade?
• 5:27
  Chris,
• 5:27
  Online
• 5:28
  grocery
• 5:28
  is
• 5:28
  not
• 5:28
  going
• 5:29
  away.
• 5:29
  You
• 5:29
  know,
• 5:30
  by
• 5:30
  2030,
• 5:31
  it's
• 5:31
  going
• 5:31
  to
• 5:31
  make
• 5:31
  up
• 5:32
  30%
• 5:33
  of
• 5:33
  all
• 5:33
  grocery,
• 5:33
  and
• 5:34
  that's
• 5:34
  not
• 5:34
  a
• 5:34
  small
• 5:34
  number.
• 5:34
  So
• 5:35
  we
• 5:35
  need
• 5:35
  to
• 5:35
  really
• 5:35
  start
• 5:36
  thinking
• 5:36
  as
• 5:36
  omnichannel
• 5:37
  as
• 5:37
  one
• 5:37
  operating
• 5:38
  system
• 5:38
  and
• 5:38
  not
• 5:39
  three
• 5:39
  silos.
• 5:40
  You
• 5:40
  know,
• 5:40
  shoppers
• 5:41
  are
• 5:41
  already
• 5:41
  mixing
• 5:42
  online
• 5:42
  within
• 5:42
  store.
• 5:43
  So
• 5:44
  winners
• 5:44
  really
• 5:44
  have
• 5:45
  to
• 5:45
  think
• 5:45
  about
• 5:45
  that
• 5:45
  entire
• 5:46
  customer
• 5:46
  experience
• 5:47
  and
• 5:47
  start
• 5:48
  optimizing
• 5:48
  for
• 5:49
  both.
• 5:50
  Everyone's
• 5:50
  talking
• 5:50
  about
• 5:50
  AI
• 5:51
  these
• 5:51
  days,
• 5:51
  right?
• 5:52
  We've
• 5:53
  talked
• 5:53
  about
• 5:53
  fulfillment
• 5:54
  centers
• 5:54
  and
• 5:55
  automation
• 5:55
  for
• 5:55
  years.
• 5:56
  But
• 5:56
  what
• 5:57
  we
• 5:57
  need
• 5:57
  to
• 5:57
  think
• 5:57
  about
• 5:58
  right
• 5:58
  now
• 5:58
  is
• 5:59
  how
• 5:59
  all
• 5:59
  of
• 6:00
  those
• 6:00
  systems
• 6:00
  interact
• 6:01
  together.
• 6:01
  So
• 6:02
  from
• 6:02
  demand
• 6:03
  planning
• 6:03
  to
• 6:04
  replenishment
• 6:04
  to
• 6:05
  labor
• 6:05
  planning
• 6:06
  to
• 6:06
  routing,
• 6:07
  to
• 6:07
  robotic
• 6:08
  picking,
• 6:08
  to
• 6:09
  price
• 6:09
  and
• 6:10
  promo
• 6:10
  optimization,
• 6:12
  to
• 6:12
  the
• 6:13
  last
• 6:13
  mile
• 6:13
  and
• 6:13
  the
• 6:13
  routing,
• 6:14
  all
• 6:14
  of
• 6:14
  those
• 6:15
  have
• 6:15
  to
• 6:15
  play
• 6:15
  together
• 6:16
  so
• 6:16
  that
• 6:16
  you're
• 6:16
  delivering
• 6:17
  on
• 6:17
  your
• 6:17
  promise.
• 6:18
  And
• 6:18
  if
• 6:18
  that
• 6:18
  promise
• 6:19
  is
• 6:19
  same
• 6:19
  day,
• 6:20
  then
• 6:20
  that's
• 6:20
  what
• 6:20
  you're
• 6:21
  optimizing
• 6:21
  for.
• 6:22
  I
• 6:23
  think
• 6:23
  that
• 6:23
  the
• 6:23
  winners
• 6:24
  really
• 6:24
  will
• 6:24
  have
• 6:24
  made
• 6:25
  clear
• 6:25
  choices
• 6:26
  on
• 6:27
  how
• 6:27
  they
• 6:27
  use
• 6:27
  their
• 6:28
  stores,
• 6:28
  where
• 6:29
  they
• 6:29
  add
• 6:29
  dark
• 6:29
  stores,
• 6:30
  where
• 6:30
  they
• 6:30
  build
• 6:30
  an
• 6:30
  FC
• 6:31
  and
• 6:31
  what
• 6:31
  that
• 6:31
  looks
• 6:32
  like.
• 6:32
  I
• 6:32
  think
• 6:33
  that's
• 6:33
  a
• 6:33
  great
• 6:33
  nugget
• 6:33
  to
• 6:33
  end
• 6:34
  on
• 6:34
  because
• 6:34
  you're
• 6:34
  saying
• 6:34
  there's
• 6:34
  the
• 6:35
  infrastructural
• 6:35
  question
• 6:35
  and
• 6:36
  then
• 6:36
  there's
• 6:36
  also
• 6:36
  the
• 6:37
  software
• 6:37
  side
• 6:37
  of
• 6:38
  this
• 6:38
  that
• 6:38
  is
• 6:38
  going
• 6:38
  to
• 6:38
  become
• 6:39
  even
• 6:39
  more
• 6:39
  important
• 6:40
  to
• 6:40
  make
• 6:40
  the
• 6:40
  model
• 6:41
  work.
• 6:41
  And
• 6:41
  it
• 6:41
  all
• 6:41
  comes
• 6:42
  back
• 6:42
  to
• 6:42
  what
• 6:42
  you
• 6:42
  said
• 6:43
  at
• 6:43
  the
• 6:43
  throughout
• 6:44
  this
• 6:44
  discussion,
• 6:44
  which
• 6:45
  is
• 6:45
  you
• 6:45
  have
• 6:46
  to
• 6:46
  build
• 6:46
  the
• 6:46
  model
• 6:47
  that
• 6:47
  meets
• 6:48
  the
• 6:48
  demand,
• 6:48
  not
• 6:48
  of
• 6:49
  just
• 6:49
  of
• 6:49
  your
• 6:49
  customer
• 6:49
  today,
• 6:50
  but
• 6:50
  of
• 6:50
  where
• 6:50
  your
• 6:50
  customer
• 6:51
  is
• 6:51
  going
• 6:51
  in
• 6:51
  the
• 6:51
  future.
• 6:52
  So
• 6:53
  thank
• 6:53
  you
• 6:53
  so
• 6:53
  much,
• 6:53
  Rita.
• 6:54
  That
• 6:54
  was
• 6:54
  excellent.
• 6:54
  Thank
• 6:55
  you
• 6:55
  so
• 6:55
  much
• 6:55
  for
• 6:55
  having
• 6:55
  me,
• 6:56
  Chris.