Latest / Omni Talk Retail / Costco's Retail Media Strategy Revealed | NRF 2025 Insights with Mark Williamson

Transcript

Costco's Retail Media Strategy Revealed | NRF 2025 Insights with Mark Williamson · Omni Talk Retail

• 0:00
  Hello,
• 0:00
  everyone.
• 0:01
  This
• 0:01
  is
• 0:01
  Omnitalk
• 0:02
  Retail.
• 0:02
  I'm
• 0:02
  Anne
• 0:02
  Mazinga.
• 0:03
  And
• 0:03
  I'm
• 0:03
  Chris
• 0:03
  Walton.
• 0:04
  And
• 0:04
  we
• 0:04
  are
• 0:04
  here
• 0:05
  coming
• 0:05
  to
• 0:05
  you
• 0:06
  live,
• 0:06
  covering
• 0:07
  everything
• 0:07
  that's
• 0:08
  happening
• 0:08
  here
• 0:08
  at
• 0:08
  NRF
• 0:09
  2025
• 0:10
  from
• 0:10
  the
• 0:10
  Vision
• 0:10
  Group,
• 0:10
  booth
• 0:11
  number
• 0:11
  4938.
• 0:13
  And
• 0:13
  standing
• 0:14
  between
• 0:14
  Chris
• 0:14
  and
• 0:14
  myself
• 0:15
  today
• 0:15
  is
• 0:15
  Mark
• 0:16
  Williamson,
• 0:16
  the
• 0:17
  AVP
• 0:17
  of
• 0:17
  retail
• 0:18
  media
• 0:18
  for
• 0:18
  Costco.
• 0:19
  Mark,
• 0:19
  welcome
• 0:20
  to
• 0:20
  omnitalk.
• 0:21
  Hi.
• 0:21
  Thank
• 0:21
  you.
• 0:21
  Thanks
• 0:21
  for
• 0:21
  having
• 0:22
  me.
• 0:22
  We're
• 0:22
  excited
• 0:23
  to
• 0:23
  have
• 0:23
  you
• 0:23
  here.
• 0:24
  How's
• 0:24
  the
• 0:24
  show
• 0:24
  been
• 0:25
  going
• 0:25
  so
• 0:25
  far?
• 0:25
  So
• 0:26
  been
• 0:26
  going
• 0:26
  very
• 0:26
  well,
• 0:26
  very
• 0:27
  busy
• 0:27
  and
• 0:28
  lots
• 0:28
  of
• 0:28
  good
• 0:28
  conversations
• 0:29
  happening
• 0:29
  and
• 0:29
  a
• 0:29
  lot
• 0:29
  of
• 0:29
  cool
• 0:30
  technology
• 0:30
  to
• 0:30
  see.
• 0:30
  Good.
• 0:31
  We
• 0:32
  had
• 0:32
  not
• 0:32
  met
• 0:32
  you
• 0:32
  prior
• 0:33
  to
• 0:33
  this,
• 0:33
  so
• 0:33
  thanks
• 0:33
  for
• 0:33
  joining
• 0:34
  us.
• 0:34
  We
• 0:34
  got
• 0:34
  to
• 0:34
  get
• 0:34
  to
• 0:35
  know
• 0:35
  you
• 0:35
  a
• 0:35
  little
• 0:35
  bit
• 0:35
  before
• 0:35
  we
• 0:36
  started
• 0:36
  recording
• 0:36
  here,
• 0:36
  but
• 0:37
  tell
• 0:37
  the
• 0:37
  audience
• 0:37
  a
• 0:38
  little
• 0:38
  bit
• 0:38
  about
• 0:38
  who
• 0:38
  you
• 0:38
  are,
• 0:39
  your
• 0:39
  background,
• 0:39
  and
• 0:39
  your
• 0:39
  role
• 0:40
  at
• 0:40
  Costco.
• 0:40
  Yeah,
• 0:41
  so
• 0:41
  I've
• 0:41
  been
• 0:42
  at
• 0:42
  Costco
• 0:42
  for
• 0:42
  about
• 0:42
  a
• 0:42
  year
• 0:42
  and
• 0:43
  a
• 0:43
  half,
• 0:43
  responsible
• 0:44
  for
• 0:45
  building
• 0:45
  out
• 0:45
  a
• 0:46
  formalized
• 0:46
  retail
• 0:47
  media
• 0:47
  program.
• 0:47
  Okay.
• 0:49
  Before
• 0:49
  that,
• 0:50
  couple
• 0:51
  stints
• 0:51
  with
• 0:52
  retailers,
• 0:52
  spent
• 0:53
  a
• 0:53
  couple
• 0:53
  of
• 0:53
  years
• 0:53
  at
• 0:54
  Sam's
• 0:54
  Club,
• 0:55
  built,
• 0:55
  I
• 0:55
  would
• 0:56
  say,
• 0:56
  the
• 0:56
  first
• 0:56
  iteration
• 0:56
  of
• 0:57
  retail
• 0:57
  media,
• 0:57
  kind
• 0:58
  of
• 0:58
  shopper
• 0:58
  marketing
• 0:58
  at
• 0:59
  Sam's.
• 1:00
  Then
• 1:00
  I
• 1:00
  spent
• 1:00
  a
• 1:01
  few
• 1:01
  years
• 1:01
  at
• 1:02
  AJO
• 1:02
  delhez.
• 1:03
  Oh.
• 1:03
  Built
• 1:04
  out
• 1:04
  retail
• 1:04
  media
• 1:05
  data
• 1:05
  partnerships
• 1:05
  and
• 1:06
  then
• 1:06
  retail
• 1:06
  and
• 1:06
  then
• 1:07
  shopper
• 1:07
  marketing
• 1:08
  programs
• 1:08
  for
• 1:08
  them.
• 1:09
  Okay.
• 1:09
  And
• 1:09
  then
• 1:10
  spent
• 1:10
  a
• 1:10
  little
• 1:10
  bit
• 1:10
  of
• 1:11
  time
• 1:11
  on
• 1:11
  the
• 1:11
  vendor
• 1:11
  side
• 1:12
  about
• 1:12
  a
• 1:12
  year
• 1:12
  and
• 1:12
  a
• 1:12
  half
• 1:13
  with
• 1:13
  Citrus
• 1:14
  Ad
• 1:14
  Epsilon.
• 1:15
  Oh,
• 1:15
  wow.
• 1:15
  Okay.
• 1:15
  Our
• 1:16
  publicist
• 1:16
  group.
• 1:16
  So,
• 1:17
  yep,
• 1:17
  you've
• 1:18
  covered
• 1:18
  the
• 1:18
  full
• 1:19
  gamut
• 1:20
  of
• 1:20
  every
• 1:21
  angle
• 1:21
  of
• 1:21
  retail
• 1:22
  media.
• 1:22
  It
• 1:22
  seems
• 1:23
  like
• 1:24
  you
• 1:24
  spoke
• 1:24
  at
• 1:25
  nrf.
• 1:26
  I
• 1:26
  did.
• 1:27
  What
• 1:27
  did
• 1:27
  you
• 1:27
  talk
• 1:27
  about?
• 1:28
  So
• 1:28
  I
• 1:28
  talked
• 1:28
  about
• 1:29
  Costco.
• 1:29
  So
• 1:32
  shocker,
• 1:32
  shocker.
• 1:33
  What
• 1:33
  specifically
• 1:34
  about
• 1:34
  retail
• 1:35
  media
• 1:35
  at
• 1:35
  Costco
• 1:36
  did
• 1:36
  you
• 1:36
  talk
• 1:36
  about,
• 1:36
  Mark?
• 1:37
  So
• 1:38
  I
• 1:38
  spoke
• 1:38
  more
• 1:38
  about
• 1:39
  Costco
• 1:39
  than
• 1:39
  I
• 1:39
  did
• 1:39
  retail
• 1:40
  media.
• 1:40
  Okay.
• 1:41
  I
• 1:41
  did
• 1:42
  that
• 1:42
  on
• 1:42
  purpose.
• 1:42
  And
• 1:42
  so
• 1:43
  we're
• 1:44
  being
• 1:44
  very
• 1:44
  deliberate
• 1:45
  about
• 1:45
  how
• 1:45
  we're
• 1:45
  approaching
• 1:46
  retail
• 1:46
  media.
• 1:47
  We've.
• 1:48
  The
• 1:48
  way
• 1:48
  that
• 1:48
  we've
• 1:48
  characterized
• 1:49
  it,
• 1:49
  we
• 1:49
  kind
• 1:49
  of
• 1:49
  have
• 1:49
  last
• 1:49
  mover
• 1:50
  advantage.
• 1:51
  We
• 1:51
  are
• 1:52
  perhaps
• 1:53
  the
• 1:53
  largest
• 1:55
  non
• 1:55
  mover
• 1:56
  in
• 1:56
  retail
• 1:56
  media
• 1:57
  in
• 1:57
  the
• 1:58
  space.
• 1:59
  And
• 1:59
  that's
• 1:59
  really,
• 2:00
  really
• 2:00
  was
• 2:00
  done
• 2:01
  on
• 2:01
  purpose.
• 2:02
  And
• 2:02
  the
• 2:02
  point
• 2:02
  is
• 2:03
  that
• 2:03
  Costco
• 2:03
  doesn't
• 2:04
  do
• 2:04
  anything
• 2:05
  that
• 2:05
  doesn't
• 2:06
  serve
• 2:06
  our
• 2:06
  core
• 2:07
  purpose
• 2:08
  of
• 2:08
  delivering
• 2:09
  value
• 2:09
  to
• 2:09
  our
• 2:09
  members
• 2:10
  every
• 2:10
  day.
• 2:11
  And
• 2:11
  retail
• 2:11
  media
• 2:11
  is
• 2:12
  a
• 2:12
  B2B
• 2:12
  business.
• 2:13
  It's
• 2:13
  a
• 2:14
  profit
• 2:14
  center.
• 2:14
  It's
• 2:15
  an
• 2:15
  ancillary
• 2:15
  revenue
• 2:15
  stream.
• 2:16
  And
• 2:17
  which
• 2:17
  is
• 2:17
  all
• 2:17
  well
• 2:18
  and
• 2:18
  good,
• 2:18
  but
• 2:19
  we
• 2:19
  want
• 2:19
  to
• 2:19
  make
• 2:19
  sure
• 2:19
  that
• 2:19
  whatever
• 2:19
  we
• 2:20
  do
• 2:20
  is
• 2:20
  specifically
• 2:21
  serving
• 2:22
  that
• 2:22
  core
• 2:22
  purpose
• 2:23
  of
• 2:23
  providing
• 2:24
  value
• 2:24
  to
• 2:24
  our
• 2:24
  members.
• 2:25
  So
• 2:25
  what
• 2:25
  I
• 2:26
  talked
• 2:26
  about
• 2:26
  was
• 2:26
  a
• 2:26
  lot
• 2:27
  about
• 2:27
  the
• 2:27
  core
• 2:27
  model,
• 2:28
  about
• 2:28
  how
• 2:28
  our
• 2:29
  ambition
• 2:29
  is
• 2:29
  to
• 2:30
  use
• 2:30
  retail
• 2:31
  media
• 2:31
  to
• 2:31
  grow
• 2:31
  our
• 2:32
  member
• 2:32
  base,
• 2:32
  grow
• 2:32
  traffic
• 2:33
  and
• 2:33
  grow
• 2:33
  sales.
• 2:34
  We're
• 2:34
  a
• 2:34
  top
• 2:35
  line
• 2:35
  sales
• 2:35
  organization.
• 2:36
  Top
• 2:36
  line
• 2:37
  sales
• 2:37
  translates
• 2:37
  to
• 2:37
  more
• 2:38
  membership
• 2:38
  renewal.
• 2:39
  More
• 2:39
  membership
• 2:40
  renewal
• 2:40
  is
• 2:40
  what
• 2:40
  helps
• 2:40
  us
• 2:41
  keep
• 2:41
  the
• 2:41
  lights
• 2:41
  on.
• 2:41
  Right.
• 2:42
  And
• 2:42
  so
• 2:42
  retail
• 2:42
  media
• 2:43
  is
• 2:43
  in
• 2:43
  service
• 2:43
  to
• 2:43
  that
• 2:44
  larger
• 2:44
  ideal.
• 2:45
  I
• 2:45
  love
• 2:45
  that
• 2:45
  last
• 2:46
  mover
• 2:46
  advantage.
• 2:46
  I'd
• 2:46
  never
• 2:46
  heard
• 2:47
  that
• 2:47
  before,
• 2:47
  but
• 2:47
  that
• 2:47
  helps
• 2:48
  explain
• 2:48
  a
• 2:48
  lot
• 2:48
  in
• 2:49
  terms
• 2:49
  of,
• 2:49
  I
• 2:49
  imagine,
• 2:50
  how
• 2:50
  Costco
• 2:50
  looks
• 2:50
  at
• 2:50
  things.
• 2:51
  So
• 2:52
  let's
• 2:52
  switch
• 2:53
  to
• 2:53
  retail
• 2:53
  media
• 2:53
  though.
• 2:54
  So
• 2:54
  for
• 2:54
  Retail
• 2:54
  Media
• 2:55
  in
• 2:55
  2025,
• 2:56
  how
• 2:56
  would
• 2:57
  you
• 2:57
  sum
• 2:57
  up
• 2:57
  the
• 2:57
  state
• 2:57
  of
• 2:57
  the
• 2:57
  industry
• 2:58
  and
• 2:58
  where
• 2:58
  do
• 2:58
  you
• 2:59
  think
• 2:59
  the
• 2:59
  opportunities
• 2:59
  lie
• 3:00
  for
• 3:00
  you
• 3:00
  and
• 3:00
  your
• 3:01
  role
• 3:01
  at
• 3:01
  Costco?
• 3:01
  Yeah,
• 3:02
  I
• 3:02
  mean,
• 3:02
  we've
• 3:02
  heard
• 3:02
  a
• 3:02
  lot
• 3:02
  about
• 3:03
  standardization
• 3:04
  and
• 3:04
  consolidation
• 3:05
  because
• 3:05
  it's,
• 3:06
  it's
• 3:06
  a
• 3:06
  very,
• 3:06
  I
• 3:07
  mean,
• 3:07
  it's
• 3:07
  a
• 3:07
  hot
• 3:07
  space.
• 3:09
  New
• 3:09
  retail
• 3:09
  media
• 3:10
  networks
• 3:10
  come
• 3:10
  online
• 3:10
  all
• 3:11
  the
• 3:11
  time.
• 3:11
  Seems
• 3:12
  like
• 3:12
  every
• 3:12
  day.
• 3:12
  Every
• 3:12
  day.
• 3:13
  And
• 3:13
  on
• 3:14
  the
• 3:14
  media
• 3:14
  buying
• 3:14
  side,
• 3:15
  it's
• 3:15
  very
• 3:15
  fragmented.
• 3:16
  It
• 3:16
  can
• 3:16
  be
• 3:16
  confusing,
• 3:16
  it
• 3:17
  can
• 3:17
  be
• 3:17
  overwhelming.
• 3:17
  And
• 3:18
  I
• 3:18
  think
• 3:19
  it's
• 3:20
  an
• 3:20
  environment
• 3:20
  where
• 3:21
  the
• 3:21
  biggest
• 3:21
  fish
• 3:21
  eat
• 3:22
  the
• 3:22
  most.
• 3:23
  I'm
• 3:23
  happy
• 3:24
  to
• 3:24
  be
• 3:24
  working
• 3:24
  for
• 3:24
  a
• 3:24
  big
• 3:25
  fish.
• 3:25
  I
• 3:25
  feel
• 3:25
  like
• 3:25
  we
• 3:25
  have
• 3:25
  a
• 3:26
  right
• 3:26
  to
• 3:26
  win.
• 3:27
  But
• 3:27
  the
• 3:28
  thing
• 3:28
  that
• 3:28
  I'm
• 3:29
  perceiving,
• 3:29
  whether
• 3:29
  it's
• 3:29
  for
• 3:30
  Costco
• 3:30
  or
• 3:30
  what
• 3:30
  I'm
• 3:30
  seeing
• 3:31
  from
• 3:31
  some
• 3:31
  of
• 3:31
  our
• 3:31
  peers,
• 3:32
  is
• 3:32
  this
• 3:33
  intention
• 3:34
  to
• 3:34
  own
• 3:35
  the
• 3:35
  network
• 3:35
  itself,
• 3:36
  to
• 3:36
  own
• 3:36
  the
• 3:36
  business
• 3:37
  as
• 3:37
  much
• 3:37
  as
• 3:37
  possible.
• 3:38
  And
• 3:38
  so
• 3:38
  if
• 3:38
  I
• 3:38
  go
• 3:38
  back
• 3:39
  to
• 3:39
  when
• 3:39
  I
• 3:39
  first
• 3:39
  started
• 3:39
  doing
• 3:40
  this
• 3:40
  in
• 3:40
  2010,
• 3:41
  we
• 3:41
  didn't
• 3:41
  have
• 3:42
  in
• 3:42
  house
• 3:42
  teams,
• 3:42
  we
• 3:42
  didn't
• 3:43
  have
• 3:43
  expertise,
• 3:43
  myself
• 3:44
  included.
• 3:44
  But
• 3:44
  we
• 3:44
  recognized
• 3:45
  an
• 3:45
  opportunity
• 3:45
  kind
• 3:46
  of
• 3:46
  in
• 3:46
  the
• 3:46
  monetization
• 3:46
  space
• 3:48
  and
• 3:48
  we
• 3:49
  relied
• 3:49
  on
• 3:49
  full
• 3:50
  service
• 3:50
  monolithic
• 3:51
  agencies
• 3:51
  to
• 3:51
  help
• 3:52
  us
• 3:52
  first
• 3:53
  with
• 3:53
  kind
• 3:53
  of
• 3:53
  services,
• 3:54
  and
• 3:54
  then
• 3:54
  that
• 3:54
  grew
• 3:54
  into
• 3:55
  technology
• 3:55
  partnerships.
• 3:56
  And
• 3:57
  what
• 3:57
  transpired
• 3:58
  as
• 3:58
  the
• 3:58
  business
• 3:58
  grew
• 3:59
  was
• 3:59
  retailers
• 4:00
  became
• 4:00
  very
• 4:01
  reliant
• 4:01
  on
• 4:02
  external
• 4:04
  agents
• 4:04
  to
• 4:05
  help
• 4:05
  grow
• 4:05
  the
• 4:06
  business
• 4:06
  as
• 4:06
  quickly
• 4:06
  as
• 4:06
  possible.
• 4:07
  I
• 4:07
  think
• 4:08
  we
• 4:08
  reached
• 4:08
  a
• 4:08
  phase
• 4:08
  where
• 4:08
  if
• 4:09
  we
• 4:09
  look
• 4:09
  at
• 4:09
  the
• 4:09
  lead
• 4:09
  dogs
• 4:10
  like
• 4:10
  Amazon
• 4:10
  and
• 4:10
  Walmart
• 4:11
  and
• 4:11
  Target
• 4:11
  and
• 4:11
  Kroger
• 4:12
  and
• 4:12
  others
• 4:12
  that
• 4:12
  have
• 4:12
  really
• 4:13
  staked
• 4:13
  their
• 4:14
  claim
• 4:14
  in
• 4:14
  this
• 4:14
  and
• 4:14
  have
• 4:15
  really
• 4:15
  invested
• 4:16
  in
• 4:16
  talent
• 4:17
  and
• 4:17
  technology
• 4:18
  to
• 4:18
  be
• 4:18
  able
• 4:18
  to
• 4:18
  do
• 4:19
  this
• 4:19
  really
• 4:19
  well.
• 4:19
  I
• 4:19
  think
• 4:20
  more
• 4:20
  and
• 4:20
  more
• 4:20
  retailers
• 4:20
  are
• 4:21
  going
• 4:21
  to
• 4:21
  continue
• 4:21
  to
• 4:21
  figure
• 4:21
  out
• 4:22
  what
• 4:22
  of
• 4:22
  this
• 4:23
  part
• 4:23
  of
• 4:23
  this
• 4:23
  business
• 4:23
  can
• 4:24
  I
• 4:24
  manage
• 4:24
  on
• 4:24
  my
• 4:24
  own,
• 4:25
  what
• 4:25
  do
• 4:25
  I
• 4:25
  need
• 4:25
  help
• 4:26
  with?
• 4:26
  But
• 4:26
  more
• 4:27
  importantly
• 4:27
  though,
• 4:28
  how
• 4:28
  do
• 4:28
  I
• 4:28
  be
• 4:28
  the
• 4:28
  driver
• 4:29
  of
• 4:29
  my
• 4:29
  own
• 4:30
  ship
• 4:30
  at
• 4:30
  all
• 4:30
  times?
• 4:31
  Right.
• 4:31
  How
• 4:31
  do
• 4:31
  you
• 4:31
  control
• 4:31
  your
• 4:31
  own
• 4:32
  destiny,
• 4:32
  so
• 4:32
  to
• 4:32
  speak,
• 4:33
  in
• 4:33
  the
• 4:33
  space?
• 4:33
  That's
• 4:33
  what
• 4:34
  your,
• 4:34
  that's
• 4:34
  where
• 4:34
  your
• 4:34
  opportunity
• 4:35
  lies?
• 4:35
  Well,
• 4:35
  yeah,
• 4:36
  Absolutely.
• 4:36
  And
• 4:36
  I
• 4:36
  think
• 4:36
  the
• 4:37
  technology
• 4:38
  and
• 4:38
  the
• 4:38
  talent
• 4:38
  pool
• 4:38
  have
• 4:39
  advanced
• 4:39
  to
• 4:39
  the
• 4:39
  point
• 4:39
  where
• 4:39
  retailers
• 4:40
  can
• 4:40
  do
• 4:40
  this.
• 4:40
  You
• 4:40
  don't
• 4:41
  have
• 4:41
  to
• 4:41
  go
• 4:41
  all
• 4:42
  in
• 4:43
  and
• 4:44
  get
• 4:44
  a
• 4:44
  ton
• 4:44
  of
• 4:44
  capital
• 4:45
  in
• 4:45
  order
• 4:45
  to
• 4:45
  do
• 4:45
  it.
• 4:45
  I
• 4:45
  don't
• 4:45
  think
• 4:46
  we
• 4:46
  need
• 4:46
  to
• 4:46
  necessarily
• 4:46
  create
• 4:47
  any
• 4:47
  new
• 4:47
  technologies
• 4:48
  ourselves.
• 4:49
  There
• 4:50
  are
• 4:50
  tons
• 4:50
  of,
• 4:51
  of
• 4:51
  different
• 4:52
  solutions
• 4:52
  out
• 4:52
  there.
• 4:53
  The
• 4:53
  trick
• 4:53
  though
• 4:53
  is
• 4:54
  to
• 4:54
  keep
• 4:54
  it
• 4:54
  modular,
• 4:55
  to
• 4:55
  own
• 4:55
  what
• 4:55
  we
• 4:55
  should
• 4:56
  own,
• 4:56
  whether
• 4:56
  that's
• 4:57
  our
• 4:57
  data,
• 4:57
  our
• 4:58
  member
• 4:58
  experience,
• 4:59
  or
• 4:59
  whatever
• 5:00
  it
• 5:00
  may
• 5:00
  be,
• 5:00
  and
• 5:01
  then
• 5:01
  go
• 5:01
  lean
• 5:01
  on
• 5:02
  modular,
• 5:02
  flexible
• 5:03
  partners
• 5:03
  who
• 5:04
  are
• 5:04
  leading
• 5:04
  edge
• 5:05
  in
• 5:05
  the
• 5:05
  thing
• 5:05
  that
• 5:05
  they
• 5:05
  do.
• 5:06
  So
• 5:06
  if
• 5:06
  I
• 5:06
  interpret
• 5:06
  what
• 5:06
  you
• 5:06
  say
• 5:07
  you're
• 5:07
  saying,
• 5:07
  you're
• 5:07
  really
• 5:07
  focused
• 5:08
  on
• 5:08
  the
• 5:08
  architecture
• 5:09
  of
• 5:09
  how
• 5:09
  you're
• 5:09
  going
• 5:09
  to
• 5:10
  do
• 5:10
  this
• 5:11
  retail
• 5:11
  media
• 5:11
  business
• 5:12
  at
• 5:12
  Costco.
• 5:12
  Yeah,
• 5:13
  absolutely.
• 5:13
  And
• 5:13
  I
• 5:13
  think
• 5:14
  the
• 5:14
  past
• 5:14
  would
• 5:14
  have
• 5:14
  been
• 5:14
  more
• 5:15
  like
• 5:15
  set
• 5:15
  it
• 5:15
  and
• 5:15
  forget
• 5:15
  it.
• 5:16
  You
• 5:17
  find
• 5:17
  a
• 5:17
  partner,
• 5:17
  you
• 5:17
  negotiate
• 5:18
  terms,
• 5:19
  you
• 5:19
  give
• 5:19
  them
• 5:20
  license
• 5:20
  to
• 5:20
  certain
• 5:20
  data
• 5:21
  or
• 5:21
  certain
• 5:21
  spots
• 5:21
  on
• 5:22
  a
• 5:22
  website,
• 5:22
  and
• 5:22
  then
• 5:22
  they
• 5:23
  send
• 5:23
  you
• 5:23
  a
• 5:23
  check
• 5:23
  at
• 5:23
  the
• 5:23
  end
• 5:24
  of
• 5:24
  every
• 5:24
  month
• 5:24
  as
• 5:25
  your
• 5:25
  revenue
• 5:25
  share.
• 5:25
  But
• 5:26
  you
• 5:26
  could
• 5:26
  run
• 5:26
  that,
• 5:27
  you
• 5:27
  could
• 5:27
  run
• 5:27
  that
• 5:27
  business
• 5:28
  with
• 5:28
  one
• 5:28
  person
• 5:28
  or
• 5:29
  a
• 5:29
  handful
• 5:29
  of
• 5:29
  people
• 5:30
  and
• 5:30
  that
• 5:31
  can
• 5:31
  work.
• 5:31
  But
• 5:32
  I
• 5:32
  think
• 5:32
  the
• 5:32
  idea
• 5:32
  though
• 5:33
  is
• 5:33
  like
• 5:33
  the
• 5:33
  architecture
• 5:34
  matters
• 5:34
  because
• 5:34
  if
• 5:35
  we
• 5:35
  want
• 5:35
  to
• 5:35
  be
• 5:35
  more
• 5:35
  in
• 5:35
  control
• 5:36
  and
• 5:36
  have
• 5:36
  more
• 5:36
  ownership
• 5:37
  and
• 5:38
  do
• 5:38
  the
• 5:38
  things
• 5:38
  that
• 5:38
  we
• 5:39
  should
• 5:39
  do,
• 5:39
  that
• 5:39
  is
• 5:40
  a
• 5:40
  much
• 5:40
  more
• 5:40
  deliberate,
• 5:41
  purpose
• 5:41
  built
• 5:42
  decision.
• 5:42
  So
• 5:42
  that's
• 5:42
  what
• 5:43
  we're
• 5:43
  doing
• 5:43
  at
• 5:43
  Costco
• 5:43
  for
• 5:44
  sure.
• 5:44
  Because
• 5:45
  as
• 5:45
  we
• 5:46
  were
• 5:46
  mentioning
• 5:46
  earlier,
• 5:47
  it
• 5:48
  is
• 5:48
  essential
• 5:49
  that
• 5:49
  our
• 5:50
  retail
• 5:50
  media
• 5:50
  program
• 5:51
  reflect
• 5:52
  our
• 5:52
  core
• 5:52
  member
• 5:53
  value
• 5:53
  proposition.
• 5:53
  Good
• 5:54
  stuff.
• 5:54
  Mark,
• 5:55
  how
• 5:55
  are
• 5:55
  you
• 5:55
  set
• 5:56
  up
• 5:56
  in
• 5:56
  your,
• 5:57
  how
• 5:57
  is
• 5:57
  retail
• 5:57
  media
• 5:58
  set
• 5:58
  up
• 5:58
  at
• 5:58
  Costco,
• 5:59
  specifically?
• 6:00
  Like,
• 6:00
  how
• 6:00
  close
• 6:01
  is
• 6:01
  merchandising
• 6:02
  involved
• 6:03
  in
• 6:03
  your
• 6:04
  team?
• 6:04
  Like,
• 6:04
  is
• 6:04
  it
• 6:04
  a
• 6:05
  media
• 6:05
  organization
• 6:06
  and
• 6:06
  a
• 6:06
  merchandising
• 6:07
  organization
• 6:07
  or
• 6:08
  where
• 6:08
  are
• 6:08
  the
• 6:09
  lines
• 6:09
  there?
• 6:09
  Yeah.
• 6:10
  So
• 6:10
  currently
• 6:10
  my
• 6:10
  team
• 6:10
  is
• 6:11
  organized
• 6:11
  under
• 6:12
  our
• 6:12
  membership
• 6:12
  and
• 6:12
  marketing
• 6:13
  team.
• 6:13
  So
• 6:13
  we
• 6:14
  would
• 6:14
  be
• 6:14
  in
• 6:14
  a
• 6:15
  traditional
• 6:15
  kind
• 6:15
  of
• 6:15
  corporate
• 6:16
  marketing
• 6:16
  role.
• 6:17
  But
• 6:18
  we
• 6:18
  have
• 6:18
  been
• 6:18
  very,
• 6:20
  we've
• 6:20
  been
• 6:20
  adamant
• 6:21
  that
• 6:21
  retail
• 6:21
  media
• 6:22
  needs
• 6:22
  to
• 6:22
  be
• 6:22
  organized
• 6:23
  horizontally
• 6:23
  across
• 6:24
  our
• 6:24
  business.
• 6:24
  Okay.
• 6:25
  So
• 6:25
  the
• 6:25
  reporting
• 6:25
  relationships
• 6:26
  and
• 6:26
  dotted
• 6:26
  lines
• 6:27
  and
• 6:27
  solid
• 6:27
  lines,
• 6:27
  that
• 6:28
  sort
• 6:28
  of
• 6:28
  thing,
• 6:28
  like
• 6:28
  I'm
• 6:29
  not
• 6:29
  too
• 6:29
  concerned
• 6:29
  with,
• 6:30
  but
• 6:31
  the,
• 6:31
  the
• 6:31
  only
• 6:32
  value
• 6:32
  that
• 6:32
  we
• 6:32
  can
• 6:33
  generate
• 6:33
  and
• 6:33
  then
• 6:34
  go
• 6:34
  and
• 6:34
  offer
• 6:35
  to
• 6:35
  the
• 6:35
  general
• 6:36
  marketplace
• 6:37
  is
• 6:37
  if,
• 6:38
  is
• 6:39
  if
• 6:39
  we
• 6:39
  are
• 6:39
  capturing
• 6:40
  the
• 6:40
  full
• 6:40
  value
• 6:40
  of
• 6:40
  the
• 6:41
  Costco
• 6:41
  experience.
• 6:42
  And
• 6:42
  that's
• 6:42
  where
• 6:42
  merchants
• 6:43
  and
• 6:43
  operators
• 6:43
  come
• 6:43
  in.
• 6:44
  And
• 6:44
  so
• 6:45
  I've
• 6:45
  definitely
• 6:45
  done
• 6:45
  this
• 6:46
  in
• 6:46
  the
• 6:46
  past
• 6:46
  where
• 6:46
  you
• 6:46
  kind
• 6:46
  of
• 6:47
  work
• 6:47
  around
• 6:47
  merchants
• 6:48
  because
• 6:48
  they
• 6:48
  don't
• 6:48
  necessarily
• 6:49
  understand
• 6:49
  marketing
• 6:49
  and
• 6:50
  media,
• 6:50
  they
• 6:50
  don't
• 6:50
  have
• 6:50
  the
• 6:50
  time
• 6:51
  for
• 6:51
  it.
• 6:52
  And,
• 6:52
  and,
• 6:53
  and
• 6:53
  it
• 6:53
  can
• 6:53
  definitely
• 6:54
  be
• 6:54
  easier
• 6:54
  to
• 6:54
  do
• 6:54
  it
• 6:55
  that
• 6:55
  way.
• 6:55
  But
• 6:55
  we
• 6:56
  are
• 6:56
  Working
• 6:56
  very
• 6:56
  hard
• 6:56
  to
• 6:57
  make
• 6:57
  sure
• 6:57
  that
• 6:57
  our
• 6:57
  merchandising
• 6:58
  and
• 6:58
  our
• 6:58
  marketing
• 6:59
  and
• 6:59
  our
• 6:59
  retail
• 6:59
  media
• 6:59
  are
• 7:00
  closely
• 7:00
  aligned.
• 7:01
  Because
• 7:02
  the
• 7:02
  way
• 7:02
  that
• 7:02
  I
• 7:02
  would
• 7:03
  describe
• 7:03
  it
• 7:03
  is
• 7:03
  I've
• 7:03
  been
• 7:03
  reminded
• 7:04
  multiple
• 7:04
  times
• 7:04
  by
• 7:05
  our
• 7:05
  chief
• 7:05
  merchant,
• 7:06
  selling
• 7:07
  through
• 7:07
  supply
• 7:08
  quicker
• 7:09
  doesn't
• 7:09
  necessarily
• 7:10
  represent
• 7:11
  incremental
• 7:11
  growth
• 7:12
  for
• 7:12
  us.
• 7:12
  Right.
• 7:13
  And
• 7:13
  so
• 7:13
  the
• 7:13
  buying
• 7:14
  decisions
• 7:14
  have
• 7:14
  to
• 7:14
  be
• 7:15
  correlated
• 7:15
  with
• 7:15
  the
• 7:16
  marketing
• 7:16
  and
• 7:16
  the
• 7:16
  retail
• 7:17
  media
• 7:17
  decisions.
• 7:18
  Because
• 7:18
  if
• 7:18
  we're
• 7:18
  going
• 7:18
  to
• 7:19
  do
• 7:19
  our
• 7:19
  job
• 7:19
  to
• 7:19
  drive
• 7:19
  incremental
• 7:20
  demand,
• 7:21
  then
• 7:21
  that
• 7:21
  means
• 7:21
  that
• 7:22
  we
• 7:22
  probably
• 7:22
  should
• 7:22
  have
• 7:22
  some
• 7:22
  incremental
• 7:23
  supply.
• 7:24
  And
• 7:24
  that
• 7:24
  means
• 7:24
  that
• 7:24
  we
• 7:25
  have
• 7:25
  to
• 7:25
  be
• 7:25
  lockstep
• 7:25
  with
• 7:25
  our
• 7:26
  merchants.
• 7:26
  Yeah,
• 7:26
  we
• 7:27
  have
• 7:27
  a
• 7:27
  very
• 7:27
  unique
• 7:27
  merchandising
• 7:29
  strategy
• 7:29
  and
• 7:30
  assortment
• 7:30
  where
• 7:31
  we
• 7:32
  do
• 7:32
  a
• 7:32
  lot
• 7:32
  of
• 7:32
  in
• 7:32
  and
• 7:32
  outs.
• 7:33
  Right.
• 7:33
  We
• 7:33
  have
• 7:33
  usually
• 7:34
  one
• 7:34
  national
• 7:34
  brand
• 7:34
  and
• 7:35
  then
• 7:35
  we
• 7:35
  have
• 7:35
  Kirkland
• 7:35
  Signature.
• 7:36
  Right.
• 7:36
  And
• 7:36
  so
• 7:37
  we'll,
• 7:37
  we'll
• 7:37
  be
• 7:38
  disappointing
• 7:38
  our
• 7:38
  members
• 7:39
  if
• 7:39
  we
• 7:39
  are.
• 7:40
  If
• 7:40
  we're
• 7:40
  promoting
• 7:40
  items
• 7:41
  that
• 7:41
  don't
• 7:41
  have
• 7:42
  sufficient
• 7:42
  supply
• 7:42
  to
• 7:42
  meet
• 7:42
  demand.
• 7:43
  And
• 7:43
  you
• 7:43
  have
• 7:44
  individual,
• 7:44
  like
• 7:45
  regional
• 7:45
  buying
• 7:45
  offices.
• 7:46
  Right.
• 7:46
  So
• 7:47
  you're
• 7:47
  not,
• 7:47
  you're
• 7:47
  not
• 7:47
  doing
• 7:48
  one
• 7:48
  central
• 7:48
  buying
• 7:49
  office
• 7:49
  and
• 7:49
  different
• 7:50
  products
• 7:50
  are
• 7:50
  in
• 7:50
  different,
• 7:51
  are
• 7:51
  tested
• 7:51
  in
• 7:51
  different
• 7:52
  markets.
• 7:52
  Absolutely.
• 7:53
  So
• 7:53
  like
• 7:53
  on
• 7:53
  average
• 7:53
  we
• 7:53
  have
• 7:54
  about
• 7:54
  35
• 7:54
  to
• 7:54
  4,500
• 7:55
  SKUs
• 7:56
  in
• 7:56
  any
• 7:56
  one
• 7:57
  warehouse.
• 7:57
  But
• 7:58
  at
• 7:58
  any,
• 7:58
  we
• 7:58
  may
• 7:58
  have
• 7:59
  40
• 7:59
  to
• 7:59
  50
• 8:00
  items
• 8:00
  in
• 8:00
  our
• 8:00
  portfolio
• 8:01
  because
• 8:01
  there
• 8:01
  is
• 8:02
  so
• 8:02
  much
• 8:02
  regional
• 8:02
  buying.
• 8:04
  Where
• 8:04
  do
• 8:04
  you
• 8:04
  see
• 8:05
  this
• 8:05
  going?
• 8:06
  And
• 8:06
  especially
• 8:06
  I'm
• 8:07
  curious,
• 8:07
  like,
• 8:07
  how
• 8:08
  do
• 8:08
  you
• 8:08
  feel,
• 8:08
  like
• 8:08
  you
• 8:09
  mentioned,
• 8:09
  there's
• 8:09
  a
• 8:09
  new
• 8:10
  media
• 8:10
  retail
• 8:10
  media
• 8:11
  network
• 8:11
  coming
• 8:11
  up
• 8:11
  every
• 8:11
  day.
• 8:12
  How
• 8:12
  is
• 8:12
  Costco?
• 8:13
  Do
• 8:13
  you
• 8:13
  feel
• 8:14
  uniquely
• 8:14
  positioned
• 8:15
  to
• 8:15
  kind
• 8:15
  of
• 8:15
  win
• 8:16
  in
• 8:16
  this
• 8:16
  space,
• 8:17
  especially
• 8:17
  as
• 8:17
  we
• 8:17
  head
• 8:18
  into
• 8:18
  the
• 8:18
  new
• 8:18
  year?
• 8:19
  So
• 8:20
  I
• 8:20
  think
• 8:20
  time
• 8:21
  will
• 8:21
  tell
• 8:21
  what
• 8:21
  it
• 8:22
  looks
• 8:22
  like.
• 8:23
  Fair
• 8:23
  answer.
• 8:23
  It's
• 8:24
  a
• 8:24
  common
• 8:24
  question
• 8:24
  that
• 8:24
  I
• 8:24
  get
• 8:25
  is
• 8:25
  how
• 8:25
  high
• 8:25
  is
• 8:25
  high,
• 8:26
  how
• 8:26
  much
• 8:26
  headroom
• 8:27
  is
• 8:27
  there?
• 8:27
  What
• 8:28
  I
• 8:28
  look
• 8:28
  at
• 8:28
  and
• 8:28
  say
• 8:29
  retail
• 8:30
  media
• 8:30
  is
• 8:30
  not
• 8:30
  greater
• 8:31
  than
• 8:31
  the
• 8:31
  Costco
• 8:32
  story.
• 8:33
  Our
• 8:33
  merchandise
• 8:34
  tells
• 8:34
  the
• 8:34
  story
• 8:35
  and
• 8:35
  then
• 8:36
  our
• 8:36
  members
• 8:36
  react
• 8:37
  to
• 8:37
  that
• 8:37
  the
• 8:37
  way
• 8:37
  that
• 8:37
  they
• 8:37
  do.
• 8:38
  And
• 8:38
  if
• 8:39
  our
• 8:39
  buyers
• 8:39
  are
• 8:39
  doing
• 8:39
  what
• 8:40
  they've
• 8:40
  done
• 8:40
  for
• 8:40
  over
• 8:40
  40
• 8:41
  years
• 8:41
  and
• 8:41
  they're
• 8:41
  buying
• 8:41
  the
• 8:42
  highest
• 8:42
  quality
• 8:42
  item
• 8:43
  and
• 8:43
  they're
• 8:43
  putting
• 8:43
  at
• 8:43
  the
• 8:43
  lowest
• 8:44
  possible
• 8:44
  price,
• 8:45
  that's
• 8:45
  going
• 8:45
  to
• 8:45
  drive
• 8:46
  growth
• 8:46
  of
• 8:47
  our
• 8:47
  member
• 8:47
  base
• 8:48
  and
• 8:48
  growth
• 8:48
  of
• 8:48
  top
• 8:48
  line
• 8:49
  sales
• 8:49
  in
• 8:49
  perpetuity.
• 8:50
  That
• 8:50
  model
• 8:50
  works
• 8:51
  incredibly
• 8:51
  well.
• 8:52
  And
• 8:52
  we
• 8:52
  really
• 8:52
  challenge
• 8:52
  ourselves
• 8:53
  to
• 8:53
  say
• 8:53
  what
• 8:54
  role
• 8:54
  can
• 8:54
  retail
• 8:54
  media
• 8:55
  play
• 8:55
  in
• 8:55
  accelerating
• 8:56
  that
• 8:56
  growth
• 8:56
  or
• 8:56
  maybe
• 8:57
  driving
• 8:57
  growth
• 8:57
  in
• 8:58
  incremental
• 8:58
  ways
• 8:58
  that
• 9:00
  our
• 9:00
  base
• 9:00
  model
• 9:01
  otherwise
• 9:01
  could
• 9:01
  not
• 9:01
  do.
• 9:02
  So
• 9:02
  we
• 9:02
  look
• 9:03
  at
• 9:03
  leveraging
• 9:04
  data
• 9:05
  and
• 9:05
  advertising
• 9:06
  technology
• 9:06
  to
• 9:07
  find
• 9:07
  those
• 9:07
  pockets
• 9:07
  of
• 9:08
  growth.
• 9:08
  The
• 9:09
  example
• 9:09
  we
• 9:09
  give
• 9:09
  is
• 9:09
  generally
• 9:10
  we're
• 9:10
  really
• 9:11
  good
• 9:11
  net
• 9:11
  fishers.
• 9:12
  We
• 9:12
  do
• 9:12
  a
• 9:12
  Lot
• 9:12
  of
• 9:12
  mass
• 9:12
  merchandising,
• 9:13
  a
• 9:13
  lot
• 9:13
  of
• 9:13
  mass
• 9:14
  communication.
• 9:14
  And
• 9:15
  because
• 9:15
  our
• 9:16
  merchants
• 9:16
  and
• 9:16
  operators
• 9:16
  are
• 9:17
  so
• 9:17
  good
• 9:17
  at
• 9:17
  what
• 9:17
  they
• 9:17
  do,
• 9:18
  we
• 9:18
  move
• 9:18
  through
• 9:18
  a
• 9:19
  lot
• 9:19
  of
• 9:19
  stuff,
• 9:19
  stuff
• 9:20
  a
• 9:20
  lot
• 9:20
  of
• 9:20
  volume.
• 9:21
  And
• 9:22
  we're
• 9:22
  looking
• 9:22
  at
• 9:22
  retail
• 9:23
  media.
• 9:23
  Can
• 9:23
  we
• 9:23
  be
• 9:23
  more
• 9:23
  spear
• 9:24
  fishers?
• 9:24
  Can
• 9:24
  we
• 9:25
  find
• 9:25
  those
• 9:25
  fish
• 9:26
  that
• 9:26
  are,
• 9:26
  are
• 9:26
  beyond
• 9:26
  our
• 9:27
  nets?
• 9:27
  Put
• 9:28
  the
• 9:28
  right
• 9:28
  kind
• 9:28
  of
• 9:28
  the
• 9:29
  right
• 9:29
  item,
• 9:29
  the
• 9:29
  right
• 9:29
  offer
• 9:30
  in
• 9:30
  front
• 9:30
  of
• 9:30
  them
• 9:30
  to
• 9:30
  drive
• 9:31
  incremental
• 9:31
  demand.
• 9:32
  So
• 9:32
  that's
• 9:32
  what
• 9:33
  we
• 9:33
  really
• 9:33
  get
• 9:33
  the
• 9:33
  most
• 9:33
  excited
• 9:34
  about.
• 9:34
  But
• 9:34
  whatever
• 9:34
  we
• 9:35
  do
• 9:35
  will
• 9:36
  be
• 9:36
  in
• 9:36
  service
• 9:36
  to
• 9:36
  the
• 9:37
  Costco
• 9:37
  model
• 9:38
  because
• 9:38
  there's
• 9:38
  a
• 9:38
  lot
• 9:38
  we
• 9:39
  could
• 9:39
  get,
• 9:39
  we
• 9:39
  could
• 9:39
  get
• 9:39
  into
• 9:39
  data
• 9:40
  monetization,
• 9:40
  we
• 9:40
  can
• 9:40
  get
• 9:41
  into
• 9:41
  audience
• 9:41
  monetization.
• 9:42
  There's
• 9:42
  other
• 9:42
  things
• 9:42
  that
• 9:43
  other
• 9:43
  retailers
• 9:43
  are
• 9:43
  doing
• 9:44
  that
• 9:44
  would
• 9:44
  be
• 9:44
  financially
• 9:45
  advantageous
• 9:46
  pages
• 9:46
  for
• 9:46
  us,
• 9:47
  but
• 9:47
  would
• 9:47
  be
• 9:48
  too
• 9:48
  far
• 9:48
  away
• 9:49
  from
• 9:49
  our
• 9:49
  core
• 9:50
  business
• 9:50
  model.
• 9:51
  So
• 9:52
  like
• 9:52
  there
• 9:52
  may
• 9:52
  be,
• 9:53
  people
• 9:53
  think,
• 9:53
  hey,
• 9:53
  Costco
• 9:54
  has
• 9:54
  grown
• 9:55
  and,
• 9:56
  and
• 9:56
  retail
• 9:56
  media,
• 9:56
  Costco
• 9:57
  is
• 9:57
  great,
• 9:57
  but
• 9:57
  it
• 9:57
  could
• 9:58
  do
• 9:58
  more.
• 9:58
  That
• 9:59
  might
• 9:59
  be
• 9:59
  where
• 9:59
  we
• 9:59
  say,
• 9:59
  hey,
• 10:00
  you
• 10:00
  know
• 10:00
  what,
• 10:00
  that's
• 10:00
  enough.
• 10:00
  Yeah,
• 10:01
  we've
• 10:01
  done
• 10:01
  what
• 10:01
  we
• 10:01
  set
• 10:01
  out
• 10:02
  to
• 10:02
  do.
• 10:02
  Right.
• 10:02
  Interesting.
• 10:03
  The
• 10:03
  concept
• 10:03
  of
• 10:03
  velocity
• 10:04
  and
• 10:04
  the
• 10:04
  business
• 10:04
  model
• 10:05
  are
• 10:05
  really,
• 10:05
  really
• 10:05
  intriguing.
• 10:06
  I've
• 10:06
  never
• 10:06
  thought
• 10:06
  about
• 10:06
  that
• 10:07
  before.
• 10:07
  So
• 10:07
  would
• 10:08
  you
• 10:08
  think
• 10:08
  then
• 10:08
  that
• 10:09
  retail
• 10:09
  media
• 10:10
  will
• 10:10
  evolve
• 10:10
  differently
• 10:11
  in
• 10:11
  the
• 10:11
  warehouse
• 10:11
  sector
• 10:12
  because
• 10:12
  of
• 10:12
  that
• 10:12
  than
• 10:13
  say
• 10:13
  grocery
• 10:13
  or
• 10:14
  how
• 10:14
  do
• 10:14
  you
• 10:14
  think
• 10:14
  about
• 10:14
  that?
• 10:15
  I
• 10:15
  think
• 10:15
  it's
• 10:15
  entirely
• 10:16
  possible
• 10:16
  because
• 10:16
  of
• 10:16
  the
• 10:16
  curated
• 10:17
  assortment.
• 10:17
  There's
• 10:18
  already
• 10:18
  some
• 10:18
  nuances.
• 10:18
  There's
• 10:19
  club
• 10:19
  packaging,
• 10:20
  there's,
• 10:21
  I
• 10:22
  mentioned
• 10:22
  the
• 10:22
  in
• 10:22
  and
• 10:22
  outs
• 10:22
  and
• 10:23
  there's,
• 10:23
  there's
• 10:23
  not
• 10:23
  the
• 10:24
  variety.
• 10:24
  Like
• 10:24
  we
• 10:24
  don't
• 10:24
  have
• 10:24
  category
• 10:25
  managers
• 10:25
  who
• 10:25
  are
• 10:26
  looking
• 10:26
  at
• 10:26
  a
• 10:26
  variety
• 10:26
  of
• 10:27
  sizes
• 10:27
  and
• 10:27
  flavors.
• 10:28
  They're,
• 10:29
  they're
• 10:29
  picking,
• 10:30
  you
• 10:30
  know,
• 10:30
  the
• 10:30
  best
• 10:31
  possible
• 10:31
  item
• 10:31
  for
• 10:31
  the
• 10:31
  men.
• 10:31
  Things
• 10:32
  to
• 10:32
  move
• 10:32
  quickly
• 10:32
  already.
• 10:33
  Absolutely.
• 10:33
  But
• 10:33
  like
• 10:34
  from
• 10:34
  a
• 10:34
  supplier
• 10:34
  perspective
• 10:35
  or
• 10:35
  if
• 10:35
  you're
• 10:36
  a
• 10:36
  brand
• 10:36
  or
• 10:36
  an
• 10:36
  agency,
• 10:37
  if
• 10:37
  you
• 10:37
  can
• 10:37
  drive
• 10:38
  conversion
• 10:38
  at
• 10:38
  Costco,
• 10:39
  you're
• 10:39
  basically,
• 10:40
  you're
• 10:41
  basically
• 10:41
  moving
• 10:42
  so
• 10:42
  much
• 10:42
  volume
• 10:42
  in
• 10:42
  one
• 10:43
  transaction.
• 10:44
  And
• 10:44
  so
• 10:44
  the
• 10:44
  return
• 10:44
  on
• 10:44
  ad
• 10:45
  spend
• 10:45
  is
• 10:45
  actually
• 10:45
  quite
• 10:45
  attractive.
• 10:46
  Where
• 10:46
  you
• 10:47
  can
• 10:47
  get
• 10:47
  one
• 10:48
  purchase
• 10:48
  is
• 10:48
  three
• 10:49
  months
• 10:49
  of
• 10:49
  usage
• 10:49
  or,
• 10:51
  and
• 10:51
  then,
• 10:51
  and
• 10:51
  then
• 10:51
  that
• 10:52
  helps
• 10:52
  in,
• 10:52
  you
• 10:52
  know,
• 10:52
  kind
• 10:52
  of
• 10:53
  like
• 10:53
  from
• 10:53
  a
• 10:53
  lifetime
• 10:53
  value
• 10:53
  perspective,
• 10:54
  not
• 10:54
  to
• 10:55
  mention
• 10:55
  loyalty
• 10:55
  side
• 10:56
  of
• 10:56
  things.
• 10:56
  Yeah,
• 10:56
  not
• 10:56
  to
• 10:56
  mention,
• 10:57
  you
• 10:57
  know,
• 10:57
  from
• 10:57
  a
• 10:57
  traceable
• 10:57
  transaction
• 10:58
  perspective
• 10:58
  being
• 10:59
  able
• 10:59
  to
• 10:59
  do
• 10:59
  closed
• 10:59
  loop
• 11:00
  measurement
• 11:00
  a
• 11:00
  lot
• 11:00
  easier
• 11:01
  than
• 11:01
  some
• 11:01
  other
• 11:02
  retailers
• 11:02
  are
• 11:02
  able
• 11:02
  to
• 11:03
  do.
• 11:03
  But
• 11:03
  that,
• 11:03
  that
• 11:03
  gives
• 11:04
  us
• 11:04
  the
• 11:04
  opportunity
• 11:04
  to
• 11:05
  put
• 11:05
  the
• 11:05
  most
• 11:06
  relevant
• 11:06
  messaging
• 11:06
  in
• 11:07
  front
• 11:07
  of
• 11:07
  our
• 11:07
  members,
• 11:07
  help
• 11:08
  them
• 11:08
  discover
• 11:09
  the
• 11:09
  best
• 11:09
  items
• 11:10
  that
• 11:10
  they'd
• 11:10
  be
• 11:10
  most
• 11:10
  interested
• 11:11
  in
• 11:11
  and
• 11:12
  that's
• 11:12
  it.
• 11:12
  Like
• 11:12
  we
• 11:12
  are,
• 11:12
  we're
• 11:13
  holding
• 11:13
  ourselves
• 11:13
  to
• 11:13
  a
• 11:13
  Very
• 11:14
  high
• 11:14
  standard
• 11:14
  to
• 11:14
  make
• 11:14
  sure
• 11:14
  that
• 11:14
  we
• 11:15
  are
• 11:15
  complementary
• 11:16
  to
• 11:16
  the
• 11:16
  discovery
• 11:17
  and
• 11:17
  the
• 11:17
  treasure
• 11:18
  hunt
• 11:18
  process
• 11:18
  which
• 11:18
  is
• 11:19
  endemic
• 11:19
  to
• 11:19
  the
• 11:19
  Costco
• 11:20
  experience.
• 11:20
  That's
• 11:20
  what
• 11:20
  I'm
• 11:20
  picking
• 11:21
  up.
• 11:21
  Like
• 11:21
  if
• 11:21
  I
• 11:21
  read
• 11:21
  between
• 11:22
  the
• 11:22
  lines,
• 11:22
  are
• 11:22
  you
• 11:22
  saying
• 11:22
  that
• 11:22
  too
• 11:22
  that
• 11:23
  there's
• 11:23
  probably
• 11:23
  an
• 11:23
  opportunity
• 11:23
  for
• 11:23
  an
• 11:24
  expanded
• 11:24
  assortment
• 11:25
  online
• 11:25
  to
• 11:26
  play
• 11:26
  up
• 11:26
  with
• 11:26
  the
• 11:27
  retail
• 11:27
  media
• 11:27
  side
• 11:27
  from
• 11:28
  the
• 11:28
  advertising
• 11:28
  standpoint
• 11:28
  or
• 11:29
  how
• 11:29
  should
• 11:29
  we
• 11:29
  think?
• 11:29
  How
• 11:30
  should
• 11:30
  we
• 11:30
  think
• 11:30
  about
• 11:30
  that?
• 11:30
  How
• 11:31
  should
• 11:31
  our
• 11:31
  audience
• 11:31
  think
• 11:31
  about
• 11:31
  that?
• 11:31
  I
• 11:32
  mean
• 11:32
  it's
• 11:32
  possible.
• 11:32
  So
• 11:32
  we
• 11:32
  already
• 11:33
  have
• 11:33
  like
• 11:33
  our
• 11:34
  E
• 11:34
  Comm
• 11:34
  strategy
• 11:34
  is
• 11:35
  to
• 11:35
  be
• 11:35
  complementary
• 11:36
  to
• 11:36
  the
• 11:36
  warehouse.
• 11:36
  You're
• 11:37
  already
• 11:37
  doing
• 11:37
  that,
• 11:37
  right?
• 11:37
  Yeah,
• 11:38
  there
• 11:38
  is,
• 11:39
  but
• 11:39
  it's
• 11:39
  still
• 11:39
  curated.
• 11:40
  So
• 11:40
  like
• 11:40
  this
• 11:40
  idea
• 11:40
  of
• 11:41
  like
• 11:41
  a
• 11:41
  Costco's
• 11:42
  promise
• 11:42
  and
• 11:42
  like
• 11:42
  an
• 11:43
  endless
• 11:43
  aisle,
• 11:44
  a
• 11:44
  kind
• 11:44
  of
• 11:44
  open
• 11:44
  ended
• 11:45
  marketplace,
• 11:45
  I
• 11:45
  don't
• 11:45
  think
• 11:45
  we'll
• 11:46
  ever
• 11:46
  be
• 11:46
  in
• 11:46
  our
• 11:46
  future.
• 11:47
  But
• 11:47
  we
• 11:47
  do
• 11:47
  see
• 11:48
  an
• 11:48
  opportunity
• 11:48
  like
• 11:49
  if
• 11:49
  you're
• 11:49
  an
• 11:49
  online
• 11:50
  only
• 11:50
  item.
• 11:51
  And
• 11:51
  a
• 11:51
  lot
• 11:51
  of
• 11:51
  our
• 11:52
  marketing
• 11:52
  thrust
• 11:53
  is
• 11:53
  more
• 11:54
  in
• 11:54
  print
• 11:54
  channels
• 11:54
  or
• 11:55
  in
• 11:55
  the
• 11:55
  warehouse
• 11:55
  experience,
• 11:56
  like
• 11:56
  being
• 11:56
  able
• 11:56
  to
• 11:57
  replicate
• 11:57
  that
• 11:57
  process
• 11:58
  of
• 11:58
  discovery
• 11:58
  is
• 11:58
  very
• 11:58
  important.
• 11:59
  And
• 11:59
  so
• 11:59
  we
• 12:00
  are
• 12:00
  definitely
• 12:00
  looking
• 12:00
  for
• 12:00
  ways
• 12:01
  to
• 12:01
  utilize
• 12:02
  best
• 12:02
  practices
• 12:03
  in
• 12:03
  retail
• 12:03
  media
• 12:04
  to
• 12:04
  make
• 12:04
  sure
• 12:04
  that
• 12:04
  all
• 12:04
  of
• 12:05
  our
• 12:05
  suppliers
• 12:05
  have
• 12:05
  the
• 12:05
  opportunity
• 12:06
  to
• 12:06
  reach
• 12:06
  the
• 12:06
  right
• 12:06
  member.
• 12:07
  Makes
• 12:07
  sense.
• 12:07
  Great.
• 12:08
  Mark,
• 12:09
  let's
• 12:09
  close
• 12:09
  out
• 12:09
  with
• 12:10
  what
• 12:10
  you
• 12:11
  are
• 12:11
  going
• 12:11
  to
• 12:12
  prioritize
• 12:12
  for
• 12:13
  2025.
• 12:14
  So
• 12:15
  we
• 12:15
  are
• 12:15
  prioritizing
• 12:16
  our,
• 12:16
  I
• 12:17
  say
• 12:17
  our
• 12:17
  data
• 12:17
  foundations.
• 12:18
  Okay,
• 12:19
  tell
• 12:19
  us
• 12:19
  a
• 12:19
  little
• 12:19
  bit
• 12:19
  more
• 12:20
  about
• 12:20
  that.
• 12:20
  Yeah,
• 12:20
  so
• 12:20
  we,
• 12:22
  when
• 12:22
  I,
• 12:22
  when
• 12:22
  I
• 12:22
  assess
• 12:23
  the
• 12:23
  opportunity
• 12:23
  to
• 12:23
  join
• 12:24
  Costco
• 12:24
  and
• 12:24
  to
• 12:24
  join,
• 12:25
  to
• 12:25
  do
• 12:25
  this,
• 12:25
  to
• 12:26
  do
• 12:26
  this
• 12:26
  job,
• 12:26
  like
• 12:27
  it's
• 12:27
  easy
• 12:27
  to
• 12:27
  look
• 12:27
  at
• 12:28
  and
• 12:28
  say
• 12:28
  Costco
• 12:28
  has
• 12:29
  all
• 12:29
  of
• 12:29
  the
• 12:29
  elements
• 12:30
  required
• 12:30
  to
• 12:30
  succeed
• 12:30
  at
• 12:31
  retail
• 12:31
  media.
• 12:31
  There's
• 12:32
  data,
• 12:32
  there's
• 12:33
  traceable
• 12:33
  transactions,
• 12:33
  there's
• 12:34
  high
• 12:34
  brand
• 12:35
  equity
• 12:35
  and
• 12:35
  affinity.
• 12:36
  There's
• 12:37
  growth
• 12:37
  in
• 12:37
  terms
• 12:38
  of
• 12:38
  the
• 12:38
  member
• 12:39
  base
• 12:39
  and
• 12:40
  a
• 12:40
  merchandise
• 12:40
  sales
• 12:41
  and
• 12:41
  of
• 12:41
  warehouses.
• 12:44
  We
• 12:44
  have
• 12:45
  site
• 12:45
  traffic,
• 12:45
  we
• 12:45
  have
• 12:45
  scale,
• 12:46
  we
• 12:46
  have
• 12:46
  great
• 12:47
  relationships
• 12:47
  with
• 12:47
  our
• 12:47
  vendors.
• 12:49
  Everything
• 12:49
  is
• 12:49
  there.
• 12:50
  But
• 12:50
  what
• 12:50
  we've
• 12:50
  really
• 12:51
  focused
• 12:51
  on
• 12:51
  is
• 12:51
  making
• 12:51
  sure
• 12:51
  that
• 12:52
  whatever
• 12:52
  we
• 12:52
  build
• 12:52
  from
• 12:53
  here,
• 12:53
  whatever
• 12:54
  we
• 12:54
  want
• 12:54
  to
• 12:54
  own,
• 12:54
  whatever
• 12:54
  we
• 12:55
  want
• 12:55
  to
• 12:55
  control
• 12:55
  or
• 12:55
  whatever
• 12:56
  we
• 12:56
  want
• 12:56
  to
• 12:56
  drive,
• 12:57
  that
• 12:57
  it
• 12:57
  is
• 12:57
  built
• 12:57
  on
• 12:58
  a
• 12:58
  solid
• 12:58
  foundation
• 12:59
  of
• 12:59
  all
• 12:59
  of
• 12:59
  the,
• 13:00
  all
• 13:00
  of
• 13:00
  the
• 13:00
  data
• 13:01
  that
• 13:01
  we
• 13:01
  have
• 13:01
  available.
• 13:02
  And
• 13:02
  we
• 13:02
  don't
• 13:02
  think
• 13:02
  that
• 13:03
  we
• 13:03
  can
• 13:03
  put
• 13:04
  relevant
• 13:04
  messaging
• 13:05
  in
• 13:05
  front
• 13:05
  of
• 13:05
  our
• 13:05
  members.
• 13:05
  If
• 13:06
  we
• 13:06
  don't
• 13:06
  do
• 13:06
  that,
• 13:07
  they
• 13:07
  trust
• 13:07
  us
• 13:07
  a
• 13:08
  lot,
• 13:08
  not
• 13:08
  only
• 13:08
  be
• 13:09
  their
• 13:09
  buying
• 13:09
  agents,
• 13:09
  but
• 13:10
  also
• 13:10
  to
• 13:10
  help
• 13:11
  them
• 13:11
  discover
• 13:11
  the
• 13:11
  right
• 13:11
  items.
• 13:12
  And
• 13:12
  so
• 13:13
  we're
• 13:14
  moving
• 13:14
  forward
• 13:14
  very
• 13:15
  cautiously
• 13:16
  and
• 13:16
  making
• 13:16
  sure
• 13:16
  that
• 13:17
  we
• 13:17
  have
• 13:17
  our
• 13:17
  data
• 13:18
  foundations
• 13:18
  and
• 13:18
  place
• 13:19
  and
• 13:19
  then
• 13:19
  a
• 13:19
  lot
• 13:20
  of
• 13:20
  innovation
• 13:20
  will
• 13:20
  happen
• 13:20
  on
• 13:21
  top.
• 13:21
  Of
• 13:21
  that
• 13:21
  it's
• 13:22
  a
• 13:22
  great,
• 13:22
  great
• 13:22
  answer.
• 13:23
  The
• 13:23
  best
• 13:23
  it's
• 13:24
  our
• 13:24
  opinion
• 13:24
  and
• 13:24
  in
• 13:24
  my
• 13:25
  eyes
• 13:25
  both
• 13:25
  that
• 13:25
  the
• 13:25
  best
• 13:25
  retail
• 13:26
  leaders,
• 13:26
  whenever
• 13:26
  we
• 13:26
  ask
• 13:26
  them
• 13:27
  what
• 13:27
  their
• 13:27
  priorities
• 13:27
  are,
• 13:27
  the
• 13:28
  best
• 13:28
  ones
• 13:28
  always
• 13:28
  say
• 13:28
  data.
• 13:29
  So
• 13:29
  well,
• 13:29
  well,
• 13:30
  well
• 13:30
  done.
• 13:30
  The
• 13:31
  ones
• 13:31
  that
• 13:31
  really
• 13:31
  get
• 13:31
  the
• 13:31
  punchline
• 13:32
  to
• 13:32
  the
• 13:32
  joke.
• 13:32
  So
• 13:32
  kudos
• 13:32
  to
• 13:33
  you
• 13:33
  for
• 13:33
  that.
• 13:33
  All
• 13:34
  right,
• 13:34
  man.
• 13:34
  Mark,
• 13:34
  thank
• 13:34
  you
• 13:35
  so
• 13:35
  much
• 13:35
  for
• 13:35
  joining
• 13:35
  us.
• 13:36
  It's
• 13:36
  a
• 13:36
  real
• 13:36
  pleasure
• 13:36
  to
• 13:36
  have
• 13:37
  you
• 13:37
  to
• 13:37
  pick
• 13:37
  your
• 13:38
  brain
• 13:38
  about
• 13:38
  retail
• 13:39
  media
• 13:39
  and
• 13:39
  how
• 13:39
  it
• 13:40
  evolves
• 13:40
  in
• 13:41
  warehouse
• 13:41
  clubs
• 13:42
  versus
• 13:42
  grocery
• 13:42
  stores,
• 13:43
  the
• 13:43
  whole
• 13:43
  nine
• 13:43
  yards.
• 13:43
  So
• 13:44
  we
• 13:44
  really
• 13:44
  appreciate
• 13:44
  you
• 13:44
  taking
• 13:44
  the
• 13:45
  time
• 13:45
  time
• 13:45
  with
• 13:45
  us
• 13:45
  and
• 13:46
  thanks
• 13:46
  to
• 13:46
  Fusion
• 13:46
  Group
• 13:47
  for
• 13:47
  supporting
• 13:47
  our
• 13:47
  coverage
• 13:48
  here
• 13:48
  at
• 13:48
  nrf.
• 13:49
  We're
• 13:49
  at
• 13:50
  there
• 13:50
  they
• 13:50
  are.
• 13:50
  And
• 13:51
  we
• 13:51
  are
• 13:51
  both
• 13:51
  at
• 13:51
  booth
• 13:52
  4938.
• 13:52
  If
• 13:53
  you
• 13:53
  want
• 13:53
  to
• 13:53
  stop
• 13:53
  by,
• 13:53
  check
• 13:54
  out
• 13:54
  their
• 13:54
  tech.
• 13:54
  Say
• 13:55
  hello
• 13:55
  to
• 13:55
  us.
• 13:55
  We'll
• 13:55
  be
• 13:55
  here
• 13:56
  all
• 13:56
  show
• 13:56
  long.
• 13:56
  And
• 13:57
  until
• 13:57
  next
• 13:57
  time
• 13:58
  and
• 13:58
  be
• 13:58
  careful
• 13:58
  out
• 13:59
  there.