Omni Talk Retail: Fast Five – "AI Hits Black Friday, Amazon Tests 30-Minute Groceries & Walmart Adds Ads To Sparky"

Episode Date: December 3, 2025
Hosts: Chris Walton (B) & Anne Mezzenga (A)
Producer: Ella

Episode Overview

This week’s Omni Talk Retail Fast Five dives deep into the 2025 Black Friday results, the role of AI in retail, new ad models on Walmart’s Sparky engine, McKinsey’s prediction for smart glasses, and Amazon’s pilot of 30-minute grocery delivery. As always, Anne and Chris bring industry-insider perspectives, lively debate, and a data-driven lens to the biggest stories shaking up omnichannel retail.

Main Topics and Key Insights

1. Black Friday 2025: Digital Record & AI’s Role

[07:54–13:15]

• Headline: Online Black Friday sales reached a record $11.8B, up 9.1%. Mobile was 55% of purchases; Buy Now Pay Later (BNPL) almost $800M; AI-driven retail traffic up 805%.
• Chris: Not surprised by the online “10 bump” year-over-year. “Clubs just crushed it – Sam’s Club up 9.7%, BJ’s 8.2%, Costco 7.7%.” Surprised mobile is only at 55%, suggesting growth potential remains ([08:42]).
• On AI: Chris expected the AI-driven shopping influence to be higher than 800%. He compares this to BNPL’s 970% growth over three years and raises the question: “Maybe we need to slow our roll on connecting our business and all our apps to these engines” ([10:46]).
• Anne: The notable stat for her—AI agents were involved in 25% of purchases. “That means 1 in 4 people, as they’re shopping, were using an agent in some way, shape, or form” ([11:27]). She likens it to the early days of e-commerce and expects real growth once platform transactions, ads, and special offers mature.

Quote:
“AI agents were involved in 25% of purchases. That means like one in four people were using an agent in some way, shape or form.”
—Anne ([11:27])

2. ChatGPT’s Entry Into Shopping Research

[13:15–18:38]

• Headline: ChatGPT’s new feature helps users research and compare products via prompts.
• Anne: Highly bullish, sees massive potential for AI-powered tools for price and product transparency. Sees unique value in shopping for essentials, not just big-ticket items ([14:09]). Predicts rapid evolution once transactions and ads are integrated.
• Chris: Approves of the idea, but is cautious about overhyping its impact. Notes, “70% of product searches are transactional, only 30% are research-based” ([15:57]). Suggests that most shopping journeys don’t require in-depth research; Amazon dominates first searches for a reason.
• Anne: Emphasizes that we are early in the AI journey and retailers need to invest now to be ready for future shifts.

Quote:
“How many product searches are actually as research intensive as you're describing? I don't think it's that many. Otherwise, Amazon wouldn't have the hold on first product searches that it has.”
—Chris ([15:57])

3. Walmart: Ads in the Sparky AI Assistant

[18:38–22:38]

• Headline: Walmart is quietly testing “sponsored prompt” ads within its Sparky AI shopping agent.
• Chris: “100% Pro... This is exactly where retailers should be focusing their efforts.” He cites three benefits: higher conversion rates, incremental ad revenue, and the strategic ability to monitor traffic flow from generative AI platforms ([19:36]).
• Anne: Sees this as a “no brainer.” She feels the ad format is additive and less intrusive, allowing retailers to incentivize customers at exactly the right moment ([22:04]).
• Both: Argue that retail platforms have more customer access and power than some believe; question the necessity of commerce-focused chatbots outside the retailer ecosystem.

Quote:
“You convert the traffic you have coming to your site at a better rate. You get more ad dollars... This is a smart move.”
—Chris ([19:54])

• Stat Highlight: Conversion via Amazon’s Rufus chatbot is up 60% over non-chatbot experiences.

4. Smart Glasses: "Breakthrough" Year in 2026?

[24:05–29:36]

• Headline: McKinsey and Business of Fashion predict major consumer adoption of smart glasses starting 2026, following strong growth in smartwatches and rings.
• Anne: Skeptical of widespread adoption for smart glasses. “Until a tech company can make their product as agile as possible so I can put it into my existing frames… I don’t see this reaching mass adoption” ([25:49]). Sees watches and rings as more discreet and easier to adopt.
• Chris: Hard sell on 2026 being the breakthrough year. Owns Ray Ban Meta glasses but considers them a novelty: “They’ve kind of just sat on the shelf collecting dust.” Cautions fashion brands against entering this space—it’s not their competency and involves big risks ([28:21]).
• Producer Ella (Gen Z perspective): Agrees with skepticism. Sees value only for specific content creators and worries about the learning curve, fashion appeal, and even safety concerns ([38:10–41:06]).

Quote:
“It’s not your core competency… You’re tying yourself into a tech company which history has shown can behave like vultures.”
—Chris ([28:21])

5. Amazon "Now" 30-Minute Delivery Pilot

[29:36–34:02]

• Headline: Amazon tests rapid grocery delivery in Seattle & Philadelphia. Prime delivery starts at $3.99, non-Prime at $13.99, with added small basket fees.
• Chris: Sees this more as a defensive move, especially since Amazon’s US grocery share has flatlined at 4% since acquiring Whole Foods. Notes that competitors (Walmart, regional grocers) can match this via Instacart or DoorDash. “[Amazon] still has a product issue” when it comes to groceries ([31:43]).
• Anne: Questions value for shoppers given high fees and lack of product differentiation. Wonders if Amazon can collect enough pilot data and if consumers will be satisfied with product quality compared to their trusted regional grocer.

Quote:
“After two orders, I could get a DoorDash monthly subscription and have access to all the other things... I’m still not convinced.”
—Anne ([32:40])

Notable Quotes & Moments

• Black Friday takeaway:
  “I was actually shocked at how much traffic there was... Sephora was just banging.”
  —Chris ([02:45])

• On fashion and tech partnerships for smart glasses:
  “It's not your core competency... you're tying yourself into a tech company which history has shown can behave like vultures.”
  —Chris ([28:21])

• On Mariah Carey’s holiday hit:
  “It's top three for sure. I mean, really, it's probably my number one. It gets you, that drop hits...”
  —Anne ([37:03])

Lightning Round Highlights

[34:02–41:06]

• Advent calendars: Chris wants a 28-day Nike advent, Anne comments on the high price points.
• Food trends: Anne stands by “slop bowls” (custom salad bowls) despite price increases.
• Holiday cookies: Gingerbread is Chris’s #3 behind Mexican tea (Russian tea cake) and butter cookies; Anne is intrigued.
• Holiday music: Mariah Carey’s “All I Want for Christmas is You” is Anne’s #1, Chris prefers George Michael, Kylie Minogue, Bing Crosby.

Producer Ella’s Pick

[38:10–41:06]

• Winning headline: Smart glasses segment for its generational relevance and challenging assumptions about mass adoption. Concerns noted: fashion, utility, safety, and the learning curve.

Final Thoughts & Tone

The episode is characterized by incisive analysis, healthy debate, and a touch of playfulness—especially in the lightning round. Both hosts balance optimism about AI’s promise with realistic caution about its pace, provide actionable ideas on retail ad innovation, and bring an insider critique to forecasts about new tech (smart glasses).

For retail professionals or enthusiasts who missed this episode:
You’ll gain a practical sense of 2025 Black Friday trends, the current and future role of AI in shopping, real-world considerations for next-gen wearables, and a serious reality check on Amazon’s latest grocery move—all spiced up with wit, real-world anecdotes, and peer-to-peer candor.