Omni Talk Retail Podcast Summary

Episode: Walmart Stores Of The Future, Morrisons Robots & Why Saks Just Set Omnichannel Back | Fast Five
Release Date: May 7, 2025
Hosts: Chris Walton and Ann Mazinga
Guest: Ben Miller, VP of Content for Shop Talk Grocery Shop
Featured Segment: Omar Akilah, SVP of Product at Infios

Introduction

In this episode of Omni Talk Retail, hosts Chris Walton and Ann Mazinga delve into the latest happenings in the retail industry, exploring groundbreaking developments from major players like Amazon, Saks Fifth Avenue, Walmart, Morrisons, Pinterest, and Lowe's. The discussion is further enriched by insights from special guest Ben Miller and a segment featuring Omar Akilah on the future of order management systems.

1. Amazon and Saks Fifth Avenue Partnership

Timestamp: [08:07]

Overview: Amazon has partnered with Saks Fifth Avenue to launch a luxury e-commerce storefront titled Luxury Stores at Amazon, aiming to blend Amazon's vast platform with Saks' high-end offerings.

Key Points:

• Ben Miller questions whether this partnership signals Saks' decline or is a strategic move to sustain its business model amidst financial pressures.
  Ben Miller [08:59]: "If you start going from the Saks perspective... Saxe needs to find the cash flow to be able to make that payment. And he's got to keep Amazon, one of his big investors on side."

• Chris Walton views this as a potential death knell for traditional department stores, emphasizing the shift towards online luxury retailing.
  Chris Walton [12:55]: "Awareness of the death of your business model... department stores are the 21st century retail equivalent of the horse and buggy. They're going away."

• Ann Mazinga offers a different perspective, highlighting the added convenience for consumers and the evolving definition of selling luxury.
  Ann Mazinga [15:38]: "There is value... when I can say, you know, Rufus, I want something that's a little bit more high quality and maybe I'm getting a James Purse T shirt..."

Conclusion: The hosts debate the implications of the Amazon-Saks partnership, weighing the financial necessities against the potential erosion of the traditional luxury retail experience.

2. Walmart's Store of the Future in Texas

Timestamp: [18:09]

Overview: Walmart unveils its latest Store of the Future in Cypress, Texas, marking its first ground-up supercenter in four years and the initial implementation of this concept in the U.S.

Key Features:

• Full-service fuel station with eight pumps.
• Modern pharmacy with a health service room and drive-thru.
• Enhanced vision center.
• Elevated departments in fashion, baby, home, and pets.
• Integration with the Walmart app for services like scheduling and booking installations.
• Storewide digital shelf labels and updated branding with QR codes.

Guest Insight: Ben Miller praises Walmart's operational consistency and the seamless integration of digital and physical shopping experiences.
Ben Miller [19:35]: "QR codes to unlock expanded assortments, getting people to drive in the app... it's a really good execution of what retail looks like."

Host Perspective: Chris Walton criticizes the term "Store of the Future," arguing that the Texas store represents a pragmatic evolution rather than a revolutionary concept.
Chris Walton [21:30]: "It's the proto, it's essentially the prototype of the future... it's like a pragmatic, incremental evolution."

Ann Mazinga concurs, suggesting that while the store enhances Walmart's competitiveness, it falls short of truly futuristic innovations.
Ann Mazinga [22:15]: "If it was a true store of the future... I would expect to see a lot more test, like small scale tests going on."

Conclusion: The Walmart Store of the Future is seen as a significant yet incremental advancement, focused on enhancing customer engagement and operational efficiency rather than introducing groundbreaking technologies.

3. Morrisons Introduces Human-Sized Aisle Robots

Timestamp: [25:05]

Overview: Morrisons becomes the first UK supermarket to deploy human-sized aisle robots in three stores across Redcar and Stockton, primarily for stock checking.

Key Points:

• Ben Miller highlights the role of robots in inventory management, crucial for balancing availability and waste, especially in grocery retail.
  Ben Miller [25:36]: "Inventory management is everything in groceries... trying to drive that balance and drive the efficiency."

• Chris Walton emphasizes the broader trend of automation in retail, noting that 2025 is likely to be "the year of the robot."
  Chris Walton [27:55]: "Further validation of 2025 being the year of the robot."

Conclusion: The introduction of robots at Morrisons underscores the ongoing automation trend in retail, aiming to enhance efficiency and accuracy in inventory management.

4. Pinterest Emerging as a Search Engine

Timestamp: [36:39]

Overview: Adobe's recent data reveals that Pinterest is gaining traction as a search engine, particularly among Gen Z, with 39% of U.S. consumers reportedly using it for search purposes.

Key Points:

• Ann Mazinga underscores the importance of visual-based search, noting Pinterest's role in product discovery and the shift away from traditional text-based searches.
  Ann Mazinga [39:53]: "Pinterest is playing a really important role... as the go-to for visual based search when you're looking to find a product."

• Ben Miller expresses skepticism about the validity of the survey data, critiquing its methodology and sample size.
  Ben Miller [40:50]: "This is not good research... 36% of consumers start their search on Pinterest instead Google. That's just not right."

• Chris Walton aligns with Ben's critique, highlighting inconsistencies in defining "search" and questioning the practical implications for commerce.
  Chris Walton [44:01]: "I didn't even talk about the agentic AI angle... where this all goes, right?"

Conclusion: While Pinterest is making strides in visual search, the hosts remain cautious about interpreting the data, emphasizing the need for robust research to substantiate these claims.

5. Lowe's Rolls Out AI Assistant for Store Associates

Timestamp: [47:35]

Overview: Lowe's introduces Milo Companion, an AI-enabled employee app developed in partnership with OpenAI, aimed at enhancing store associates' capabilities and streamlining onboarding.

Key Features:

• Access to product details, project advice, and inventory information.
• Natural conversational prompts, including voice-to-text functionality.
• Speeds up the employee onboarding process.

Guest Insight: Ben Miller supports the implementation of AI tools, viewing them as complementary to human expertise rather than replacements.
Ben Miller [49:03]: "Providing tools to help that consistency of experience is great... Democratizing the data and providing a better quality of response."

Host Perspective: Chris Walton acknowledges the value of AI assistance but criticizes the media's portrayal, suggesting it might misrepresent the technology's practical use.
Chris Walton [50:12]: "There's a disservice... you're looking at this, they're seeing those use cases and then some people are probably going..."

Conclusion: Lowe's Milo Companion is seen as a beneficial tool for enhancing employee performance and customer service, though the hosts caution against oversimplified narratives in media coverage.

Special Segment: Future of Order Management with Omar Akilah

Timestamp: [28:36]

Overview: Omar Akilah from Infios discusses the evolution of order management systems (OMS), emphasizing the shift towards modular, AI-driven solutions.

Key Points:

• Modular OMS: Allows retailers to integrate capabilities as they grow, avoiding the limitations of monolithic systems. Omar Akilah [29:06]: "Unlocking capabilities through modules, right? Not full systems."

• AI and Machine Learning: Transforming order orchestration and fulfillment by optimizing inventory visibility, order optimization, and real-time anomaly detection. Omar Akilah [31:25]: "AI will play a role in the supply chain end to end and it needs to be purposeful and guided by real use cases."

• Future Outlook: AI will act as a companion, aiding in decision-making and simplifying complex processes. Omar Akilah [34:52]: "They need to help me make the right decision... make it easier as opposed to more complex."

Conclusion: The integration of AI and modular systems in OMS is pivotal for retailers aiming to enhance efficiency, adaptability, and customer satisfaction in an increasingly complex retail landscape.

Lightning Round

Timestamp: [53:48]

1. Nostalgic Childhood Foods at Risk:

• Ben Miller laments the potential disappearance of Kellogg's Variety Packs in the UK, reminiscing about the sugary breakfast cereals cherished during birthdays.

2. Teacher Appreciation:

• Ben Miller honors Mr. Sheehan, his former business and economics teacher, for igniting his passion for commerce and finance.

3. Retailers Avoiding U.S. Brands:

• Ben Miller expresses skepticism about the statistic that 76% of non-U.S. retailers won't stock U.S. brands due to profitability issues.
  Ben Miller [55:40]: "I'm calling BS on that stat."

4. Met Gala Fashion Highlight:

• Ann Mazinga praises Janelle Monae's outfit at the Met Gala, highlighting the event's role in showcasing innovative fashion.

Conclusion

The episode wraps up with an energetic reflection on the discussed topics, emphasizing the dynamic nature of the retail industry. Hosts encourage listeners to engage with the podcast through reviews and follow their content on YouTube. Special thanks are extended to guest Ben Miller for his insightful contributions.

Notable Quotes:

• Ben Miller [08:59]: "If you start going from the Saks perspective... Saxe needs to find the cash flow to be able to make that payment."
• Chris Walton [12:55]: "Department stores are the 21st century retail equivalent of the horse and buggy."
• Ann Mazinga [15:38]: "It's okay for Amazon.com to sell luxury... it's..."

Stay Connected:

• Ben Miller: LinkedIn
• Shop Talk Europe Tickets: shoptalkeurope.com

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• YouTube.com/omnitalkretail

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