The CPG Guys — Commerce Riff with Sri & PVSB

Episode 14: December 9, 2025

Episode Overview

In this dynamic 10-minute “Commerce Riff” episode, hosts Peter V.S. Bond (“PVSB”) and Sri Rajagopalan (Sri) dissect the week’s most significant news in the CPG and retail commerce ecosystem. The discussion focuses on Amazon’s move into ultra-fast delivery, Kroger’s digital surge and expansion plans, Walgreens’ innovation in retail media via AI, and a revealing comparison of Dollar General vs. Dollar Tree on financial performance and business strategies. Through expert analysis and memorable banter, Sri and Peter highlight the intersection of technology, consumer experience, and the ever-changing world of commerce.

Key Discussion Points & Insights

[00:51] Rapid Fire Industry Context & Banter

• Sri recaps a whirlwind month of concert tours, and the hosts reference the podcast’s growing multimedia content on social channels.

[02:01] Amazon's 30-Minute "Amazon Now" Delivery Launch

• Key Announcement:
  Amazon is piloting a new 30-minute delivery service, "Amazon Now," for household essentials and groceries in Seattle and Philadelphia.
  • Prime Members: $3.99 per order
  • Non-Prime: $13.99 per order
  • Smaller fee for orders under $15
  • Real-time order tracking, wide item selection, and delivery through specialized urban fulfillment centers
• Strategic Implications:
  This pilot is “Amazon’s latest move to meet customer demand for increasingly faster delivery of essential items” (Peter, 02:01).
  • Shorter distances for delivery, safety focus, nod to Amazon’s continuing logistics innovation.
• Competitive Framing:
  “Gee, I wonder who they're going up against for that last minute super fast delivery.” (Peter, 03:37) — a reference to the competitive space with other rapid delivery players.

[03:40] Kroger’s Digital Growth, Expansion, and AI Integration

• Earnings Headlines:
  Kroger reports strong Q3 sales led by digital surges; plans to appoint a new CEO in Q1 2026.
• Digital as Profit Engine:
  Sri’s take:

  “Anybody who talks to you and me about Ecommerce being a challenge hasn't figured out profitability is nothing more than a Luddite. Let's say it again, nothing more than a Luddite.” (Sri, 03:56)

• Physical Expansion:
  • “14 new stores in Q4, increasing new store builds by 30% in 2026”
  • Florida expansion via Harris Teeter, initially entered digitally (dark warehouses), now with brick-and-mortar stores
• Leadership Transition:
  • Interim CEO Ron Sargent steps in after the resignation of Rodney McMullen over conduct issues.
  • New CEO expected Q1 2026.
• AI-Powered Shopping:
  • Launching Instacart's AI Card Assistant in Q1 2026, to help personalize shopping and streamline basket building.
• Personal Quote:

  “If you remember Peter, Florida market was entered entirely via E commerce dark warehouses and now we’re talking about brick and mortar stores…” (Sri, 04:50)

[05:56] Walgreens’ AI-Driven Retail Media Expansion

• Partnership with Rokt:
  Walgreens Advertising Group partners with Rokt, unlocking order confirmation page ad inventory for non-endemic brands.
  • AI-delivered, real-time personalized offers at the moment of transaction.
• Significance for Retail Media:
  “This move highlights how AI is becoming an early application in retail media for both ad execution and measurement.” (Peter, 07:23)
• Notable Quotes:
  • Avi Subramanian, VP Walgreens:

    “We are committed to connecting brands with one of the most loyal and engaged consumer bases in the country… giving advertisers new ways to engage customers in meaningful moments while creating incremental value for Walgreens.” (Quoted by Peter, 06:44)

  • Craig Galvin, Rokt CRO: Emphasizes balancing new revenue streams with customer experience.

[08:00] Dollar General vs. Dollar Tree: Diverging Discount Retail Fortunes

• Dollar General:
  • Beat earnings by 36%, 20% stock rally, revenue of $10.65B, fourth consecutive beat.
  • Gross margin up 110bps, highlighted upcoming 4,885 real estate projects for fiscal 2026.
  • “Did you hear that number, Peter? 4,885 actual real estate projects.” (Sri, 08:51)
  • Strategic shift to higher margin categories and product innovation like zero sugar beverages.
• Dollar Tree:
  • Missed estimates despite strong revenue; margin compression, operating margin down to 7.2%.
  • Same-store sales growth outpaced Dollar General (4.2% vs 2.5%), but “growth came at a cost.”
• Analysis and Warnings:

  “But the operating margin decline raises questions about whether multiprice expansion is sustainable without eroding profitability.” (Sri, 09:55)

• Audience Engagement:
  • Tease of two upcoming Dollar General deep-dive podcast episodes recorded at HQ and in-store.

Notable Quotes & Memorable Moments

• Sri’s hot take on digital commerce:
  “Anybody who talks to you and me about Ecommerce being a challenge hasn't figured out profitability is nothing more than a Luddite. Let's say it again, nothing more than a Luddite.” (03:56)
• Peter’s summary on retail media evolution:
  “Staying ahead of the AI powered retail media capabilities is becoming essential as the channel continues to evolve beyond traditional display advertising.” (07:35)
• Sri on Dollar General’s comeback:
  “I had no doubt in my mind Peter, when that crash happened that Dollar General will come surging back.” (08:31)
• Sri’s enthusiasm about upcoming content:
  “We recorded one from In Store, one from Headquarters while walking the Room of Values. That’s it folks. That’s our take on relevant commerce happenings...” (10:22)

Timestamps for Key Topics

• [02:01] - Amazon "Now": 30-Minute Delivery Announcement
• [03:40] - Kroger’s Digital-Fueled Earnings, Expansion Plans, and AI Integration
• [05:56] - Walgreens Opens Retail Media to Non-Endemics with Rokt (AI & Retail Media Deep Dive)
• [08:00] - Dollar General vs. Dollar Tree: Q3 Results Breakdown & Future Strategies

Closing

Sri and Peter wrap with reminders to follow The CPG Guys across social media and hints at deep-dive episodes to come.
Their commentary is laced with energy, candor, and a shared belief that tech, data, and strategic moves are rapidly redefining CPG retail’s future.

For more insights and industry riffs, follow The CPG Guys on LinkedIn, Instagram, TikTok, and YouTube.