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Hello, it's March 10, 2026. Welcome to this week's episode of the Commerce Rip with the CPG guys. Our weekly short segment, Bite Size. Ten minutes of content, audio and video. We hope you enjoy our curated stories. I'm your co host, pbsb. I'm joined by Paparazz himself, the father of pop stars, Co founder and chief revenue officer, Think Consulting, sri. How you doing, man?
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So in a few hours we'll be on stage here at the national sales meeting for Mars Company. Very excited. We're down here in Orlando and I actually visited Epcot last night after 15 years back in 2011 when the kids were like 5 and 11 years old. Virginia Tech actually won a bowl game that day. So I was significantly distracted. And that was a time when we didn't have streaming tv. I used to use Sling TV to see it and I wish I could go back now with the kids and not be distracted. You are of course in Disney or at Universal Studios vicinity this week. Like, what's going on there?
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Well, I'm down here on spring break with my daughter Nadia. We spent this morning and the balance of the day at Epic Universe. The new theme park is part of Universal. Never really got out of Super Nintendo World. That was my daughter's obsession. So that's great. I'm going to take her again to the Magic Kingdom at Disney World right after we get off stage today. So looking forward to doing that, Sheree. Lots going on. We've got so many activations coming up. You know, we, we're gonna, we're skipping our kickoff dinner at Shop Talk. We're gonna do a couple hosted dinners. The big thing we're only working on, in addition to the second year of Cornell, which will be in July, this year we're actually doing it up in Ithaca for a number of different reasons. We're moving it from New York City up, up to the main campus. But most importantly, we're doing a big activation in partnership with the FMCG guys, Cannes Lions. We have a beautiful residence. It will hold up to 50 people. We're going to be doing all sorts of activations. Breakfast events, content sessions, happy hours and late night parties. And it's only a block from the Palais street. You know what they say, real estate agents. Location, location, location. We have got it. We are looking so forward being able to collaborate with all sorts of companies that we've worked with in the past. Look for big, big splat for the CPT guys at can lines. Okay, let's get to our, our story, shall we? Sri Greg Foreign, the new Chief Executive Officer at Kroger Co. Said the supermarket retailer has tremendous strengths to build on as it closes out fiscal 2025 with higher adjusted earnings per share in sales. Former CEO of Walmart US Farum took the CEO reigns of Cincinnati based Kroger in early February Chairman Ron Sargent, who had served as interim CEO since March 2025 upon the exits of Rodney McMullen. It's been about a month since I started and I've spent that time learning Kroger from the inside out, foreign told annuals in a March 5 conference call and fiscal year results and spending time with Ron and the leadership team, having one on one conversations with leaders across the organization and getting out to the stores, distribution centers and manufacturing facilities and importantly also watching how our customers shop. Began working with the team to review our strategic plan and I'll share more about that as work progresses. What I've seen so far has reinforced my belief that Kroger has tremendous strengths to build on. We have a loyal customer base, dedicated associates, a strong sports network and real momentum in areas like Fresh E Commerce and our brand what they call Private Label Year End Performance report March points first earnings call that's CoC Wall Street's estimate adjusted EPS projections for the full year and fourth quarter for fiscal 2025 ended January 31st. That engine totaled 1.02 billion, equal to a buck 54 per share of the common stock, down from 2.67 billion, or $3.67 per share, in 2024. The drop primarily reflects $1.9 billion in impairment in related charges for facility closures and Kroger's E Commerce fulfillment network. On an adjusted basis, net earnings worth 3.2 billion, or $4.5per share, versus 3.25 billion, or $4.47 per share a year earlier. Analysts on average forecasting adjusted EPS of $4.80 for 2025. For instance, that in the call that Kroger strategy quote starts with the top line, noting that we need to grow sales faster. In my experience, that comes down to giving customers a compelling reason to shop with you by offering great value, great products and a great experience, he said. Price is the important part of the equation. Customers need to trust that they're getting a fair deal. Every time they walk into our stores, we made progress on price. They want to keep pushing by pulling unproductive costs out of the business, investing in everyday value, sharpening our promotions and making sure customers see and feel the difference when they shop with us. When you come competitive prices with a strong fresh well run store. You drive traffic grow basket to being shared. That's what I want to accelerate it quickly. I've spent my career in food retail and running great stores is how you make that happen about delivering consistently in every store on every visit whether shopping in store or online. That sounds like a real words of an Omni Channel warrior. What do you think SRI
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can doubt that? Peter so we're going to stay on the team of Kruger as a result because we haven't talked about them in quite a while since the Albertson's Kruger merger didn't work and fell through. So I'm going to jump into AI and AI and retail is getting real serious like we real real serious. So more on this topic with Kroger They've just recently named Milan Ma Devon president of its 8451 analytics unit to serve as its chief data and AI officer, according to a company spokesperson. The job is a newly created position for the grocer, chairman Ron Sergeant said during the company's fourth quarter earnings call on Thursday. Bhat and him's taking on the position as the company expands its effort to use AI to manage internal processes and also the most important part, engage with shoppers. He will also continue to lead 8451. We've been president since July 2020, according to the spokesperson. Bharat Evan will be charged with overseeing Kroger's efforts to use AI tools to fully maximize our data assets and advantages, the spokesperson wrote in an email about the move. Kroger will place all of its data and AI teams under his leadership. With data and data science at the core of our ongoing accelerated transformation. Millen will acquire his AI journey by developing next generation agent in case capabilities that reinvent how we operate as an enterprise, redefine how we engage with our customers. A spokesperson role Last year, Kroger became one of the first grocers to adopt new AI tech from Instacart that allows shoppers to use AI to build online baskets. The grocer also has an AI based virtual assistant known as Sage that employees can use to manage tasks such as checking their work schedules and requesting time off. Speaking during the earnings call, CFO David Kenlly said the company's decision to establish the position modi when assume makes a big fake statement about how serious they're taking AI. We have significant investment dollars in 2026 and beyond targeted making sure that we crystallize this opportunity can only say like many other companies with the early stages, we made good progress, but we've got a lot more to do. I think we've got Target on the wingspeeder, so take it away.
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Yeah, Sri I happened to have worked with Millen for four years during my time at Dun Humby, the precursor to 8451. Millen's one of the OGs came over as part of the original group. In addition to having what I would best describe as an incredibly colorful vocabulary, Mill is one of the sharpest minds I've ever met, so kudos to him on the recognition that he so well deserves. So let's find out what Target is not an everything store really means. Target Corp. Was ready to be in its next chapter, one that will be defined by the retailer, quote, playing our own game and making big changes to delight our guests, said Mike Fidelki, chief executive officer. We've been gathering feedback from consumers from those who love us to those who don't in order to gain a deeper understanding of the role Target plays in their lives. Well, he said in a March 3 conference call with analysts to discuss fiscal 2025 results, We've been meeting with founders of small businesses who have grown their brands with Target and want other entrepreneurs to follow in their footsteps. We've also been meeting with national brands and designer partners to reinforce our commitment to style, design and value, talking to our team about what they need in order to serve our guests well. Result? We're moving quickly to simplify work, speed up decisions and empower emotions and store teams. That's not what our guests want from us, he said. They want a strong trend forward assortment that they can trust to deliver quality and value. That's exactly what we do at Target when we're at the best making choices and assortment. We're doubling down when we are strongest and where guests tell us right to win and growth is highest. Kara Sylvester, executive vice president and chief merchandising officer, expanding on what's next for Target food and beverage business, noting the retailer will focus on freeway and they're not trying to be in everything. Grocer or just grocer down the street? Street. I don't know what that word is. S T R E. Let me just rewrite. I'm going to reset carousel. Sylvester, executive vice president, chief merchandising officer expanding on what's next for Targets food and beverage noting the retailer will focus on trying to be in a better grocer.
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Okipita I got it, I got it.
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I didn't know what that word was.
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Strong grocery growth is once I remember this.
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Oh, okay, there we go. All right, here we go. Carol Sylvester, executive vice president and chief merchandising officer, expanded on what's next for Targets being beverage business building the retail will focus on strong local grocery growth. You know, not trying to be an end grocer or just another grocer down the street, she says. Instead, said Target seeks to build a distinctive grocery destination where emerging brands, wellness and owned brands intersect. Said the retailer is on track to double the number of unique items in student beverage assortment over the next three years. 40% of our guests tell us they're looking for something new when they shop due to Target, sylvester said. When you deliver trend right newness, consumers respond. Food and beverage sales at Target in the year ending January 31st were 24.14 billion, up 1.3 from 23.83 billion in fiscal 2024. In the fourth quarter, food and beverage sales were 6.64 billion, up from 6.52 billion. Sylvester said Target has grown its food business by 9 billion since 2019, and the good and Gavel brand is on track to become part of the first $4 billion owned brand she attempted. The brand's growth leaning in through innovation and driving wins free Close this out, would you?
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Finally, Costco in the mix of the commerce here by the CPT guys so Costco Wholesale CEO Ron Wacris said Thursday that the company was committed to flowing any tariff refunds it receives back to its customers. I think this is the first we've heard of a national grocer saying so, or a national department store of any sort. The comments come in the wake of the Supreme Court decision last month invalidating President Donald Trump's use of the 1977 International Emergency Economic Powers act to give him the authority to impose broad tariffs globally. As we've done in the past. When legal challenges have recovered charges, our commitment will be to find the best way to return this value to our members through lower prices, better values, backrest said on the company's earnings call, according to a Seeking Alpha transcript. We'll be transparent in how we plan to do this if and when we receive any refunds. The big question here, of course, is the if backers drove right into tariffs at the top of the call that came one day after the U.S. code of International Trade directed U.S. customs and Border Protection to remove defunct tariffs. The levies are of great interest to Cosco's customers and shareholders, he said, noting that the situation remained extremely fluid as the IEEPA tariffs have been replaced with new tariffs that will be in place for at least the next 150 days. In late November, the Issaquah, Washington based company sued the Trump administration, seeking a declaration that the IEPA levies were unlawful in asking for a full refund. Costco's own of a number of companies seeking refunds through the court system, including Revlon Consumer Products, My Ex Album Order and Bumblebee Foods. With FedEx one of the bigger names to file suit after the Supreme Court
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ruled on the matter, the road to
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refunds could be a long, bumpy one. CIT Senior Judge Richard Eden and Wesley ordered the CBP to liquidate unprocessed entries on U.S. imports and reliquidate those that have been processed but not yet finalized. Liquidation is essentially the finalization of the total tariff amount owed. The CBP on Friday told Eden that it will not be able to comply with the order to begin refunding reciprocal tariffs, according to court filings. During the earnings call, Vacris emphasized the complexity and uncertainty that continues on tariffs the refund process, stating that was not yet clear what the process will be and what refunds of any will be received and when this will happen. But he said the company is well positioned to manage the impact as well as anyone through its ongoing debt mitigation strategy that includes limiting the number of stock keeping units of products and sourcing more products domestically, but is more control of the supply chain. We'll continue to be a pricing authority and some tariffs has been reduced. We are loading prices on affected items such as textiles, bedding and cookware skus, he said. Peter closes up please.
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I'm excited to hear about what comes with Costco's efforts to reclaim the paid tariff money. Somehow I don't think it means that we'll be seeing Mark Lewinson at hand, but good news. I did hear he resecured the rowboat for taking brands out for little trips in his Commodore's hat on the pond outside of Costco headquarters in Washington State. We love you Mark. Can't wait to have you back on the podcast. As we wrap up a reminder to catch up with our recently released episodes, we have Pat Horsey and Craig Slapchaft, members of the senior leadership team Kimberly Clark who reported down at Cagney and of course Bimbo Bakery. C Jeff Hendrick Folks, that's our take on relevant commerce happenings so many announced this past week we thought were meaningful and could not pass on for a riff. We hope you enjoyed it. Please do click like our post on all platform. Follow us on LinkedIn, Instagram, Facebook, Tik Tok and of course now YouTube. See you next week.
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