Transcript
A (0:02)
Hello, it's November 4th, 2025. Welcome to episode 10 of the Commerce Rift with the CPG guys. Why we do this? Well every week it's a short segment burst about 10 minutes of content, both audio and video. We hope you're enjoying it. Numbers would indicate you are of course. I'm your co host pvsb. I'm joined by Paparaj himself. He's co founder and CEO of Think Blue Consulting. Sree, how is your day going?
B (0:27)
My day is going great, but congratulations to the Los Angeles Dodgers. I know you're incredibly proud. It made your week media year. Now you have a whole year to look forward to another one. So you didn't mention it strangely enough, so I thought I would. But both kids are ready to get going on their respective tours mid November and mid December. Please do follow our Instagram, TikTok and YouTube channels simply called CPGuys. That easy. So let's get to the first topic this week. It's all Amazon.
A (0:57)
It certainly is. Sree. I will say this though about baseball. I am looking forward you and me march the World baseball classic in 2026. We're going to see some good global baseball trends. Nothing said global after the World Series with Ohtani and Yamamoto dominating in October. Baseball. All right, Amazon. They see a significant opportunity for growth in its existing physical stores which are centered on grocery, at least for now. The E commerce giant announced plans to expand same day deliveries of fresh groceries now in 1,000 US cities to 2,300 by the end of the year. Even that could be seen as an extension of E commerce as much of physical retail. In any case, despite the current dominance of brick and mortar, E commerce will ultimately take over and AI is making that happen even faster than before, Andy Jassy told analysts on last Thursday's earnings call. I still think if you look at the worldwide market segment share of retail still 80% of the 85% lives in physical stores. That equation is going to flip over time. Interesting. I think AI is going to only accelerate that, unquote. Physical retail remains a small, if growing portion of Amazon's retail operation. However, all this is overshadowed by Amazon's announcement that they would be terminating 14,000 employees globally for quote unquote culture reasons. Cute. 3. Online store sales rose 10% year over year to 67.4 billion, while physical store sales rose 7% to 5.6 billion, according to financial findings from Thursday's call. Overall product sales rose 9.6% to 74.1 billion. That's a price to all of that e Commerce is worldwide. Shipping costs rose 8% to 25.4 billion. Several analysts noted that Amazon is taking share in retail, but other aspects of the retail business are growing faster than either the online or offline channel. Seller services sales grew 12% to 42.5 billion, advertising grew 24% to 17.7 billion, and subscription services grew 11% to 12.6 billion. Whatever the impact of AI on the retail landscape, there's no doubt it's fueling Amazon's tech operation. And Amazon's tech operation is fueling profit. Sri, over to you.
