The CPG Guys: Commerce Riff with Sri & PVSB – October 21, 2025

Episode Overview

In this episode of "Commerce Riff," hosts Peter V.S. Bond (PVSB) and Sri Rajagopalan ("Papa Raj") dive into some of the latest and most important developments in the CPG and retail omnichannel industry. The discussion covers Walmart's new partnership with OpenAI and the launch of an AI shopping assistant, Ulta Beauty's response to shifting consumer trends, dramatic changes at Nestle, and the latest advances in last-mile autonomous delivery from DoorDash in collaboration with Waymo.

Key Discussion Points and Insights

1. Opening Banter & Baseball Tie-In

• Hosts exchange playful barbs about baseball dominance, celebrating the Dodgers' sweep of the Milwaukee Brewers and Shohei Ohtani’s record-setting performance.
  • PVSB: “Shohei Ohtani, through six scoreless innings, struck out 10 batters. And if that wasn't enough, he hit three home runs and took home the NLCS MVP award.” (00:05)
  • Sri, a Yankees fan, jokingly stakes his team’s historical dominance, but acknowledges Ohtani’s unprecedented talent.
• Transition into main topics: Despite the initial baseball detour, they quickly pivot to the week’s top CPG and retail news.

2. Walmart Partners with OpenAI: The Launch of 'Sparky' (AI Shopping Assistant)

(02:27 – 03:55)

• Announcement: Walmart is partnering with OpenAI to create an “AI-first” shopping experience, allowing customers to make purchases directly via ChatGPT.
• Key Features:
  • Personalized, predictive and conversational shopping, moving beyond traditional search.
  • Walmart’s new AI shopping assistant is dubbed ‘Sparky.’
  • Integration with Teamston checkout; plain language product queries; shoppable recommendations; automatic application of Walmart+ benefits.
• Walmart CEO Doug McMillon’s statement:
  • “We are running towards that more enjoyable and convenient future with Sparky and through partnerships including this important step with OpenAI.” (03:23)
• Host Reaction:
  • PVSB: “In AI you ask for the integration and of course it’s Walmart getting the start right away.” (03:49)
  • Sri frames this as an expected move: “Who else would I expect other than Walmart to lead the way with AI?”

3. Ulta Beauty Adapts to Shifting Shopper Behaviors

(03:55 – 05:46)

• Market Context: Despite the broader downturn, beauty and skincare have remained resilient, though some cracks are emerging.
• Key Earnings Data:
  • Comp sales increased 6.7% YoY; customer transactions up 3.7%; average transaction value up nearly 3%.
  • Foot traffic down 1.1% YoY; sharper drops in same-store visits during June and July.
• Contributing Factors: Economic uncertainty and tariffs have made customers more cautious in their spending.
• Ulta CEO Keshia Steelman’s perspective:
  • “Insights suggest consumers continue to prudently manage their day to day spending and are watchful of pricing trends in response to tariffs... beauty enthusiasts tell us that they're prioritizing the beauty regimens and remain strongly encouraged within the category.” (05:17)
• Ulta's Move: Expanding wellness categories to attract and retain shoppers.

4. Nestle: Leadership Changes and Major Layoffs

(05:46 – 07:21)

• Company Shakeup: New CEO Philip Navratil, after the firing of former CEO Laurent Frese, initiates a major restructuring.
• Layoff Details:
  • Cuts of 16,000 jobs — 6% of global workforce, with 12,000 white-collar roles and 4,000 manufacturing/supply chain jobs affected.
  • Cost-saving target raised to $3.79 billion by 2027.
  • Stock rose 1.2% following the news.
• CEO Philip Navratil’s quote:
  • “The world is changing and Nestle needs to change faster. This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency...” (06:18)
• Host Insight: PVSB speculates more divestitures may be on the horizon: “I wouldn’t be surprised if they’re also shaving off some of their lesser performing brands.”

5. Last-Mile Delivery: DoorDash & Waymo Collaboration

(07:21 – 09:32)

• On-the-Ground: Sri describes watching actual robot deliveries in downtown Los Angeles.
• New Launch: DoorDash expands its partnership with Waymo to bring autonomous delivery vehicles to Phoenix; also promotes new $10 Waymo promo for DashPass members in Phoenix, LA, and San Francisco.
• Platform Details:
  • Matches DoorDash customers with Waymo autonomous vehicles.
  • Incorporates multiple last-mile methods: dashers, robots, drones, and Waymo cars.
  • Launch includes Dashmart (DoorDash’s owned store) and supports Dashmart fulfillment services.
• DoorDash Statement (David Victor, VP):
  • “Together we're giving members access to savings on and a new delightful experience while advancing a vision for a multimodal autonomous future of broker Commerce.” (08:25)
• Industry Context: Phoenix is at the forefront of autonomous delivery, with both DoorDash and Uber Eats running live trials.
• Cross-Promotion: Sri plugs recent CPG Guys episodes in partnership with DoorDash dissecting retail media and innovations in the space.

Notable Quotes & Memorable Moments

• PVSB on Ohtani’s greatness: “I think even the Yankees fan himself might begrudgingly acknowledge that Ohtani is the greatest player of our lifetimes.” (00:20)
• Sri quips about baseball dominance: “Anybody's allowed to win after seven championships versus 27. Get another 20 and then I start the grudging war.” (00:50)
• Walmart CEO Doug McMillon on AI shopping: “We are running towards that more enjoyable and convenient future with Sparky and through partnerships including this important step with OpenAI.” (03:23)
• Ulta CEO Keshia Steelman on consumer priorities: “Insights suggest consumers continue to prudently manage their day to day spending and are watchful of pricing trends in response to tariffs.” (05:17)
• Nestle CEO Philip Navratil on layoffs: “The world is changing and Nestle needs to change faster. This will include making hard but necessary decisions to reduce headcount over the next two years.” (06:18)
• DoorDash VP David Victor on multi-modal delivery: “Together we're giving members access to savings on and a new delightful experience while advancing a vision for a multimodal autonomous future of broker Commerce.” (08:25)

Timestamps for Important Segments

• 00:05 – Baseball banter & show open
• 02:27 – Walmart/OpenAI partnership & launch of ‘Sparky’ AI shopping assistant
• 03:55 – Ulta Beauty earnings and consumer trends
• 05:46 – Nestle CEO shakeup and mass layoffs
• 07:21 – DoorDash & Waymo: autonomous last-mile delivery expansion

Conclusion

The hosts wrap up by highlighting how the convergence of AI, shifting consumer habits, and automation are reshaping every facet of commerce, from grocery aisles to the final doorstep. The episode is a rapid-fire riff on critical shifts in the CPG and retail space, blending industry news with authentic, unfiltered takes from the hosts.

For more insights, past episodes on retail media with DoorDash, and up-to-the-minute news, listeners are encouraged to follow The CPG Guys across platforms.

[This summary omits advertisements, disclaimers, and non-content banter.]