{"id":8098,"date":"2022-12-16T20:37:38","date_gmt":"2022-12-16T20:37:38","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/jason-scot-show-episode-295-walmart-target-q2-earnings-and-us-commerce-july-data\/"},"modified":"2022-12-16T20:37:38","modified_gmt":"2022-12-16T20:37:38","slug":"jason-scot-show-episode-295-walmart-target-q2-earnings-and-us-commerce-july-data","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/jason-scot-show-episode-295-walmart-target-q2-earnings-and-us-commerce-july-data\/","title":{"rendered":"Jason &#038; Scot Show Episode 295 &#8211; Walmart, Target Q2 Earnings, and US Commerce July Data"},"content":{"rendered":"<p> <p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/>\n<\/p>\n<div>\n<p>A weekly podcast with the latest e-commerce news and events. Episode 295 is a recap of Walmart and Target earnings for Q2 2022, as well as USDC July retail data<\/p>\n<p> <span id=\"more-26428\"\/><\/p>\n<p><strong>Subscribe:<br \/><\/strong><\/p>\n<figure><iframe loading=\"lazy\" style=\"border: none;\" src=\"http:\/\/html5-player.libsyn.com\/embed\/episode\/id\/24118392\/height\/360\/width\/640\/theme\/standard-mini\/autoplay\/no\/autonext\/no\/thumbnail\/yes\/preload\/no\/no_addthis\/no\/direction\/backward\/no-cache\/true\/\" width=\"640\" height=\"360\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/figure>\n<p>Episode 295 is a  breakdown of Walmart and Target Q2 earnings, as well as the US Department of Commerce retail sales data for July.<\/p>\n<p>Episode 295 of the Jason &amp; Scot show was recorded on Thursday August 18, 2022.<\/p>\n<h2 id=\"chapter\">Transcript<\/h2>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:23]<\/small>\u00a0<span title=\"0:23 - 0:26\" data-start=\"00:00:23.135\" data-end=\"00:00:25.641\" data-spk=\"0\" data-label=\"Jason\">Welcome to the Jason and Scot show,<\/span><br \/><span title=\"0:26 - 0:39\" data-start=\"00:00:25.665\" data-end=\"00:00:38.536\" data-spk=\"0\" data-label=\"Jason\">this is episode 295 being recorded on Thursday August 18th 2022 I\u2019m your host Jason retailgeek Goldberg and as usual I\u2019m here with your co-host Scot Wingo.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:38]<\/small>\u00a0<span title=\"0:38 - 0:47\" data-start=\"00:00:38.266\" data-end=\"00:00:46.534\" data-spk=\"1\" data-label=\"Scot\">Hey Jason and welcome back Jason Scott showed listeners Jason how you doing how you been traveling a lot lately.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:46]<\/small>\u00a0<span title=\"0:46 - 0:53\" data-start=\"00:00:46.264\" data-end=\"00:00:52.874\" data-spk=\"0\" data-label=\"Jason\">I have I have it\u2019s been interesting to spend so much time at the airport\u2019s they\u2019ve been quite busy lately.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:54]<\/small>\u00a0<span title=\"0:54 - 1:02\" data-start=\"00:00:53.614\" data-end=\"00:01:02.488\" data-spk=\"1\" data-label=\"Scot\">Yeah yep the there\u2019s cancellations it\u2019s total chaos at airports so hopefully now that we\u2019re in back-to-school season that\u2019ll slow down a little bit.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:03]<\/small>\u00a0<span title=\"1:03 - 1:18\" data-start=\"00:01:03.162\" data-end=\"00:01:17.962\" data-spk=\"0\" data-label=\"Jason\">Knock on Woods October is a busy Commerce trade show month so I\u2019ll be on the road almost of October hopefully visiting some listeners but hopefully yeah travels a little smoother hopefully I can get some better seats on the airplane I\u2019m a little bitter at the.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:19]<\/small>\u00a0<span title=\"1:19 - 1:24\" data-start=\"00:01:18.731\" data-end=\"00:01:24.301\" data-spk=\"1\" data-label=\"Scot\">Yeah you have like 20 million miles and they\u2019re putting your life back in steerage.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:24]<\/small>\u00a0<span title=\"1:24 - 1:29\" data-start=\"00:01:24.236\" data-end=\"00:01:29.091\" data-spk=\"0\" data-label=\"Jason\">That\u2019s a slightly milder version of that is true.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:29]<\/small>\u00a0<span title=\"1:29 - 1:39\" data-start=\"00:01:28.791\" data-end=\"00:01:39.396\" data-spk=\"1\" data-label=\"Scot\">Cool and then I guess the big question is we\u2019ve got two new series kicking off are you going to do Game of Thrones or Lord of the Rings or both.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:39]<\/small>\u00a0<span title=\"1:39 - 1:53\" data-start=\"00:01:39.403\" data-end=\"00:01:52.856\" data-spk=\"0\" data-label=\"Jason\">I\u2019m super excited about both I\u2019m actually some people know I had knee surgery earlier in the year I\u2019m actually contemplating getting the surgery on my other knee so I have an excuse just stay at home for a while a month and watch them both.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:55]<\/small>\u00a0<span title=\"1:55 - 2:02\" data-start=\"00:01:54.600\" data-end=\"00:02:01.736\" data-spk=\"1\" data-label=\"Scot\">Yeah and then let\u2019s see the well ready to jump into some news.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:02]<\/small>\u00a0<span title=\"2:02 - 2:03\" data-start=\"00:02:01.636\" data-end=\"00:02:03.084\" data-spk=\"0\" data-label=\"Jason\">I\u2019m super excited to.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:03]<\/small>\u00a0<span title=\"2:03 - 2:08\" data-start=\"00:02:02.984\" data-end=\"00:02:07.693\" data-spk=\"1\" data-label=\"Scot\">Cool well it wouldn\u2019t be a Jason Scott show without.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:08]<\/small>\u00a0<span title=\"2:08 - 2:22\" data-start=\"00:02:07.862\" data-end=\"00:02:21.520\" data-spk=\"0\" data-label=\"Jason\">Amazon news new your margin is there opportunity.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:21]<\/small>\u00a0<span title=\"2:21 - 2:30\" data-start=\"00:02:21.220\" data-end=\"00:02:30.131\" data-spk=\"1\" data-label=\"Scot\">Yes there is some Amazon news I wanted to just chat about with youth the 16th of August Amazon surprised both<\/span><br \/><span title=\"2:30 - 2:40\" data-start=\"00:02:29.963\" data-end=\"00:02:39.962\" data-spk=\"1\" data-label=\"Scot\">Wall Street and a bit and third-party sellers a lot with their first-ever peak season surge pricing for fulfillment by Amazon are commonly known as FBA<\/span><br \/><span title=\"2:40 - 2:48\" data-start=\"00:02:39.824\" data-end=\"00:02:48.284\" data-spk=\"1\" data-label=\"Scot\">so the way this is going to work is they\u2019ve put out the dates October 15th through January 14th of 23<\/span><br \/><span title=\"2:48 - 2:56\" data-start=\"00:02:48.158\" data-end=\"00:02:55.904\" data-spk=\"1\" data-label=\"Scot\">third-party sellers that you use fbar going to have a new fee and I hope you\u2019re sitting down it is 35 cents per item.<\/span><\/p>\n<p><small>[2:57]<\/small>\u00a0<span title=\"2:57 - 3:08\" data-start=\"00:02:56.998\" data-end=\"00:03:08.294\" data-spk=\"1\" data-label=\"Scot\">Now you may be saying to yourself Scott that\u2019s pretty small is that going to really move the needle and one of our friends of the show Colin Sebastian he actually did the math on this.<\/span><br \/><span title=\"3:09 - 3:20\" data-start=\"00:03:08.601\" data-end=\"00:03:20.397\" data-spk=\"1\" data-label=\"Scot\">So it turns out that last holiday if you look at the third party sell units sold during that period you had two point seven two two point eight billion you have a midpoint of 2.75 billion.<\/span><br \/><span title=\"3:21 - 3:31\" data-start=\"00:03:20.613\" data-end=\"00:03:30.931\" data-spk=\"1\" data-label=\"Scot\">He took that approximated in 34 so that went through yeah if ba you multiply that out and you get about 700 million dollars just drops right out of that 35 cents.<\/span><br \/><span title=\"3:31 - 3:35\" data-start=\"00:03:31.171\" data-end=\"00:03:35.461\" data-spk=\"1\" data-label=\"Scot\">So that is the power of an Amazon scale is a seemingly tiny little.<\/span><br \/><span title=\"3:36 - 3:43\" data-start=\"00:03:35.690\" data-end=\"00:03:43.333\" data-spk=\"1\" data-label=\"Scot\">Surcharge can be a big number so it\u2019s going to be interesting and you know that will be pure profit because the Amazon is not doing anything differently really.<\/span><br \/><span title=\"3:44 - 3:55\" data-start=\"00:03:43.646\" data-end=\"00:03:54.841\" data-spk=\"1\" data-label=\"Scot\">And then in the press release they basically said our expenses are reaching New Heights and it\u2019s making it harder for the company to absorb cost and they have to pass some of those on.<\/span><br \/><span title=\"3:55 - 4:01\" data-start=\"00:03:55.268\" data-end=\"00:04:00.808\" data-spk=\"1\" data-label=\"Scot\">But we still love our third-party sellers did you would you think about this video.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:01]<\/small>\u00a0<span title=\"4:01 - 4:07\" data-start=\"00:04:00.868\" data-end=\"00:04:06.624\" data-spk=\"0\" data-label=\"Jason\">Yeah well I\u2019m guessing third-party Sellers and investors didn\u2019t react exactly the same to that news.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:07]<\/small>\u00a0<span title=\"4:07 - 4:22\" data-start=\"00:04:07.382\" data-end=\"00:04:21.960\" data-spk=\"1\" data-label=\"Scot\">Yes investors were happy third-party sellers it\u2019s kind of one of those things it\u2019s kind of tricky because you can\u2019t complain too much because it feels like 35 cents but you know if you\u2019re a seller selling couple of thousand items a day through F be a it\u2019s going to be material and I think,<\/span><br \/><span title=\"4:22 - 4:30\" data-start=\"00:04:22.008\" data-end=\"00:04:29.771\" data-spk=\"1\" data-label=\"Scot\">at the end of the day all this gets passed on to the consumers and that causes inflation which we\u2019re going to talk about a good bit on Today Show.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:30]<\/small>\u00a0<span title=\"4:30 - 4:31\" data-start=\"00:04:29.561\" data-end=\"00:04:31.358\" data-spk=\"0\" data-label=\"Jason\">Yeah it\u2019s a,<\/span><br \/><span title=\"4:31 - 4:41\" data-start=\"00:04:31.436\" data-end=\"00:04:40.636\" data-spk=\"0\" data-label=\"Jason\">it\u2019s interesting it\u2019s kind of a mixed bag because well I feel like it is true that Amazon hasn\u2019t charged a true surge charge before the<\/span><br \/><span title=\"4:41 - 4:48\" data-start=\"00:04:40.564\" data-end=\"00:04:48.472\" data-spk=\"0\" data-label=\"Jason\">you know they change their terms and conditions all the time and that you know they\u2019ll like they\u2019ll narrow the window under which you can keep stuff in,<\/span><br \/><span title=\"4:49 - 4:57\" data-start=\"00:04:48.628\" data-end=\"00:04:57.449\" data-spk=\"0\" data-label=\"Jason\">in the warehouse before you start getting extra fees they\u2019ll make you take more stuff back they\u2019ll take less stuff and those all kind of.<\/span><br \/><span title=\"4:58 - 5:03\" data-start=\"00:04:57.612\" data-end=\"00:05:02.629\" data-spk=\"0\" data-label=\"Jason\">Have the effect of making F be a more expensive for some sellers.<\/span><br \/><span title=\"5:03 - 5:14\" data-start=\"00:05:02.846\" data-end=\"00:05:14.275\" data-spk=\"0\" data-label=\"Jason\">Well the 35 cents probably isn\u2019t a deal-breaker it is a good reminder to all these third-party sellers that your your kind of a digital sharecropper in the Amazon Echo System and what<\/span><br \/><span title=\"5:14 - 5:19\" data-start=\"00:05:14.215\" data-end=\"00:05:18.847\" data-spk=\"0\" data-label=\"Jason\">you know the two things that I think are most interesting are this kicks in in October,<\/span><br \/><span title=\"5:19 - 5:26\" data-start=\"00:05:18.902\" data-end=\"00:05:26.154\" data-spk=\"0\" data-label=\"Jason\">strong rumors that Amazon\u2019s going to try a second prime day in October so this could be insult to injury.<\/span><br \/><span title=\"5:27 - 5:30\" data-start=\"00:05:26.642\" data-end=\"00:05:29.604\" data-spk=\"0\" data-label=\"Jason\">They could be asking third-party sellers to like,<\/span><br \/><span title=\"5:30 - 5:39\" data-start=\"00:05:29.718\" data-end=\"00:05:38.617\" data-spk=\"0\" data-label=\"Jason\">load up the inventory and get ready for a second prime day and be charging them more so this actually could end up being even a little bigger than,<\/span><br \/><span title=\"5:39 - 5:43\" data-start=\"00:05:38.762\" data-end=\"00:05:43.316\" data-spk=\"0\" data-label=\"Jason\">was forecasted than Colin forecasted have.<\/span><\/p>\n<p><small>[5:44]<\/small>\u00a0<span title=\"5:44 - 5:54\" data-start=\"00:05:43.966\" data-end=\"00:05:53.754\" data-spk=\"0\" data-label=\"Jason\">Prime day ends up being a meaningful thing and then if you also remember earlier in the year Amazon launched check out with prime which was kind of a.<\/span><br \/><span title=\"5:54 - 6:05\" data-start=\"00:05:54.049\" data-end=\"00:06:04.727\" data-spk=\"0\" data-label=\"Jason\">First move to making fulfillment by Amazon available to non Amazon sellers or at least sellers off of the Amazon platform and so it\u2019s kind of interesting.<\/span><br \/><span title=\"6:05 - 6:13\" data-start=\"00:06:04.901\" data-end=\"00:06:12.887\" data-spk=\"0\" data-label=\"Jason\">You know shortly after they they\u2019re trying to make F be a more available there they\u2019re making it more expensive.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[6:14]<\/small>\u00a0<span title=\"6:14 - 6:28\" data-start=\"00:06:13.717\" data-end=\"00:06:28.042\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah the they\u2019ve struggled with that because every time they\u2019ve opened it up to people not selling on Amazon they have a surge of some kind and they have to kind of like pair that program back it\u2019s happened like four or five times it\u2019s crazy.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[6:28]<\/small>\u00a0<span title=\"6:28 - 6:42\" data-start=\"00:06:27.826\" data-end=\"00:06:42.422\" data-spk=\"0\" data-label=\"Jason\">And the flip side is of course the other carriers you\u2019d be shipping through the other common carriers the holiday search these are quite common so this is not not going to feel like a typical or out of line when you compare it to UPS or FedEx.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[6:43]<\/small>\u00a0<span title=\"6:43 - 6:48\" data-start=\"00:06:42.897\" data-end=\"00:06:48.100\" data-spk=\"1\" data-label=\"Scot\">Yin haven\u2019t most of them put on a fuel surcharge already like an even though fuel is going down there.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[6:47]<\/small>\u00a0<span title=\"6:47 - 6:55\" data-start=\"00:06:46.791\" data-end=\"00:06:54.704\" data-spk=\"0\" data-label=\"Jason\">There are there are surcharges on top of surcharges and you know some people feel like they haven\u2019t turned off the surge charges for two years.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[6:55]<\/small>\u00a0<span title=\"6:55 - 7:03\" data-start=\"00:06:54.578\" data-end=\"00:07:03.381\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah so it\u2019s hard out there in e-commerce land from a cost perspective that\u2019s for sure was there any Amazon news you found interesting.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[7:03]<\/small>\u00a0<span title=\"7:03 - 7:10\" data-start=\"00:07:03.153\" data-end=\"00:07:09.925\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah I would actually bundle two pieces of news and column two sides of the coin,<\/span><br \/><span title=\"7:10 - 7:18\" data-start=\"00:07:10.010\" data-end=\"00:07:18.362\" data-spk=\"0\" data-label=\"Jason\">the interesting Amazon test was revealed this company that monitors the Amazon App found a new feature,<\/span><br \/><span title=\"7:18 - 7:24\" data-start=\"00:07:18.464\" data-end=\"00:07:23.974\" data-spk=\"0\" data-label=\"Jason\">it appears like it\u2019s only been deployed to Amazon employees at this point,<\/span><br \/><span title=\"7:24 - 7:34\" data-start=\"00:07:24.101\" data-end=\"00:07:34.496\" data-spk=\"0\" data-label=\"Jason\">but it\u2019s basically a picture and video stream in the app so this is like the way that this is described as sort of like a tick tock like feature.<\/span><br \/><span title=\"7:35 - 7:39\" data-start=\"00:07:34.731\" data-end=\"00:07:38.895\" data-spk=\"0\" data-label=\"Jason\">Inside of the Amazon app which is interesting.<\/span><br \/><span title=\"7:40 - 7:48\" data-start=\"00:07:39.586\" data-end=\"00:07:47.836\" data-spk=\"0\" data-label=\"Jason\">Obviously in China a lot of people shop in the Chinese version of Tik-Tok which is called do Hyun.<\/span><br \/><span title=\"7:48 - 7:53\" data-start=\"00:07:48.432\" data-end=\"00:07:52.896\" data-spk=\"0\" data-label=\"Jason\">A lot of people get interested in buying products through tick-tocking us they haven\u2019t necessarily like.<\/span><br \/><span title=\"7:54 - 8:01\" data-start=\"00:07:53.648\" data-end=\"00:08:00.876\" data-spk=\"0\" data-label=\"Jason\">Checked out on Tick Tock in huge quantities yet but it\u2019s super interesting the Amazons kind of approach to social commerce,<\/span><br \/><span title=\"8:01 - 8:06\" data-start=\"00:08:01.009\" data-end=\"00:08:05.557\" data-spk=\"0\" data-label=\"Jason\">is get content creators and influencers and sellers.<\/span><br \/><span title=\"8:06 - 8:18\" data-start=\"00:08:05.738\" data-end=\"00:08:18.489\" data-spk=\"0\" data-label=\"Jason\">To create social content on Amazon\u2019s platform so I\u2019m twitch on Amazon live and now this new Tick-Tock feature it\u2019s like Amazon\u2019s not partnering with Tick-Tock Amazon\u2019s trying to be tick-tock.<\/span><\/p>\n<p><small>[8:20]<\/small>\u00a0<span title=\"8:20 - 8:29\" data-start=\"00:08:19.841\" data-end=\"00:08:29.299\" data-spk=\"0\" data-label=\"Jason\">And I said two sides of the same coin because I mentioned in earlier tests Amazon did was Amazon live where they tried to take really popular,<\/span><br \/><span title=\"8:29 - 8:40\" data-start=\"00:08:29.432\" data-end=\"00:08:40.295\" data-spk=\"0\" data-label=\"Jason\">content creators that are calmer sea and entice them to create content on the Amazon platform and they\u2019re they\u2019re paying anywhere from like two to nine thousand dollars a month plus the.<\/span><br \/><span title=\"8:41 - 8:50\" data-start=\"00:08:40.536\" data-end=\"00:08:49.856\" data-spk=\"0\" data-label=\"Jason\">The affiliate commissions to get people to produce content on Amazon live and it didn\u2019t seem like content creators were super happy with those results,<\/span><br \/><span title=\"8:50 - 8:59\" data-start=\"00:08:49.886\" data-end=\"00:08:59.374\" data-spk=\"0\" data-label=\"Jason\">they weren\u2019t making a lot of money they were there was a lot of churn and now a bunch of this content creators that have moved off the platform are now organizing a boycott of Amazon,<\/span><br \/><span title=\"8:59 - 9:09\" data-start=\"00:08:59.441\" data-end=\"00:09:08.941\" data-spk=\"0\" data-label=\"Jason\">because they feel like Amazon\u2019s not treating their employees the way they would like so it just<\/span><br \/><span title=\"9:09 - 9:20\" data-start=\"00:09:08.911\" data-end=\"00:09:20.484\" data-spk=\"0\" data-label=\"Jason\">reminds everyone that like man there\u2019s this really interesting opportunity and you know side of the business around social commerce and kind of you know letting influencers and content creators<\/span><br \/><span title=\"9:20 - 9:29\" data-start=\"00:09:20.364\" data-end=\"00:09:28.789\" data-spk=\"0\" data-label=\"Jason\">into your Echo System but then the flip side is they don\u2019t always behave in the ways you you like and even more so when they\u2019re they\u2019re not on the payroll.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[9:30]<\/small>\u00a0<span title=\"9:30 - 9:37\" data-start=\"00:09:29.715\" data-end=\"00:09:36.883\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah the influencers live by the influencer die by the influencer The Tick-Tock things interesting I don\u2019t know,<\/span><br \/><span title=\"9:37 - 9:43\" data-start=\"00:09:36.943\" data-end=\"00:09:42.688\" data-spk=\"1\" data-label=\"Scot\">I think it is reading a lot into it to call it Tick Tock but you know they\u2019re definitely trying to figure out live streaming<\/span><br \/><span title=\"9:43 - 9:56\" data-start=\"00:09:42.574\" data-end=\"00:09:55.601\" data-spk=\"1\" data-label=\"Scot\">one thing we haven\u2019t talked about on the show in my world of Collectibles this Marketplace is really splashed onto the scene called whatnot and it\u2019s a whole live stream for Collectibles and you know the<\/span><br \/><span title=\"9:56 - 10:04\" data-start=\"00:09:55.542\" data-end=\"00:10:03.834\" data-spk=\"1\" data-label=\"Scot\">I think they\u2019ve raised money around a three to four billion dollar valuation which would imply there gmv is pretty substantial I haven\u2019t seen any reports<\/span><br \/><span title=\"10:04 - 10:18\" data-start=\"00:10:03.732\" data-end=\"00:10:18.195\" data-spk=\"1\" data-label=\"Scot\">but it\u2019s pretty pretty interesting it\u2019s kind of an entertainment livestream like we see out of China but applied to Collectibles and I feel like that\u2019s a pretty good category for for this format because you can do these<\/span><br \/><span title=\"10:18 - 10:25\" data-start=\"00:10:18.148\" data-end=\"00:10:24.763\" data-spk=\"1\" data-label=\"Scot\">Pack openings and all these kinds of things and I\u2019ve experimented with it and it\u2019s pretty neat you can,<\/span><br \/><span title=\"10:25 - 10:35\" data-start=\"00:10:24.794\" data-end=\"00:10:34.558\" data-spk=\"1\" data-label=\"Scot\">the streamers that can run auctions right in there and they can have kind of a three formats going at once they can kind of have a claim show<\/span><br \/><span title=\"10:34 - 10:43\" data-start=\"00:10:34.360\" data-end=\"00:10:43.379\" data-spk=\"1\" data-label=\"Scot\">an auction and then like a little e-commerce slider store over on the side it\u2019s a pretty interesting platform that if you\u2019re interested in Collectibles go check it out<\/span><br \/><span title=\"10:43 - 10:50\" data-start=\"00:10:43.175\" data-end=\"00:10:49.707\" data-spk=\"1\" data-label=\"Scot\">get started with collectible toys like these little Funko pops and then it\u2019s moved into it\u2019s got a vibrant<\/span><br \/><span title=\"10:50 - 10:59\" data-start=\"00:10:49.665\" data-end=\"00:10:58.781\" data-spk=\"1\" data-label=\"Scot\">sports card non-sports card and then and I\u2019ve seen a lot of activity around the comics category so that\u2019s kind of an interesting new approach ahead and seen out there.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[10:59]<\/small>\u00a0<span title=\"10:59 - 11:07\" data-start=\"00:10:58.559\" data-end=\"00:11:06.791\" data-spk=\"0\" data-label=\"Jason\">Yeah you know the whole live streaming thing is super interesting and complicated the quick Reader\u2019s Digest version.<\/span><br \/><span title=\"11:07 - 11:17\" data-start=\"00:11:07.104\" data-end=\"00:11:16.832\" data-spk=\"0\" data-label=\"Jason\">In China live streaming is super popular and it was born on the e-commerce platform so taobao live which is like kind of the equivalent of Amazon or Ebay.<\/span><\/p>\n<p><small>[11:18]<\/small>\u00a0<span title=\"11:18 - 11:24\" data-start=\"00:11:17.619\" data-end=\"00:11:24.493\" data-spk=\"0\" data-label=\"Jason\">Like launched a livestream video platform and they built a huge Commerce business and these influencers,<\/span><br \/><span title=\"11:25 - 11:34\" data-start=\"00:11:24.608\" data-end=\"00:11:33.879\" data-spk=\"0\" data-label=\"Jason\">the Alibaba paid like we\u2019re starting to sell like huge quantities there\u2019s this dude Austin Lee who sells lipstick Who Sold over a billion dollars in a single day,<\/span><br \/><span title=\"11:34 - 11:43\" data-start=\"00:11:34.000\" data-end=\"00:11:42.773\" data-spk=\"0\" data-label=\"Jason\">and over time in China the live streaming has moved off of the Retailer\u2019s platforms onto the social media platforms like Dao Yuan and WeChat,<\/span><br \/><span title=\"11:43 - 11:52\" data-start=\"00:11:42.912\" data-end=\"00:11:52.243\" data-spk=\"0\" data-label=\"Jason\">and so you look at China and you go oh my God live streams huge it\u2019s the future it\u2019s how all this stuff is getting sold I want to say it\u2019s like 15 or 16 percent of all e-commerce sales in China,<\/span><br \/><span title=\"11:52 - 12:07\" data-start=\"00:11:52.364\" data-end=\"00:12:06.947\" data-spk=\"0\" data-label=\"Jason\">but then here in the US has been a mixed bag there\u2019s a bunch of use cases like you just described where it works really well there\u2019s a bunch of Ed C lies streamers there\u2019s a bunch of like small retail boutiques that live stream during the pandemic to great effect.<\/span><br \/><span title=\"12:07 - 12:14\" data-start=\"00:12:07.170\" data-end=\"00:12:14.104\" data-spk=\"0\" data-label=\"Jason\">They\u2019re doing really well you know Tick-Tock which is the same companies do you know.<\/span><br \/><span title=\"12:14 - 12:21\" data-start=\"00:12:14.489\" data-end=\"00:12:20.546\" data-spk=\"0\" data-label=\"Jason\">Announced that they were delaying their live streaming feature in the US so they.<\/span><br \/><span title=\"12:21 - 12:28\" data-start=\"00:12:20.727\" data-end=\"00:12:28.220\" data-spk=\"0\" data-label=\"Jason\">You know it\u2019s not they\u2019re not rushing it to Market Instagram had a live streaming Commerce feature which they just retired last week.<\/span><br \/><span title=\"12:28 - 12:38\" data-start=\"00:12:28.454\" data-end=\"00:12:37.624\" data-spk=\"0\" data-label=\"Jason\">We\u2019ve seen Walmart do some experiments in live-streaming we\u2019ve seen Nordstrom do some experiments in live streaming it\u2019s not clear.<\/span><br \/><span title=\"12:38 - 12:38\" data-start=\"00:12:37.895\" data-end=\"00:12:38.477\" data-spk=\"0\" data-label=\"Jason\">The.<\/span><\/p>\n<p><small>[12:39]<\/small>\u00a0<span title=\"12:39 - 12:54\" data-start=\"00:12:39.211\" data-end=\"00:12:53.674\" data-spk=\"0\" data-label=\"Jason\">There\u2019s a a mass-market huge opportunity for live streaming that the Amazon live streaming Pilots haven\u2019t worked very well and so they\u2019re both like there\u2019s a bunch of niches and use cases where consumers really like it and you could see it working.<\/span><br \/><span title=\"12:54 - 13:02\" data-start=\"00:12:53.855\" data-end=\"00:13:01.654\" data-spk=\"0\" data-label=\"Jason\">But it doesn\u2019t seem like a slam dunk for any of the really big Commerce players that they just need to turn on this feature in the customers will come running so the.<\/span><br \/><span title=\"13:02 - 13:15\" data-start=\"00:13:01.841\" data-end=\"00:13:14.730\" data-spk=\"0\" data-label=\"Jason\">Lot of debate amongst my clients at the moment you know is China just ahead of the US and does everybody have to get ready for live streaming or is the u.s. going to evolve differently than China as it often does.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[13:16]<\/small>\u00a0<span title=\"13:16 - 13:31\" data-start=\"00:13:15.626\" data-end=\"00:13:30.618\" data-spk=\"1\" data-label=\"Scot\">Yeah or like is it going to be one of those things where like we call talked about chat Commerce forever and it never really jumped jumped over you know it even though Facebook tried really hard to put Commerce and messenger and they hired the PayPal dude it just never really<\/span><br \/><span title=\"13:31 - 13:34\" data-start=\"00:13:30.504\" data-end=\"00:13:33.953\" data-spk=\"1\" data-label=\"Scot\">really translated to the US who next.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[13:34]<\/small>\u00a0<span title=\"13:34 - 13:42\" data-start=\"00:13:33.659\" data-end=\"00:13:41.921\" data-spk=\"0\" data-label=\"Jason\">I know exactly so I yeah I\u2019m not convinced the main way us consumers are shopping is ever likely to be live streaming but I do think it is.<\/span><br \/><span title=\"13:42 - 13:51\" data-start=\"00:13:42.089\" data-end=\"00:13:50.592\" data-spk=\"0\" data-label=\"Jason\">An important solution to particular Discovery problems in the US so I think it\u2019s part of the mix but I don\u2019t think it\u2019s that like,<\/span><br \/><span title=\"13:51 - 13:54\" data-start=\"00:13:50.755\" data-end=\"00:13:54.474\" data-spk=\"0\" data-label=\"Jason\">magic Panacea that\u2019s going to replace traditional e-commerce for example.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[13:55]<\/small>\u00a0<span title=\"13:55 - 14:08\" data-start=\"00:13:55.255\" data-end=\"00:14:07.646\" data-spk=\"1\" data-label=\"Scot\">Yeah well I know you are tingly all over and super excited because the US Department of Commerce data came out and you have done your number crunching and I know I\u2019m eager to hear what you learned.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[14:08]<\/small>\u00a0<span title=\"14:08 - 14:17\" data-start=\"00:14:07.562\" data-end=\"00:14:17.002\" data-spk=\"0\" data-label=\"Jason\">Oh my God this week is like my leap year because you know US Department of Commerce data comes out every month so we always get excited about that but every three months,<\/span><br \/><span title=\"14:17 - 14:31\" data-start=\"00:14:17.092\" data-end=\"00:14:31.039\" data-spk=\"0\" data-label=\"Jason\">the e-commerce data comes out so yesterday the the retail data came out and tomorrow the e-commerce data came out and you were like a should we wait till tomorrow and do one show and I might know there\u2019s too much goodness here we need to shows one,<\/span><br \/><span title=\"14:31 - 14:39\" data-start=\"00:14:31.111\" data-end=\"00:14:38.670\" data-spk=\"0\" data-label=\"Jason\">to talk about the retail data today and then we\u2019ll do another one to talk about the e-commerce data after after that comes out.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[14:38]<\/small>\u00a0<span title=\"14:38 - 14:45\" data-start=\"00:14:38.479\" data-end=\"00:14:44.806\" data-spk=\"1\" data-label=\"Scot\">Yeah on Wall Street I think they have a double and a triple jinx this is kind of a triple witching I don\u2019t know why they call it with you.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[14:45]<\/small>\u00a0<span title=\"14:45 - 14:52\" data-start=\"00:14:44.680\" data-end=\"00:14:52.257\" data-spk=\"0\" data-label=\"Jason\">I do yeah so July retail sales were up 8.2% versus 2021.<\/span><br \/><span title=\"14:53 - 14:56\" data-start=\"00:14:52.732\" data-end=\"00:14:56.493\" data-spk=\"0\" data-label=\"Jason\">So that\u2019s very healthy robust growth.<\/span><br \/><span title=\"14:57 - 15:06\" data-start=\"00:14:56.830\" data-end=\"00:15:06.342\" data-spk=\"0\" data-label=\"Jason\">We\u2019ve been talking about such big growth and with all these anomalies going on that like we\u2019ve gone kind of used to it but just a reminder normal retail growth year over year,<\/span><br \/><span title=\"15:06 - 15:13\" data-start=\"00:15:06.493\" data-end=\"00:15:13.247\" data-spk=\"0\" data-label=\"Jason\">for the last 30 years the median growth is 4.5% so 8.2% is almost twice as good as you\u2019d.<\/span><br \/><span title=\"15:13 - 15:25\" data-start=\"00:15:13.469\" data-end=\"00:15:24.586\" data-spk=\"0\" data-label=\"Jason\">And even more to the point year-to-date growth so January through June growth retail is up 8.9% so wit early twice what you would normally expect.<\/span><br \/><span title=\"15:25 - 15:30\" data-start=\"00:15:24.869\" data-end=\"00:15:30.348\" data-spk=\"0\" data-label=\"Jason\">So that is super exciting the.<\/span><br \/><span title=\"15:31 - 15:36\" data-start=\"00:15:30.818\" data-end=\"00:15:36.448\" data-spk=\"0\" data-label=\"Jason\">Wrinkle here is our friend inflation like every time I talk about this huge growth.<\/span><br \/><span title=\"15:37 - 15:50\" data-start=\"00:15:36.851\" data-end=\"00:15:50.100\" data-spk=\"0\" data-label=\"Jason\">A bunch of people chime in and go yeah but it\u2019s all inflation and for the last two years that we\u2019ve had this enormous growth because of the pandemic and changes in purchase patterns all the economic stimulus all that stuff.<\/span><br \/><span title=\"15:51 - 15:58\" data-start=\"00:15:50.623\" data-end=\"00:15:58.321\" data-spk=\"0\" data-label=\"Jason\">I keep looking at inflation and inflation is a small part of the growth but not a meaningful part and so I have to keep telling people<\/span><br \/><span title=\"15:58 - 16:03\" data-start=\"00:15:58.285\" data-end=\"00:16:02.713\" data-spk=\"0\" data-label=\"Jason\">yeah information is in there but it\u2019s not a huge deal well that changes this year,<\/span><br \/><span title=\"16:03 - 16:12\" data-start=\"00:16:02.756\" data-end=\"00:16:11.961\" data-spk=\"0\" data-label=\"Jason\">so I mentioned year-to-date growth for this year\u2019s 8.9% if you adjust for inflation your today growth is 0.5%.<\/span><\/p>\n<p><small>[16:13]<\/small>\u00a0<span title=\"16:13 - 16:23\" data-start=\"00:16:13.031\" data-end=\"00:16:22.976\" data-spk=\"0\" data-label=\"Jason\">So that basically means all the growth we\u2019re getting in 2022 so far is directly a result of inflation and that\u2019s super interesting because,<\/span><br \/><span title=\"16:23 - 16:34\" data-start=\"00:16:23.048\" data-end=\"00:16:34.261\" data-spk=\"0\" data-label=\"Jason\">20:21 was like the biggest year of retail growth in my lifetime and I jokingly told a lot of my friends and clients you know they should think about retiring because comping against that.<\/span><br \/><span title=\"16:34 - 16:45\" data-start=\"00:16:34.472\" data-end=\"00:16:44.789\" data-spk=\"0\" data-label=\"Jason\">20:21 is gonna suck and then so far this year we\u2019ve been comping quite well but it turns out the reason we\u2019re comping well is not because,<\/span><br \/><span title=\"16:45 - 16:53\" data-start=\"00:16:44.915\" data-end=\"00:16:52.799\" data-spk=\"0\" data-label=\"Jason\">consumer spending is like super robust and continuing but rather inflation has kind of filled in where that,<\/span><br \/><span title=\"16:53 - 17:02\" data-start=\"00:16:52.938\" data-end=\"00:17:01.512\" data-spk=\"0\" data-label=\"Jason\">that consumer momentum is starting to wane so that is a big story that we need to watch for the rest of the year.<\/span><br \/><span title=\"17:02 - 17:04\" data-start=\"00:17:02.167\" data-end=\"00:17:03.729\" data-spk=\"0\" data-label=\"Jason\">Again the actual.<\/span><\/p>\n<p><small>[17:04]<\/small>\u00a0<span title=\"17:04 - 17:14\" data-start=\"00:17:04.421\" data-end=\"00:17:14.077\" data-spk=\"0\" data-label=\"Jason\">Hyper actor e-commerce.<\/span><br \/><span title=\"17:14 - 17:22\" data-start=\"00:17:14.252\" data-end=\"00:17:22.063\" data-spk=\"0\" data-label=\"Jason\">Broad version of e-commerce called non store sales so for July they were up 18 percent versus last year.<\/span><br \/><span title=\"17:22 - 17:25\" data-start=\"00:17:22.364\" data-end=\"00:17:25.254\" data-spk=\"0\" data-label=\"Jason\">The year-to-date there up about 12%,<\/span><br \/><span title=\"17:25 - 17:37\" data-start=\"00:17:25.381\" data-end=\"00:17:37.254\" data-spk=\"0\" data-label=\"Jason\">I\u2019ll be really interested to see what the quarterly number is tomorrow you know in kind of Q4 of last year there was all this exuberant some for spending in retail stores and e-commerce continued to grow,<\/span><br \/><span title=\"17:37 - 17:43\" data-start=\"00:17:37.411\" data-end=\"00:17:42.734\" data-spk=\"0\" data-label=\"Jason\">but it\u2019s rate of growth slowed down a lot so for one of the you know only times in my lifetime.<\/span><br \/><span title=\"17:43 - 17:57\" data-start=\"00:17:43.125\" data-end=\"00:17:57.318\" data-spk=\"0\" data-label=\"Jason\">Brick-and-mortar retail grew faster than e-commerce and I have a feeling that we\u2019re going to see Q2 of next year that\u2019s Q 2 of this year tomorrow that that\u2019s not going to be the case that we\u2019re gonna returning to the normal trend of e-commerce growing.<\/span><br \/><span title=\"17:58 - 18:01\" data-start=\"00:17:57.613\" data-end=\"00:18:00.509\" data-spk=\"0\" data-label=\"Jason\">Meaningfully faster than brick and mortar.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[18:01]<\/small>\u00a0<span title=\"18:01 - 18:06\" data-start=\"00:18:01.207\" data-end=\"00:18:05.569\" data-spk=\"1\" data-label=\"Scot\">We\u2019re not going to no till tomorrow I can\u2019t wait all-nighter.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[18:05]<\/small>\u00a0<span title=\"18:05 - 18:19\" data-start=\"00:18:05.287\" data-end=\"00:18:18.939\" data-spk=\"0\" data-label=\"Jason\">I will give you one other thing to tease based on the q1 data which came out three months ago we\u2019ve seen that q1 data show up in a bunch of earnings calls and the most famous one is Shopify right so Shopify,<\/span><br \/><span title=\"18:19 - 18:24\" data-start=\"00:18:19.036\" data-end=\"00:18:24.197\" data-spk=\"0\" data-label=\"Jason\">right before their earnings call they laid off like 10% of their Workforce and they said like.<\/span><br \/><span title=\"18:24 - 18:35\" data-start=\"00:18:24.366\" data-end=\"00:18:34.815\" data-spk=\"0\" data-label=\"Jason\">Man you know there was all this e-commerce growth during the pandemic we hired all these people we got ready for all this stuff and then the e-commerce growth regressed to the mean.<\/span><br \/><span title=\"18:35 - 18:43\" data-start=\"00:18:35.020\" data-end=\"00:18:43.204\" data-spk=\"0\" data-label=\"Jason\">Which toy surprised us we thought it would be more persistent and so we\u2019ve got to lay off a bunch of people and cut a bunch of cops and they show this,<\/span><br \/><span title=\"18:43 - 18:52\" data-start=\"00:18:43.222\" data-end=\"00:18:52.013\" data-spk=\"0\" data-label=\"Jason\">this famous graph of the quarterly e-commerce data showing this big spike the last couple months and it kind of Dipping back down to the trendline.<\/span><br \/><span title=\"18:52 - 19:02\" data-start=\"00:18:52.200\" data-end=\"00:19:01.597\" data-spk=\"0\" data-label=\"Jason\">And I see that graph everywhere and the one thing I like to remind people about is regressing to the mean doesn\u2019t mean e-commerce.<\/span><br \/><span title=\"19:02 - 19:09\" data-start=\"00:19:02.030\" data-end=\"00:19:08.856\" data-spk=\"0\" data-label=\"Jason\">Didn\u2019t grow it meant e-commerce grew as fast as it used to be growing which is quite fast so,<\/span><br \/><span title=\"19:09 - 19:20\" data-start=\"00:19:08.869\" data-end=\"00:19:20.442\" data-spk=\"0\" data-label=\"Jason\">well Shopify weight off 10% of their people like I was screaming in the background e-commerce has grown 61% from 2022 2022 and it added four hundred and twelve billion dollars a year in space<\/span><br \/><span title=\"19:20 - 19:27\" data-start=\"00:19:20.388\" data-end=\"00:19:26.877\" data-spk=\"0\" data-label=\"Jason\">it\u2019s not like it\u2019s not like there\u2019s not a ton of growth there it\u2019s just the growth that we\u2019re used to seeing.<\/span><br \/><span title=\"19:29 - 19:33\" data-start=\"00:19:28.795\" data-end=\"00:19:32.760\" data-spk=\"0\" data-label=\"Jason\">So it\u2019ll be interesting to see what tomorrow brings.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[19:33]<\/small>\u00a0<span title=\"19:33 - 19:45\" data-start=\"00:19:33.416\" data-end=\"00:19:45.439\" data-spk=\"1\" data-label=\"Scot\">Yeah seems like a lot of the the inflation is really starting to Ripple through at this point and we\u2019ve seen that show up at some retailers but it\u2019s interesting to see it can work into the day-to-day with your.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[19:45]<\/small>\u00a0<span title=\"19:45 - 19:54\" data-start=\"00:19:45.428\" data-end=\"00:19:54.159\" data-spk=\"0\" data-label=\"Jason\">I know that that brings up a good point like we have several omni-channel retailers that reported earnings this this week and it\u2019s a really mixed bag about.<\/span><br \/><span title=\"19:55 - 19:56\" data-start=\"00:19:54.670\" data-end=\"00:19:56.262\" data-spk=\"0\" data-label=\"Jason\">The the.<\/span><br \/><span title=\"19:57 - 20:06\" data-start=\"00:19:56.821\" data-end=\"00:20:05.576\" data-spk=\"0\" data-label=\"Jason\">Inflation indicators in their earnings calls and you know probably the biggest one is Walmart reported earnings two days ago and people<\/span><br \/><span title=\"20:05 - 20:12\" data-start=\"00:20:05.468\" data-end=\"00:20:11.970\" data-spk=\"0\" data-label=\"Jason\">economists watch Walmart\u2019s earnings reports really closely in a challenging economic time because.<\/span><br \/><span title=\"20:12 - 20:24\" data-start=\"00:20:12.168\" data-end=\"00:20:23.597\" data-spk=\"0\" data-label=\"Jason\">They\u2019re kind of the Bellwether for the American Consumer right like that they have the biggest chunk of consumer spending and they kind of as Walmart goes like the American economy goes so.<\/span><br \/><span title=\"20:24 - 20:32\" data-start=\"00:20:23.916\" data-end=\"00:20:31.914\" data-spk=\"0\" data-label=\"Jason\">The as a reminder about a week before their earnings they low they significantly lowered their their earnings guidance for the rest of the year,<\/span><br \/><span title=\"20:32 - 20:40\" data-start=\"00:20:32.022\" data-end=\"00:20:39.629\" data-spk=\"0\" data-label=\"Jason\">they said that they expect that that they expected their profitability to be considerably lower than they had previously.<\/span><\/p>\n<p><small>[20:40]<\/small>\u00a0<span title=\"20:40 - 20:45\" data-start=\"00:20:39.918\" data-end=\"00:20:44.839\" data-spk=\"0\" data-label=\"Jason\">Giving guidance there earlier guidance was like zero to one percent growth.<\/span><br \/><span title=\"20:45 - 20:52\" data-start=\"00:20:45.020\" data-end=\"00:20:52.104\" data-spk=\"0\" data-label=\"Jason\">And they reduced it to they think earnings are going to be 11 to 13 percent lower this year than they were last year.<\/span><br \/><span title=\"20:52 - 20:55\" data-start=\"00:20:52.291\" data-end=\"00:20:55.073\" data-spk=\"0\" data-label=\"Jason\">Um so fast forward a week,<\/span><br \/><span title=\"20:55 - 21:03\" data-start=\"00:20:55.181\" data-end=\"00:21:03.245\" data-spk=\"0\" data-label=\"Jason\">to their earnings and everyone was kind of braced for it being kind of a brutal quarter and it was a beat beat reiterate like,<\/span><br \/><span title=\"21:03 - 21:15\" data-start=\"00:21:03.378\" data-end=\"00:21:15.395\" data-spk=\"0\" data-label=\"Jason\">they beat their earnings Target they beat the revenue Target and they stuck with their guidance that earnings are going to be a lot lower the second half of the year but.<\/span><br \/><span title=\"21:16 - 21:22\" data-start=\"00:21:15.594\" data-end=\"00:21:21.777\" data-spk=\"0\" data-label=\"Jason\">Investors actually took that as good news they actually expected that that Walmart might have a miss and so the fact that.<\/span><br \/><span title=\"21:22 - 21:30\" data-start=\"00:21:22.012\" data-end=\"00:21:30.268\" data-spk=\"0\" data-label=\"Jason\">Q2 sales and Q2 earnings were reasonably robust at Walmart was kind of positive news and to kind of put that in perspective.<\/span><br \/><span title=\"21:30 - 21:44\" data-start=\"00:21:30.448\" data-end=\"00:21:43.512\" data-spk=\"0\" data-label=\"Jason\">U.s. comp retail sales for Walmart last quarter grew 6.5 percent so again normal retail growth is 4.5% so 6.5 is good e-commerce grew 12% and you can compare that with,<\/span><br \/><span title=\"21:44 - 21:51\" data-start=\"00:21:43.530\" data-end=\"00:21:50.999\" data-spk=\"0\" data-label=\"Jason\">Amazon e-commerce grew seven percent the same quarter so obviously Walmart\u2019s a lot smaller than Amazon but they\u2019re the second largest e-commerce site,<\/span><br \/><span title=\"21:51 - 22:00\" data-start=\"00:21:51.162\" data-end=\"00:21:59.556\" data-spk=\"0\" data-label=\"Jason\">in the US and they\u2019re they\u2019re drilling meaningfully faster than Amazon which is impressive they did.<\/span><br \/><span title=\"22:00 - 22:04\" data-start=\"00:21:59.791\" data-end=\"00:22:04.219\" data-spk=\"0\" data-label=\"Jason\">You know we made a big deal about Amazon is breaking out their ad sales.<\/span><\/p>\n<p><small>[22:04]<\/small>\u00a0<span title=\"22:04 - 22:12\" data-start=\"00:22:04.472\" data-end=\"00:22:11.652\" data-spk=\"0\" data-label=\"Jason\">Walmart didn\u2019t quite go that far they said that their ad sales which is called Walmart connect grew 30% which is.<\/span><\/p>\n<p><small>[22:12]<\/small>\u00a0<span title=\"22:12 - 22:27\" data-start=\"00:22:12.272\" data-end=\"00:22:26.507\" data-spk=\"0\" data-label=\"Jason\">I\u2019m not faster rate of growth and Amazon\u2019s ad sales are growing Amazon\u2019s growing about 18% Walmart is growing at 30 but they didn\u2019t tell us what the base was and and you know it\u2019s certainly a way smaller base than Amazon so I\u2019m not sure.<\/span><br \/><span title=\"22:27 - 22:37\" data-start=\"00:22:26.789\" data-end=\"00:22:37.443\" data-spk=\"0\" data-label=\"Jason\">That growth on the much smaller base is huge news but it was interesting to see them talking about it Doug mcmillon and the CFO both John rainy both made.<\/span><br \/><span title=\"22:38 - 22:48\" data-start=\"00:22:37.774\" data-end=\"00:22:48.470\" data-spk=\"0\" data-label=\"Jason\">You know a big deal about Walmart connecting being a big part the CFO joked about not being used to businesses with this kind of crazy margins before and.<\/span><br \/><span title=\"22:49 - 23:01\" data-start=\"00:22:48.771\" data-end=\"00:23:00.764\" data-spk=\"0\" data-label=\"Jason\">Doug actually talked a lot about how Walmart connect is gaining huge traction internationally so they\u2019re they\u2019re able to sell the ads in in India and China and some of the other other markets that they plan.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[23:00]<\/small>\u00a0<span title=\"23:00 - 23:15\" data-start=\"00:23:00.464\" data-end=\"00:23:14.988\" data-spk=\"1\" data-label=\"Scot\">They were getting a lot of like why surface it now I don\u2019t understand the so Amazon started revealing it because they\u2019ve had to like the SEC said this has become a material part of your business you have to unpack it a bit but this seems like they,<\/span><br \/><span title=\"23:15 - 23:17\" data-start=\"00:23:15.078\" data-end=\"00:23:16.989\" data-spk=\"1\" data-label=\"Scot\">decided to do any Mini.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[23:17]<\/small>\u00a0<span title=\"23:17 - 23:22\" data-start=\"00:23:16.875\" data-end=\"00:23:22.355\" data-spk=\"0\" data-label=\"Jason\">Yeah I think just because it\u2019s a good number 30 percent growth sounds like a good number.<\/span><br \/><span title=\"23:23 - 23:31\" data-start=\"00:23:22.626\" data-end=\"00:23:30.858\" data-spk=\"0\" data-label=\"Jason\">And it\u2019s a yeah when when most of your news is about your earnings really being challenged talking about a super high margin part of your business.<\/span><br \/><span title=\"23:31 - 23:41\" data-start=\"00:23:31.057\" data-end=\"00:23:40.580\" data-spk=\"0\" data-label=\"Jason\">Growing really fast I feel like just reflects well right like I\u2019m not I\u2019m not confident we\u2019re going to see them report that number every quarter by the way.<\/span><br \/><span title=\"23:41 - 23:46\" data-start=\"00:23:40.767\" data-end=\"00:23:45.604\" data-spk=\"0\" data-label=\"Jason\">Yeah so we\u2019ll have to see how that goes but like to kind of,<\/span><br \/><span title=\"23:46 - 23:57\" data-start=\"00:23:45.628\" data-end=\"00:23:57.460\" data-spk=\"0\" data-label=\"Jason\">summarize why they\u2019re saying profits are likely to be much lower for the full 2022 essentially what Walmart is saying is they are seeing consumers change Behavior because of the recession,<\/span><br \/><span title=\"23:58 - 24:05\" data-start=\"00:23:57.569\" data-end=\"00:24:05.260\" data-spk=\"0\" data-label=\"Jason\">and one of the big ways is they\u2019re seeing consumers still spend a lot with Walmart but they\u2019re shifting from.<\/span><\/p>\n<p><small>[24:06]<\/small>\u00a0<span title=\"24:06 - 24:13\" data-start=\"00:24:05.897\" data-end=\"00:24:13.240\" data-spk=\"0\" data-label=\"Jason\">Wants to needs so they\u2019re buying a lot less clothes and consumer electronics and a lot more food,<\/span><br \/><span title=\"24:13 - 24:18\" data-start=\"00:24:13.330\" data-end=\"00:24:18.083\" data-spk=\"0\" data-label=\"Jason\">and the food in the essentials that Walmart sells are much lower margin,<\/span><br \/><span title=\"24:18 - 24:26\" data-start=\"00:24:18.180\" data-end=\"00:24:26.087\" data-spk=\"0\" data-label=\"Jason\">then the home and apparel categories that they\u2019re selling less of so the mix it Walmart is changing.<\/span><br \/><span title=\"24:26 - 24:32\" data-start=\"00:24:26.250\" data-end=\"00:24:31.796\" data-spk=\"0\" data-label=\"Jason\">Um which is hurting their profitability but not necessarily their income,<\/span><br \/><span title=\"24:32 - 24:40\" data-start=\"00:24:31.874\" data-end=\"00:24:40.359\" data-spk=\"0\" data-label=\"Jason\">and in fact they called out 11 funny anomaly of the income is in this High inflationary time,<\/span><br \/><span title=\"24:40 - 24:53\" data-start=\"00:24:40.479\" data-end=\"00:24:52.515\" data-spk=\"0\" data-label=\"Jason\">a lot more High income consumer start shopping at Walmart so people that make over a hundred thousand dollars a year spend more at Walmart in a tough economy than they do in a,<\/span><br \/><span title=\"24:53 - 25:04\" data-start=\"00:24:52.600\" data-end=\"00:25:03.692\" data-spk=\"0\" data-label=\"Jason\">really bullish economy and so they feel like they captured extra customers because of that that would have shop somewhere else but they\u2019re buying this alone margin stuff,<\/span><br \/><span title=\"25:04 - 25:12\" data-start=\"00:25:03.819\" data-end=\"00:25:12.002\" data-spk=\"0\" data-label=\"Jason\">and John rainy the CFO he specifically talked about how they\u2019re seeing consumers make different purchase decisions that there.<\/span><\/p>\n<p><small>[25:12]<\/small>\u00a0<span title=\"25:12 - 25:25\" data-start=\"00:25:12.177\" data-end=\"00:25:25.270\" data-spk=\"0\" data-label=\"Jason\">He called it a pronounced customer shift that people are trading down and he gave the specific example that we\u2019re selling a lot less deli meats were selling a lot less beef and instead we\u2019re selling a lot more hot dogs chicken and tuna,<\/span><br \/><span title=\"25:25 - 25:33\" data-start=\"00:25:25.391\" data-end=\"00:25:33.419\" data-spk=\"0\" data-label=\"Jason\">and that you know even vegetable based proteins like beans are starting to sell a lot better in those are all signs of,<\/span><br \/><span title=\"25:34 - 25:38\" data-start=\"00:25:33.551\" data-end=\"00:25:38.346\" data-spk=\"0\" data-label=\"Jason\">you know distress consumer that\u2019s trying to make their food budget go further every week.<\/span><\/p>\n<p><small>[25:39]<\/small>\u00a0<span title=\"25:39 - 25:48\" data-start=\"00:25:38.569\" data-end=\"00:25:47.901\" data-spk=\"0\" data-label=\"Jason\">So I would call that a mixed bag I feel like investors were thrilled that their earnings call wasn\u2019t worse but you know.<\/span><br \/><span title=\"25:48 - 25:57\" data-start=\"00:25:48.424\" data-end=\"00:25:56.518\" data-spk=\"0\" data-label=\"Jason\">I don\u2019t I don\u2019t feel like people saw Walmart\u2019s earnings and said oh my gosh we\u2019re out of the woods on the economy and things are going to be great for the second half of the year.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:57]<\/small>\u00a0<span title=\"25:57 - 25:58\" data-start=\"00:25:56.734\" data-end=\"00:25:57.982\" data-spk=\"1\" data-label=\"Scot\">Yeah.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:58]<\/small>\u00a0<span title=\"25:58 - 26:07\" data-start=\"00:25:58.141\" data-end=\"00:26:07.058\" data-spk=\"0\" data-label=\"Jason\">So then we move to Target and and Target was kind of a Miss meat,<\/span><br \/><span title=\"26:07 - 26:18\" data-start=\"00:26:07.118\" data-end=\"00:26:17.970\" data-spk=\"0\" data-label=\"Jason\">maintain right they miss their earnings pretty meaningfully so they the guy their expectation when 72 cents a share they came in at 39 cents a share so that\u2019s a big,<\/span><br \/><span title=\"26:18 - 26:23\" data-start=\"00:26:18.091\" data-end=\"00:26:23.402\" data-spk=\"0\" data-label=\"Jason\">drop it\u2019s actually 90% less profit than they made this quarter last year,<\/span><br \/><span title=\"26:24 - 26:36\" data-start=\"00:26:23.547\" data-end=\"00:26:35.763\" data-spk=\"0\" data-label=\"Jason\">so a huge drop in profitability they exactly hit the revenue Target which was 26 billion and their guidance kind of stayed the same that they\u2019re expecting to grow.<\/span><br \/><span title=\"26:36 - 26:39\" data-start=\"00:26:35.962\" data-end=\"00:26:38.629\" data-spk=\"0\" data-label=\"Jason\">Kind of in there two to four percent,<\/span><br \/><span title=\"26:39 - 26:49\" data-start=\"00:26:38.780\" data-end=\"00:26:48.911\" data-spk=\"0\" data-label=\"Jason\">um growth rate which would be a typical year and they\u2019re expecting six percent margins which would be significantly up from the 1.2 percent margins they got this quarter.<\/span><\/p>\n<p><small>[26:50]<\/small>\u00a0<span title=\"26:50 - 27:03\" data-start=\"00:26:50.029\" data-end=\"00:27:03.164\" data-spk=\"0\" data-label=\"Jason\">Digital for them was up nine percent which is a lot slower growth rate than than Walmart and slower even than Amazon even though targets a lot smaller than then Amazon.<\/span><br \/><span title=\"27:04 - 27:06\" data-start=\"00:27:03.772\" data-end=\"00:27:05.568\" data-spk=\"0\" data-label=\"Jason\">But what is interesting is.<\/span><br \/><span title=\"27:06 - 27:20\" data-start=\"00:27:05.809\" data-end=\"00:27:20.440\" data-spk=\"0\" data-label=\"Jason\">Target basically talked about not seeing any inflationary changes to consumer spending they did not talk about their mixed changing dramatically they did not talk about like seeing their customer change a lot,<\/span><br \/><span title=\"27:21 - 27:23\" data-start=\"00:27:20.519\" data-end=\"00:27:22.501\" data-spk=\"0\" data-label=\"Jason\">what they talked about is.<\/span><br \/><span title=\"27:23 - 27:37\" data-start=\"00:27:23.127\" data-end=\"00:27:36.881\" data-spk=\"0\" data-label=\"Jason\">They had too much of the wrong inventory because of the supply chain disruptions last year and then being forced to deeply discount a lot of product and they took like a 1.5 billion dollar haircut on their inventory.<\/span><br \/><span title=\"27:37 - 27:49\" data-start=\"00:27:37.074\" data-end=\"00:27:48.581\" data-spk=\"0\" data-label=\"Jason\">Um which they had warned us they were going to do but so what they\u2019re saying is man we\u2019re just having to sell a lot of this stuff cheaper and that\u2019s it\u2019s not necessarily because of inflation but more because.<\/span><br \/><span title=\"27:49 - 27:50\" data-start=\"00:27:48.870\" data-end=\"00:27:49.999\" data-spk=\"0\" data-label=\"Jason\">We have the wrong stuff.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[27:51]<\/small>\u00a0<span title=\"27:51 - 28:00\" data-start=\"00:27:51.027\" data-end=\"00:28:00.407\" data-spk=\"1\" data-label=\"Scot\">That yeah got you think they had this supply chain problem and ended up with the stuff they ordered a year ago gosh when I open this door is.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:00]<\/small>\u00a0<span title=\"28:00 - 28:12\" data-start=\"00:28:00.413\" data-end=\"00:28:11.638\" data-spk=\"0\" data-label=\"Jason\">That for sure is true like they all ordered like Walmart you know said similar things that Walmart\u2019s I think said if we had a magic wand we would make 1.5 billion dollars worth of our inventory just disappear.<\/span><br \/><span title=\"28:12 - 28:14\" data-start=\"00:28:11.872\" data-end=\"00:28:14.342\" data-spk=\"0\" data-label=\"Jason\">Um and you know they all like.<\/span><br \/><span title=\"28:15 - 28:29\" data-start=\"00:28:14.588\" data-end=\"00:28:29.022\" data-spk=\"0\" data-label=\"Jason\">Beefed up their orders around holiday and they you know they all went to these extraordinary expenses to get inventory they got inventory much more via much more expensive means you know from more expensive suppliers with more expensive Freight.<\/span><br \/><span title=\"28:29 - 28:37\" data-start=\"00:28:29.251\" data-end=\"00:28:36.527\" data-spk=\"0\" data-label=\"Jason\">Um a lot of those costs are coming down right now freight costs are coming down shipping costs are coming down,<\/span><br \/><span title=\"28:37 - 28:46\" data-start=\"00:28:36.660\" data-end=\"00:28:46.112\" data-spk=\"0\" data-label=\"Jason\">but you know a lot of that inventory rolled in and it you know it was the clothes they hope to sell for Christmas that you know is less appealing now.<\/span><br \/><span title=\"28:46 - 28:55\" data-start=\"00:28:46.370\" data-end=\"00:28:54.885\" data-spk=\"0\" data-label=\"Jason\">I would argue people are also just buying less clothes right now like and I do think that\u2019s partly because of the economy and inflation.<\/span><br \/><span title=\"28:55 - 29:05\" data-start=\"00:28:55.204\" data-end=\"00:29:04.716\" data-spk=\"0\" data-label=\"Jason\">You know Target saying it\u2019s not Walmart saying it is it\u2019s possible they\u2019re both right it\u2019s you know Walmart has a lower income customer than Target and so it is possible that the.<\/span><br \/><span title=\"29:05 - 29:15\" data-start=\"00:29:04.963\" data-end=\"00:29:14.751\" data-spk=\"0\" data-label=\"Jason\">The typical Walmart customers more affected by inflation and their behavior is changing more dramatically in the more affluent customer that shops at Target and Amazon,<\/span><br \/><span title=\"29:15 - 29:24\" data-start=\"00:29:14.908\" data-end=\"00:29:23.728\" data-spk=\"0\" data-label=\"Jason\">um that their behavior is changing less as a result of inflation so I you know it\u2019s not outside the realm of possibility that they\u2019re both they\u2019re both right from their.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[29:26]<\/small>\u00a0<span title=\"29:26 - 29:32\" data-start=\"00:29:26.132\" data-end=\"00:29:32.466\" data-spk=\"1\" data-label=\"Scot\">Nursing did in their warnings they both talked about apparel any more color on that.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[29:33]<\/small>\u00a0<span title=\"29:33 - 29:44\" data-start=\"00:29:32.833\" data-end=\"00:29:44.003\" data-spk=\"0\" data-label=\"Jason\">I mean again the the they\u2019re seeing home slow down a lot which is interesting because you know people were overspending on home when they couldn\u2019t travel you you\u2019ve seen this in your business but like.<\/span><br \/><span title=\"29:44 - 29:53\" data-start=\"00:29:44.286\" data-end=\"00:29:53.089\" data-spk=\"0\" data-label=\"Jason\">A lot of people are back to travel there\u2019s a lot of Revenge travel people are also restaurants are having a moment restaurants are crushing grocery stores at the moment,<\/span><br \/><span title=\"29:53 - 30:02\" data-start=\"00:29:53.245\" data-end=\"00:30:02.397\" data-spk=\"0\" data-label=\"Jason\">as you know everybody I\u2019m not sure covid zup officially over but like everybody\u2019s mentally of it over covid rushing back to restaurants and fun fact.<\/span><br \/><span title=\"30:03 - 30:10\" data-start=\"00:30:02.716\" data-end=\"00:30:09.668\" data-spk=\"0\" data-label=\"Jason\">Inflation for restaurant food is much lower than inflation for grocery store food so it\u2019s actually a better deal right.<\/span><br \/><span title=\"30:11 - 30:19\" data-start=\"00:30:10.822\" data-end=\"00:30:18.886\" data-spk=\"0\" data-label=\"Jason\">So the food thing is weird the apparel thing is weird consumer electronics are really soft sales right now and they\u2019re they\u2019re actually.<\/span><br \/><span title=\"30:19 - 30:27\" data-start=\"00:30:19.163\" data-end=\"00:30:27.070\" data-spk=\"0\" data-label=\"Jason\">They have this weird counter effect like that\u2019s the one category that\u2019s having deflation TVs or less expensive this year than they were last year.<\/span><br \/><span title=\"30:28 - 30:35\" data-start=\"00:30:27.695\" data-end=\"00:30:35.140\" data-spk=\"0\" data-label=\"Jason\">And yet sales are still really soft I think Best Buy reports earnings tomorrow so that\u2019ll probably be a challenge for them.<\/span><br \/><span title=\"30:36 - 30:42\" data-start=\"00:30:35.988\" data-end=\"00:30:41.966\" data-spk=\"0\" data-label=\"Jason\">In the discretionary spending categories the one category that everyone has called out as an out performer is beauty.<\/span><br \/><span title=\"30:42 - 30:54\" data-start=\"00:30:42.267\" data-end=\"00:30:53.630\" data-spk=\"0\" data-label=\"Jason\">And I think that\u2019s this thing that we call affordable luxury that like you know when you\u2019re not feeling great about your finances but you want to treat yourself like what you do is you buy the premium whip.<\/span><br \/><span title=\"30:54 - 30:56\" data-start=\"00:30:54.129\" data-end=\"00:30:56.316\" data-spk=\"0\" data-label=\"Jason\">Instead of an expensive outfit or something like.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[30:57]<\/small>\u00a0<span title=\"30:57 - 31:04\" data-start=\"00:30:57.440\" data-end=\"00:31:03.671\" data-spk=\"1\" data-label=\"Scot\">Nursing yeah kind of a can still feel good about yourself but you spent a lot less than a whole new.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[31:03]<\/small>\u00a0<span title=\"31:03 - 31:09\" data-start=\"00:31:02.680\" data-end=\"00:31:08.803\" data-spk=\"0\" data-label=\"Jason\">Exactly I would argue that a better affordable luxuries to have someone do an amazing job detailing your car but that\u2019s just me.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[31:09]<\/small>\u00a0<span title=\"31:09 - 31:18\" data-start=\"00:31:08.509\" data-end=\"00:31:18.081\" data-spk=\"1\" data-label=\"Scot\">Or a iced vanilla latte at Starbucks or 10.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[31:15]<\/small>\u00a0<span title=\"31:15 - 31:21\" data-start=\"00:31:15.017\" data-end=\"00:31:21.170\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah absolutely that\u2019s not that\u2019s not an affordable luxury Scott that\u2019s a necessity.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[31:22]<\/small>\u00a0<span title=\"31:22 - 31:27\" data-start=\"00:31:22.468\" data-end=\"00:31:26.506\" data-spk=\"1\" data-label=\"Scot\">Were there any other omni-channel you want to cover because I had a.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[31:26]<\/small>\u00a0<span title=\"31:26 - 31:36\" data-start=\"00:31:26.206\" data-end=\"00:31:36.030\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah I think we probably spend enough time the Home Improvement guys did report it was kind of a in between Home Depot is decent their up<\/span><br \/><span title=\"31:36 - 31:50\" data-start=\"00:31:35.916\" data-end=\"00:31:49.725\" data-spk=\"0\" data-label=\"Jason\">5.4% in their their comp sales which is kind of in between what we saw at Target and Walmart they talked about seeing their consumer business has slowed down and seeing their Pro businesses which is the contractors pick up<\/span><br \/><span title=\"31:50 - 32:02\" data-start=\"00:31:49.587\" data-end=\"00:32:02.494\" data-spk=\"0\" data-label=\"Jason\">so I do think consumer spending on their homes is slowing down I don\u2019t know where that pro-business is coming from at first glance so we\u2019ll have to dive into that deeper but the housing market is all<\/span><br \/><span title=\"32:02 - 32:04\" data-start=\"00:32:02.488\" data-end=\"00:32:04.038\" data-spk=\"0\" data-label=\"Jason\">topsy-turvy right now.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[32:04]<\/small>\u00a0<span title=\"32:04 - 32:09\" data-start=\"00:32:04.417\" data-end=\"00:32:09.218\" data-spk=\"1\" data-label=\"Scot\">Yes I think that this kind of ties into the,<\/span><br \/><span title=\"32:09 - 32:21\" data-start=\"00:32:09.261\" data-end=\"00:32:21.308\" data-spk=\"1\" data-label=\"Scot\">bifurcation of the convenience already consumer in the more affluent and then the value of learning consumer that the pros being busy it was more Renovations are still going on at larger homes.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[32:21]<\/small>\u00a0<span title=\"32:21 - 32:22\" data-start=\"00:32:21.117\" data-end=\"00:32:22.450\" data-spk=\"0\" data-label=\"Jason\">Yep that makes sense.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[32:22]<\/small>\u00a0<span title=\"32:22 - 32:36\" data-start=\"00:32:22.150\" data-end=\"00:32:36.043\" data-spk=\"1\" data-label=\"Scot\">You know that that weird that like segment and maybe what\u2019s happening is you maybe you\u2019ve outgrown your house you thought you get a new one interest rates went up are like well if I put that money into a expansion or something,<\/span><br \/><span title=\"32:36 - 32:44\" data-start=\"00:32:36.127\" data-end=\"00:32:43.963\" data-spk=\"1\" data-label=\"Scot\">you know that this may be a better use of proceeds than putting it towards paying the bank larger percentage I think that\u2019s probably what\u2019s going on there.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[32:44]<\/small>\u00a0<span title=\"32:44 - 32:52\" data-start=\"00:32:43.837\" data-end=\"00:32:52.255\" data-spk=\"0\" data-label=\"Jason\">No that makes total sense I\u2019ll buy that yeah so then what\u2019s the last tranche of earnings we want to talk about Scott.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[32:52]<\/small>\u00a0<span title=\"32:52 - 33:02\" data-start=\"00:32:51.955\" data-end=\"00:33:01.647\" data-spk=\"1\" data-label=\"Scot\">This was interesting because I was reading a couple articles and I saw you know Casper has a new CEO and and he came in and was basically saying,<\/span><br \/><span title=\"33:02 - 33:06\" data-start=\"00:33:01.726\" data-end=\"00:33:06.316\" data-spk=\"1\" data-label=\"Scot\">hey it\u2019s time to start stop losing money we need to be a profitable company,<\/span><br \/><span title=\"33:06 - 33:17\" data-start=\"00:33:06.449\" data-end=\"00:33:16.874\" data-spk=\"1\" data-label=\"Scot\">so then I started wondering you know he had that cluster of sa cluster in a positive way we had a grouping of companies go public that we talk a lot about that we\u2019re kind of in this,<\/span><br \/><span title=\"33:17 - 33:25\" data-start=\"00:33:16.929\" data-end=\"00:33:25.485\" data-spk=\"1\" data-label=\"Scot\">some of them were not 100% digitally native vertical Brands but in this kind of cohort over the last 18 months of IPOs,<\/span><br \/><span title=\"33:26 - 33:34\" data-start=\"00:33:25.546\" data-end=\"00:33:34.391\" data-spk=\"1\" data-label=\"Scot\">not 18 months calendar but with IPO windows open we had if you remember we had wish thread up Casper glossy a all birds.<\/span><br \/><span title=\"33:35 - 33:38\" data-start=\"00:33:34.571\" data-end=\"00:33:38.381\" data-spk=\"1\" data-label=\"Scot\">Warby and purple and a couple others go public.<\/span><\/p>\n<p><small>[33:39]<\/small>\u00a0<span title=\"33:39 - 33:48\" data-start=\"00:33:38.604\" data-end=\"00:33:48.308\" data-spk=\"1\" data-label=\"Scot\">So then I started poking around and it\u2019s basically a bloodbath out there for that cohort of companies so you know Casper\u2019s not doing very well.<\/span><br \/><span title=\"33:49 - 33:56\" data-start=\"00:33:48.507\" data-end=\"00:33:55.621\" data-spk=\"1\" data-label=\"Scot\">I\u2019m thredup which you would think would do really well in recession because people would look at more Consignment type<\/span><br \/><span title=\"33:56 - 34:07\" data-start=\"00:33:55.537\" data-end=\"00:34:07.375\" data-spk=\"1\" data-label=\"Scot\">type of peril they had to do a pretty big layoff the 15% probably the most hit hard is wished which I\u2019ve never 100% understood wished but<\/span><br \/><span title=\"34:07 - 34:10\" data-start=\"00:34:07.279\" data-end=\"00:34:09.664\" data-spk=\"1\" data-label=\"Scot\">you know far be it for me too<\/span><br \/><span title=\"34:10 - 34:20\" data-start=\"00:34:09.592\" data-end=\"00:34:20.456\" data-spk=\"1\" data-label=\"Scot\">to figure that out but you would think they would be doing well because they always had this super inexpensive stuff the trade-off was it took a while to get to you but if you needed like a phone little drone or<\/span><br \/><span title=\"34:20 - 34:24\" data-start=\"00:34:20.337\" data-end=\"00:34:23.509\" data-spk=\"1\" data-label=\"Scot\">I think one of their biggest sellers is hair extensions<\/span><br \/><span title=\"34:23 - 34:30\" data-start=\"00:34:23.395\" data-end=\"00:34:30.431\" data-spk=\"1\" data-label=\"Scot\">bridal gowns all kinds of stuff you wouldn\u2019t really expect for that value or to Consumer you think during recession that would do really well,<\/span><br \/><span title=\"34:30 - 34:38\" data-start=\"00:34:30.450\" data-end=\"00:34:38.496\" data-spk=\"1\" data-label=\"Scot\">their revenue is down 80 percent year over year so they are just basically coming unglued they did a Rebrand and their new brand is.<\/span><br \/><span title=\"34:39 - 34:47\" data-start=\"00:34:38.664\" data-end=\"00:34:46.566\" data-spk=\"1\" data-label=\"Scot\">Bargains made fund discovery made easy which to be hence that maybe Discovery was a problem and now they\u2019re trying to say hey we kind of.<\/span><\/p>\n<p><small>[34:47]<\/small>\u00a0<span title=\"34:47 - 34:54\" data-start=\"00:34:46.975\" data-end=\"00:34:54.365\" data-spk=\"1\" data-label=\"Scot\">You came to us before and you couldn\u2019t find what you\u2019re looking for but now we fix that kind of has that that kind of vibe to the new branding.<\/span><br \/><span title=\"34:55 - 35:05\" data-start=\"00:34:54.775\" data-end=\"00:35:05.032\" data-spk=\"1\" data-label=\"Scot\">One that\u2019s popular with the ladies in my house is glossy a they had to do a 33% layoffs and I can understand this because we went on a New York trip and that\u2019s one of the,<\/span><br \/><span title=\"35:05 - 35:10\" data-start=\"00:35:05.038\" data-end=\"00:35:09.869\" data-spk=\"1\" data-label=\"Scot\">places we make a trach tube and the store was closed and this is just like.<\/span><\/p>\n<p><small>[35:10]<\/small>\u00a0<span title=\"35:10 - 35:17\" data-start=\"00:35:10.308\" data-end=\"00:35:16.761\" data-spk=\"1\" data-label=\"Scot\">Four weeks ago so definitely post coded so that wasn\u2019t good and I think I know what\u2019s going on there,<\/span><br \/><span title=\"35:17 - 35:30\" data-start=\"00:35:16.924\" data-end=\"00:35:30.408\" data-spk=\"1\" data-label=\"Scot\">Albert\u2019s didn\u2019t 8% layoffs were be they had a weird mixed message they were doing some layoffs and talking about their losses mounting but then they announced their opening 40 stores and that they think it makes economic sense it\u2019s kind of like.<\/span><br \/><span title=\"35:31 - 35:38\" data-start=\"00:35:30.571\" data-end=\"00:35:38.045\" data-spk=\"1\" data-label=\"Scot\">Yeah I didn\u2019t feel like the best time to be doing that and they didn\u2019t really say anything other than we think that this is a good use of capital.<\/span><br \/><span title=\"35:38 - 35:48\" data-start=\"00:35:38.316\" data-end=\"00:35:47.612\" data-spk=\"1\" data-label=\"Scot\">We\u2019ll see and then you know so Casper is doing pretty poorly and then purple who\u2019s kind of a Casper clone if you will need to actually predate Casper\u2019s they wouldn\u2019t like that<\/span><br \/><span title=\"35:48 - 35:49\" data-start=\"00:35:47.546\" data-end=\"00:35:48.645\" data-spk=\"1\" data-label=\"Scot\">being called a butt<\/span><br \/><span title=\"35:49 - 35:58\" data-start=\"00:35:48.556\" data-end=\"00:35:58.452\" data-spk=\"1\" data-label=\"Scot\">yet another online mattress company their revenues down over 20% year-over-year I think during covid-19 we got new mattresses and now there\u2019s kind of a<\/span><br \/><span title=\"35:58 - 36:06\" data-start=\"00:35:58.435\" data-end=\"00:36:06.054\" data-spk=\"1\" data-label=\"Scot\">like a pull forward for that that that\u2019s a huge problem so that whole cohort is not doing well and kind of<\/span><br \/><span title=\"36:06 - 36:14\" data-start=\"00:36:06.036\" data-end=\"00:36:13.823\" data-spk=\"1\" data-label=\"Scot\">indexing much worse than kind of like what you saw in the data I want to ask you what if you think there\u2019s do you have a theory of what\u2019s going on with those guys.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[36:14]<\/small>\u00a0<span title=\"36:14 - 36:20\" data-start=\"00:36:13.686\" data-end=\"00:36:20.103\" data-spk=\"0\" data-label=\"Jason\">I do like I think the whole direct-to-consumer model,<\/span><br \/><span title=\"36:20 - 36:25\" data-start=\"00:36:20.254\" data-end=\"00:36:25.259\" data-spk=\"0\" data-label=\"Jason\">I\u2019m not saying it can\u2019t work but it\u2019s way more challenging than a lot of people.<\/span><br \/><span title=\"36:26 - 36:31\" data-start=\"00:36:25.920\" data-end=\"00:36:31.346\" data-spk=\"0\" data-label=\"Jason\">Um gave it credit for right like the fundamental problem with the direct-to-consumer model<\/span><br \/><span title=\"36:31 - 36:42\" data-start=\"00:36:31.256\" data-end=\"00:36:41.555\" data-spk=\"0\" data-label=\"Jason\">is customer acquisition right like there\u2019s 240 million households in the US and getting them to know about you and be aware of you and want to buy your product is,<\/span><br \/><span title=\"36:42 - 36:50\" data-start=\"00:36:41.694\" data-end=\"00:36:49.962\" data-spk=\"0\" data-label=\"Jason\">really hard right and if you\u2019re a direct-to-consumer company with no organic awareness and no reason for people to discover you<\/span><br \/><span title=\"36:50 - 36:59\" data-start=\"00:36:49.830\" data-end=\"00:36:59.438\" data-spk=\"0\" data-label=\"Jason\">the way you get people to find out about you is you buy ads right you buy that awareness and and all these d2c companies were.<\/span><br \/><span title=\"37:00 - 37:09\" data-start=\"00:36:59.763\" data-end=\"00:37:09.365\" data-spk=\"0\" data-label=\"Jason\">Using digital ads you know mainly on Facebook 22 by audiences and so one thing we know is customer acquisition costs have gone up because of,<\/span><br \/><span title=\"37:10 - 37:17\" data-start=\"00:37:09.504\" data-end=\"00:37:16.750\" data-spk=\"0\" data-label=\"Jason\">the Privacy changes in the less the lower efficacy of a lot of those those digital things.<\/span><\/p>\n<p><small>[37:17]<\/small>\u00a0<span title=\"37:17 - 37:27\" data-start=\"00:37:17.166\" data-end=\"00:37:26.665\" data-spk=\"0\" data-label=\"Jason\">You know even on the old pricing every subsequent customer gets more expensive than the last one like the first customers you can buy are the cheapest,<\/span><br \/><span title=\"37:27 - 37:38\" data-start=\"00:37:26.792\" data-end=\"00:37:37.836\" data-spk=\"0\" data-label=\"Jason\">but you know increasingly you have to bid higher and higher for an audience that\u2019s slightly a lower propensity to buy your stuff and so as you grow as you scale,<\/span><br \/><span title=\"37:38 - 37:43\" data-start=\"00:37:37.873\" data-end=\"00:37:43.094\" data-spk=\"0\" data-label=\"Jason\">it gets harder and harder to keep growing and so we\u2019ve seen a ton of these d2c companies.<\/span><br \/><span title=\"37:43 - 37:53\" data-start=\"00:37:43.257\" data-end=\"00:37:53.394\" data-spk=\"0\" data-label=\"Jason\">Grow really fast from zero to something and then hit a plateau and slow way down and we were seeing that before the pandemic we were seeing it during the pandemic,<\/span><br \/><span title=\"37:54 - 38:01\" data-start=\"00:37:53.520\" data-end=\"00:38:00.599\" data-spk=\"0\" data-label=\"Jason\">some of these companies like we\u2019re partly aided by the pandemic and so maybe it gave them a little extra Runway some of these companies like.<\/span><br \/><span title=\"38:01 - 38:10\" data-start=\"00:38:00.839\" data-end=\"00:38:09.925\" data-spk=\"0\" data-label=\"Jason\">A way we\u2019re probably hurt by the pandemic and had less less Runway but I think what we\u2019re seeing is that.<\/span><br \/><span title=\"38:10 - 38:18\" data-start=\"00:38:10.274\" data-end=\"00:38:17.526\" data-spk=\"0\" data-label=\"Jason\">That the pure direct-to-consumer model without some other way of cup of consumers,<\/span><br \/><span title=\"38:18 - 38:21\" data-start=\"00:38:17.683\" data-end=\"00:38:21.102\" data-spk=\"0\" data-label=\"Jason\">cheaply making consumers aware of your products,<\/span><br \/><span title=\"38:21 - 38:36\" data-start=\"00:38:21.168\" data-end=\"00:38:35.740\" data-spk=\"0\" data-label=\"Jason\">is really challenging so you\u2019re seeing a bunch of these dtc\u2019s open their own stores that\u2019s the war be model you\u2019re seeing a bunch of these dtc\u2019s pivot to wholesale so glossy is moving into Ulta I think it is or it may be Sephora I apologize if I have it wrong,<\/span><br \/><span title=\"38:36 - 38:43\" data-start=\"00:38:35.854\" data-end=\"00:38:42.734\" data-spk=\"0\" data-label=\"Jason\">um but they\u2019re a bunch of these guys have moved into wholesale to get awareness.<\/span><\/p>\n<p><small>[38:43]<\/small>\u00a0<span title=\"38:43 - 38:48\" data-start=\"00:38:43.179\" data-end=\"00:38:47.962\" data-spk=\"0\" data-label=\"Jason\">And you know that changes the whole margin structure and does all these things I think there\u2019s a Warren Buffett quote,<\/span><br \/><span title=\"38:48 - 39:00\" data-start=\"00:38:48.071\" data-end=\"00:39:00.010\" data-spk=\"0\" data-label=\"Jason\">they\u2019re only when the tide goes out can you find out who\u2019s not wearing a bathing suit and I feel like that\u2019s that\u2019s kind of the situation we\u2019re in with these D disease is you know once we\u2019ve come into a,<\/span><br \/><span title=\"39:00 - 39:05\" data-start=\"00:39:00.071\" data-end=\"00:39:04.649\" data-spk=\"0\" data-label=\"Jason\">challenging economic model Market the.<\/span><br \/><span title=\"39:05 - 39:15\" data-start=\"00:39:05.094\" data-end=\"00:39:14.714\" data-spk=\"0\" data-label=\"Jason\">The high cost of customer acquisition and the challenges with continuing the scale are really starting to be a parent for all these data see companies you buy that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[39:15]<\/small>\u00a0<span title=\"39:15 - 39:24\" data-start=\"00:39:15.406\" data-end=\"00:39:24.335\" data-spk=\"1\" data-label=\"Scot\">I do and a lot of them in our you know in our world we think about cackle TV and you kind of get in your head yeah<\/span><br \/><span title=\"39:24 - 39:33\" data-start=\"00:39:24.233\" data-end=\"00:39:32.640\" data-spk=\"1\" data-label=\"Scot\">it\u2019s you know I\u2019m growing X percent macaque LTD is three or four and you feel like that\u2019s going to stay around forever right and then you hit<\/span><br \/><span title=\"39:33 - 39:36\" data-start=\"00:39:32.532\" data-end=\"00:39:35.686\" data-spk=\"1\" data-label=\"Scot\">recessionary period which apparently this isn\u2019t and<\/span><br \/><span title=\"39:36 - 39:45\" data-start=\"00:39:35.554\" data-end=\"00:39:45.427\" data-spk=\"1\" data-label=\"Scot\">hit some headwinds or some chop and suddenly you know that no one\u2019s buying that second mattress for that second pair of glasses or<\/span><br \/><span title=\"39:45 - 39:47\" data-start=\"00:39:45.271\" data-end=\"00:39:47.314\" data-spk=\"1\" data-label=\"Scot\">you know whatever it is and then,<\/span><br \/><span title=\"39:47 - 39:56\" data-start=\"00:39:47.374\" data-end=\"00:39:56.297\" data-spk=\"1\" data-label=\"Scot\">you know your whole economic model is built on this ratio of cacti LTD of three and suddenly it\u2019s one and a half and if you don\u2019t react quickly to that<\/span><br \/><span title=\"39:56 - 40:06\" data-start=\"00:39:56.154\" data-end=\"00:40:06.026\" data-spk=\"1\" data-label=\"Scot\">and if you don\u2019t have if all you have is paid mechanisms that are built on that that will ratio then you\u2019re in the horns of a dilemma where you\u2019re kind of like well I turn that off,<\/span><br \/><span title=\"40:06 - 40:13\" data-start=\"00:40:06.050\" data-end=\"00:40:13.093\" data-spk=\"1\" data-label=\"Scot\">the the acquisition spigot I can\u2019t grow Revenue but if I keep it on my my earnings are going to,<\/span><br \/><span title=\"40:13 - 40:22\" data-start=\"00:40:13.213\" data-end=\"00:40:21.517\" data-spk=\"1\" data-label=\"Scot\">go to heck in a hand basket because I\u2019m effectively my cup my kak My overall economic side business have changed very dramatically and there\u2019s no way for me to.<\/span><br \/><span title=\"40:22 - 40:37\" data-start=\"00:40:21.872\" data-end=\"00:40:36.798\" data-spk=\"1\" data-label=\"Scot\">To deal with that and because these guys have such a big chunk of their you know their their revenue from Paid media it doesn\u2019t they don\u2019t have a lot of degrees to Pivot on so another way of saying what you said but I agree is the short route.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[40:38]<\/small>\u00a0<span title=\"40:38 - 40:45\" data-start=\"00:40:37.658\" data-end=\"00:40:44.592\" data-spk=\"0\" data-label=\"Jason\">You know you reminded me one funny thing I think one of both of our favorite guests on the show Dan McCarthy.<\/span><br \/><span title=\"40:45 - 40:57\" data-start=\"00:40:44.845\" data-end=\"00:40:56.688\" data-spk=\"0\" data-label=\"Jason\">You know he talks about like every time he gets to look at the finances for one of these d2c companies that they they wildly underestimate their CAC and overestimate their LTV that like<\/span><br \/><span title=\"40:57 - 41:11\" data-start=\"00:40:56.533\" data-end=\"00:41:10.996\" data-spk=\"0\" data-label=\"Jason\">the math is also just flawed that like you know most most of these d2c companies feel like they\u2019re going to have like incredible retention and keep the these customers re spending every year for a long time that their data doesn\u2019t necessarily support so they<\/span><br \/><span title=\"41:11 - 41:13\" data-start=\"00:41:10.876\" data-end=\"00:41:13.448\" data-spk=\"0\" data-label=\"Jason\">they overestimate their ltvs because<\/span><br \/><span title=\"41:13 - 41:24\" data-start=\"00:41:13.436\" data-end=\"00:41:24.096\" data-spk=\"0\" data-label=\"Jason\">they don\u2019t account for enough turn and then you know they all just treat their ad costs as their total kak and you know it\u2019s customer acquisition cost it\u2019s all the costs<\/span><br \/><span title=\"41:24 - 41:32\" data-start=\"00:41:23.910\" data-end=\"00:41:32.016\" data-spk=\"0\" data-label=\"Jason\">to find that customer and get them to buy them and onboard it so all the customer service costs all the onboarding cost there\u2019s a lot of extra<\/span><br \/><span title=\"41:32 - 41:42\" data-start=\"00:41:31.848\" data-end=\"00:41:41.528\" data-spk=\"0\" data-label=\"Jason\">cost that should be in that cack number that a lot of first-time d2c CFOs don\u2019t don\u2019t tend to put in there so.<\/span><br \/><span title=\"41:42 - 41:44\" data-start=\"00:41:41.781\" data-end=\"00:41:44.376\" data-spk=\"0\" data-label=\"Jason\">I thought that was a funny observation as well.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[41:44]<\/small>\u00a0<span title=\"41:44 - 41:48\" data-start=\"00:41:44.076\" data-end=\"00:41:47.579\" data-spk=\"1\" data-label=\"Scot\">Yeah and then a lot of times you know you\u2019ll be like<\/span><br \/><span title=\"41:48 - 41:58\" data-start=\"00:41:47.550\" data-end=\"00:41:58.005\" data-spk=\"1\" data-label=\"Scot\">let\u2019s say 20 million and you\u2019re just driving the business itself Google and you\u2019re like well this is amazing and but then Google Google searches are a pretty finite<\/span><br \/><span title=\"41:58 - 42:08\" data-start=\"00:41:57.927\" data-end=\"00:42:08.323\" data-spk=\"1\" data-label=\"Scot\">resource and at some point you kind of can get them all right so there\u2019s only so many people that are typing in mattress everything and then then you\u2019re like okay well I\u2019ll do you know<\/span><br \/><span title=\"42:08 - 42:21\" data-start=\"00:42:08.251\" data-end=\"00:42:20.888\" data-spk=\"1\" data-label=\"Scot\">I\u2019ll do Facebook I\u2019ll do this I\u2019ll do what not and then as you do you Whittle away Google is always one of the most effective advertising venues because the consumers given you their intent so they\u2019re at the bottom of the funnel,<\/span><br \/><span title=\"42:21 - 42:29\" data-start=\"00:42:20.894\" data-end=\"00:42:29.138\" data-spk=\"1\" data-label=\"Scot\">so then as you walk up the top of the funnel your cat goes way up and then you can have infinite spin there at the top of the funnel but.<\/span><br \/><span title=\"42:30 - 42:34\" data-start=\"00:42:29.745\" data-end=\"00:42:33.921\" data-spk=\"1\" data-label=\"Scot\">It doesn\u2019t really change the metrics Downstream so then<\/span><br \/><span title=\"42:34 - 42:47\" data-start=\"00:42:33.838\" data-end=\"00:42:46.528\" data-spk=\"1\" data-label=\"Scot\">that\u2019s that scaling problem so all these guys get to 100 million and then and it really Falls over because because they can\u2019t really get that incremental next dollar and if they do they\u2019re kak LTV ratio goes way up because they\u2019re spending so much more on,<\/span><br \/><span title=\"42:47 - 42:54\" data-start=\"00:42:46.565\" data-end=\"00:42:54.226\" data-spk=\"1\" data-label=\"Scot\">paid media LTD is stable so yeah it\u2019s a tough slog so I think reading between the lines when<\/span><br \/><span title=\"42:54 - 42:58\" data-start=\"00:42:54.082\" data-end=\"00:42:58.036\" data-spk=\"1\" data-label=\"Scot\">when were be says we want to open up stores that I think they\u2019re trying to<\/span><br \/><span title=\"42:58 - 43:10\" data-start=\"00:42:57.916\" data-end=\"00:43:09.753\" data-spk=\"1\" data-label=\"Scot\">you know cough ironically go from a pure online to being in foot traffic and getting people there which is you know what they\u2019re basically saying I think is that that may be cheaper than that next in Criminal<\/span><br \/><span title=\"43:10 - 43:11\" data-start=\"00:43:09.748\" data-end=\"00:43:10.949\" data-spk=\"1\" data-label=\"Scot\">online add-on.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[43:11]<\/small>\u00a0<span title=\"43:11 - 43:23\" data-start=\"00:43:10.968\" data-end=\"00:43:23.190\" data-spk=\"0\" data-label=\"Jason\">100% I wonder I when we\u2019re all retired and we look back on this market like I do think there\u2019s going to be a lot more d2c activity than we have today but I actually think most of it is going to look<\/span><br \/><span title=\"43:23 - 43:35\" data-start=\"00:43:22.998\" data-end=\"00:43:35.412\" data-spk=\"0\" data-label=\"Jason\">more like Nike it\u2019s going to look more like someone that was born as a wholesaler that created huge awareness affinity and love and eventually hit escape velocity where they didn\u2019t need<\/span><br \/><span title=\"43:35 - 43:44\" data-start=\"00:43:35.220\" data-end=\"00:43:44.173\" data-spk=\"0\" data-label=\"Jason\">that that wholesale model anymore and they were able to then go direct to Consumer and have a low customer acquisition cost and kind of growth hack<\/span><br \/><span title=\"43:44 - 43:53\" data-start=\"00:43:43.987\" data-end=\"00:43:52.796\" data-spk=\"0\" data-label=\"Jason\">and I\u2019ll bet you a lot more of the d2c brands that are dominant you know sort of 10 to 15 years down the road got there by<\/span><br \/><span title=\"43:53 - 44:01\" data-start=\"00:43:52.773\" data-end=\"00:44:01.317\" data-spk=\"0\" data-label=\"Jason\">starting wholesale and transitioning to d2c rather than being born D to C which is just I think a tough value.<\/span><br \/><span title=\"44:04 - 44:18\" data-start=\"00:44:04.220\" data-end=\"00:44:18.263\" data-spk=\"0\" data-label=\"Jason\">Scot that\u2019s a lot for one show and you know we\u2019ve already teased people about a subsequent show on e-commerce so I feel like we should try to wrap up is there anything else we didn\u2019t cover that you were excited to talk about.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[44:19]<\/small>\u00a0<span title=\"44:19 - 44:33\" data-start=\"00:44:18.720\" data-end=\"00:44:32.751\" data-spk=\"1\" data-label=\"Scot\">Not just want to give you good luck tomorrow I hope all your data flows or columns line up your Tableau is humming and I look forward to hearing your analysis on what comes out of the day tomorrow.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[44:33]<\/small>\u00a0<span title=\"44:33 - 44:43\" data-start=\"00:44:32.949\" data-end=\"00:44:42.611\" data-spk=\"0\" data-label=\"Jason\">Awesome well my in-laws are visiting and they\u2019re commuting home tomorrow so they promised they\u2019re going to listen to Tonight Show in the car so I just want to give a shout-out sit to and Papa.<\/span><br \/><span title=\"44:43 - 44:44\" data-start=\"00:44:43.333\" data-end=\"00:44:44.060\" data-spk=\"0\" data-label=\"Jason\">Um<\/span><br \/><span title=\"44:44 - 44:55\" data-start=\"00:44:44.126\" data-end=\"00:44:55.459\" data-spk=\"0\" data-label=\"Jason\">and with that it\u2019s happen again we\u2019ve used up our allotted time as always if this show for you some value if you\u2019re going to be a little smarter around the virtual water cooler tomorrow,<\/span><br \/><span title=\"44:56 - 45:04\" data-start=\"00:44:55.507\" data-end=\"00:45:03.926\" data-spk=\"0\" data-label=\"Jason\">the way you can repay us for this free show is you can jump on iTunes and leave us that five-star review that we so warmly deserve.<\/span><\/p>\n<p><small>[45:08]<\/small>\u00a0<span title=\"45:08 - 45:10\" data-start=\"00:45:08.421\" data-end=\"00:45:10.332\" data-spk=\"0\" data-label=\"Jason\">Happy commercing!<\/span><\/p>\n<\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly podcast with the latest e-commerce news and events. Episode 295 is a recap of Walmart and Target earnings for Q2 2022, as well [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-8098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/8098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=8098"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/8098\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/1121"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=8098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=8098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=8098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}