1 00:00:02,520 --> 00:00:06,359 Speaker 1: Bloomberg Audio Studios, podcasts, radio. 2 00:00:06,640 --> 00:00:09,920 Speaker 2: News, Carol Master, Tim Stenevik live here at the Bloomberg 3 00:00:09,960 --> 00:00:12,520 Speaker 2: Global Business Forum at the Plaza in New York City. Well, 4 00:00:12,520 --> 00:00:14,400 Speaker 2: if you want to know about global consumers are up to, 5 00:00:14,520 --> 00:00:18,400 Speaker 2: or what massive global companies are really thinking about when 6 00:00:18,440 --> 00:00:21,040 Speaker 2: it comes to the macro environment, what are their priorities, 7 00:00:21,079 --> 00:00:23,960 Speaker 2: then keeping an eye on Walmart is definitely a must do. 8 00:00:24,440 --> 00:00:26,360 Speaker 2: It is the world's largest retailer. It was among the 9 00:00:26,360 --> 00:00:29,400 Speaker 2: retailers that recently raised their forecast that happened over the summer, 10 00:00:29,680 --> 00:00:31,960 Speaker 2: and a member of the company c suite is joining us, 11 00:00:32,000 --> 00:00:33,320 Speaker 2: Tim right here at the forum. 12 00:00:33,400 --> 00:00:35,680 Speaker 3: Yeah, here at the Bloomberg Global Business Forum. Please to 13 00:00:35,680 --> 00:00:38,560 Speaker 3: have Chris Nicholas with US President and CEO of Sam's Club. 14 00:00:38,600 --> 00:00:42,000 Speaker 3: It is Walmart's membership only retail warehouse club, mostly with 15 00:00:42,080 --> 00:00:46,160 Speaker 3: clubs here in the US, but also overseas clubs in Mexico, China, 16 00:00:46,240 --> 00:00:50,800 Speaker 3: and Brazil. Former COO of Walmart US, previously CFO across 17 00:00:50,800 --> 00:00:52,720 Speaker 3: Walmart US and Walmart International. 18 00:00:52,800 --> 00:00:55,560 Speaker 2: Which means you've seen everything I've tried. 19 00:00:56,080 --> 00:00:56,600 Speaker 3: How are you? 20 00:00:57,080 --> 00:00:58,959 Speaker 1: I'm doing great, really excited to be here. 21 00:00:59,040 --> 00:01:01,720 Speaker 3: How are we doing? By we, I mean the American consumer. 22 00:01:01,760 --> 00:01:04,720 Speaker 3: You've got such a great view on what happens across 23 00:01:04,760 --> 00:01:05,320 Speaker 3: the country. 24 00:01:05,360 --> 00:01:08,240 Speaker 1: How are we doing? Yeah, I mean we what we're 25 00:01:08,280 --> 00:01:13,920 Speaker 1: seeing at Sam's Club is consumers that are consistent and rational. 26 00:01:15,480 --> 00:01:17,680 Speaker 1: You know, I've been in retail for more than thirty 27 00:01:17,800 --> 00:01:20,680 Speaker 1: years now, and I've never known a time when people 28 00:01:20,680 --> 00:01:23,920 Speaker 1: don't love great items at great prices. And as long 29 00:01:23,959 --> 00:01:26,840 Speaker 1: as you're giving people that, we're finding consumers really you know, 30 00:01:27,040 --> 00:01:28,160 Speaker 1: rational and consistent. 31 00:01:28,720 --> 00:01:30,520 Speaker 3: What is their behavior though right now? Because that's something 32 00:01:30,560 --> 00:01:32,160 Speaker 3: Carol and I were talking a lot about today, and 33 00:01:32,440 --> 00:01:34,840 Speaker 3: you know, the whole idea of are they buying what 34 00:01:34,880 --> 00:01:37,280 Speaker 3: they typically buy? Are they buying what they buy at 35 00:01:37,280 --> 00:01:39,640 Speaker 3: a certain point in economic cycle? Are they trading up, 36 00:01:39,680 --> 00:01:42,520 Speaker 3: are they trading down? What are they doing in your stores? 37 00:01:42,840 --> 00:01:45,360 Speaker 1: Yeah, it's interesting with I mean, consistent would be the 38 00:01:45,360 --> 00:01:50,480 Speaker 1: word i'd use. People are still buying general merchandise from US. 39 00:01:50,600 --> 00:01:52,400 Speaker 1: I mean, we talked in our last quarter at the 40 00:01:52,400 --> 00:01:56,440 Speaker 1: results about general merchandise sales having another quarter of positive 41 00:01:56,480 --> 00:02:00,240 Speaker 1: comp But what's really interesting within that is that the 42 00:02:00,400 --> 00:02:02,920 Speaker 1: units are moving faster than the items, which means that 43 00:02:03,120 --> 00:02:05,080 Speaker 1: you know, we're still giving them great value, and I 44 00:02:05,080 --> 00:02:08,600 Speaker 1: think people are really moving to appreciate when they're getting 45 00:02:08,600 --> 00:02:13,160 Speaker 1: good value. You know, the club warehouse model is made 46 00:02:13,200 --> 00:02:15,160 Speaker 1: for times like these. I would say it's a good 47 00:02:15,160 --> 00:02:17,240 Speaker 1: time to be in the club model. We've got in 48 00:02:17,240 --> 00:02:20,160 Speaker 1: our clubs. We've only got four thousand items. And the 49 00:02:20,160 --> 00:02:22,960 Speaker 1: way that the club model works, just to level set 50 00:02:23,080 --> 00:02:25,080 Speaker 1: us is our job is to make almost nothing on 51 00:02:25,080 --> 00:02:27,000 Speaker 1: what we sell. We're just about break even, and we 52 00:02:27,040 --> 00:02:29,720 Speaker 1: make all our money from membership. So the lower you 53 00:02:29,760 --> 00:02:32,560 Speaker 1: can operate in terms of costs, the lower you can 54 00:02:32,639 --> 00:02:35,480 Speaker 1: keep prices. And when that happens, people are more loyal, 55 00:02:35,639 --> 00:02:38,520 Speaker 1: they renew more often, and you get more members. So 56 00:02:38,560 --> 00:02:41,280 Speaker 1: we're in this like really special moment right now where 57 00:02:41,320 --> 00:02:43,720 Speaker 1: people are love the great value that we've got and 58 00:02:43,760 --> 00:02:45,799 Speaker 1: they love the great items that we've got to you. 59 00:02:45,760 --> 00:02:47,440 Speaker 2: Know, I want to cross that with what we just 60 00:02:47,480 --> 00:02:50,280 Speaker 2: heard from Fadsherman J. Powell Chris last week in terms 61 00:02:50,320 --> 00:02:53,040 Speaker 2: of the decision and kind of basically saying the f 62 00:02:53,080 --> 00:02:55,840 Speaker 2: that's not in a great place, like either way, there 63 00:02:55,840 --> 00:02:58,240 Speaker 2: are some risks to the employment picture. Their concerns still 64 00:02:58,240 --> 00:03:01,440 Speaker 2: about inflation. So this is there's kind of risks to 65 00:03:01,560 --> 00:03:05,200 Speaker 2: both sides of the equation and concerned about monetary policy 66 00:03:05,680 --> 00:03:08,080 Speaker 2: that it's hard to do right now in this environment. 67 00:03:08,200 --> 00:03:11,600 Speaker 2: So that to me sounds uncertain, unsure, but it doesn't 68 00:03:11,639 --> 00:03:12,880 Speaker 2: sound like you're saying any of that. 69 00:03:12,919 --> 00:03:20,079 Speaker 1: Look, the club here's the thing. We have this position 70 00:03:20,280 --> 00:03:22,720 Speaker 1: where there's only i mean between us and our main 71 00:03:22,760 --> 00:03:25,880 Speaker 1: competitors in the club model. In particular, we're only like 72 00:03:25,919 --> 00:03:28,880 Speaker 1: six and a half percent of the of the of 73 00:03:28,919 --> 00:03:33,760 Speaker 1: the total retail market, and we would definitely from a 74 00:03:33,760 --> 00:03:37,440 Speaker 1: club point of view, our consumers definitely skew sort of 75 00:03:38,040 --> 00:03:42,520 Speaker 1: more wealthy, you know, bigger basket sizes, but we do 76 00:03:42,560 --> 00:03:46,160 Speaker 1: serve everybody, and we don't see a great delta between 77 00:03:46,240 --> 00:03:50,400 Speaker 1: different income cohorts. You don't know, all right, that's more generations. 78 00:03:50,680 --> 00:03:53,640 Speaker 2: Well what about I mean, when you think about kind 79 00:03:53,640 --> 00:03:55,560 Speaker 2: of the environment, whichally when it comes into tariffs in 80 00:03:55,640 --> 00:03:58,240 Speaker 2: terms of pricing, how do you kind of figure out 81 00:03:58,400 --> 00:04:01,040 Speaker 2: where you can maybe raise price is where you can. 82 00:04:01,280 --> 00:04:03,400 Speaker 1: Well, it's such a great it's such a great question. 83 00:04:03,560 --> 00:04:07,600 Speaker 1: We and again not to sort of pivot, but one 84 00:04:07,600 --> 00:04:09,440 Speaker 1: of the powers of the club model is because you've 85 00:04:09,440 --> 00:04:13,000 Speaker 1: only got four thousand items in the club, those items 86 00:04:13,040 --> 00:04:17,200 Speaker 1: are curated. Yeah, and our merchants they are true professionals that, 87 00:04:17,279 --> 00:04:18,839 Speaker 1: like many of them, have been in their jobs decades 88 00:04:18,880 --> 00:04:20,920 Speaker 1: and they understand the value chain from end to end 89 00:04:20,920 --> 00:04:23,800 Speaker 1: better than anybody, and so they get the ability to 90 00:04:23,920 --> 00:04:25,920 Speaker 1: choose what's in the club, but they also get the 91 00:04:26,240 --> 00:04:28,640 Speaker 1: ability to work through where the inefficiencies are in the 92 00:04:28,680 --> 00:04:31,960 Speaker 1: supply chain. They've got deep relationship with the suppliers, so 93 00:04:32,000 --> 00:04:35,320 Speaker 1: you work through where the opportunities are between the suppliers too. 94 00:04:35,560 --> 00:04:38,240 Speaker 1: So I'll give you an example. Our roses that we 95 00:04:38,279 --> 00:04:42,960 Speaker 1: buy from Ecuador. The costs went up because you know, 96 00:04:43,000 --> 00:04:46,400 Speaker 1: the tariff environment changed, and so our merchants worked through 97 00:04:46,440 --> 00:04:49,640 Speaker 1: with the supplier, like what could we do? So we 98 00:04:49,680 --> 00:04:52,120 Speaker 1: move them in different ways so we have less packaging. 99 00:04:52,600 --> 00:04:56,680 Speaker 1: We we wrap them in the US now instead of 100 00:04:56,680 --> 00:04:58,640 Speaker 1: where we used to wrap them, And so you do 101 00:04:58,960 --> 00:05:02,520 Speaker 1: things like that that help you to manage the input costs. 102 00:05:02,520 --> 00:05:03,840 Speaker 1: That means you don't have to pass it on to 103 00:05:03,920 --> 00:05:07,880 Speaker 1: the consumer. And our job is to work through how 104 00:05:08,040 --> 00:05:11,440 Speaker 1: little you pass through, and you work through how late 105 00:05:11,480 --> 00:05:13,120 Speaker 1: you do it. So we'd always like to be last 106 00:05:13,480 --> 00:05:16,320 Speaker 1: last up. But we have the ultimate opportunity in the 107 00:05:16,320 --> 00:05:19,679 Speaker 1: club channel, and that is that we have choice because 108 00:05:19,680 --> 00:05:22,000 Speaker 1: we don't have to sell everything, so we the curation 109 00:05:22,080 --> 00:05:23,359 Speaker 1: actually is a superpower for us. 110 00:05:23,440 --> 00:05:25,440 Speaker 2: Does that mean you haven't raised prices on anything? 111 00:05:25,760 --> 00:05:28,720 Speaker 1: No, No, we see. I mean, look, here's the thing 112 00:05:29,080 --> 00:05:31,120 Speaker 1: there there are certain things that where prices move all 113 00:05:31,160 --> 00:05:33,800 Speaker 1: of the time. No, anyway, So produce would be a 114 00:05:33,800 --> 00:05:36,520 Speaker 1: good example of that, and there are some strictly teriff 115 00:05:36,520 --> 00:05:38,360 Speaker 1: for later. Yeah. What I would say to you is 116 00:05:38,480 --> 00:05:41,360 Speaker 1: that if I think about general merchandise would be there, 117 00:05:41,440 --> 00:05:44,159 Speaker 1: which is like all of the electronics and apparel and 118 00:05:44,240 --> 00:05:45,440 Speaker 1: all of those things. 119 00:05:45,880 --> 00:05:47,840 Speaker 2: The stuff that I have way too much in my home. 120 00:05:48,320 --> 00:05:53,920 Speaker 1: There's never enough, Please buy more. 121 00:05:54,400 --> 00:05:57,200 Speaker 2: But in terms of tariffs particularly pretty pressure on pricing. 122 00:05:57,360 --> 00:06:00,919 Speaker 1: Yeah, So what we see is in terms of what 123 00:06:00,960 --> 00:06:03,840 Speaker 1: people are buying. I think I mentioned this, but the 124 00:06:04,760 --> 00:06:07,840 Speaker 1: growth in the units that we've had is outpacing our 125 00:06:07,839 --> 00:06:10,680 Speaker 1: comps in general merchandise. So if you think about like 126 00:06:10,800 --> 00:06:14,279 Speaker 1: over the last few years, you had like packaged goods 127 00:06:15,080 --> 00:06:19,520 Speaker 1: through COVID became more expensive and they never really came down, 128 00:06:19,800 --> 00:06:23,359 Speaker 1: whereas general merchandise, we had the supply chain disruption, you 129 00:06:23,480 --> 00:06:27,480 Speaker 1: remember that, and the general merchandise inflated and then it 130 00:06:27,560 --> 00:06:31,520 Speaker 1: deflated rapidly, as was after all of the supply chain 131 00:06:31,839 --> 00:06:35,680 Speaker 1: disruptions disappeared, and at the end of last quarter, we 132 00:06:35,680 --> 00:06:38,760 Speaker 1: were still in a period of slight deflation in general merchandise, 133 00:06:40,000 --> 00:06:42,520 Speaker 1: so prices move all of the time. Our job and 134 00:06:42,560 --> 00:06:44,599 Speaker 1: our merchant's job, is to make sure that we give 135 00:06:44,640 --> 00:06:48,160 Speaker 1: people access to the price points they want and the 136 00:06:48,240 --> 00:06:51,120 Speaker 1: value that they want. Maybe it's worth mentioning, but in 137 00:06:51,160 --> 00:06:53,880 Speaker 1: Sam's Club, like, we're twenty five percent cheaper than retail 138 00:06:53,960 --> 00:06:57,560 Speaker 1: in general, so as we resist putting prices up because 139 00:06:57,560 --> 00:07:00,800 Speaker 1: that's in our DNA, were always going to be more 140 00:07:00,839 --> 00:07:02,279 Speaker 1: price competitive than everybody else. 141 00:07:02,440 --> 00:07:05,080 Speaker 2: So then you haven't raised any prices related to terrorst 142 00:07:05,160 --> 00:07:06,159 Speaker 2: We will. 143 00:07:07,120 --> 00:07:09,600 Speaker 1: We will be the last people to put prices up, 144 00:07:09,720 --> 00:07:12,840 Speaker 1: And some prices have gone up, but in the mix 145 00:07:12,840 --> 00:07:16,240 Speaker 1: I'm telling it so for sure. I mean we have 146 00:07:16,320 --> 00:07:19,720 Speaker 1: input price changes in some items and some come through 147 00:07:19,760 --> 00:07:22,440 Speaker 1: already and some is still to come through. But I 148 00:07:22,480 --> 00:07:25,720 Speaker 1: would tell you that, like, our job is not to 149 00:07:25,840 --> 00:07:29,320 Speaker 1: lead with putting prices up, and all of our sales 150 00:07:29,360 --> 00:07:32,080 Speaker 1: growth in Sam's Club is through unit growth, not inflation. 151 00:07:32,240 --> 00:07:34,640 Speaker 3: Okay, cool, I'm wondering what you're hearing from from your 152 00:07:34,640 --> 00:07:37,920 Speaker 3: team who's out there talking to the producers the American 153 00:07:37,960 --> 00:07:42,800 Speaker 3: producers of things we grow produce beef as well. We 154 00:07:42,840 --> 00:07:45,080 Speaker 3: had a Bloomberg News story last week about farmers and 155 00:07:45,080 --> 00:07:48,720 Speaker 3: as all that the Trump administration policies are taking on 156 00:07:49,000 --> 00:07:52,120 Speaker 3: farmers right now. Immigration just one of them. Tariffs on 157 00:07:52,160 --> 00:07:55,880 Speaker 3: soybeans are another one, as a result of fewer less 158 00:07:55,880 --> 00:07:59,080 Speaker 3: interest from China and Chinese buyers. What are you hearing 159 00:07:59,080 --> 00:08:02,840 Speaker 3: though on the immigration front, Because in some cases forty 160 00:08:02,880 --> 00:08:06,520 Speaker 3: percent of migrant workers are from outside forty percent of 161 00:08:06,520 --> 00:08:08,880 Speaker 3: farm workers rather are migrant workers, so they're coming from 162 00:08:08,920 --> 00:08:11,160 Speaker 3: outside the US, and that's a challenge for farmers to 163 00:08:11,160 --> 00:08:13,680 Speaker 3: actually find those employees right now. What are you hearing 164 00:08:13,680 --> 00:08:14,040 Speaker 3: from them? 165 00:08:14,120 --> 00:08:16,440 Speaker 1: Yeah, I'm not hearing. I don't have anything to add 166 00:08:16,560 --> 00:08:18,840 Speaker 1: or to offer on that topic. I would tell you 167 00:08:18,880 --> 00:08:23,040 Speaker 1: that we have brilliant farmer partners. We understand the value 168 00:08:23,120 --> 00:08:26,920 Speaker 1: change really well, and we have no in stock issues 169 00:08:27,040 --> 00:08:28,200 Speaker 1: or cost price issues. 170 00:08:28,360 --> 00:08:31,280 Speaker 3: So have they raised prices at all on American produce? 171 00:08:31,520 --> 00:08:34,320 Speaker 1: I you'd have to ask somebody else about the through 172 00:08:34,360 --> 00:08:37,120 Speaker 1: line on like employment and pricing prises. I think you 173 00:08:37,200 --> 00:08:39,160 Speaker 1: probably speak to lots of people are better informant. 174 00:08:39,280 --> 00:08:41,600 Speaker 3: What about from produce that comes outside of the United States. 175 00:08:41,679 --> 00:08:44,040 Speaker 3: I mean, we can't do everything here. We can't grow bananas, 176 00:08:44,040 --> 00:08:44,559 Speaker 3: we can't. 177 00:08:44,360 --> 00:08:45,640 Speaker 1: Grow a card. Avocados. 178 00:08:45,720 --> 00:08:48,280 Speaker 3: Yeah, tomatoes when they're out of season come from outside 179 00:08:48,280 --> 00:08:50,080 Speaker 3: of the US. What does that look like? 180 00:08:51,440 --> 00:08:54,920 Speaker 1: Yeah, I mean what it is, well, like the increasing. 181 00:08:54,480 --> 00:08:56,800 Speaker 3: Costs associated with terriffs because those will be or those 182 00:08:56,800 --> 00:09:00,599 Speaker 3: are tariff already. I mean beef that comes from Brazil present. 183 00:09:00,440 --> 00:09:02,280 Speaker 1: Erraors for example. Yeah, I mean, we we are we 184 00:09:02,400 --> 00:09:05,400 Speaker 1: definitely over index on US beef. The vast majority of 185 00:09:05,440 --> 00:09:09,839 Speaker 1: what we buy is US, the vast majority, and and 186 00:09:10,240 --> 00:09:12,200 Speaker 1: so you know, but we have choices about where we 187 00:09:12,240 --> 00:09:14,640 Speaker 1: buy from. This is the benefit of being this curated, 188 00:09:14,720 --> 00:09:18,080 Speaker 1: limited assortment retailer is that we get the choices to 189 00:09:18,200 --> 00:09:20,600 Speaker 1: buy from the places that where you give the consumers 190 00:09:20,679 --> 00:09:24,960 Speaker 1: great value and and great quality, which we're never going 191 00:09:25,000 --> 00:09:29,480 Speaker 1: to relent on. But you know, yeah, we buy items, 192 00:09:29,559 --> 00:09:33,400 Speaker 1: you know, we buy avocados as you said, from abroad, 193 00:09:33,440 --> 00:09:36,120 Speaker 1: and many other items, tomatoes when it's out of season, 194 00:09:36,679 --> 00:09:40,120 Speaker 1: and you know, the quality and the value. That will 195 00:09:40,160 --> 00:09:43,240 Speaker 1: never relent on the quality. But if the input costs increase, 196 00:09:43,280 --> 00:09:45,840 Speaker 1: then the input's costs will increase. But there's meant, there's 197 00:09:46,200 --> 00:09:50,240 Speaker 1: produce there are so many variables produce and beef. I 198 00:09:50,320 --> 00:09:53,040 Speaker 1: mean that there are so many variables that pushes the 199 00:09:53,080 --> 00:09:56,080 Speaker 1: costs down as well as up. So I think it's 200 00:09:56,080 --> 00:10:01,240 Speaker 1: a super complex situation. And I think that our farmers 201 00:10:01,440 --> 00:10:03,560 Speaker 1: are some of the best in the world, and I 202 00:10:03,559 --> 00:10:05,800 Speaker 1: think that our merchants know how to work with the farmers. 203 00:10:05,800 --> 00:10:07,640 Speaker 1: The thing, the best thing you can do for those 204 00:10:07,679 --> 00:10:11,680 Speaker 1: farmers is to give them great forecasts, allow them to 205 00:10:11,679 --> 00:10:15,320 Speaker 1: grow to those forecasts, and give them good prices that 206 00:10:15,400 --> 00:10:17,560 Speaker 1: allow them to run sustainable business models. And we do 207 00:10:17,559 --> 00:10:18,520 Speaker 1: a really good job of that. 208 00:10:18,840 --> 00:10:21,720 Speaker 2: Chris. You guys in retail, I'm sure we're even late 209 00:10:21,760 --> 00:10:24,760 Speaker 2: to talk about the holiday season and the upcoming holiday season. 210 00:10:24,760 --> 00:10:27,240 Speaker 2: When you think about assortment and what you want to 211 00:10:27,280 --> 00:10:30,040 Speaker 2: have inventory for consumers, how's it looking for this year? 212 00:10:30,120 --> 00:10:31,679 Speaker 2: Is it going to be a lot different from last year? 213 00:10:31,679 --> 00:10:34,079 Speaker 2: Are the supply channel there to get what you need 214 00:10:34,160 --> 00:10:35,440 Speaker 2: and what you want for your consumers? 215 00:10:35,520 --> 00:10:37,760 Speaker 1: Yeah, that's not an issue. We don't see any issues 216 00:10:37,800 --> 00:10:43,720 Speaker 1: with supply chain management in that way. A Sam's Club 217 00:10:43,800 --> 00:10:45,760 Speaker 1: in particular, we get really early. So you guys are 218 00:10:45,760 --> 00:10:48,040 Speaker 1: a Sam's Club now, which hopefully you know, please do 219 00:10:49,480 --> 00:10:50,800 Speaker 1: You'll see it's full of Christmas. 220 00:10:50,840 --> 00:10:52,320 Speaker 2: I know it tries it a little crazy. 221 00:10:52,520 --> 00:10:54,319 Speaker 1: Yeah, I mean, if I understand, is it so? 222 00:10:54,640 --> 00:10:56,199 Speaker 2: I mean Halloween hasn't even happened. 223 00:10:56,720 --> 00:10:59,720 Speaker 1: Yeah, Well, in the club channel, people like to be prepared, 224 00:11:00,280 --> 00:11:02,480 Speaker 1: so we get into a season early and then we 225 00:11:02,520 --> 00:11:06,600 Speaker 1: exit early. And that's kind of scarcity is part of 226 00:11:06,640 --> 00:11:11,560 Speaker 1: the value that we create and so so we're not 227 00:11:11,600 --> 00:11:13,280 Speaker 1: worried about it from a Sam's Club point of view. 228 00:11:13,360 --> 00:11:16,400 Speaker 1: But the thing I would say is that people just 229 00:11:16,440 --> 00:11:19,400 Speaker 1: love to celebrate, They love to buy, they love the seasons, 230 00:11:19,960 --> 00:11:24,040 Speaker 1: and so I think you'll find that certainly at Sam's Club. 231 00:11:24,160 --> 00:11:28,559 Speaker 1: People whether it's the general merchandise they buy pre Thanksgiving 232 00:11:28,600 --> 00:11:30,920 Speaker 1: and Christmas or the food that they buy for the season, 233 00:11:31,440 --> 00:11:33,240 Speaker 1: as long as you're giving them great value, they're going 234 00:11:33,280 --> 00:11:35,640 Speaker 1: to come to you and people will find a way 235 00:11:35,640 --> 00:11:36,280 Speaker 1: to celebrate. 236 00:11:36,840 --> 00:11:38,360 Speaker 2: One of the things we love about the Global Business 237 00:11:38,400 --> 00:11:44,880 Speaker 2: Form is we tackle everything climate change, you know, workforce, employment, economics, politics. 238 00:11:45,760 --> 00:11:47,720 Speaker 2: As a leader who's been at a company for a 239 00:11:47,720 --> 00:11:49,760 Speaker 2: long time, and I'm sure looking at everything that's going on, 240 00:11:49,960 --> 00:11:53,200 Speaker 2: what's top of mind for you, and an environment where 241 00:11:53,480 --> 00:11:56,400 Speaker 2: this pushback against certain initiatives, there's a lot of political 242 00:11:56,480 --> 00:12:00,480 Speaker 2: things going on, geopolitics. I'm just curious, you know, in 243 00:12:00,559 --> 00:12:02,520 Speaker 2: running what you guys do. And I know you're kind 244 00:12:02,559 --> 00:12:05,120 Speaker 2: of a well oiled machine in many ways, but I'm 245 00:12:05,160 --> 00:12:06,040 Speaker 2: just curious. 246 00:12:06,440 --> 00:12:09,880 Speaker 1: Yeah, I think, you know, in the in an environment 247 00:12:10,000 --> 00:12:13,760 Speaker 1: of change, and by the way, I like, changes are 248 00:12:13,800 --> 00:12:17,160 Speaker 1: constant and you've got to you've got to love it. Then. 249 00:12:17,360 --> 00:12:19,959 Speaker 1: I've always found that the best thing to do is 250 00:12:20,000 --> 00:12:23,440 Speaker 1: to focus on what you can control. And what you 251 00:12:23,440 --> 00:12:26,960 Speaker 1: can control is the culture you create as a business, 252 00:12:28,080 --> 00:12:31,280 Speaker 1: how you work with and treat your customers and your members, 253 00:12:31,320 --> 00:12:34,520 Speaker 1: the experiences that you create. You know, A great example 254 00:12:34,640 --> 00:12:38,480 Speaker 1: is is the e commerce business. We've just launched express 255 00:12:38,520 --> 00:12:41,000 Speaker 1: delivery from our clubs and people love it and they're 256 00:12:41,000 --> 00:12:41,559 Speaker 1: opting in. 257 00:12:42,520 --> 00:12:44,080 Speaker 3: Does the price change with delivery? 258 00:12:44,520 --> 00:12:47,839 Speaker 1: No, we have price parity. We have price so others don't. 259 00:12:47,960 --> 00:12:50,440 Speaker 1: We do. So we have price parity between clubs and 260 00:12:50,720 --> 00:12:53,920 Speaker 1: an online that's really important from a trust point of view. 261 00:12:54,880 --> 00:12:57,440 Speaker 1: And people are thanking us for our delivery from club 262 00:12:57,800 --> 00:13:00,600 Speaker 1: food and non food is growing at triple digits right now. 263 00:13:01,280 --> 00:13:04,240 Speaker 1: So I think, like, focus on what you can control. 264 00:13:04,440 --> 00:13:07,520 Speaker 1: Start with being great people, Start with being a great business. 265 00:13:07,559 --> 00:13:09,440 Speaker 1: Look after your associates so they can look after our 266 00:13:09,480 --> 00:13:13,839 Speaker 1: members and then you know that that generally will lead 267 00:13:13,880 --> 00:13:15,880 Speaker 1: to the right outcomes. So on that. 268 00:13:16,040 --> 00:13:18,720 Speaker 3: We'll hear from one of your big competitors tomorrow. Costco 269 00:13:18,800 --> 00:13:22,200 Speaker 3: reports earnings tomorrow. How do you make sure that people 270 00:13:22,480 --> 00:13:24,439 Speaker 3: join Sam's Club and not Costco? 271 00:13:25,120 --> 00:13:28,880 Speaker 1: Yeah? Look, Costco is a great competitor. We think that 272 00:13:28,920 --> 00:13:31,440 Speaker 1: we're great too, and we're doing a lot of good things. 273 00:13:31,880 --> 00:13:33,160 Speaker 1: What I would tell you is this. 274 00:13:34,000 --> 00:13:36,400 Speaker 2: Because you have an aggressive plan in terms of expansion. 275 00:13:36,480 --> 00:13:37,840 Speaker 1: Yeah, I remember about it. 276 00:13:37,920 --> 00:13:38,120 Speaker 2: I know. 277 00:13:38,240 --> 00:13:41,120 Speaker 1: Yeah, we're really excited about that plan. Actually, the club 278 00:13:41,160 --> 00:13:43,480 Speaker 1: channel in general is a relatively small channel. There's a 279 00:13:43,520 --> 00:13:45,680 Speaker 1: huge there's huge upside for the whole of the club channel. 280 00:13:45,720 --> 00:13:48,520 Speaker 1: And I would tell you this, good competition makes you better. 281 00:13:49,480 --> 00:13:52,679 Speaker 1: And I've never been afraid of good competition. 282 00:13:53,320 --> 00:13:56,199 Speaker 2: What about AI and how you guys are working? 283 00:13:56,280 --> 00:13:59,959 Speaker 3: Are you afraid of AI? 284 00:13:59,640 --> 00:14:03,000 Speaker 1: AI? We're trying to AI is a big topic everywhere now, 285 00:14:03,040 --> 00:14:07,120 Speaker 1: isn't it. You know, here's the thing we are. We're 286 00:14:07,160 --> 00:14:10,520 Speaker 1: excited about AI as a company, and I am personally too. 287 00:14:10,760 --> 00:14:11,960 Speaker 1: I think this idea of. 288 00:14:12,080 --> 00:14:13,680 Speaker 2: Are you guys using it a lot? A lot? 289 00:14:13,720 --> 00:14:15,400 Speaker 1: We've been using it for a long time, honestly. But 290 00:14:15,440 --> 00:14:18,160 Speaker 1: the generative AI and then the agentic AI that's coming 291 00:14:18,240 --> 00:14:22,520 Speaker 1: through too is really exciting. It's exciting for our members 292 00:14:22,560 --> 00:14:26,520 Speaker 1: and for our associates. What we do we pivot to growth. 293 00:14:26,640 --> 00:14:28,440 Speaker 1: How does this help us move faster, do more for 294 00:14:28,520 --> 00:14:32,160 Speaker 1: our associates and our members. How do we find different 295 00:14:32,200 --> 00:14:35,080 Speaker 1: routes to market? So that's exciting. Of course, we also 296 00:14:35,120 --> 00:14:38,600 Speaker 1: look at how do you find opportunities to take time 297 00:14:38,600 --> 00:14:40,480 Speaker 1: out of product launches and all of those kind of 298 00:14:40,480 --> 00:14:43,000 Speaker 1: things so that you're a better business. The one thing 299 00:14:43,040 --> 00:14:45,720 Speaker 1: that you may have seen is we also believe that 300 00:14:45,800 --> 00:14:49,120 Speaker 1: the opportunity to give people to empower people with the 301 00:14:49,240 --> 00:14:53,240 Speaker 1: use of AI but with an enterprise but with enterprise 302 00:14:53,360 --> 00:14:56,360 Speaker 1: data is really exciting. So whether it's in the office 303 00:14:56,480 --> 00:14:58,560 Speaker 1: or recently, we made an announcement a couple of weeks 304 00:14:58,600 --> 00:15:01,480 Speaker 1: ago at our holiday meeting where we gave our frontline 305 00:15:01,520 --> 00:15:06,720 Speaker 1: management access to open AI, to chat GBT and which 306 00:15:06,760 --> 00:15:09,200 Speaker 1: they can use to just go faster and do more. 307 00:15:09,200 --> 00:15:10,240 Speaker 1: And that's really exciting. 308 00:15:10,480 --> 00:15:12,320 Speaker 2: Yeah, it's kind of amazing. We're all kind of finding 309 00:15:12,320 --> 00:15:14,080 Speaker 2: our way through it. Chris, thank you so much. 310 00:15:14,160 --> 00:15:16,720 Speaker 1: Thank you for having me. I appreciate it, and yeah, 311 00:15:16,760 --> 00:15:17,960 Speaker 1: good luck, good luck. 312 00:15:17,800 --> 00:15:20,000 Speaker 2: Thank you as well. Chris Nicholas. He's the presidentcy of 313 00:15:20,040 --> 00:15:20,600 Speaker 2: Sam's Club.