EP246 - Q3 E-Commerce Results
EP246 - Q3 Results
The US Census Bureau published its retail monthly data and quarterly e-commerce data this week. We also saw earnings reports from Target, Walmart, Lowes, Home Depot, Walgreens, and Kohls.
We also discuss Amazon’s entry into pharmacy.
Don’t forget to like our facebook page, and if you enjoyed this episode please write us a review on itunes.
Join your hosts Jason "Retailgeek" Goldberg, Chief Commerce Strategy Officer at Publicis, and Scot Wingo, CEO of GetSpiffy and Co-Founder of ChannelAdvisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.
Episode 246 of the Jason & Scot show was recorded live on Thursday, November 20th 2020. Transcript
[0:24] Welcome to the Jason and Scott show this is episode 246 being recorded on Thursday November 19th 2020,
I’m your host Jason retailgeek Goldberg and as usual I’m here with your co-host Scot Wingo.
[0:40] Hey Jason and welcome back Jason and Scot show listeners.
Jason it’s getting to be holiday and I don’t know about you but I am constantly being pummeled with.
Carrier pigeons direct messages tweets linkedin’s friend stirs just messages from every possible venue and guess what they’re asking.
[1:05] They are asking you to buy early from their store.
[1:10] I know that yes I am getting this but what I’m getting from our listeners are people saying Scott what can I get you guys have given us so much pleasure over the year through this podcast what can we do in return.
And my answer is all Jason I want for the holidays this year is your 5 star review.
So if you can hit pause real quick and this is best in your app that you’re using if you’re on the iPhone it’s pretty simple kind of need to do it in the podcast app,
believe that five-star review that would that would be really great and that would make our your for us here at the Jason’s got show we’d really appreciate that so whatever app you’re in go in there leave us that five star review that really helps us a lot.
Keeps us at the very tippy top of the e-commerce podcast realm so we would really appreciate that.
[2:04] So alright welcome back hopefully you did pause and leave us that five star review we appreciate it.
Jason we are T minus seven days until turkey day and this is the time of the year where we really start to feel it you know kind of that nervous energy.
Here in the Commerce retail e-commerce world,
everyone holds their breaths and they been working all year planning for this they’ve got all the server’s lined up all the clouds clouding,
and just hoping that the next 20 days are super awesome but they’re also scary for everybody so.
And then this year with covid everything is going to be cranked up to an 11 we’ve talked a lot about ship again we’re going to do an update on that so we thought the days show we would.
Kind of stay on news because there is a lot going on and first of all I thought we could hit some of the really interesting Amazon news.
[3:05] Amazon news new your margin is their opportunity.
[3:17] Jason you have I think you’ve been I can’t remember where it’s been all cheer now I can’t remember if you predicted this but you’ve been really
kind of keeping an eye on Amazon’s aspirations to get into the pharmacy world and if I remember they bought that pihl company was at pillpack and then there was some news this week update us on what happened and what you’re thinking what’s your
what’s your point of view is it time to stop going to Walgreens and CVS.
[3:46] Yeah so side note I was actually revisiting that prediction Show recently because I was trying to cheat and edit in that I predicted a global pandemic.
[3:57] No that’s not fair no cheating.
[3:58] No I would never cheat but if you happen to notice that there I must have in fact predicted it.
But yeah so we’ve talked a lot about this we’ve talked a lot about Amazon and Walmart’s General aspirations around Healthcare,
and for sure I think for the last several years I can’t even remember which year we first predicted it but like we predicted in the past that Amazon would get into Pharmacy.
And we we’ve seen sort of three previous Healthcare actions,
they actually applied for and received a number of their own Pharmacy licenses so you have to be a pharmacy you have to be licensed in every state they got licensed in a bunch of states for medical equipment so that’s not actually the,
the the medications that’s things like.
[4:48] Pulse ox monitors and glucose meters and and orthopedic equipment and prescribed equipment that customers might want to buy so so they kind of.
[4:59] Did their first step in getting some pharmacy license has a lot of us speculated that that could be a precursor to getting a medical dispensing pharmacy license.
So then they bought pill pack which is a pharmacist and online pharmacy that already had a bunch of Pharmacy licenses so they kind of got.
If memory serves something like half the country covered just by buying pillpack and for listeners that aren’t familiar pillpack has kind of a unique value proposition,
they’re a mail order pharmacy that mail your your prescriptions to you but instead of giving you all 60 of your doses of Lipitor in a bottle,
individually packaged your pills for each day so if you’re taking three conch medications you get a little plastic.
Vacuum-sealed bag with the three pills you need to take each day so make it make it super easy to take each day’s thing and so they bought pillpack they’ve been continuing to operate pillpack they’ve even done some pretty extensive,
marketing and advertising for pillpack.
And then right around the beginning of this year they bought a medical technology company that does like.
Telemedicine medical triage it’s kind of like artificial intelligence for what are your symptoms and I’ll tell you what likely is wrong with you kind of stuff.
[6:23] And then they’ve used a lot of those Technologies.
To roll out some for some health care clinics but the health care clinics are not for the general public at the moment there for Amazon employees in specific cities like.
They’ve opened a number of clinics near.
Near some of the FCS and they’ve opened a clinic near their corporate headquarters in Seattle and they I think they even develop their own covid testing.
Capability that they use in those clinics to test employees.
[6:51] Yeah when we went in our deep dive I remember them saying they were doing you know tens of thousands of daily testing so pretty pretty substantial just internal testing effort which was pretty interesting.
[7:03] So that’s all the history of Amazon and Healthcare and what we’ve been waiting for is when do they do something that strikes fear into Walgreens and CVS and the answer is probably this.
[7:16] Yeah saw the stock I’m not a big tracker of those stocks but I saw CVS was down from like the mid 70s and mid 60’s so kind of a 10% drop in I imagine Walgreens with similar.
[7:28] Yeah and I think they one or both of them had earnings calls recently and.
Somewhat counter-intuitively and maybe sometimes we get into this the those pharmacies are not.
Beneficiary major beneficiaries of covid in fact like their comps are down.
So so they are ready we’re kind of a little soft and then this Amazon announcement they all had an impact.
We’re still trying to figure all the details out but a so Amazon has announced that you can now there a nationwide Pharmacy and you can buy your your prescriptions from Amazon and you’re not.
My my understanding is you can now get like a normal person gription from Amazon it doesn’t have to be the pillpack configuration.
And it’s available Nationwide but what they really focused on they didn’t give a…