

I think we've seen it all. The e-commerce store is the interesting one.
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It was always the plan to bring things together, but just like the structure, it needed to be separate for a while for good reasons. We couldn't pick at store level the full Supercenter for a while. It's a lot harder to receive an e-commerce order and pick a toy at Christmas on time than it is to pick the strawberries every day, because you know where they are.
Customers want to save money and time and have the broadest assortment of items, and we think that by bringing e-commerce and digital capabilities together with the stores, we can do things that a pure e-commerce player can't.
People were wondering, "How do you even do food e-commerce? Are we going to be dropping strawberries on somebody's doorstep? It doesn't feel like we're going to be doing that". But what we believed is that in the US pickup might work. So we started in California and then Denver, and a team started working to put everything in place to do grocery pickup and in the beginning we even had a separate app. It was an orange online grocery app.
The stores are an asset, and they have a great assortment in them and they're close to people. Being within 10 miles of 90% of America is a huge advantage, especially with fresh food at a good price. But we must also, if you think long-term and you think about what the company wants to accomplish, you must have a big and important first-party e-commerce business, and you must have a marketplace, and the things that go along with the marketplace.
We love basket businesses, the Supercenter is a basket business, Sam's Club is a big basket business. We want to build an e-commerce business that's a basket business, not just a spear fishing exercise.
Always thinking about the customer value proposition is including price, assortment, experience, and trust, and all of those have been changed by technology and been changed by e-commerce, and so leading up to the moment when I took this role, there was an understanding that we needed to invest in e-commerce, grow e-commerce, but we didn't take it seriously enough.
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