Boston Days - Part 8

The Man Who Saved Best Buy Walked Into My Classroom Today.

(I am writing “Boston Days” as a series of articles for quick reference for myself and other retail pilgrims. This article covers “Culture as Strategy — a Leadership Class with Hubert Joly”)

There is a specific kind of pause that happens inside you when you register, fully and without warning, who exactly is standing at the front of the room.

It happened to me this morning at HBS.

The professor for today’s session was Hubert Joly. Former chairman and CEO of Best Buy. 

The man who walked into arguably the most distressed large-format retail situation in modern American business — stock at $11, market cap at $4 billion, Amazon at its most predatory — and rebuilt it by asking one question almost no CEO was asking at the time: what is this company actually for?

I have spent three decades watching Indian retail. One hundred plus cities. Every format from airport terminal to neighbourhood kirana. 

And yet, sitting in that classroom this morning, I had to consciously remind myself to take notes rather than simply listen.

The session was built around two cases. Nvidia. Walmart.

The Nvidia case was not primarily a technology story. At its core, it was a study in Jensen Huang’s deeply personal leadership style — his instinct for flat structures, radical transparency, and a culture where the fear of embarrassment is replaced entirely by the fear of missing a consequential idea. 

Every person in the room left understanding that Nvidia’s extraordinary run cannot be separated from who Huang is as a human being, and how that humanity travels through fifty thousand people. Strategy, in his hands, is inseparable from character.

The Walmart case landed differently, and with equal force. The discussion centred on Doug McMillon’s fundamental conviction that Walmart’s greatest long-term competitive asset is not its logistics network or its store footprint — it is its people. 

His big bets on workforce investment, wage floors, training and dignity are not HR policy. 

They are strategic bets made with the same rigour a CFO applies to capital allocation. McMillon has simply decided that people are the capital.

The thread connecting both cases — and the man teaching them — was impossible to miss.

Culture is not a consequence of strategy. It is the strategy.

What I carried out of that room was not a framework. It was a reckoning.

Thirty years in retail. Thousands of hours on floors and in boardrooms. Have I always been as deliberate about culture as I have been about category, format and footfall?

The man who walked into Best Buy in 2012 — when people around him said he was either crazy or suicidal — did not walk in with a better product or a superior balance sheet. 

He walked in with a clearer answer to that question than anyone else in the building.

As it turns out, that is not a small thing.

It is everything.

(I am writing “Boston Days” as a series of articles for quick reference for myself and other retail pilgrims.)

Read Part 1, Part 2, Part 3, Part 4, Part 5, Part 6, Part 7, Part 8 and Part 9 here.

Boston Days - Part 7

Is CVS a Pharmacy? A Toy Store? A Convenience Store? Yes.

(I am writing “Boston Days” as a series of articles for quick reference for myself and other retail pilgrims. This article covers the “Positioning” of a Retailer) 

After pondering for several minutes, reading the name printed on every miniature car, I picked up three — all American icons.

A Ford, a Chevrolet, and a DHL pickup truck that has moved American commerce and economy since 1969. Three satisfying finds.

I placed them on the counter and looked up. The backlit signage above the cashier read: CVS Pharmacy. I had just spent ten unhurried minutes choosing toy cars inside a pharmacy.

What exactly is this place? Pharmacy, convenience store, seasonal gift shop, beauty destination, or a toy aisle with a dispensing counter? Walking through CVS, the answer changes with every aisle.

CVS was born in 1963 as Consumer Value Stores in Lowell, Massachusetts. Today it operates roughly 9,000 stores across the United States, present in 3,486 cities nationwide.

Applying a Pareto lens, New York leads with 183 stores. Houston follows with 119, Los Angeles 105, Chicago 73, Philadelphia 63. Dense urban concentration — by strategy, not accident.

Each store typically occupies around 4,000 square feet in dense urban neighbourhoods. Large enough to carry pharmacy, merchandise, beauty, food, seasonal gifting, and apparently, a very respectable toy section.

For readers in India, here is essential context. Most Americans pay little or nothing at the pharmacy counter — their health insurance, managed by intermediaries called PBMs, pays instead.

PBM stands for Pharmacy Benefit Manager — a powerful third party sitting between insurer, drug manufacturer, and pharmacy. It determines exactly how much the pharmacy gets reimbursed for every prescription dispensed.

Reimbursement rates have fallen relentlessly for over a decade. CVS’s pharmacy segment operating margin compressed from 9.9% in 2015 to just 3.5% today, on revenues of $139.4 billion. The arithmetic is punishing.

Walgreens, CVS’s closest comparable, ran a negative 5% operating margin on US pharmacy retail before being taken private by Sycamore Partners in 2025. The industry’s economics are structurally broken.

Which brings us back to the toy cars. The prescription customer walks in, hands over their insurance card, pays a nominal copay or sometimes nothing at all, and waits.

CVS needs that customer to also pick up candy, a greeting card, or three miniature diecast cars. Front store margins are meaningfully better than anything earned from a reimbursed prescription.

The business model, stripped to its core, is converting compulsory prescription footfall into discretionary front-store revenue. It is not irrational thinking. It is, in fact, survival thinking.

Except the consumer has not fully cooperated. CVS’s front store same-store sales declined 2.1% in 2024, recovering to just 1.2% in 2025. Customers tolerate the format. They do not embrace it.

The result is a retail identity no shopper can define in one sentence. A pharmacy barely profiting from prescriptions it fills, surrounded by merchandise it hopes will subsidise the enterprise.

The DHL truck, the Ford and the Chevrolet sit on my desk here in Boston. Charming mementos of a pharmacy still searching, with some urgency, for its own positioning clarity.

(I am writing “Boston Days” as a series of articles for quick reference for myself and other retail pilgrims.) 

Read Part 1, Part 2, Part 3, Part 4, Part 5, Part 6, Part 7, Part 8 and Part 9 here.

Boston Days - Part 6

The Cleaning Liquid I Couldn’t Find. And What It Said About the World’s Most Advanced Retail Market.

(I am writing “Boston Days” as a series of articles for quick reference for myself and other retail pilgrims. This article covers the “Indian Quick Commerce boom”)

It started with a dirty iPad keyboard.

Three weeks of intensive sessions, constant note-taking, and the kind of daily use that leaves a screen looking like it has lived a full life. I needed a cleaning liquid. A simple, everyday SKU. The kind of thing that sits on a shelf in any electronics accessories aisle back home.

I walked into the nearest neighbourhood store. The staff looked at me the way you look at someone asking for something that simply does not exist in their world.

I tried another. Same result.

I turned, predictably, to Amazon. Thursday delivery. This was Monday. Prime or no Prime, apparently, does not always mean fast.

And that is when it hit me — not as a grievance, but as a genuine retail observation.

I am sitting in the city that gave the world MIT, Harvard, the internet, and more patents than most countries have produced in their entire history. And I cannot get a bottle of screen cleaner delivered to my door before the week is out.

Back in Chennai, I would have opened Zepto. Nine minutes. Done.

That contrast stayed with me longer than it should have, because it is not actually a logistics story. It is a structural one.

India’s quick commerce — Blinkit, Zepto, Swiggy Instamart — was never designed in a boardroom as a solution to affluence. 

It was built to solve a very Indian problem: the gap between what modern consumers needed and what traditional retail could deliver. Dark stores, hyperlocal networks, mobile-first consumers, and a density of demand in our cities did the rest.

America’s retail architecture was built around a different model entirely. Large-format stores. Vast parking lots. The weekly family grocery run. A suburban rhythm of shopping that was never designed for impulse or urgency at the last mile.

The demand density that makes a dark store economically viable simply does not exist the same way in Boston’s residential neighbourhoods. Labour costs and real estate economics add further complexity. 

And so, despite GoPuff and DoorDash Dash Mart and Instacart’s best efforts, quick commerce here remains fragmented, expensive, and largely confined to dense urban pockets.

Amazon is trying. Walmart GoLocal is trying. The intent is visible. The execution, at scale, is still some distance away.

I eventually found a workaround, as one always does. But the question stayed with me through the rest of the day.

India built quick commerce out of necessity. And in doing so, leapfrogged the very markets that once set the global retail agenda.

That is a sentence I would not have expected to write ten years ago. I find that I mean it rather completely.

(I am writing “Boston Days” as a series of articles for quick reference for myself and other retail pilgrims.)

Read Part 1, Part 2, Part 3, Part 4, Part 5, Part 6, Part 7, Part 8 and Part 9 here.

Boston Days - Part 3

The Universe Has a Sense of Timing

(I am writing “Boston Days” as a series of articles for quick reference for myself and other retail pilgrims. This article covers the “Power of positive manifestations”)

300 minutes. That is precisely how long the day’s sessions had run — case studies, leadership frameworks, management metrics, and the kind of deep deliberations that leave you simultaneously drained and quietly electric.

As the glass doors of the Chao Centre swung behind me, I made a deliberate choice. Not the room. Not the power nap. The campus. The Boston evening. The open sky.

My first stop was the Tata Hall — a building that carries unusual emotional weight for every Indian who walks this campus. 

Donated by the late Mr. Ratan Tata, it stands as a quiet monument to Indian generosity meeting global ambition, housed in elegant red brick and understated dignity.

Spangler came next — the social heart of HBS. Closed for the day by 5 pm, it stood still in the evening light. A banner near its entrance read: “Hard work. With humility. For humanity.” I stood there long enough to let those words do their work.

Then came Baker Library. As participants of the Executive Management Program, access is granted until 7 pm — a privilege I was not about to surrender to fatigue. I stepped inside and simply stopped moving. 

Over 700,000 volumes. Reportedly the world’s largest business library. The ceiling, the amber light, the cathedral silence — it felt less like a library and more like a place of pilgrimage.

Earlier that day, I had written to a few luminaries associated with HBS, quietly hoping for a response. 

As I walked past the Dean’s quarters in the early evening, my thoughts turned — almost involuntarily — to Prof. Nitin Nohria.

The 10th Dean of Harvard Business School. Its first Indian-American leader. And by most accounts, one of its finest.

His decade at the helm, from 2010 to 2021, was nothing short of transformational. He introduced the FIELD curriculum — a bold pedagogical shift that brought real-world, experiential learning into the HBS classroom. 

He championed the MBA Oath, calling on graduates to pledge ethical and responsible leadership — a quiet but powerful act of institutional conscience. 

He launched HBX, now HBS Online, democratising business education beyond the walls of this storied campus. He made HBS more global, more inclusive, and more honest about what the world actually needs from business leaders.

I was still thinking about him as I rounded a corner near the library.

A gentleman in a white shirt. Round glasses. Walking at an unhurried pace.

I looked. Hesitated. Walked closer.

“Prof. Nohria?”

“Yes,” he said.

I stood still for a few seconds. What had just happened?

What followed were ten of the most quietly extraordinary minutes of my professional life. He asked about me — genuinely, not perfunctorily. I told him about 25 years in Indian retail — the airport retail ecosystem I helped build at BIAL when it first opened in 2008, the hundreds of cafes I scaled across India at Cafe Coffee Day, the dealer network I doubled for Royal Enfield. 

He listened with the full attention of a man who does not perform interest; he simply has it.

We spoke about the present and the future of Indian retail. His optimism was not the polished variety one dispenses at conferences. 

It was thoughtful, specific, and warm — the perspective of a scholar who has watched markets evolve and still believes in what is coming.

I walked back to my room a different person.

The universe, it would seem, rewards those who choose the campus walk over the power nap.

(I am writing “Boston Days” as a series of articles for quick reference for myself and other retail pilgrims.)

Read Part 1, Part 2, Part 3, Part 4, Part 5, Part 6, Part 7, Part 8 and Part 9 here.