| July 18 – 24, 2022
 The supply chain is facing yet another challenge—rising costs. And with transportation costs rising this might be unavoidable when it comes to getting products into your center or store, it is one that you can mitigate with products going out. A major benefit we’ve touted long before supply chain issues became a regular topic of discussion, are the financial benefits retailers have when they ship-from-store and develop a micro fulfillment strategy. When retailers and property owners join together for this strategy, the deliveries are closer, retailers don’t require a traditional warehouse (another area facing rising costs…though what isn’t….), and the cost savings compound. Curious how this could work for you? Let’s chat!
This week we also caught up on how Prime Day went for Amazon and the rest of the internet, about how retail leasing is faring this year so far, and about what the impact of staffing shortages on restaurants. Enjoy this newsletter? Forward it to someone else you think might enjoy it as well, or let us know on Twitter or LinkedIn.
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Digital Meets Physical
Pinterest adds four new e-commerce features [Chain Store Age]
Pinterest Inc. is not standing still in its efforts to become an e-commerce platform. The visually-oriented social media network is introducing several new e-commerce features: Pinterest API for Shopping, Product Tagging for Pins, Video in Catalog, and Shop Tab on Business Profiles. Highlights of each new feature follow. |
Amazon Has Been Slashing Private-Label Selection Amid Weak Sales [The Wall Street Journal]
Amazon.com Inc. has started drastically reducing the number of items it sells under its own brands, and the company has discussed the possibility of exiting the private-label business entirely to alleviate regulatory pressure, according to people familiar with the matter. |
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Analysts estimate single-digit growth for all retailers during Prime Day sales [TechCrunch]
Amazon’s annual sales event Prime Day delivered more than $12 billion in sales, according to third-party estimates. The retailer hosted the popular shopping event in the U.S. and in more than 15 other countries worldwide on July 13-15. The company was bullish on its Prime Day results and said it was the “best ever,” mentioning that consumers across the world spent $1.7 billion. Amazon claimed that it sold more than 300 million items during these sales, but didn’t disclose any revenue figures. |
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Micro & Last Mile Fulfillment
Companies Face Rising Supply-Chain Costs Amid Inventory Challenges [The Wall Street Journal]
Companies face new increases in logistics costs this year as they try to reset their supply chains and rebuild inventories amid continuing disruptions and rising inflation, freight-sector experts say.
Freight index shows fuel surcharges, seasonal factors prop up Q3 transportation costs [Supply Chain Management Review]
AFS Logistics, a 3PL provider, and Cowen Research have released the July 2022 Cowen/AFS Freight Index, a quarterly transportation pricing snapshot with predictive pricing across multiple sectors in the freight industry. It shows the effect of significantly higher carrier fuel surcharges and inflationary pressures across truckload, less-than-truckload (LTL) and parcel shipments.
‘Much more intentional’: How Shopify’s latest fulfillment moves aim to simplify logistics for sellers [ModernRetail]
According to Shopify’s CEO of the logistics group Aaron Brown, while the internet has created a level playing field for so many parts of retail, logistics and supply chain continue to be a challenge. “We’re excited about Deliverr because we think we have a chance to help independent merchants with problems of freight, distribution, fulfillment at scale. Deliverr has built their software so they have network visibility across the entire supply chain. I think it’s going to be a game changer for merchants,” said Brown. |
What’s next for Gopuff and rapid delivery as the young industry hits ‘an inflection point’? [RetailDive]
After growing in leaps and bounds over the past few years, Gopuff has pumped the brakes on its rapid delivery service and is looking to adjust course amid increasingly challenging market conditions. Last week the instant delivery company announced a second round of layoffs in just four months. It also said it’s paring back its U.S. fleet of small warehouses, which deliver convenience items to consumers in around 30 minutes or less.
Walmart to officially launch expanded drone delivery program [Chain Store Age]
Walmart and drone operator DroneUp are formally kicking off their delivery partnership in a public event hosted at a Walmart store in Arkansas. This showcase will serve as an open house to formally launch DroneUp’s flight services such as inspection, mapping and aerial imaging in the Northwest Arkansas market. The event will highlight all three hub locations operating from Walmart’s store with drone demos.
Prologis report sees modest uptick in logistics warehouse vacancies [Freight Waves]
Demand is expected to level off as macro uncertainty and higher borrowing costs prompt warehouse users to “slow the pace” of their decision-making, it said. Still, rent growth will continue to outpace elevated levels of inflation. Depending on the market, users will find opportunities scarcer than those that existed prior to the pandemic. |
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Restaurants & Ghost Kitchens
Kroger store in Dallas adds ‘virtual food court’ [SupermarketNews]
The Kroger Co. has opened another in-store “restaurant hub” with partner Kitchen United MIX. Located in Dallas, the so-called “virtual food court” allows customers to place orders online, through a mobile device or via an in-person ordering kiosk and then pick up their meals on-site or have them delivered. Restaurant staff prepare the orders, with delivery service fees set by third-party providers. |
Restaurants are short-staffed, and that’s taking a big toll on customers and workers alike [CNBC]
Restaurants and diners alike are feeling the pinch from the industry’s labor shortage. The industry is still down 750,000 jobs — roughly 6.1% of its workforce — from pre-pandemic levels as of May, according to the National Restaurant Association. In the first quarter, customers mentioned short staffing three times more often in their Yelp reviews than in the year-ago period, according to the restaurant review site. |
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Digital Ordering Has Become an Expectation for Restaurant Customers [QSR Magazine]
Digital ordering, an innovation that the pandemic brought to the forefront, has now become an expectation for consumers. And brands must find new innovations to stay ahead of the competition or get left behind. By implementing four key features to your digital experience, quick-service brands will be able to match expectations and thrive, pandemic or not. |
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Mall Talk
Macy’s accelerating growth of its off-mall, small-format store strategy [Chain Store Age]
Macy’s is putting its new store strategy on a faster track. The department store retailer is speeding up its plans to open smaller-sized stores that are not located in traditional enclosed malls. Macy’s plans to open four off-mall, small-format stores and close one traditional location this fall in line with its evolving real estate strategy. |
In the next few months, 60% of small retailers could shutter for good: report [RetailDive]
Nearly half of small business owners, including 59% of retailers, say they’re at risk of shutting down by the fall, up 12% from the 35% that were in that predicament a year ago. Owners cite a host of reasons, including inflation, higher interest rates, gas prices, rent hikes, supply chain disruptions, lower consumer spending, fears of a recession and losses left over from 2020 and 2021. |
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In Spite of Worries About Inflation, Downturn, Retail Leasing Has Thrived This Year [WealthManagement.com]
Through the first six months of 2022, there have been 4,328 announced store openings and 1,912 announced closures, Coresight reports. U.S. retailers have announced 1.9 percent more openings and 58.1 percent fewer closures compared to the same time last year, the firm notes. |
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