In the next five years, nearly 50,000 retail stores in the United States may be closed; Amazon will reduce cross-regional allocation and parcel transportation distance | Cross-border e-commerce daily news
50,000 US retail stores may close in 5 years; Amazon to cut cross-regional allocation and parcel distance in e-commerce
【Nearly 50,000 retail stores in the US may close in the next five years】 Retailers such as Walmart and Nordstrom will continue to close stores in the US this year. As planned, Walmart will close about 20 stores in the US this year, and Nordstrom will close 15 stores. CVS, a chain pharmacy, announced in 2021 that it will close 900 stores within three years. According to a report by UBS this year, between 40,000 and 50,000 retail stores will close in the US in the next five years.
【Amazon reduces cross-regional deployment and package transportation distance】 On May 15, it was reported that Amazon has comprehensively reformed its logistics network to shorten the transportation distance of packages in the US in order to accelerate delivery speed. Amazon has adjusted the ranking of website search results and displays products closest to the storage location at the top of search results.
Amazon executives, analysts, and Amazon platform sellers said that the company’s reforms have shortened delivery times, changed inventory management models, and adjusted the search results that customers see on its flagship e-commerce website.
Previously, Amazon operated its domestic distribution business in the US on a national basis, delivering products that customers need to various parts of the country. Regardless of the distance, products purchased by buyers from a particular warehouse will be shipped from that warehouse.
- Wayfair delivery methods have been adjusted, and small packages are being handled by a third-party carrier
【Wayfair improves data analysis capabilities and reduces end delivery costs】 Home furnishing e-commerce Wayfair uses big data analysis to better understand order and delivery data, and takes corresponding measures to improve the delivery process. By analyzing data, Wayfair can more accurately predict and plan delivery routes, optimize truck loading and distribution, reduce delivery time, and minimize issues and delays in delivery.
In addition, Wayfair has taken some measures in logistics, such as cooperating with logistics partners, increasing delivery points, and using technology tools to track delivery progress, in order to further improve the efficiency and customer satisfaction of end delivery.
These improvement measures enable Wayfair to better manage and control the cost of end delivery, and provide faster and more reliable delivery services to meet consumers’ demand for home products.
【Microsoft’s $69 billion acquisition of Activision Blizzard approved by the EU】 The EU stated that Microsoft has completely resolved the competition issue in the cloud gaming market. Microsoft has provided European consumers with a 10-year free authorization to transmit all current and future Activision games through cloud services.
【Tesla CEO Musk: All hiring needs to be approved by himself】 On Monday, local time, Musk stated in an email to Tesla employees that Tesla will not hire new employees, including contractors, unless he approves it personally. According to a memo seen by the media, he told executives to send him a list of hiring requests every week, and also reminded them to “think carefully” before submitting such requests.
【Ford China responds to layoffs of more than 1,300 people】 Recently, it was reported that Ford China has started layoffs, with more than 1,300 people compensated according to N+3. In response to this news, Ford China stated that the company is building a more streamlined and flexible organizational structure, investing resources in core businesses with advantages, and striving to achieve business goals in China. However, Ford China has not confirmed the details of the number of layoffs and compensation.
【Adidas Indonesian factory lays off 1,400 workers】 According to reports, Adidas’ subcontractor, Banaru Industrial Company, located in Indonesia, announced that it will lay off thousands of employees due to a decrease in orders. The company confirmed this news and stated that it will dismiss more than 10% of its employees, a total of 1,400 people, in order to balance income and expenses. In response to this, the Indonesian Minister of Labour stated to the media today that they will summon Banaru Industrial Company for talks with relevant departments responsible for labor relations to safeguard the rights of laid-off employees.
【Nike faces lawsuit for alleged false advertising】 American sportswear brand Nike is facing a lawsuit alleging false advertising. An environmental protection organization has filed a lawsuit against Nike, claiming that it has engaged in “greenwashing” in its environmental advertising. The organization accuses Nike of exaggerating its environmental achievements in its products and marketing activities, and claiming that its products have a small impact on the environment. The organization claims that the materials and production processes used by Nike may have a negative impact on the environment and accuses Nike of not providing sufficient evidence to support its environmental claims. The lawsuit demands that Nike stop false advertising, disclose more transparently the environmental information of its products, and compensate consumers for any economic losses suffered when purchasing its products.
Nike has not yet made any formal comments on the lawsuit. However, this lawsuit highlights the increasing pressure and regulatory requirements that brands face in sustainability and environmental protection.
【Lyft: Company is open to acquisition】 On May 15th, David Risher, CEO of the ride-sharing service company Lyft, said in an interview that the company is open to acquisition. However, seeking to sell is not the current focus of the company. The new features launched by the company will increase the number of passengers calling for rides to the airport.
【Eurozone industrial output falls more than expected in March】 Eurozone industrial output in March was weaker than expected, reversing the growth achieved so far this year, indicating that the pressure brought by rising interest rates and inflation on investment is impacting the manufacturing sector. Data released today showed that industrial output fell by 4.1% month-on-month in March after growing by 1.5% in February. The decline in industrial output was driven by capital goods (products used to develop other goods), which fell by 15.4%. Other components also fell, with intermediate goods falling by 1.8%, energy falling by 0.9%, and non-durable consumer goods falling by 0.8%. However, the production of durable consumer goods increased by 2.8%.
【EU Commission Raises Inflation and GDP Forecasts for Eurozone in 2023-2024】 The EU Commission has raised the inflation forecast for the Eurozone in 2023 from 5.6% to 5.8%, and the inflation forecast for 2024 from 2.5% to 2.8%. The GDP growth rate for 2023 is expected to be raised to 1.1%, and the GDP growth rate for 2024 is expected to be 1.6%. The EU Commission stated that the downside risks to the economic outlook have increased.
【Poland’s Inflation Rate in April was 14.7%】 According to a report released by the Polish Central Statistical Office on May 15th, the consumer price index for Polish residents rose by 14.7% year-on-year and 0.7% month-on-month in April this year. The National Bank of Poland previously predicted that the average inflation rate in Poland this year would be 11.9%, 5.7% in 2024, and 3.5% in 2025. Adam Glapinski, the governor of the National Bank of Poland, said that the inflation rate in Poland will fall to single digits by the end of 2023.
【OnBuy Collaborates with Clearpay to Launch Installment Interest-Free Payment Service】 On May 15th, British e-commerce platform OnBuy announced that it has entered into a strategic partnership with BNPL (Buy Now Pay Later) supplier Clearpay to provide users with more payment options.
Through this collaboration, OnBuy users can now choose the option of four interest-free payments or six-week interest-free payments provided by Clearpay. This additional payment option provides shoppers with more convenience and flexibility at checkout.
At the same time, OnBuy will appear in the store directory of Clearpay’s application, which can help OnBuy reach one million new customers every day.
【Rakuten Records Net Loss of $600 Million in Q1 2023】 According to the financial report for the first quarter of 2023 released by the Rakuten Group on May 16th, the company recorded a net loss of 82.5 billion yen (600 million US dollars) in the first quarter of this year, a slight improvement from the same period last year, but still the fourth consecutive year of losses for the company.
The Lotte Group achieved a consolidated EBITDA profit of 7.4 billion yen in the first quarter, an increase of 4.29 billion yen from the same period last year. The Lotte Group expects to achieve EBITDA profit based on consolidation in the 2023 fiscal year.
[SF Airlines opens “Chengdu-Mumbai” international freight route] On May 15th, SF Airlines’ “Chengdu-Mumbai” international freight route officially opened. This is another international route that SF Airlines has established in Chengdu, directly flying to India and radiating South Asia.
[DPD China’s “Haikou-Paris” international freight route officially resumes] On May 15th, at 6:05 am, a Hainan Airlines Boeing 787-9 passenger-to-cargo aircraft operated by DPD China carried 33.6 tons of export goods such as clothing and mechanical equipment and took off smoothly from Haikou Meilan International Airport. After 12 hours of flight, it will land at Paris Charles de Gaulle Airport.
The successful takeoff of this flight marks the official resumption of DPD China’s “Haikou-Paris” international freight route.
[Hong Kong Disneyland’s net loss for the 2022 fiscal year was HKD 2.1 billion] Hong Kong Disneyland Resort released its 2022 fiscal year performance. The announcement shows that Hong Kong Disneyland’s full-year business revenue for the 2022 fiscal year rose 31% to HKD 2.2 billion; the pre-interest, tax, depreciation and amortization profit improved by 11% to a loss of HKD 861 million, and the net loss narrowed by 12% to HKD 2.1 billion. It is worth noting that Hong Kong Disneyland opened in 2005 and has been losing money for eight consecutive years since 2015.
【Baltic Dry Index falls to nearly three-week low】 The Baltic Dry Index fell on Monday to its lowest level in nearly three weeks due to reduced demand for various types of ships. The Baltic Dry Index fell 36 points, or 2.3%, to 1,522 points, marking its third consecutive week of decline. The Cape-size index fell 71 points, or 2.9%, to a 10-day low of 2,385 points. The average daily profit of Cape-size ships fell by $590 to $19,777. The Panamax index fell for the 14th consecutive day, dropping 36 points, or 2.6%, to a 11-week low of 1,366 points. The average daily profit of Panamax ships fell by $328 to $12,291. The Supramax index fell 4 points to 628 points, while the Handysize index fell 7 points to 1,098 points.
【SHEIN launches in the US market, Anker becomes one of the first brands to join】 On May 15th, SHEIN officially launched in the US market and is currently recruiting local and international sellers. Anker is one of the first brands to join the SHEIN platform.
Some of Anker’s products sold on SHEIN are cheaper than on Amazon. It is unclear whether this is Anker’s decision or a promotional activity supported by SHEIN, but some Chinese sellers have said SHEIN’s sales fees are 0% for the first three months and 10% thereafter, which is lower than Amazon.
To support the development of the US station, SHEIN has set up a team in Los Angeles and is recruiting for multiple positions to attract and support sellers. SHEIN plans to expand its China-based supply chain by increasing local sellers.
【Shopee Philippines releases new rules for failed return package collection】 On May 15th, Shopee Philippines e-commerce platform released a notice stating that all failed return packages (unsuccessful return twice) will be temporarily stored in the warehouse of the order return logistics. Sellers need to contact the logistics customer service within 10 days of receiving the system notification to arrange for self-collection.
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