The effects of the novel coronavirus known as COVID-19 are being felt globally. Given the widespread impact, most subscription-based businesses are sure to feel the repercussions long term. Given the many challenges it presents, planning now to ensure that your business can adapt as this new reality unfolds is your best move.
Just two months after announcing it was exploring strategic alternatives, including selling off one or more of its business units but keeping its LTL services intact, the company pulled this option off the table due to the effects of the coronavirus on markets. XPO had been looking at divestiture after a two-year, $8 billion acquisition spree.
While most of retail is in the doldrums due to coronavirus, grocers are seeing explosive growth, and e-grocery has been accelerating rapidly due to shutdowns. Scott DeGraeve, COO and co-founder of Locai Solutions, and Doug Baker, VP, industry relations at FMI, discuss what they’re seeing across the sector, and how it will change.
With the rapid escalation of the coronavirus situation in recent weeks, and in consideration of the Centers for Disease Control and Prevention’s most current recommendations, Ecommerce Operations Summit 2020 is being postponed until later this year at a date to be determined. Stay tuned for more details.
Amazon has temporarily suspended fulfillment of non-essential items through FBA through April 5, due to high coronavirus-related demand. Meanwhile, retail and DTC brands are closing their doors, while UPS assures customers their deliveries are safe, and major e-grocery delivery app downloads are setting records daily.
Panic buying continues to cause empty grocery shelves due to the coronavirus panic, with heavier clusters in affected states as grocery retailers are starting to ration supplies. Same-day delivery providers Instacart and Postmates have expanded a “leave it at my door” option as more spooked shoppers opt for no physical contact.
This was a busy M&A week among operations and fulfillment vendors. FOG Software Group acquired shipping software firm ProShip from Quadient; Hy Tek Material Handling acquired Johnson Stevens Consulting; Dematic acquired Digital Applications International Ltd; and Aptean acquired TMS firm Paragon Software Systems.