Digging out a few more shovelfuls to deepen the Prime moat, Amazon is now offering same-day delivery for subscribers in 10 metro areas, who can shop retailers including PacSun, GNC, SuperDry and Diesel and either have the order delivered or picked up in store.
FedEx, in a firm response to a move by a group of FedEx Ground contractors seeking financial relief from the carrier, warned that any collective bargaining activity would put them in breach of contract, even as the group seeks to create a representative committee.
Nearly six months after doing so in the U.S., Amazon is increasing the cost of Prime in the UK and Western Europe by up to 43%, as it too battles inflationary pressures and higher operating costs. German Prime members will see a 30% increase, with a 20% bump in the UK; Spain, Italy and France will see annual increases between 39%-43%.
Walmart like Target lowered its quarterly and year-end guidance, citing the continuing drag of overstocked inventory and shoppers focusing on lower-margin essentials and less on general merchandise. The scenario is causing a negative effect on pricing and profit, causing a hit to its stock and others in retail.
UPS exceeded its Q2 revenue and earnings projections, but lower volume due to consolidation steps, including reducing Amazon packages by contractual agreement, plus the challenged macro picture didn’t resonate well on Wall Street. UPS is also piloting a delivery density program for major retailers through an OMS partnership.
Walmart is adding its in-home delivery service an option for Walmart+ subscribers, making it easier for them to access the service through a single registration as it expands to new markets. Amazon for its part is giving Prime members a year of free GrubHub deliveries, while getting an option for a 2% stake in the company.
Despite inflation fears, retailers are likely to see an increase in consumer spending this summer, with 61% planning to shop “holidays” like Prime Day, and 76% of them saying they’ll spend the same or more on the extravaganza as last year, according to data from Adobe Commerce.
Shopify is pursuing a new avenue of attack against Amazon, launching 100 new/updated apps including tools for merchants to drive B2B sales while also turning on social commerce via Twitter, in an effort to boost slowing DTC ecommerce revenue growth. The company said Shopify Editions represents a “connect-to-consumer” focus.
A leaked Amazon memo from mid-2021 indicates the company feared running out of fulfillment workers by 2024, impacting its business growth prospects and vaunted level of service especially for Prime customers, according to a report in Recode that Amazon has downplayed.
Shopify, a certified rock star of the pandemic shutdowns that saw sales and profits soar as consumers flocked to sellers on its platform, is finding itself challenged in 2022 as growth slows significantly and the ardor of investors has cooled off.