Days before its third quarter earnings report, UPS matched rival FedEx by announcing a general rate increase of 6.9% for 2023, an unprecedented figure for both major carriers set as a benchmark for pricing shipper contract rates. FedEx took heat last month in announcing its rate increase last month, as it reported a painful quarter.
Walmart reported 12% second-quarter ecommerce growth, up 18% vs. 2020, as it gained market share in grocery and passed 1 million deliveries for its GoLocal service that provides last-mile service for other retailers including Home Depot, with inflation helping attract more upscale shoppers. The result was better than at rival Target.
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%.
UPS reported higher-than-expected first-quarter earnings, even as domestic volume declined for the second consecutive quarter, as its pricing strategy and focus on profitable business over volume continues to pay lucrative dividends during the ongoing ecommerce boom. SMB and B2B growth continue to be strong.
Target CEO Brian Cornell piled on superlatives when discussing Q4 and 2019 results, including six consecutive years of 25%+ growth in ecommerce sales. Same-day (order pickup, drive up and Shipt delivery) accounted for more than 80% of Target’s Q4 comparable digital sales growth of 20%, compared to 1.5% overall comp growth.
Dick’s Sporting Goods saw a strong first quarter in ecommerce, reporting a 15% increase in online sales. The company said ecommerce represented about 13% of total net sales, up from 11% in the first quarter of 2018.
Ecommerce home furnishings giant Wayfair increased its fourth quarter sales 40.6% to $1.99 billion, but saw its Q4 net loss balloon to $143.8 million, nearly doubling the $72.8 million loss from the same period in 2017. The company accentuated the positive, emphasizing its holiday season and flash sale performance to analysts.
Macy’s Inc. reported a 1.1% decline in net sales for the second quarter, from $5.6 billion to $5.5 billion, with comp sales inching up just 0.5% and double-digit online sales in the same period. Mobile sales via the Macy’s app were up 50%+ in the first half of 2018. See how Macy’s did in other areas of its business.
Target reported a 41% increase in ecommerce sales during the second quarter, with overall revenue increasing 7%. Comp sales were up 6.5% in the quarter, the strongest showing since 2005, driven by a 6% growth in store traffic. Here are some opportunities Target plans to focus on in the future.
Nordstrom reported a healthy 23% increase in ecommerce sales for the second quarter, accounting for more than a third of the company’s total sales, which were up 7% over last year.