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QAD Precision News Round-Up: 29 November 2019

In the QAD Precision News Round-Up: 29 November 2019,  online sales spiked this Thanksgiving; UPS and FedEx predict high volumes this peak season; Sports Direct to rebrand; Best Buy launches NYC pick-up services; plus simplifying holiday shipping and more. 

Retail 

THANKSGIVING ECOMMERCE SALES JUMP

Shoppers in the US spent $2.1 billion online by 2 pm Pacific time this Thanksgiving. According to Adobe Analytics, this is a 20.2 percent increase from 2018. Furthermore, Shopify announced that 4,500 transactions took place each minute with approximately $400,000 spent per minute over Thanksgiving. Mobile e-commerce accounted for 66 percent of sales. The most popular purchases were clothing and accessories. This November, US shoppers have spent $53 billion so far, with holiday sales estimated to reach $144 billion. For more information, please see TechCrunch. 

SPORTS DIRECT TO REBRAND 

Sports Direct has announced that it will change its name to Fraser Group after a shareholder meeting on December 16. Sports Direct International acquired House of Fraser last year. The company is also planning to rebrand a number of House of Fraser stores as “Frasers” next year. Frasers will focus on offering well-known brands, along with beauty, sports and luxury fashion. Once the rebrand has taken place, Frasers Group will include Sports Direct, House of Fraser, Flannels, Jack Wills, Sofa.com, and Frasers amongst others. For more details, please see Retail Gazette. 

HONG KONG DEBUT SEES ALIBABA SHARES SPIKE

On Tuesday, Alibaba saw a strong debut in Hong Kong as stock jumped by more than 6 percent. The company, which is already traded in the US,  raised approximately $11.3 billion with this secondary listing. Shares were priced at HK $176 each. Alibaba had contemplated a Hong Kong IPO in 2013, but did not secure regulatory approval at the time. For more information, please see the BBC. 

BEST BUY LAUNCHES PICKUP SERVICES IN NYC UPS, CVS STORES

Best Buy has launched order pickup services in 175 CVS and UPS locations in New York. This should allow Best Buy customers in New York to receive their deliveries within three hours. According to CEO Corrie Barry, approximately 99 percent of Best Buy customers live in a ZIP code where next-day delivery is accessible. This represents an 80 percent increase from last quarter. For customers who select the buy online pickup in store option, 80 percent of orders are available within 30 minutes. For more details, please see Supply Chain Dive. 


Carriers

DHL TO USE ZERO EMISSIONS DELIVERY VANS IN THE US

From next year, DHL Group’s StreetScooter electric vehicle unit will be operational in the US in an effort to reduce greenhouse gas emissions. In spring 2020, the StreetScooters full-electric Work L delivery van will be launched in two urban US markets. The carrier estimates that full deployment will take place over 2022 and 2023. For more information, please see Automotive News Europe. 

UPS TO DELIVER 32 MILLION PACKAGES A DAY DURING PEAK 

UPS has announced details of its peak season planning which include “deep collaboration and forecasting with hundreds of customers” and new technology to optimize network efficiency. UPS has stated that it is well-prepared to deliver a record number of package shipments - 5 percent more than in 2018. UPS has estimated that it will deliver approximately 32 million packages and documents per day during 2019 peak season. For more information, please see Post & Parcel. 

FEDEX TO MOVE 33 MILLION PACKAGES ON CYBER MONDAY 

According to a press release, FedEx expects to move 33 million packages this Cyber Monday. Furthermore, the carrier has estimated that it will double its daily package volumes for the following two Mondays, December 9 and December 16. FedEx stated that investment in automation, e-commerce specific solutions, and it’s expanded retail footprint as well as plan to hire 55,000 additional employees has increased readiness for peak season. For more details, please see Supply Chain Dive. 

SENDEL ANNOUNCES EXPANSION IN THE US 

Carbon neutral Australian parcel delivery company Sendel is to expand into the US to serve small e-commerce businesses. Sendel will provide its flat rate carbon-neutral shipping service in the US and has stated that it is ready to provide services for the 2019 peak shipping season. For more information, please see Post & Parcel. 

Transportation

ANHEUSER-BUSCH COMPLETES ZERO-EMISSIONS BEER DELIVERY 

Last week, Anheuser-Busch made its first zero-emissions delivery in St. Louis. The beer maker used a hydrogen-electric and electric vehicles to complete the delivery. Firstly, a Nikola hydrogen-electric transported the beer to Lohr Distributors, Anheuser-Busch’s wholesale parter. BYD electric trucks then delivered the beer to the Enterprise Center. By 2025, the brewing company plans to cut carbon emissions by 25 percent across its value chain. To help achieve this target, Anheuser-Busch has ordered 800 hydrogen-electric powered semi-trucks for Nikola. For more details, please see Supply Chain Dive. 

QAD Precision News 

SIMPLIFY HOLIDAY SHIPPING WITH MULTI CARRIER SHIPPING SOLUTIONS

The holiday season is officially here, and with that comes some of the busiest shopping days of the year — Black Friday and Cyber Monday. Black Friday, which falls the day after Thanksgiving, originated in the US, but it has spread around much of the world. Shoppers across Europe, Canada, Australia, South Africa and many other countries look for deep discounts and holiday deals on Black Friday.

This year Black Friday falls on 29 November, and its online equivalent, Cyber Monday, takes place on 2 December. However, it is almost impossible to separate these shopping events. First of all, Black Friday deals are offered online as well as in store. According to Adobe Analytics, Black Friday online sales spiked nearly 24 percent in 2018, with a huge $6.22 billion spent online in the US. In addition, many retailers kick off their sales before Black Friday — in fact, shoppers are increasingly making online purchases on Thanksgiving Day itself as well as in the days before. 

All in all, according to the National Retail Federation, US consumers spent $707.5 billion during the holiday season in 2018. Of that figure, $146.8 billion went to online and other non-store retailers. In this QAD Precision Report we look at the importance of multi carrier shipping solutions to ensure timely and cost-effective deliveries. To read the full report, please click here. 

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