When the USPS, which is replacing its aging fleet of delivery vehicles, announced that just 10% of the first round of vehicles it was ordering would be electric, it appeared to be in defiance of the Biden administration’s climate agenda, which wants the entire federal civilian fleet to be electric by 2035.

After the announcement caused blowback, the postal service said in March that it would increase the portion of electric vehicles it will purchase to ~20%, with 10,019 EVs out of a 50,000-vehicle order.

Part and parcel

The USPS’s biggest source of revenue is from shipping and packages ($7.87 billion in Q2 of 2022, compared to $6.27 billion for first-class mail), which means online and traditional retailers are big customers. And that raises a question: With major retailers like Amazon, Walmart, and Target championing their commitments to reduce their carbon footprints, will they ship the same volume of parcels with the USPS, which is being pilloried by environmental groups who say the new predominately gas-powered fleet will do the opposite?

As vice president of corporate social responsibility and sustainability at the National Retail Federation, Scot Case advises retailers on their carbon-reduction initiatives, and he told Retail Brew that “anyone who’s paying attention to this space will be scratching their heads” over the postal service’s gas-centric approach to its vehicles.

EVs “reduce the carbon footprint. They meet a consumer desire. They meet the retailer’s desires to go to net zero,” Case said. “That seems like a no-brainer business decision.”

Click here to keep reading.—AAN

Nike may have already perfected making athletic gear, but it’s now looking to pump up the fanfare. The sportswear company inked a long-term deal with Fanatics to manufacture collegiate-sports fan apparel and distribute it to a handful of sports-driven universities.

The deets: Manufacturing begins summer 2024; Fanatics’ college division already works with “most” Nike-sponsored schools, per CNBC. In a statement to Retail Brew, Nike said the move is part of a change in how the company wants to serve NCAA sponsors.

• Nike is not only extending existing licensing agreements with Fanatics, but also Branded Custom Sportswear, another licensee partner.
• Fanatics will design and create apparel, which includes replica jerseys, sideline clothes, and headwear.

The company says its vertical manufacturing business model, which uses an agile supply chain and on-demand manufacturing, makes it possible to create gear in real time.

“Our team is excited to maximize the value of Nike’s college partnerships by creating faster speed-to-market of fan gear through our agile supply chain, resulting in an expanded assortment of both timeless and on-trend Nike-branded merchandise for college fans and retailers everywhere,” Fanatics Commerce CEO Doug Mack said in a statement.

Big swoosh: Fanatics is a major distributor of fan gear, inking deals with the MLB and NFL in 2020 to manufacture all the Nike-branded apparel that’s sold at retail. This new deal will likely include colleges and universities such as Ohio State, Georgia, Oregon, Oklahoma, Clemson, and Penn State, sources told CNBC. (Fanatics declined to confirm those schools with Retail Brew.)

• Fanatics said the deal presents an opportunity to tap into an “underserved” women’s college merchandise market.

“Nike is committed to delivering the best product innovation for our athletes and consumers, and to creating marketplace opportunities for our partners,” the company said in a statement to Retail Brew.

Zoom out: Sportswear retailers like Nike aren’t the only ones embracing athletics. Hugo Boss and Russell Athletic teamed up last year on a retro-inspired line that’s a casual take on athletic apparel.—KM

Today’s top retail reads.

Wing span: How Alphabet’s Wing is getting closer than most to figuring out drone delivery. (TechCrunch)

Scraps deduction: America throws out about $400 billion in food waste annually—and supermarkets get to claim theirs as tax deductions. (Forbes)

Mixed review: Why canned cocktails can be underwhelming. “Every booze has its time and its place, but the vast majority of canned cocktails feel mostly like a gimmick, promising ease and convenience and delivering both alongside a big dose of disappointment,” writes Amy McCarthy. (Eater)

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We’ve all seen “Made in USA” stamps on products from footballs to coolers, but it takes a lot to be able to make that kind of claim. It’s not easy (or cheap) to manufacture products in America, yet while US companies face supply-chain tumult, many are evaluating how to bring their manufacturing home. Read more here on Retail Brew's exploration of what it really means to be “Made in America.”

This editorial content is supported by AT&T Business.

Three of the stories below are real...and one is most definitely not. Can you spot the fake?

1. A designer is suing Lego, claiming the toymaker copied his design for a leather jacket on a Lego figurine version of Antoni Porowski, the food and wine expert on Queer Eye.
2. In a Goop store in Sag Harbor, two men were roasting marshmallows for s’mores on a candle when it exploded, sending them both to hospitals to be treated for burns.
3. When it was leaving an event in downtown Pittsburgh, an Oscar Mayer Wienermobile collided with a Heinz delivery truck which, it turns out, was filled with jars of mustard and relish.
4. General Mills released a line of candles with the scents of cereal brands including Cinnamon Toast Crunch, Lucky Charms, Trix, and Cocoa Puffs.

Keep reading for the answer.

Catch up on the Retail Brew stories you may have missed.

• The state of American manufacturing jobs, in three charts
• How a former P&G exec is helping take the risks out of CPG launches
• A look back at the Great Recession and how it changed the retail landscape