Morning Brew - ☕ A warehouse divided

Trends changing the warehouse space.
Advertisement
November 26, 2024

Retail Brew

Passport

It’s Tuesday, and Starbucks employees are using pen and paper to track their hours following a cyberattack on a third-party vendor. For their sake, let’s hope they get it figured out by Thanksgiving, because many of the coffee chain’s locations will still be open for the holiday.

In today’s edition:

—Alex Vuocolo, Andrew Adam Newman

SUPPLY CHAIN

Off the supply chain

A delivery drone flying through a retail warehouse Amelia Kinsinger

Warehouses are sort of the unappreciated middlemen of retail supply chain management, serving their part within immense, sometimes anonymous, structures. They provide a stopover between factory floors and store shelves—a role that has only become more important as retailers have expanded their e-commerce and delivery capabilities.

Indeed, the pressure to serve customers across channels has led to a boom in warehousing construction, which continues at a slower pace even as some retailers find themselves with an excess of space.

For a quick look at how this space is evolving, here is a rundown of some of the biggest trends in warehousing:

The rise of robotics: The flashiest of these would arguably be the embrace of automation at logistics facilities. While a number of retailers are innovating—take a look at IKEA’s new warehouse drones—Amazon is leading the pack. The e-commerce giant recently opened a facility in Shreveport, Louisiana, that incorporates all its robotics investments, which the company claims reduces fulfillment processing time by up to 25%. In a call with analysts last month, CEO Andy Jassy said that it’s “still early days in how much automation we expect in our fulfillment network.”

Going big: Beyond investments in new technology, retailers aren’t skimping on size either. General retailers and wholesalers nabbed the title of most active occupier of big-box warehouse facilities, which are at least 200,000 square feet, per CBRE. In 2023, the group accounted for 36% of all lease transactions, just ahead of third-party logistics providers’ 35%. This increase in market share comes even as vacancy rates in 2023 doubled to 6.6% at year end.

Keep reading here.—AV

   

Presented By Passport

Goin’ global with it

Passport

DTC

Gift thrift

CFOs resale trade in programs economics Iryna Imago/Getty Images

While the resale market is growing dramatically, it’s not everyone’s (gently used) cup of tea, leaving its enthusiasts to wonder whether it’s appropriate to give secondhand items as holiday gifts. And while there’s no telling how a preloved hoodie is going to go over with your surly teen, as a general rule, the practice is gaining steam.

Nearly 3 in 4 shoppers (74%) believe that giving secondhand presents has grown more acceptable over the past year, a 7% increase over last year, according to a new survey from OfferUp, a resale marketplace for local transactions.

Even more respondents, 83%, would welcome a secondhand item as a gift.

Beyond sentiment, though, there’s real intent to gift-wrap pre-loved items this holiday season, with 68% of respondents saying they’ll purchase used gifts this year; among Gen Z, 83% plan to do so.

The online survey of 1,500 US respondents was conducted on October 13.

Circular reasoning: The most popular category for secondhand gift-giving this year among respondents was electronics (55%), followed by sporting goods (47%), and furniture (42%).

Many clean out their own closets to afford all those gifts, with 36% of respondents having already sold items online (or planning to do so) to fund holiday shopping this year.

Among Gen Z, more than half (53%) are selling items online to bolster their gift-shopping budget.

“The stigma around secondhand gifting is rapidly diminishing,” Todd Dunlap, CEO of OfferUp, said in a press release. “Pre-owned items are no longer just a practical choice—they’re now a preferred option for many, offering a way to give memorable gifts while being mindful of budget constraints.”—AAN

   

STORES

Wheelin’ and dealin’

Woman with shopping bags Vuk Saric/Getty Images

The holiday shopping season is on track to be shorter and less promotional this year, and consumers are prioritizing deal days to stretch their budgets.

A new survey from Deloitte found that shoppers expect to spend a record $650 this Black Friday–Cyber Monday, up 15% from 2023. “Nearly half (45%) of consumers surveyed say they have already experienced higher prices for holiday items this season, and almost a third (32%) of respondents say retailers are discounting less,” the survey found.

“This year we have a shorter holiday shopping season with the late Thanksgiving,” Brian McCarthy, principal at Deloitte, wrote in a statement. “Combined with a deal-focused consumer, we can expect to see holiday shoppers spend big during Black Friday–Cyber Monday promotions as they seek to close out their holiday shopping lists in a shorter timeframe.”

While retailers such as Walmart, Target, and Amazon slashed prices or held big promotional events in October, Black Friday weekend appears to have a stronger pull for consumers this year. Just 32% of those surveyed said October offered the best deals, down from 49% in 2023, while 47% said the best deals of the season are dropping on Black Friday.

Shoppers also plan on blowing more of their total holiday budget this weekend than last year, with respondents saying they plan to spend 56% of their budget on Black Friday weekend, up from 47% in 2023.

Keep reading here.—AV

   

Together With Klaviyo

Klaviyo

SWAPPING SKUS

Today’s top retail reads.

Sold out: Private equity firm Nexus Capital Management has gotten court approval to purchase off-price retailer Big Lots, which is currently undergoing Chapter 11 bankruptcy. (Chain Store Age)

Maybe later: Macy’s has delayed its latest earnings release following reports that an employee hid as much as $154 million in delivery expenses over multiple years. (Reuters)

All in on AI: Despite complaints that AI-generated ads look weird, brands such as Coca-Cola are trying to take advantage of the new cost-saving tech. (the Wall Street Journal)

The two W’s: If you want to go worldwide and win big, Passport Global can help. See how they can handle all of your international selling needs. Complete a demo and get a $100 gift card.*

*A message from our sponsor.

JOBS

Be part of something bigger than job boards. CollabWORK taps into niche communities and newsletters like Retail Brew to connect you with relevant opportunities. Expand your network and discover roles that are just right for you—click here to see jobs selected for Retail Brew.

SHARE THE BREW

Share Retail Brew with your coworkers, acquire free Brew swag, and then make new friends as a result of your fresh Brew swag.

We’re saying we’ll give you free stuff and more friends if you share a link. One link.

Your referral count: 2

Click to Share

Or copy & paste your referral link to others:
retailbrew.com/r/?kid=303a04a9

         
ADVERTISE // CAREERS // SHOP // FAQ

Update your email preferences or unsubscribe here.
View our privacy policy here.

Copyright © 2024 Morning Brew. All rights reserved.
22 W 19th St, 4th Floor, New York, NY 10011

Older messages

☕ Playing the villain

Tuesday, November 26, 2024

Macy's had a $154 million blunder... November 26, 2024 View Online | Sign Up | Shop Morning Brew Presented By BambooHR Good morning. President Biden continued the curious White House Thanksgiving

☕ Rage against the returns

Monday, November 25, 2024

Retailers take steps to curb returns. November 25, 2024 Retail Brew Presented By Bloomreach It's the last Monday before Black Friday, and Chili's just released a line of bedding products that

☕ Cann do

Monday, November 25, 2024

Why the beverage brand Cann is putting one creator front and center. November 25, 2024 Marketing Brew Presented By Klaviyo It's Monday. Ahead of Thanksgiving, the box office is having its best

☕ Testing, testing

Monday, November 25, 2024

ChatGPT's new search vs. Google. November 25, 2024 Tech Brew Presented By JobsOhio It's Monday. We're sure you're busy prepping for Thanksgiving, whether it's packing or cooking or

☕ Cabinet finishes

Monday, November 25, 2024

The president-elect finalized his nominations... November 25, 2024 View Online | Sign Up | Shop Morning Brew Presented By Tovala Good morning, and welcome to the short Thanksgiving week. For those

You Might Also Like

The Daniel Penny verdict.

Wednesday, December 11, 2024

Plus, what do we think of healthcare advocates Casey and Calley Means? The Daniel Penny verdict. Plus, what do we think of healthcare advocates Casey and Calley Means? By Isaac Saul & Will Kaback •

Gift of the Day: An Almost-Life-Size Lego Cat

Wednesday, December 11, 2024

We featured it prominently in our print gift guide. The Strategist Gifts Every product is independently selected by editors. If you buy something through our links, New York may earn an affiliate

Health Insurers’ $371 Billion Windfall

Wednesday, December 11, 2024

Since the Affordable Care Act's passage, the top five health insurers' annual profits have jumped 230 percent, with much of that going to UnitedHealthcare. We combed through health insurers

Eating Rags

Wednesday, December 11, 2024

The World's Most Expensive Eating Disorder // Papermaking: A Rags To Riches Story Eating Rags By Kaamya Sharma • 11 Dec 2024 View in browser View in browser The World's Most Expensive Eating

📬 No. 60 | “Little things can actually make a big difference”

Wednesday, December 11, 2024

An interview with one of the fastest-growing newsletters in Nigeria. ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌ ͏ ‌

Syrians describe the horrors of Assad regime

Wednesday, December 11, 2024

+ 1798 law Trump said he will invoke to deport people; Arctic's rapid warming ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

☕ Fill it out

Wednesday, December 11, 2024

How NJ uses AI to aid unemployment. December 11, 2024 View Online | Sign Up Tech Brew presented by IBM It's Wednesday. Could artificial intelligence improve routine bureaucratic processes? New

The Concealers Our Writers Actually Buy

Wednesday, December 11, 2024

Including the Augustinus Bader–Victoria Beckham collab and a drugstore staple. The Strategist Beauty Brief December 11, 2024 Every product is independently selected by editors. If you buy something

🍿 ‘One Hundred Years of Solitude’ Is A Miraculous Success

Wednesday, December 11, 2024

Plus: James Mangold's ambitious Star Wars prequel movie will go back to the origins of the Jedi Order. Inverse Daily One of the greatest books at all time gets an equally ambitious streaming

Why we can’t stop talking about the UnitedHealthcare CEO killing

Wednesday, December 11, 2024

Plus: Why other nations do public housing better, which party is good for the economy, and more. December 11, 2024 View in browser Lavanya Ramanathan is a senior editor and editor of the Today,