Supply Chain & Merchandising

Shopping for groceries online has a long way to go before it catches on with the vast majority of U.S. consumers.   Nine percent of U.S. adults report that their household shop online for groceries at least once a month, including 4% who do it at least weekly, according to Gallup's annual Consumption Habits survey. By contrast, almost all Americans say someone in their family shops for groceries in person at least once a month, with 83% going at least once a week.  

Amazon has lots of ideas about how drones can improve package deliveries, but they also need supportive facilities and operations.    In hopes of getting the ball rolling, the online giant has filed a patent application for “ground-based mobile maintenance facilities for unmanned aerial vehicles.” Simply put, these hubs would be dedicated to accommodating, loading, launching, receiving and maintaining the delivery drones.  

Based on the momentum of early back to school shoppers, Amazon is on pace to hit a record 80% sales growth for the season.    The online giant's school supplies sales have grown by 35% year-over-year in the first two weeks of the back-to-school shopping season, according to One Click Retail. Early back-to-school shopping only accounted for 9% of sales in 2016.  

A discount giant is helping more shoppers skip the checkout line.    Walmart is expanding the deployment of its Scan & Go mobile app, which is being tested in approximately 12 stores across Northwest Arkansas, Florida, Texas and Georgia. The chain is now rolling out the app for use in at least 10 additional locations in the Dallas-Fort Worth and Nashville markets. The stores will offer the solution by the end of the month, according to Justin Rushing, spokesman for Walmart.  

Pier I Imports' loss is Fossil Group's gain.   Pier 1 Imports announced that Jeffrey N. Boyer, executive VP and CFO, is leaving the company effective October 3, 2017 to become CFO of Fossil Group, where he has been a member of the board of directors since 2007. Pier 1 is appointing an executive search firm to conduct a search for a new CFO.   

The nation's second largest drugstore chain by store count posted a higher-than-expected quarterly profit amid stronger demand for its pharmacy benefits management business.    CVS’ net income rose 18.8% to $1.1 billion in the second quarter, ended June 30. Net revenues rose 4.5% to $45.7 billion, with a 9.5% increase in revenue in it pharmacy services segment, which includes its pharmacy benefits manager (PBM) business and specialty pharmacy services.  

Ralph Lauren starts its new fiscal year in much the same way as it ended the last one: with sales lines splashed with red ink to indicate the severe declines across most divisions of the company. Some of this would be excusable if the iconic brand were at the start of a journey of reinvention, but this comes after multiple attempts to get the firm back on track - most of which have proved to be fruitless.  

Sprouts Farmers Market doesn't plan on backing out of its partnership with Amazon any time soon.   Despite Amazon’s recent announcement to purchase of Whole Foods Market, Sprouts Farmers Market plans to continue its role as an Amazon Prime Now delivery partner. More so, the grocer expects the program to extend to more than half of its store network, according to Food Navigator-USA.