Back-To-School; Post Office Raises Rates; eCom Market Booming in the US

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According to an analysis from Stackline, online growth across Amazon, Walmart and Target has decelerated in back to school categories year-to-date. Both Walmart and Target had discussed back-to-school sales across digital and store formats during their earnings calls this week, although both expect the selling period to extend longer than normal. This year, Amazon appears to have less enthusiasm surrounding this key sales period instead pushing merchandising programs tied to back to school.

Source: Thomas Ondrey via The Plain Dealer

Post Office Raises Rates in Response to eCommerce: Following in the path of FedEx and UPS, the USPS announced its plan to raise commercial parcel rates during the fourth quarter. The rate increase will vary from 24 cents to $1.50 per package, and is in response to the heightened rates of online purchasing that are expected to occur. Shippers may avoid these increases depending on their negotiated-service agreements, although for those impacted, the rate change is expected to have a significant impact on expenses during what is shaping up to be a record setting fourth-quarter online.

eCommerce Market Booming in the US: The US Census, Walmart, Home Depot, Target, and Lowe’s all reported digital growth rates for the second-quarter this week. According to the Census Bureau, eCommerce grew 45% Y/Y in the US, up from 14.8% in the prior quarter and well-ahead of the mid-teens trend seen over the last several years. Of the four retailers that reported, Target grew its digital business the fastest, citing 75% of its orders were enabled by stores and that it has added 10 million new digital guests in the first half of the year.

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