or Search by TOPIC
Search Supply Chain Videocasts
  Sign-Up Free Newsletter
Supply Chain by the Numbers

- Dec. 1, 2022


Supply Chain by the Numbers for Dec. 1, 2022


Mixed Data from Extended Opening Retail Shopping Weekend; Amazon Announces New Drone Model; US PMI for November Falls into Contraction; Shoplifting Levels are Soaring




That was the level of US on-line sales on so-called Cyber Monday this week, a new record but still up a rather modest 5.3% versus 2021. Overall, consumers spent $35.4 billion on-line over the five-day extended opening Christmas shopping weekend, according to data this week from Adobe Analytics. The figures are not adjusted for soaring inflation, with the data suggesting consumers could be spending more for less.“If inflation is up 8% and sales are up 5% or so, people are definitely buying less — there’s no question about that,” said Forrester analyst Sucharita Kodali. However, she cautioned that without in-store sales numbers yet, it’s hard to see a full picture. Analytics firm found that visits to indoor shopping malls on Black Friday were down 2.3% compared with last year, while outlet malls recorded a 3.9% decline and open-air lifestyle centers were down 0.5%, meaning foot traffic was weak.





That is the perceived reduction in perceived noise emanating from a new delivery drone version from Amazon versus its predecessor. That according to an announcement of the new MK30 model made this week by the retail giant. Addressing complaints about drone noise is just one of the features of the new drone, which will be lighter and smaller than the MK27-2, its predecessor unit, and will also have increased range, expanded temperature tolerance, and new safety features. It is a very different looking machine, and the hexagon-shaped aircraft weighs 80 pounds and is about 5.5 feet in diameter. The drone can fly up to 50 mph. Parcels will be dropped from a height of about 12 feet, and Amazon says that special sturdy packaging will be used protect fragile items. While the MK30 is scheduled to be released in 2024 for tests and limited true commercial deliveries, operating in major cities is not likely until the end of the decade. But maybe then drone era will actually arrive almost 10 years after then Amazon CEO Jeff Bezos jolted the logistics world during an interview with the 60 Minutes with the company’s plans to use drones for ecommerce deliveries.




That was the level of the US Purchasing Managers Index for November, as reported Thursday by the Institute for Supply Management. This is significant, as it means US manufacturing has fallen below the key 50 mark that separates expansion from contraction, after flirting with it in October, when the index was at 50.2. It was also the first time since May 2020 that the index was below the 50 mark. Perhaps more worrisome, the New Orders Index remained in contraction territory at 47.2, 2 percentage points lower than the 49.2 recorded in October. Is recession here?




That is the rise so far in theft in 2022 from organized retail crime rings, in which thieves are hired to steal specific items from stores to be sold online. That according to a report this week on Fox News. That report comes just a couple of weeks after Target’s CFO Michael Fiddelke said on an earnings call that the chain’s profits would be down $600 million this year due to “shrinkage,” a euphemism for shoplifting, also adding that organized crime efforts are a big part of the surge. The spike in organized retail theft will shutter storefronts and further drive up prices for consumers already grappling with high inflation, economists at the Heritage Foundation say. "If companies can't increase their costs to cover the cost of the theft, if they're not making a profit, then they're going to go out of business," sais Andrew Puzder, the former CKE Restaurants CEO and a visiting fellow at Heritage.

No Feedback on this article yet.

Supply Chain Digest Home | Contact Us | Advertise With Us | Sitemap | Privacy Policy
© 2006-2019 Supply Chain Digest - All Rights Reserved
e a