Today's newsletter was written by WSJ Logistics Report's Jennifer Smith.

The coronavirus pandemic is testing Toyota’s supply-chain prowess. The Japanese car maker is making big cuts to production as the semiconductor shortage deepens a parts crisis that has disrupted operations across the automotive sector, the WSJ’s Sean McLain writes. Toyota avoided those problems earlier in the pandemic by stockpiling components and keeping close ties with suppliers, giving it an edge over rivals who miscalculated how quickly auto sales would bounce back. Now factory closures in Malaysia and Thailand are denting output at sites where semiconductors are assembled into components that control engines, headlights and more. Toyota is scaling back production by 40% in Japan next month and also reducing output in North America in August, potentially leaving it with as many as 170,000 fewer vehicles than planned. Rivals Ford and General Motors are taking similar steps, further reducing the pool of available inventory on dealer lots.

Amazon is taking another swing at blending physical and digital retail. The online behemoth plans to open several U.S. sites resembling scaled-down department stores and offering items from top consumer brands as well as its own private-label goods, the WSJ’s Sebastian Herrera, Esther Fung and Suzanne Kapner report. The aim is to expand Amazon’s reach by allowing customers to inspect clothing and other goods before they buy and also exposing the tech company’s products to shoppers who otherwise might not have tried them. Amazon’s rise to e-commerce dominance disrupted traditional retail, accelerating the decline of malls and taking market share from physical store operations. But the company has also been adding outposts for years that sell books, groceries and other items through a network aimed at harvesting data and providing new shopping experiences. Bigger storefronts with more products could also bolster Amazon’s logistics network, bringing goods even closer to customers.

The Delta variant is throwing retail planning for a loop. Rising Covid-19 cases are casting doubt on the staying power of a recent rebound in clothing sales, the WSJ’s Suzanne Kapner reports, as Macy’s, Kohl’s and other merchants juggle supply-chain problems with uncertain consumer demand. Shoppers refreshed their wardrobes this summer on expectations that life would return to normal as schools reopened and workers headed back to the office. Online marketplace FashWire says sales of dresses and other items are slowing as consumers revert to shopping habits from earlier in the pandemic and swap going-out clothes for loungewear. The uncertainty comes as retailers are also coping with factory shutdowns in Asia and congestion at the ports, with some importers pulling shipments forward to guard against holiday-season shortages. That risks saddling retailers with unsold inventory if demand fizzles.

U.S. jobless claims fell to a pandemic low of 348,000 last week. (WSJ)

Chinese authorities shut down a U.S. labor auditor’s local partner in China as tensions mount over forced labor allegations. (WSJ)

Flooding in North Carolina killed two people and damaged roads and bridges in the western part of the state. (WSJ)

Intel’s chief executive said the company plans to buy up other chip makers as the industry consolidates. (WSJ)

An anti-inflammatory drug for treating severe Covid-19 cases is in short supply. (WSJ)

Supply-chain finance firm Greensill Capital filed for bankruptcy in the U.S. (WSJ)

Kansas City Southern postponed a shareholder vote on its merger agreement with Canadian National until Sept. 3. (Dow Jones Newswires)

Union Pacific will use biodiesel in some locomotives to reduce greenhouse gas emissions. (Dow Jones Newswires) 

Toys “R” Us plans to open shops at more than 400 Macy’s stores next year. (WSJ)

TJ Maxx owner TJX said ocean freight rates have risen by 200% in some cases. (Sourcing Journal)

Maersk Line has secured enough methanol to fuel its first dual-fuel feeder container ship by 2023. (Lloyd’s List)

Japan’s PowerX plans to build an automated vessel to carry electricity from offshore wind farms to shore by 2025. (Splash 247)

Zim Integrated Shipping wants to acquire smaller shipping lines after generating $888 million in second-quarter net profit. (The Loadstar)

Freight forwarder DB Schenker said there are no plans to sell the company. (Air Cargo News)

Alibaba’s Cainiao logistics arm opened distribution sites in East China to speed deliveries to customers in the Philippines, Malaysia and Thailand. (Tech in Asia)

Workers at Nabisco facilities in Oregon, Virginia and Colorado are striking over pay and other issues. (Willamette Week)

Some Tesla customers are waiting weeks or months for delivery of their vehicles. (CNBC)

Lahore, Pakistan-based Airlift Technologies raised $85 million to back its online shopping delivery service. (Bloomberg)

The warehouse robotics sector will generate more than $51 billion in revenue by 2030, market advisory firm ABI Research estimates. (Robotics & Automation News)

Bay Area-based cannabis delivery service Eaze is moving into the Colorado and Florida markets by buying Green Dragon, a cannabis retailer and cultivator. (TechCrunch)

Paul Page is editor of WSJ Logistics Report. Write to him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @jensmithWSJ and @pdberger. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.