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Kroger plans to lean more heavily on its store network and third-party delivery partners under a new e-commerce plan. KROGER via REUTERS
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Kroger said it will close three automated fulfillment centers and expand partnerships with DoorDash, Uber Eats and Instacart as part of an overhaul of its e-commerce operations. The Journal’s Connor Hart writes that the grocer will book a $2.6 billion charge from closing the facilities and from underperformance of its automated fulfillment network.
The closures in Florida, Maryland and Wisconsin are expected to have a neutral effect on same-store sales, excluding fuel, with the changes increasing e-commerce operating profit by about $400 million next year. Under its new strategy, the company will lean more heavily on its store network and third-party delivery partners.
The Cincinnati company said it had expanded its partnership with Instacart, its primary delivery fulfillment provider, and broadened its relationship with DoorDash. Kroger plans to launch on Uber Eats early next year.
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China could exploit the U.S.’s dependence on Chinese supply chains for products such as pharmaceuticals and electrical equipment, according to a new report to Congress that urged lawmakers to force industries to disclose such risks.
Earlier this year, China choked off the supply to the U.S. of rare earths that are crucial for making everything from cars to jet engines, the Journal’s James T. Areddy writes. The U.S.-China Economic and Security Review Commission warned in its annual report that Beijing’s huge industrial base affords it similar leverage over other U.S. supply chains, such as for lithium-ion batteries, foundational semiconductor chips and components used by power utilities.
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2.04 Million
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Loads posted to the DAT One truckload spot market in the week ended Nov. 14, down 5% from the week before, but above 2 million for the 10th straight week as shippers prepare for the holidays
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The cargo ship Dali hit the Francis Scott Key Bridge on March 26, 2024. MARYLAND NATIONAL GUARD via AP
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