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LogisticsLogistics

Retailers Expand In-Store Pickup; Electric Rigs Look For a Charge

By Paul Page

 

A curbside pickup area at a Lowe's store in Concord, Calif., in 2021. PHOTO: DAVID PAUL MORRIS/BLOOMBERG NEWS

The hottest trend in online order fulfillment these days may be dropping home delivery altogether. Retailers are seeing strong growth in the operation known as buy-online, pickup-in-store, a hybrid strategy that helps solve problems in last-mile logistics for store owners and consumers alike. The WSJ Logistics Report’s Liz Young writes that the share of e-commerce orders filled through store pickups has surged since prepandemic days and that retailers have been adjusting their stores and training staff to meet the demand. For companies including Walmart, Target and Macy’s, the store pickups mark an extension of efforts to use physical stores as virtual fulfillment centers. The merchants are looking to restrain margin-crushing home-delivery costs that can reach 10% to 15% of an e-commerce brand’s sales. Even Amazon is getting in on the action through agreements with retailers that give shoppers the option of home delivery or pickup in their stores.

  • U.S. shoppers spent $12.7 billion online during Amazon’s Prime Day sales event, up 6.1% from a year ago, according to Adobe. (Bloomberg)
 
 
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Transportation

A mobile charging system in California running on natural gas. PHOTO: PROLOGIS MOBILITY

The rollout of heavy-duty electric trucks is running ahead of the electrical grid upgrades needed to power up a new generation of big rigs. One utility says the capacity is so far behind that some fleets are using diesel generators to recharge trucks, defeating the emissions-cutting purpose of electric rigs. The WSJ’s Jennifer Hiller writes that California utility PG&E told one charging provider that truckers won’t be able to charge their rigs during peak summer demand periods for several years. It’s one sign that the grid simply isn’t ready. A state analysis in 2021 estimated California would have 180,000 zero-emission commercial vehicles by 2030 that would need 157,000 chargers. The trucking industry estimates there are fewer than 700 chargers at terminals now. Southern California Edison says the potential power draw is so great the utility may need new substations, infrastructure that can take several years to install.

  • Tesla began production in Texas of its electric Cybertruck pickup. (WSJ)
  • German automotive parts supplier Bosch will invest almost $2.8 billion in hydrogen fuel-cell technology for electric vehicles. (Reuters)
 

Quotable

“One or two trucks, everybody’s got. It’s when they try to do their fleets.”

— Calvin Butler, CEO of eastern U.S. utility Exelon, on charging demand from electric trucks.
 
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Number of the Day

61.6 Million

Total personal-computer shipments worldwide in the second quarter, down 13.4% from last year but 8.3% ahead of first-quarter shipments and an improvement from the 29% year-over-year decline in the first quarter, according to IDC.

 

In Other News

Chi­na’s econ­omy grew 0.8% in the sec­ond quar­ter, less than half the pace of the first quarter. (WSJ)

U.S. import prices fell 6.1% on an annual basis in June, the biggest decline since May 2020. (MarketWatch)

United Airlines struck a preliminary contract agreement with its pilots that would provide pay raises of up to roughly 40%. (WSJ)

Global companies are accelerating their push to decouple China data in response to the country’s increasingly stringent data and anti-espionage laws. (Financial Times)

Automaker Mitsubishi Motors is suspending its China business after years of sluggish sales. (Japan Times)

Toshiba is working with General Electric to connect 100 suppliers in a supply chain for offshore wind turbines. (Nikkei Asia)

Officials believe it may take weeks to clear a cargo backload at British Columbia ports following a two-week dockworker strike. (Journal of Commerce)

Shipbroker BRS says shipyards have their largest backlogs for vessel orders since 2010. (Splash 247)

U.S. workplace safety regulators launched a program to reduce job hazards in warehouses. (DC Velocity)

Simbe Robotics raised $28 million in a Series B funding round backing the rollout of its inventory-counting robots. (TechCrunch)

Food supplier Kraft Heinz is building a 775,000-square-foot distribution center in DeKalb County, Ill. (Chicago Tribune)

Cathay Pacific expects a profit of greater than $500 million for the first half of the year on rebounding passenger and cargo traffic. (Nikkei Asia)

Trucking services firm SMG acquired liquid and bulk trucker Barnhart Transportation for $53 million. (Bulk Transporter)

Chicago-based Redwood Logistics bought Iowa-based freight broker Rockfarm Supply Chain Solutions. (Logistics Management)

A Wan Hai Lines container ship on its second voyage crashed into a bulk vessel and then destroyed a wharf in Vietnam. (TradeWinds)

 

About Us

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

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

 
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