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Turning Stores Into Delivery Hubs; China Fuels a Green-Energy Glut

By Paul Page

 

Walgreens's overall sales fell last quarter but online sales rose sharply.

PHOTO: PHIL VELASQUEZ/ZUMA PRESS

Walgreens wants to turn the corner drugstore into a delivery hub for e-commerce orders. The pharmacy giant recently closed a fulfillment center dedicated to handling online orders, the WSJ Logistics Report’s Liz Young writes, signaling that it is going all-in on the idea that its stores will do double duty as both retail outlets and hubs for home deliveries. It’s a bet on the retailer’s network of 8,700 bricks-and-mortar stores, and the strongest turn yet by retailers looking to make more use of their stores for order fulfillment. It also comes with significant complications, including the need to manage inventory in a dynamic store environment. But Walgreens is taking advantage of another online commerce trend by tapping third-party apps such as DoorDash and Uber Eats for delivery. Those operators are trying to expand beyond takeout meals, and the toothpaste, shampoo and other goods on drugstore shelves may make a good fit.

  • Home Depot’s same-store sales fell 3.5% in the third quarter, the fourth straight annual decline. (WSJ)
  • An analysis of inventory turnover rates suggests retailers are again overstocked heading into the holidays. (Reuters)
 
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Quotable

“The sources of inflation are disappearing quickly.”

— Luke Tilley, Wilmington Trust’s chief economist
 

Manufacturing

Wind power blades readied for export at China’s Suzhou port last month.

PHOTO: CFOTO/ZUMA PRESS

China’s spending binge on green energy is creating a global glut of solar components. The country has seen an array of new companies enter the sector as Beijing pumps heavy financial support into the industry. The WSJ’s Sha Hua and Phred Dvorak report China’s state-guided economy spent nearly $80 billion on clean-energy manufacturing last year, around 90% of all such investment worldwide. The spending is fueling the country’s rapid build-out of renewable energy while also rippling across the renewables industry worldwide and stymying attempts to build such manufacturing elsewhere. Chinese exports of everything from batteries and electric vehicles to solar panels and wind turbines have surged, raising hackles in Europe and the U.S., which are trying to expand their own domestic clean-energy manufacturing. The oversupply of solar components in China is sending prices into a tailspin, pummeling manufacturers around the world and raising concerns over potential failures.

  • The German government is providing Siemens Energy about $8 billion as part of a rescue package for the renewables business. (WSJ)
 

Number of the Day

1.108

The Cass Freight Index for U.S. domestic shipments in October, 4.7% below September and down 2.8% on a seasonally-adjusted basis from last year to the lowest level since January 2022.

 

In Other News

U.S. consumer inflation slowed to a 3.2% annual rate in October. (WSJ)

Japan’s economy contracted 0.5% in the three months to September from the previous quarter. (WSJ)

United Auto Workers members at several General Motors factories rejected a proposed labor agreement, jeopardizing a tentative contract. (WSJ)

A federal report says extreme weather events fueled by climate change cost the U.S. economy nearly $150 billion a year. (WSJ)

Canadian miner Teck Resources is selling its coal assets to a group led by mining and trading giant Glencore. (WSJ)

Electric-vehicle startup Fisker slashed its production target after third-quarter revenues were nearly half of expectations. (WSJ)

Rivian Automotive named longtime Stellantis executive Carlo Materazzo as vice president of logistics. (Dow Jones Newswires)

The Dutch government shelved plans to reduce the number of flights at Amsterdam’s Schiphol airport. (Financial Times)

Amazon spent more than $8 billion last year to expand operations in Japan. (Nikkei Asia)

China’s Huawei Technologies can’t produce enough of its new 5G smartphones to meet heavy demand. (South China Morning Post)

Several container lines are seeking substantially higher rates next month on earnings-challenged Asia-Europe lanes. (The Loadstar)

Platts is launching a series of dry bulk indices, in a challenge to the Baltic Exchange. (Lloyd’s List)

Denmark’s Lauritzen Bulkers expects a bulk shipping downturn to last into next year’s second quarter. (ShippingWatch)

Average diesel prices across the U.S. have fallen 25.1 cents per gallon over the past three weeks. (Logistics Management)

J. B. Hunt is dropping Canadian Pacific Kansas City in favor of Ferromex for Mexican intermodal business. (Journal of Commerce)

Regional Rail is acquiring short lines Indiana Eastern Railroad and Ohio South Central Railroad. (Progressive Railroading)

Westjet Cargo will use Flexport’s 747 freighters to haul Canadian exports to Asia. (Air Cargo News)

Transportation technology supplier MercuryGate acquired customs clearance software provider ITS. (DC Velocity)

 

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 X at @WSJLogistics.

 
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