There are revealing tensions and contrasts in this week’s retail and supply chain headlines. Americans unleashed a record-breaking spending spree on Cyber Monday ($15.8 million per minute), while the ongoing Canada Post strike continues to wreak havoc on holiday deliveries. The weeks-long work stoppage has pushed competing carriers to their limits and left businesses scrambling for alternatives. Meanwhile, Amazon faces scrutiny over its last mile delivery practices in Washington, D.C. Beyond shipping woes, we’ll dig into Foot Locker’s holiday season challenges and their ripple effects on Nike, plus uncover how furniture shoppers are rewriting the rules of retail by blending online and in-store experiences. So grab your coffee and settle in — there’s a lot to unpack. So grab your coffee and settle in — there’s a lot to unpack.
$15.8 Million Per Minute: How This Year’s Cyber Monday Broke Records
American shoppers just turned 2024’s Cyber Monday into the biggest U.S. shopping day in history after dropping an eye-popping $13.3 billion in a single day. Let’s put that in perspective: Shoppers spent $15.8 million every minute during peak hours. What really went down?
Smartphones: The New Shopping Cart Champions
Remember booting up your clunky desktops to score online deals? Those days are officially ancient history. Mobile shopping dominated this year’s spending bonanza, with phones accounting for $7.6 billion in sales — that’s 57% of all purchases, up dramatically from 33% in 2019.
Elves to Electronics Made ‘Cash Registers’ Ring
Santa’s workshop might need to upgrade its assembly line this year. Elf on the Shelf dolls, LEGO sets and Harry Potter figurines flew off virtual shelves faster than you can say “add to cart.” But toys weren’t alone in the spotlight — tech-hungry shoppers snatched up PlayStation 5s, Xbox Series Xs and Nintendo Switch OLEDs like they were going out of style. Throw in some sweet deals (we’re talking 23% off apparel and 22% off TVs and computers), and it’s no wonder why this year’s Cyber Monday broke records.
Canada Post Strike Chaos: Holiday Packages Left in Limbo While Carriers Play Hot Potato
Peak season package delivery turned chaotic after 55,000 Canada Post workers walked off the job in mid-November, leaving shippers scrambling and other carriers drowning in diverted volume. The strike hits during the worst possible time — the holiday rush — when delivery networks already run at maximum capacity. Black swans, it seems, have an uncanny knack for disrupting supply chains at the worst possible moments.
Show Me the Money: Wage Wars Stall Strike Resolution
Neither side seems ready to budge on wages. The postal workers union dropped its demands from a 24% raise to 19% over four years, but Canada Post won’t budge past 11.5%. Add in disputes over working conditions, job security and benefits, and you’ve got a recipe for a prolonged standoff. The government’s hands-off approach means shippers shouldn’t expect quick relief.
Musical Chairs with Holiday Packages
The capacity crunch forced carriers to play defense. UPS froze shipments from some partners for 48 hours. Purolator paused select shipping accounts. FedEx capped retail drop-offs at five packages. Even USPS suspended Canadian-bound mail entirely. On-time delivery rates dropped 14% nationwide since late October. Small businesses face over $1 billion in losses from higher shipping costs and canceled orders. One seed supplier can’t even mail their catalogs, watching storage fees pile up while holiday sales evaporate.
Prime Ain’t So Prime: Amazon Caught Playing Zip Code Favorites in D.C.
While Americans went wild spending $13.3 billion on Cyber Monday, some Washington, D.C. residents learned they might not be getting what they paid for. D.C.’s attorney general just dropped a shape-shifting lawsuit against Amazon, claiming the company secretly cut off two predominantly Black neighborhoods from its signature two-day Prime delivery service — while still charging them the full $139 yearly membership fee.
Tale of Two Zip Codes
The neighborhoods in question — zip codes 20019 and 20020 — house around 50,000 Prime members who’ve ordered 4.5 million Prime-eligible packages over the last four years. However, since June 2022, Amazon has quietly switched these areas from its speedy in-house delivery fleet to slower third-party services like UPS and USPS. The kicker? Two-day delivery rates plummeted to just 20% in these zones, while the rest of D.C. saw steadily improving service.
Safety First or Secret Discrimination?
Amazon claims they made the switch because drivers faced “specific and targeted acts” in these areas — but D.C. Attorney General Brian Schwalb isn’t buying it. “Amazon has every right to make operational changes,” he fired back, “but it cannot covertly decide that a dollar in one ZIP code is worth less than a dollar in another.” The company maintains they’re “always transparent” about delivery times, yet the lawsuit argues affected customers never got the memo about their second-class Prime status. Now, the AG wants Amazon to come clean about the exclusion zones and pay up.
Sneaker Retailer Stumbles: Foot Locker’s Holiday Blues Send Nike Running for Cover
Foot Locker’s latest earnings report reads like a peek into retail’s worst nightmare — weak consumer spending, heavy discounts and trouble with its biggest partner, Nike. The shoe retailer watched its shares plunge 8% after missing Wall Street’s targets and slashing its yearly outlook, spelling potential trouble ahead.
When It Rains, It Pours: Earnings Miss Kicks Foot Locker While It’s Down
The numbers paint a grim picture: Earnings hit just 33 cents per share versus the expected 41 cents, while revenue slumped to $1.96 billion, falling short of the projected $2.01 billion. CEO Mary Dillon pointed to a brutal combo: hoppers only showing up for major sales events like back-to-school season, then vanishing until the next big discount bonanza. Making matters worse? Nike, which makes up 60% of Foot Locker’s sales, stumbled through its own rough patch.
From Bad to Worse: Holiday Forecast Puts Coal in Investors’ Stockings
Foot Locker sees even tougher times ahead. Holiday quarter sales should drop between 1.5% and 3.5%, while yearly earnings expectations got slashed to $1.20-$1.30 per share — way below Wall Street’s hoped-for $1.54. The company blamed aggressive discounting and a shorter sales year, expecting to lose about $100 million in sales. Though some bright spots emerged — like Champs posting 2.8% growth in comparable sales — Foot Locker’s relationship with struggling Nike might keep these sneaker sellers running uphill for a while longer.
Consumers Demand Both Online or In-Store Capabilities for Furniture Shopping
BigCommerce’s recent study of 3,000 U.S. furniture shoppers reveals a clear trend in buying behavior: Consumers are now highly sophisticated hybrid shoppers who bounce between phones and showrooms before making purchase decisions.
Couch Shopping Goes Hybrid
Physical stores still rule the roost — 48% of customers prefer walking into a store to buy furniture. However, they’re doing their homework online first. Social media leads the inspiration charge at 48%, while 47% browse home decor websites before making a move. The real kicker? When online retailers dangle the right carrot (like free shipping), 82% of die-hard store shoppers will happily click or tap “buy now” instead of driving to the store.
Money Talks, But Convenience Walks
Modern shoppers want the best of both worlds (online and in-store), and furniture retailers better keep up. 69% used Buy Online, Pick Up in Store (BOPIS) last year, and 80% of those customers grabbed extra items while picking up their orders. The virtual shopping experience keeps getting cooler, too: 27% have tried virtual showrooms, and 24% have played around with AR displays to preview furniture in their homes. The cherry on top? When shoppers use these tech tools, 47% feel more confident about pulling out their credit cards. Free return shipping seals the deal for over 60% of online buyers, proving they want to have their cake (easy shopping) and eat it too (risk-free returns).
Where Record Sales Meet Reality: The OneRail Difference
This week showed us both the promise and pain points of modern retail. Despite a historic $13.3 billion Cyber Monday, we also saw how final mile delivery disparities can impact real communities, labor disputes spare nobody, and even retail giants struggle to keep pace with consumer demands. If one thing ties all these stories together, it’s the critical importance of getting last mile logistics right — not just for some zip codes, but for all. Here’s how OneRail is making that happen while other last mile delivery companies come up short:
- Unparalleled Courier Network: Place your deliveries in trusted hands by tapping into OneRail’s massive national network, boasting over 12 million vetted drivers.
- OmniPoint® Platform: Leverage OneRail’s OmniPoint Platform for automated rate shopping, smart matching and real-time visibility to guarantee timely and cost-effective deliveries.
- Exceptions Assist™: Benefit from proactive monitoring, with a dedicated team of logistics experts at the ready 24/7 to tackle any challenges and disruptions, safeguarding your on-time delivery rate.
No matter your industry, OneRail can transform your logistics strategy. Schedule a demo today to find out how.
