With Santa’s sleigh prepping and Christmas trees twinkling across the country, we’re cramming in one last burst of drama before 2024’s curtain call. While Canada Post workers are walking the picket lines, scrappy shipping startups are having the time of their lives, swooping in to save the holiday shopping season. Speaking of shopping, Costco’s latest numbers show they’re somehow getting people to splurge on both Wagyu steaks AND bulk chicken during inflation. We’ve got a peek into America’s warehouses, where inventory numbers show cautious optimism. Over at USPS, Postmaster DeJoy is raising eyebrows by basically saying, “Hey, what if we just promised to deliver less mail on time?” while L’Oréal is putting their money where their sustainability promises are, dropping a cool $53 million to help their smaller suppliers get eco-friendly. Let’s dig into the drama, shall we?
Small Fish Feast While Canada Post Sleeps: Strike Creates Delivery Gold Rush
The monthlong Canada Post strike has opened floodgates for nimble shipping startups, who now swim in waters previously dominated by the postal giant. While union workers and management lock horns over wages and weekend staffing, entrepreneurial delivery companies have swooped in to rescue retailers scrambling for holiday shipping solutions.
David vs. Goliath: New Players Pack a Punch
Remember those nimble shipping startups that emerged during the pandemic? They’re having quite the moment. One delivery innovator that arrived in Canada in 2021 now boasts over 500 drop-off locations nationwide, with their CEO reporting more packages delivered in early December than all of November. Another Ontario-based challenger has seen new sign-ups surge 800% since the strike began on November 15. These agile players keep costs lean by partnering with third-party drivers instead of maintaining full-time staff — a stark contrast to the postal giant, where labor expenses consume 70% of yearly revenue.
Canada Post’s Market Share Tumbles
Canada Post’s grip on parcel delivery has loosened dramatically — from commanding 62% of the market in 2021 to just 29% in 2023. The dispute centers on weekend delivery staffing, with management pushing for part-time workers working 8-hour weeks while unions dig in their heels. Small competitors like Senpex and Shippie dodge this drama entirely by using independent contractors with their own vehicles and flexible hours. Especially during the holiday season, these adaptable alternatives offer a tempting escape route from the labor drama.
Costco’s Shopping Cart Overflows: Members Pay More, Spend More
When inflation makes shoppers pinch pennies, Costco somehow makes dollars. The retail giant’s latest quarterly report reads like a masterclass in giving customers exactly what they want — whether they’re buying Wagyu beef or bulk chicken.
Costco’s Mixed Shopping Basket
Members flocked to both ends of the price spectrum, loading their carts with premium and value items. The proof? While some shoppers grabbed high-end Wagyu steaks, others stocked up on budget-friendly meat by the pound. Beyond groceries, Costco saw double-digit growth in luxury categories like gold, jewelry and furniture, proving its appeal spans from practical to premium.
Digital Growth Meets Member Loyalty
E-commerce sales jumped 13%, demonstrating Costco’s digital muscle. The company’s recent 8% membership fee hike (their first since 2017) paid off handsomely, bringing in $1.17 billion in membership revenue — up from $1.08 billion last year. Even with higher fees, member loyalty remains rock-solid, with a 92.8% renewal rate in the U.S. and Canada. Overall sales climbed 7.5%, pushing profits to $1.8 billion ($4.04 per share), handily beating Wall Street’s expectations of $3.79 per share. Total revenue hit $62.2 billion, with same-store sales growing 5.2%. No wonder Costco’s stock is up nearly 50% year-to-date.
Wholesale Stockpiles Stage a Modest Comeback: October’s Market Reality Check
Wholesale inventories nudged up 0.2% in October, painting a picture of cautious optimism in the market. While September saw a 0.2% decline, October’s gentle rebound signals merchants might be testing the waters with careful stock management.
What’s Hot (& What’s Not) in America’s Warehouses
If you walked through any wholesale warehouse in October, you’d have spotted some interesting trends. Furniture dealers, lumber yards and professional equipment suppliers quietly beefed up their stock — helping push durable goods up 0.1%. But peeking into the auto sector, you’d have seen slightly emptier lots with a 0.1% inventory drop. At the same time, electrical goods took a bigger hit, down 1.0%. The real action? Grocery and medicine stockrooms, leading a 0.3% boost in nondurable goods.
Reading Between the Shelves
Here’s where it gets interesting — wholesale inventories jumped 0.9% compared to last year’s numbers. Think of it like a giant retail chess game: wholesalers kept about 1.34 months’ worth of inventory (same as September), while sales dipped 0.1% after September’s 0.5% jump. When you consider how all this inventory shuffling helped push our economy to grow at 2.8% in Q3, you start to see how these warehouse numbers tell us way more than just what’s sitting on shelves.
DeJoy’s Mail Mayhem: USPS Moves Goalposts While Congress Fumes
A 95% on-time delivery rate once seemed ambitious, but USPS just pulled a classic “lower the bar to clear it” move, dropping targets to 80% for some services in 2025. Unsurprisingly, Postmaster General Louis DeJoy faced a congressional grilling about this that would make a BBQ pitmaster proud.
Congress Unleashes Postal Horror Stories
Congressional oversight took an unexpectedly personal turn when Rep. James Comer (R-Ky.) revealed he couldn’t even take a bathroom break without getting bombarded by postal complaints from fellow politicians. And the complaints were bipartisan, too — representatives from both sides of the aisle shared tales of delivery disasters from their districts and pressed DeJoy on his reorganization plan’s effectiveness. Yet, in typical DeJoy fashion, he maintained his confidence and gave himself “a good grade.”
From 95 to 80: When “Delivering for America” Means Lowering Expectations
The numbers tell a sobering story — First-Class Flats’ target plummeted from 90% to 80%, while Presort First-Class letters’ overnight delivery goals dipped from 95% to 94%. Rep. Jamie Raskin (D-Md.) called out this strategy, comparing it to lowering academic standards instead of improving performance. DeJoy defended the shifts, arguing that maintaining 95% delivery rates under current infrastructure wasn’t financially viable. His 10-year master plan, launched in 2021, now faces serious questions about whether “Delivering for America” means delivering less and later.
Beauty Leader’s Bold Move: L’Oréal Throws $53M Behind Small-Supplier Climate Projects
L’Oréal Groupe means business when it comes to cleaning up its supply chain carbon footprint. The beauty powerhouse launched Solstice, a groundbreaking debt fund that hands small and medium suppliers the financial tools they need to slash emissions with a €50 million ($53 million) investment.
Small Suppliers, Big Impact: Why This Fund Matters
L’Oréal discovered a crucial truth: Their suppliers generate most of their carbon footprint. The company aims to cut these Scope 3 emissions by 28% by 2030, compared to 2019. But here’s the catch — many smaller suppliers lack the cash to upgrade facilities or switch to cleaner energy. Solstice changes that equation, offering targeted funding for everything from industrial process improvements to clean transportation projects.
Money Meets Mission: Building on a Sustainable Foundation
The Solstice fund stands on solid ground and complements L’Oréal’s existing “L’Oréal for the Future” program. Through partnerships with credit specialist Chenavari Investment Managers and a door open to outside institutional investors, L’Oréal created a multiplier effect for climate impact. The company already trains suppliers on climate change and helps them pinpoint key opportunities to cut emissions. But with Solstice in the mix, they can better remove longstanding financial barriers to this.
While Giants Stumble, OneRail Hustles: Don’t Let Shipping Drama Be Your Story
This week’s headlines read like a cautionary tale of what happens when shipping and last mile delivery go sideways. Instead of crossing your fingers and hoping you can survive postal strikes and lowered delivery standards, why not join the smart crowd that’s already discovered OneRail’s secret sauce for shipping success? Here’s what sets us apart from other last mile delivery companies:
- 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 last mile logistics strategy.
Ready to see us in action? Join us at NRF ’25 (January 12-14) at Booth 4631 in the SAP Partner Village! And while you’re there, don’t miss our compelling fireside chats:
- “Delivering Brilliance: Signet Jewelers’ Last Mile Transformation with OneRail & SAP” on January 12 at 1:45 p.m. in the SAP Theater.
- “Driving Transformation in Final Mile” with Advance Auto Parts & IBM on January 12 at 4 p.m.
Can’t wait until then? Schedule a demo today to find out how OneRail can revolutionize your delivery operations.
