Amazon’s Thousand Suburban Warehouses

Amazon’s Thousand Suburban Warehouses

November 3, 2020

Amazon plans to open 1,000 small delivery hubs across the United States, with plans to increase this number to approximately 1,500.

The move is to further the company’s goal of same day delivery to customers.  Walmart and Target have been using their network of stores to provide same day delivery, with Walmart implementing Walmart+, its own version of Amazon Prime.

Amazon’s small delivery hubs are planned to be about 200,000 square feet, one-quarter the size of the company’s fulfillment centers.  Moreover, these suburban hubs will provide parking lot space for hub workers, Amazon delivery vans, and the gig workers who make Amazon deliveries.

Overall, it is expected that each small delivery hub will generate around 1,000 vehicle trips per day.


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This post is based on the Yahoo Finance article, Amazon Plans to Put 1,000 Warehouses in Suburban Neighborhoods, by Spencer Soper, September 16, 2020, and the YouTube video in the Spotlight. Image source: jeremyiswild/Getty Images

Discussion Questions:

1. What advantage does the small delivery hub offer?

Guidance: These small hubs allow inventory to be Continue reading

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California Bans Gas-Powered Cars

California Bans Gas-Powered Cars

November 2, 2020

California has set 2035 as the deadline for requiring all new automobiles to be zero-emission.

This move will eliminate new gasoline powered vehicles from being sold in California.  Existing gasoline powered cars could still be owned and sold.  The ban will also include medium and heavy-duty trucks by 2045 where feasible.

The measure is estimated to reduce California’s greenhouse gas emissions by 35%.  California’s Governor encouraged other states to join their ban for the good of the environment.  At the moment, over 15 countries already have similar commitments in place.  Additionally, California will not issue new permits for fracking as part of their commitment to the environment.


Video Spotlight: 


This post is based on the Rapid City Journal article, California Moves to End Sales Of New Gas-Powered Cars, by Adam Beam, September 23, 2020, and the YouTube video in the Spotlight. Image source: Prachaya Roekdeethaweesab/Shutterstock

Discussion Questions:

1. What industries will be impacted by the ban?

Guidance: This ban could potentially have a negative impact on automobile manufacturers, and gasoline production and distribution. Continue reading

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Black Friday Re-Imagined

Black Friday Re-Imagined

November 2, 2020

Has Black Friday been upstaged by a new October shopping day?

Retailers are looking for ways to drum up demand.  They are also seeking creative capacity alternatives to fill it and distribution channels to get merchandise delivered in a timely way.

Some retailers envision encouraging more online shopping with Black Friday deals available online instead of only in-store to cater to shoppers still leery of big crowds and pandemic concerns.  Others plan to take it a step further with a new holiday, dubbed “10.10 Shopping Festival,” invented by those who want to shift sales even earlier than usual, in this case to October 10.

The 10.10 shopping day occurred a few days prior to Amazon’s Prime Day on October 13 and 14, which was expected to reach $10 billion in sales, up 40% over July 2019’s Prime Day.


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This post is based on the Fox Business article, Black Friday 2020: Coronavirus pandemic shopping trends force retailers to rethink holiday shopping, by Michael Bartiromo, September 28, 2020; the Fortune article, Amazon Prime Continue reading

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