Good morning,

The U.S. is moving to streamline tariff refunds through a new digital system — but payouts may take longer than expected.

U.S. Customs and Border Protection will launch the first phase of its CAPE tool on April 20, introducing a centralized platform for processing refunds of duties imposed under emergency powers.

However, refunds are expected to take 60 to 90 days to be issued — longer than earlier estimates — as the agency builds out the system in phases, according to CBP’s website.

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Let’s dive into today’s edition.

Amazon has reached a new delivery agreement with the United States Postal Service that will reduce the number of packages it ships through the agency by about 20%, following months of negotiations.

Despite the reduction, USPS is expected to continue handling more than 1 billion Amazon packages annually, preserving a critical revenue source for the agency, which has relied heavily on the e-commerce giant for years.

The agreement reflects a recalibration rather than a breakup. Amazon had previously explored cutting volumes by as much as two-thirds but ultimately settled on a more moderate reduction, balancing its push to expand its own logistics network with the need to maintain last-mile coverage, particularly in rural areas.

For USPS, the deal provides stability but also highlights ongoing financial dependence on Amazon, its largest customer, at a time when the agency continues to operate at a loss and seeks to diversify its revenue base.

FedEx is preparing to spin off its trucking unit, FedEx Freight, as a standalone company, with management targeting an operating margin of 12% in 2026 to unlock value from the business.

The unit expects revenue of about $8.7 billion and adjusted operating income of roughly $1.1 billion, positioning it as one of the largest players in the U.S. less-than-truckload (LTL) market. The company also forecasts medium-term revenue growth of 4% to 6% and profit growth of 10% to 12%.

Executives said investments tied to separating the business — including technology upgrades and operational restructuring — will weigh on near-term profitability. However, initiatives such as automation, dynamic pricing, and a focus on higher-margin freight are expected to improve margins over time.

Ace Hardware has partnered with Uber Eats to offer on-demand delivery from more than 3,700 stores across the U.S., extending rapid fulfillment into the home improvement category.

Under the agreement, customers can order items such as tools, gardening supplies, and repair products through the Uber Eats app for immediate or scheduled delivery. The rollout is already live nationwide, leveraging Ace’s extensive store network and Uber’s last-mile logistics infrastructure.

The move reflects Uber Eats’ broader push beyond food delivery into retail categories, including grocery, beauty, and electronics. The company said it added more than 1,000 retailers globally and over 50,000 retail locations in the U.S. last year as it expands its marketplace.

U.S. retail construction activity declined in the first quarter of 2026, with roughly 64.2 million square feet of space under development, down from about 70 million a year earlier and well below the long-term average of over 90 million square feet, according to CoStar Group.

The pullback reflects a widening gap between development costs and achievable returns. Rising land prices, construction costs, and interest rates have pushed required rents beyond what many retailers are willing or able to pay, making new projects difficult to justify financially.

Developers are also exercising greater caution after years of supply volatility, while retailers are prioritizing disciplined, selective expansion rather than large-scale store growth.

Bed Bath & Beyond has agreed to acquire F9 Brands, the parent company of Lumber Liquidators and Cabinets To Go, in a deal valued at roughly $150 million, as it accelerates its shift beyond traditional retail into a broader home services platform.

The transaction includes $37 million in cash and approximately 16 million shares of stock, and brings a portfolio of home improvement brands spanning flooring, cabinetry, and building materials. F9 Brands generated about $522 million in sales in 2025 and holds roughly $130 million in inventory, providing Bed Bath & Beyond with immediate scale in adjacent categories.

The deal builds on the company’s recent $150 million acquisition of The Container Store, and reflects a broader strategy to create an integrated “Beyond Home Services” platform.

Fast Retailing, the owner of Uniqlo, raised its full-year operating profit forecast to ¥700 billion ($4.4 billion), citing strong overseas demand and improved margins. The revised outlook is up from a prior estimate of ¥650 billion (~$4.1 billion) and exceeds analyst expectations.

The upgrade reflects a growing shift toward international markets, particularly the U.S. and Europe. North America revenue rose 29%, while international operations overall delivered a 37% increase in profit, significantly outpacing Japan.

The company now expects to hit its regional revenue targets ahead of schedule, including ¥500 billion in Europe ($3.1 billion) and ¥300 billion in North America ($1.9 billion) this fiscal year. Strong performance has been supported by both sales growth and margin expansion through cost controls.

Seven & i Holdings, the owner of 7-Eleven convenience stores, will delay the planned listing of its U.S. business, saying it needs more time to strengthen performance and secure a higher valuation. The IPO is now expected in fiscal 2027, rather than the previously targeted 2026.

The decision reflects ongoing weakness in the North American unit, which generates about half of the group’s convenience-store profit. Store traffic has been under pressure as softer consumer spending and lower fuel-driven visits weigh on sales.

Executives said the listing will proceed only when market conditions and business performance can better support valuation. Analysts note that the turnaround of the U.S. business remains incomplete, with customer recovery still lagging. Shares fell 4.6% following the announcement.

China has introduced new guidance for its e-commerce sector, aiming to balance domestic growth with stronger regulatory oversight amid intensifying scrutiny from European policymakers. The framework was issued by multiple government bodies, including commerce, industry, and market regulators.

According to reports, the policy emphasizes a dual approach — promoting platform expansion while strengthening rules around safety, fairness, and efficiency. It also calls for deeper integration between digital commerce and the broader economy, as well as the development of pilot zones for cross-border e-commerce.

Authorities are encouraging platforms to expand internationally, including setting up overseas procurement hubs and increasing imports of foreign goods into China. The guidance comes amid rising tensions with the European Union.

Levi Strauss & Co. reported stronger-than-expected quarterly results, with revenue rising 14% to $1.74 billion, driven by higher pricing and steady consumer demand. The company also raised its full-year outlook following the earnings beat.

A notable shift in the business is the growing importance of its direct-to-consumer (DTC) operations. Sales through Levi’s own stores and e-commerce platforms increased 16% and accounted for 52% of total revenue, surpassing wholesale for the first time. The company expects DTC to remain the majority channel through the year.

Executives indicated that roughly half of the revenue growth was driven by price increases, with the remainder coming from higher volumes. While the expansion of DTC is expected to support margins over time, it has also introduced higher near-term costs as the company adjusts its distribution model.