Good morning,

Retailers are facing a growing cyber threat.

Ransomware attacks against retailers jumped 28% in the first half of 2026, according to Comparitech, with 326 attacks recorded, up from 254 in the second half of 2025.

The United States remained the most targeted country with 1,832 attacks, despite an overall 8% decline from late 2025. The report also found sharp increases in attacks across several international markets, underscoring that cyber risk continues to intensify even as retailers invest more heavily in security.

Let’s dive into today’s edition.

For the past few months, we've been speaking directly with small and mid-sized 3PL operators across the United States to understand what it's really like to run a logistics business in today's market.

Through first-hand accounts, conversations with logistics leaders, and extensive research, we've uncovered what's happening to small and mid-sized 3PLs, why some are struggling while others continue to grow, and the strategies helping operators navigate one of the toughest markets in years.

The result is The State of Small & Mid-Sized 3PLs Report 2026.

It will be released in July and will be available to all CrossDock paid members as part of their subscription. If you value original reporting, exclusive research, and deeper insights into the supply chain and logistics industry, consider becoming a CrossDock paid member.

Beginning September 30, 2026, Amazon will require U.S. third-party sellers who fulfill their own orders to maintain a Business Hour Delivery Rate (BHDR) of at least 90% for shipments to Amazon Business customers.

What’s Happening? The metric tracks whether orders are delivered during a customer's operating hours over a rolling 14-day period. Sellers that fail to meet the requirement by October 30 risk having their seller-fulfilled offers removed from Amazon Business, although Fulfillment by Amazon (FBA) listings will remain unaffected.

Helpful Tools: Amazon says sellers can improve their BHDR by using reliable carriers, enabling Shipping Settings Automation, Automated Handling Time, and purchasing labels through Amazon Buy Shipping. The company argues these tools help improve delivery reliability and ensure packages arrive while businesses are open.

Mounting Criticism: The announcement sparked widespread criticism from sellers, many of whom argued they have little control over when carriers such as UPS, FedEx, or USPS make deliveries.

Sellers also pointed to inaccurate business operating hours, early business closures, and carrier routing decisions as factors outside their control. Several warned that the new metric could discourage merchants from selling to Amazon Business customers or push more sellers toward FBA.

Nike reported quarterly earnings and revenue above Wall Street expectations, even as sales in its Greater China business fell 12% year over year.

Key Numbers: Revenue reached $10.97 billion, while adjusted earnings came in at 20 cents per share, beating analyst forecasts. North American sales rose 3%, but the company said Chinese demand remains a key challenge.

Refund Boost: A major contributor to the stronger-than-expected results was a $986 million tariff refund after the U.S. Supreme Court struck down several Trump-era global tariffs. The refund boosted Nike's gross margin and added 52 cents per share to quarterly earnings. The company has already collected more than $300 million in related cash refunds.

What’s Next? Looking ahead, Nike said consumers remain under financial pressure globally, particularly in the sportswear category, but it remains committed to turning around its China business. The retailer expects earnings to remain broadly flat over the first half of fiscal 2027 while continuing its restructuring, product refresh, and growth initiatives.

Target is expanding its invite-only Target Plus marketplace by adding dozens of new third-party brands across apparel, beauty, home, electronics, and food.

More Brands: New additions include Clarks, Forever 21, JanSport, Serta, JLab, Hisense, NatureWise, LovelySkin, and Wild Alaskan Company, giving shoppers a broader selection while keeping the marketplace curated.

Key Details: The retailer said Target Plus helps extend its online assortment without adding inventory to stores, allowing it to respond more quickly to consumer trends. The platform has also become a key driver of category expansion, with marketplace sellers now accounting for more than half of Target's K-beauty assortment after growing demand for Korean beauty products.

What’s Next? Target plans to further integrate Target Plus into search, promotions, and AI-powered shopping experiences through partnerships with OpenAI, Google, and Microsoft. The company says the strategy will improve product discovery while helping brands reach Target's online shoppers through a curated marketplace model.

Kroger is acquiring the regional grocery chain Giant Eagle for $1.65 billion, marking its first major acquisition since the collapse of its proposed merger with Albertsons in 2024.

What’s the deal? The deal includes $1.25 billion in cash and the assumption of $400 million in liabilities. The transaction is expected to close in 2027, subject to regulatory approvals, and Kroger expects it to contribute to adjusted earnings in its second full year after completion.

Key Details: The acquisition will expand Kroger's footprint across Ohio, Pennsylvania, West Virginia, Maryland, and Indiana, strengthening its presence in the Midwest and Mid-Atlantic. Kroger said Giant Eagle is a strong strategic fit that provides access to adjacent markets and adds a well-established regional grocery network to its portfolio. Giant Eagle operates 197 supermarkets and 11 pharmacies, generating roughly $9 billion in annual sales.

Big Picture: The acquisition comes as traditional grocers face mounting pressure from Walmart, Amazon, Aldi, and other low-cost competitors. Kroger believes integrating Giant Eagle will help lower costs, support planned price cuts on thousands of products, and strengthen its position. Analysts say the move also gives Kroger access to Giant Eagle's more resilient, older customer base.

General Mills plans to cut $3 billion in costs over the next four years as it battles weak consumer spending and persistent inflation.

What’s the Plan: The food giant expects to generate $2 billion in savings by focusing on its strongest products and consumer trends, while the remaining $1 billion will come from an accelerated restructuring program aimed at improving productivity. The company expects to deliver $750 million in savings during fiscal 2027.

Flat Sales: The maker of Cheerios and Betty Crocker reported flat organic sales in the fourth quarter but a 2% decline for the full fiscal year as consumers increasingly shifted toward lower-priced products. General Mills also posted a $2.1 billion operating loss in its latest quarter after investing in price reductions to attract budget-conscious shoppers.

Modernizing Supply Chain: To restore growth, the company is increasing investment in product innovation, focusing on features such as high-protein and functional nutrition, while also modernizing its supply chain to improve efficiency and support faster product launches.

Nestlé says cash-strapped consumers are increasingly abandoning mid-sized product packs in favor of either small, budget-friendly packages or large value packs as inflation continues to strain household budgets.

The company says this "polarized" buying behavior has become more pronounced in the U.S., where affordability has become shoppers' top priority in recent months.

Comeback Plan: To adapt, Nestlé is expanding its range of pack sizes and focusing on growing sales volumes rather than relying on price increases. The company is also adjusting prices where necessary to reflect volatile commodity costs, while promoting more affordable options such as instant coffee to retain price-sensitive consumers.

Next in Line: Nestlé says the trend extends beyond the U.S., with consumers feeling financially constrained across global markets. Other major food companies, including PepsiCo, Campbell's, and Mondelez, are also introducing smaller, lower-priced packaging as they compete to retain shoppers seeking better value amid persistent economic pressure.

Amazon has agreed to pay $2.25 million to settle allegations from the U.S. Federal Trade Commission (FTC) that it failed to provide identity theft victims with transaction records needed to investigate fraudulent purchases.

Key Details: The settlement follows an FTC investigation that found Amazon did not consistently comply with requirements under the Fair Credit Reporting Act.

Under the agreement, Amazon must provide victims with relevant transaction records free of charge within 30 days of receiving a request. Regulators said the company sometimes imposed unreasonable requirements, including asking victims to identify the person who committed the fraud before releasing records that could help resolve the case.

Next Steps: Amazon said it has resolved the matter, implemented process improvements, and created additional support for customers who believe they are victims of identity theft. The settlement comes as the company continues to face several other regulatory investigations in the United States, including an antitrust lawsuit and a probe into its advertising practices.

U.S. retailers have announced 64.5 million square feet of new retail space so far in 2026, according to Coresight Research's US Store Tracker Extra. The report highlights continued investment in physical retail as brands across grocery, discount, specialty, and apparel sectors expand their store footprints.

Retail Expansion: Retailers driving growth include Walmart, Costco, Primark, Dollar General, Publix, Whole Foods, Ulta Beauty, Burlington, Bass Pro Shops, and Victoria's Secret, alongside regional grocery chains and specialty retailers. The report also tracks store closures and identifies which companies are generating the largest net increase in retail space.

Coresight's analysis suggests that brick-and-mortar expansion remains active despite ongoing economic uncertainty, with retailers continuing to invest in new locations to strengthen market presence and meet changing consumer demand.

A coalition of fashion brands and resale marketplaces — including H&M, Primark, Etsy, ThredUp, The RealReal, Depop, and Vestiaire Collective — is urging governments to eliminate sales tax on secondhand clothing.

What’s Happening? Led by the Ellen MacArthur Foundation, the group argues that resale items are being taxed twice because sales tax was already collected when the products were first sold.

The coalition is also calling for lower labor taxes on resale-related jobs such as garment sorting, cleaning, and repair. It says reducing payroll costs would help companies hire more workers, improve wages, and strengthen domestic resale operations, particularly in distribution centers across the United States

Big Picture: Supporters argue that lowering taxes on secondhand goods and resale labor would encourage reuse, reduce waste, and help fashion brands generate a larger share of revenue from circular business models.