Good morning,

American shoppers are increasingly choosing store brands over national names.

According to the Private Label Manufacturers Association, store brand unit sales rose 0.2% in the first half of 2026, while national brand sales fell 0.5%. Private labels now account for a record 23.8% of unit sales, outperforming national brands in five of the first six monthly reporting periods this year.

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.

Walmart has cut prices on thousands of products, including groceries, beverages, and household goods, as the retailer continues to emphasize affordability. The reductions are available at Walmart and Sam’s Club stores, on their websites, and in their apps.

Key Details: Walmart cut the price of a one-pound ground beef roll by 12% to $5.94, while fresh corn fell 63% to 25 cents, and a 2.25-pound bag of cherries dropped 50% to $5.63. Twenty-four packs of Coca-Cola products were reduced 33% to $9.97, while selected Pepsi and Dr. Pepper products fell 29% to the same price.

Why the Drop? The cuts come after Walmart raised prices on some general merchandise in February because of higher U.S. tariffs on imported products.
They also follow the Consumer Price Index, which reached its highest level in more than three years in May, driven partly by higher energy prices linked to the war in Iran. A Guardian-Harris Poll survey found that about half of Americans are struggling to pay for everyday goods such as groceries and gas.

U.S. container imports are forecast to reach a record 2.47 million TEU in July as retailers accelerate shipments ahead of potential tariff increases in August.
The total would surpass the previous monthly record of 2.4 million TEU set in May 2022, marking a 3.3% increase from July last year.

What’s Happening? Retailers are placing orders earlier to limit potential tariff costs and secure inventory for back-to-school and year-end holiday sales.
The shift has brought forward the traditional peak shipping season as businesses adjust inventory plans amid uncertainty over U.S. trade policy.

What’s Next: The National Retail Federation and Hackett Associates expect the early peak season to continue through July, with geopolitical tensions and higher transportation costs adding pressure to supply chains. However, the record import volumes are expected to be short-lived, with August shipments forecast to fall 4.5% year over year to 2.22 million TEU.

September imports are projected to decline 5.7% to 1.99 million TEU, while October and November volumes are also expected to remain below year-earlier levels.

Amazon is using lower rates and fewer surcharges to expand its U.S. parcel delivery business after opening Amazon Shipping to all businesses earlier this year.

Key Details: Pricing experts said the service offers rates that are competitive with or below FedEx and UPS, with some shippers saving as much as $6 per package.

According to reports, a large retail customer used Amazon for more than 90% of its distribution and cut annual shipping costs by over 33% compared with FedEx. Amazon is also undercutting the U.S. Postal Service on some packages weighing less than one pound, according to Intelligent Audit.

Deep Cuts: Amazon Shipping offers no residential surcharges or weekend delivery fees and has used surcharge waivers and simpler pricing to attract customers. The service initially focused on packages under 5 pounds to metro areas, but has broadened its customer base by expanding to non-Amazon sellers.

Big Picture: According to experts, Amazon's aggressive pricing may not be permanent, and they advise shippers to negotiate long-term rates and contract terms carefully. Amazon said transparent pricing and fewer surcharges are driving customer savings and shipment volume as it works to expand the delivery service.

Levi Strauss reported second-quarter net revenue of $1.6 billion, up 6% organically from a year earlier, supported by stronger women's sales and supply chain changes.

Feminine Power: The women's business grew 11%, with white denim sales surging 70%, while the company's bottoms business increased 6%. Levi's tops business rose 5%, with blouses, woven shirts, sweaters, and polos outperforming legacy categories such as graphic T-shirts.

Supply Chain Changes: Levi's completed the remapping of its European omnichannel distribution network, consolidating e-commerce fulfillment into distribution centers in Germany and the UK.

In the U.S., the company expects to transition its Hebron, Kentucky, distribution center to Maersk by the start of the fourth quarter, a move affecting more than 300 jobs. Levi's said consolidating the network should eliminate duplicate costs, simplify operations, and improve inventory and service levels.

Overseas Performance: International growth remained strong, with Asia revenue rising 12% organically as Turkey, Japan, and India led gains, while Levi's reported early progress in China.

Retail space availability across Manhattan's prime shopping corridors fell to a record low of 11.9% in the second quarter, according to JLL.

Record Low: The rate is the lowest since JLL began tracking the market in the third quarter of 2017, as demand for high-quality storefronts remained strong. SoHo availability dropped to a record low of 8%, while Union Square and Flatiron availability fell to 11.1% from 14.2% in the first quarter.

Rising Rents: Average asking rents climbed to $592 per square foot, nearing post-pandemic highs. SoHo recorded a 17.4% quarterly increase in asking rents, while Lower Fifth Avenue rose 10% and Upper Fifth Avenue increased 9.2%.
Times Square rents climbed 9%, while Williamsburg posted a 3.7% increase as landlords regained pricing leverage in several prime retail corridors.

Big Picture: JLL expects leasing activity to remain healthy, with limited availability supporting stable or rising rents for well-located storefronts.

Target is reorganizing its strategy team and eliminating some roles as the retailer simplifies its corporate structure and improves efficiency under CEO Michael Fiddelke.

Talented Alignment: According to Bloomberg, the changes are intended to better align resources, reduce duplication, and improve how talent is deployed across the company.

Happy Investors: Fiddelke, who became CEO in February, is seeking to reverse Target's yearslong slump by accelerating changes across merchandise, customer experience, and technology. Investors have responded positively to the turnaround plans, with Target shares rising more than 30% this year.

Big Picture: Target is also operating against a more difficult consumer backdrop as higher gas prices and inflation concerns weigh on household sentiment.
At the same time, Walmart and Costco continue to gain market share, increasing competitive pressure on the retailer. The latest restructuring is part of Target's effort to streamline decision-making and improve efficiency under its new leadership.

Costco reported net sales of $29.24 billion in June, up 10.6% from a year earlier and its highest monthly sales total so far in 2026.

Rise and Fall: The increase, however, slowed from a 14.5% year-over-year gain in May, while same-store sales growth fell to its lowest rate since February.
Comparable sales rose 8.8% globally, up from 12.5% in May and 11.6% in April. Costco shares fell 1.6% in after-hours trading following the sales report.

Key Details: U.S. same-store sales increased 7.6% in June. Comparable sales rose 4.9% in Canada and 5.6% across Costco's other international markets on the same adjusted basis. Food, candy, frozen foods, bakery, and meat were among the strongest merchandise categories during the five-week retail month.

The Midwest, Southeast, and Northeast were Costco's strongest U.S. regions during the month. Non-food comparable sales grew in the mid- to high-single digits, led by jewelry, home furnishings, and major appliances.

Amazon plans to build a $48 million fulfillment facility in Georgetown, Texas, as it expands its logistics footprint in the state. The Georgetown project will operate as a sorting warehouse designed to support the processing and movement of individual customer orders.

Key Details: The proposed facility will span 248,687 square feet and include robotics sorting and storage areas, specialty storage, cold storage, and office space. Construction is expected to begin on August 24 and be completed by the end of July 2027, according to a Texas regulatory filing.

Texas Expansion: The project, listed as the “SUS3 SSD Facility,” follows Amazon's recent expansion across other parts of Texas. In March, the company completed a 62,000-square-foot delivery center in Brownsville to support last-mile deliveries across the Rio Grande Valley. Amazon also opened a $250 million warehouse and distribution center in Round Rock in May after four years of planning and construction.

PepsiCo reported weaker-than-expected second-quarter earnings as inflation and rising fuel costs pushed U.S. consumers to tighten their budgets.

Key Stats: Adjusted earnings came in at $2.20 per share, just below Wall Street’s $2.21 estimate, while revenue beat expectations at $24.18 billion. Net sales rose 6.4%, and organic revenue increased 2.4%, with net income more than doubling to $2.98 billion from $1.26 billion a year earlier. PepsiCo shares fell more than 4% in morning trading following the result

American Weakness: The weakness was concentrated in North America, where food volumes were flat, and beverage volumes dropped 4%, with convenience stores particularly hard hit. CEO Ramon Laguarta blamed the slowdown largely on gas prices, which hit a four-year U.S. high of $4.56 per gallon in late May amid volatile global oil markets.

What’s Next: PepsiCo has cut prices on Lay’s, Tostitos, Doritos and Cheetos by as much as 15% and refreshed brands including Gatorade and Lay’s to win shoppers back. The company now expects a more gradual recovery in its North American business through the remainder of 2026