Good morning,

Retail theft is becoming increasingly digital, according to a new report from the National Retail Federation (NRF). While shoplifting incidents have begun to stabilize after years of increases, retailers are now grappling with a surge in phone scams, e-commerce fraud, gift card fraud, return fraud, and cargo theft.

The NRF surveyed loss prevention executives from 66 retailers representing 143 brands and found that supply chain vulnerabilities and online fraud have become top priorities.

Let’s dive into today’s edition.

Amazon reported 20% year-over-year growth in second-quarter net sales to $200.6 billion, driven by higher sales across North America and international markets, stronger grocery and everyday essentials demand, and continued momentum in advertising. Operating income rose 43% to $27.5 billion, while North America and international retail businesses both posted higher operating profits.

Fast Delivery: The retailer continued expanding its customer experience during the quarter, delivering more than 40% more items via same-day or overnight shipping in the first half of 2026. Amazon also expanded its Amazon Now ultra-fast delivery service to 80 additional U.S. cities and towns and several cities in Egypt, bringing the service to more than 250 cities across nine countries.

Key Details: Amazon also broadened its retail capabilities by launching Amazon Supply Chain Services, allowing businesses to use its logistics network for end-to-end fulfillment, while expanding Amazon Business to an annualized gross sales run rate of $60 billion. Looking ahead, the company expects third-quarter net sales of $197 billion to $202 billion, representing 9% to 12% year-over-year growth.

AI shopping assistants from Amazon and Walmart are failing to consistently surface "Made in USA" product information, according to a report from the Center for Law and the Economy, a policy center co-founded by former FTC Chair Lina Khan

Made in USA: According to the report, Amazon's Alexa for Shopping initially claimed it couldn't identify U.S.-made products, but returned relevant results after users slightly changed their prompts. Walmart's Sparky showed similar inconsistencies, first refusing to assess product origins before later ranking items by confidence that they were American-made.

The report also found that Alexa could easily identify products labeled "Made in China," while both platforms hosted products with conflicting or misleading country-of-origin claims.

Big Picture: The findings come as U.S. regulators intensify scrutiny of country-of-origin claims. The FTC previously warned Amazon and Walmart about third-party sellers falsely advertising products as American-made, and President Trump directed the agency to consider rules requiring online marketplaces to verify such claims.

U.S. retail property investment slowed sharply in early 2026 as buyers became more selective amid elevated financing costs and geopolitical uncertainty, according to DealGround's National Retail Market Report.

Key Details: Retail transaction volumes fell 13.8% between December 2025 and May 2026, while disclosed deal value declined 21.6%, reflecting a sharp pullback in larger acquisitions.

Pricing pressure intensified across the market. Median cap rates increased from 6.55% to 6.75%, while the average discount between asking and sale prices widened from 5.2% to 13.5%, as investors negotiated harder on valuations.

Buyers continued to favor grocery-anchored shopping centers, necessity retail, and high-quality single-tenant properties, while larger and lower-quality assets faced weaker demand and steeper price concessions.

As employers scale back insurance coverage for GLP-1 weight-loss drugs, more Americans are turning to direct-to-consumer prescription programs, creating a new battleground for retailers such as Walmart, Costco, Amazon, and CVS.

What’s Happening? Rather than competing on the medication alone, retailers are using GLP-1 prescriptions to build long-term customer relationships that drive pharmacy visits, grocery purchases, and broader retail spending

Heavyweights: Walmart, which operates nearly 4,600 pharmacies, has expanded its weight-management platform. Amazon is offering GLP-1 prescriptions through One Medical and Amazon Pharmacy for as little as $25 per month with same-day delivery in nearly 3,000 cities. Meanwhile, Costco's partnership with Sesame offers Wegovy for around $349.

Big Picture: As more patients move to direct-pay programs, independent pharmacies risk losing prescription volumes to national chains that can bundle medication, primary care, delivery, and loyalty programs into a single ecosystem.

The U.S. 3PL industry is entering a defining phase.

Warehouse rents for smaller facilities have risen 40% since 2020, nearly 28,000 trucking companies exited the market in a single year, and 3 in 4 shippers now say a 3PL's use of AI influences who they choose. For small and mid-sized 3PLs, these changes are reshaping the industry faster than ever.

Our latest report takes a deep dive into what's driving this transformation, why some operators are growing while others are struggling, and what it means for the future of logistics.

To understand what's happening on the ground, we spoke extensively with small and mid-sized 3PL owners and industry leaders across the United States, combining their insights with market data and research to tell the story behind one of the biggest shifts the industry has seen in decades.

Upgrade to a CrossDock Paid membership to get access to the full report.

Best Buy is expanding its small-format store strategy as incoming CEO Jason Bonfig looks to revive growth after several years of weak sales. The retailer is opening stores as small as 12,000–15,000 square feet to enter markets that cannot support traditional big-box locations, while using the smaller footprint to strengthen both in-store and online customer engagement.

Tech Investments: Bonfig told CNBC the company is also doubling down on artificial intelligence, investing in AI-powered shopping tools, agentic commerce, and products such as Meta smart glasses. At the same time, Best Buy is working with partners including OpenAI and Google to enhance the customer experience while keeping human expertise at the center of its retail strategy.

What’s Next: The expansion comes as Best Buy works to recover from a prolonged slowdown driven by weaker consumer demand, slower technology replacement cycles, tariffs, and rising component costs. Bonfig said the goal is sustainable long-term growth by improving customer experience, expanding market reach, and adapting to how consumers increasingly shop across physical stores and digital channels

Amazon said customer adoption of Alexa for Shopping accelerated sharply in the second quarter, with the number of active users nearly doubling year over year and interactions increasing fivefold.

Key Numbers: More than 350 million shoppers have used the AI-powered shopping assistant over the past 12 months after Amazon replaced its Rufus assistant with Alexa for Shopping in March.

U.S. users spend 40% more per order on average than shoppers who don't use the AI assistant, while customers who try Alexa+ join Amazon Prime at nearly 25% higher rates.

Big Picture: The momentum comes as Amazon races to make conversational AI the front door to its marketplace. By combining personalized recommendations with faster fulfillment, Amazon is betting that AI won't just answer shopping questions, but reshape how customers browse, discover, and ultimately spend.

DoorDash is expanding its automation strategy by developing its own delivery drones after receiving FAA Part 135 air carrier certification, allowing the company to operate commercial drone deliveries beyond the visual line of sight.

The food delivery giant plans to launch the service this fall as it looks to reduce delivery times and lower reliance on human couriers.

Major Strengths: DoorDash said its competitive advantage lies not just in the drones themselves but in the logistics infrastructure that supports them, including real-time inventory management, route optimization, and restaurant integration systems.

While autonomous deliveries are expected to expand, the company said human couriers will continue handling the vast majority of orders, particularly large deliveries and locations that remain difficult for robots to access.

Adidas reported record second-quarter revenue of €6.7 billion, up 14% at constant currencies, driven by strong demand for football and running products as well as robust growth in Latin America and China. World Cup-related sales reached about €1.5 billion, with the company selling four times as many jerseys and twice as many footballs compared with the 2022 Qatar tournament.

Win and Lose: Despite the strong sales performance, net profit rose just 6% to €398 million, missing analysts' expectations of €430 million, after the company increased marketing spending by 30% to capitalize on the FIFA World Cup. The earnings miss sent Adidas shares down 17%, marking their biggest intraday decline on record.

What’s Next? Looking ahead, Adidas raised its full-year 2026 sales guidance, now expecting currency-neutral revenue growth of 9% to 10%, up from its previous high-single-digit forecast, while maintaining its operating profit target of about €2.3 billion. The company also said potential U.S. tariff refunds of $250 million to $300 million have not yet been factored into its outlook.