Good morning,

More than 400,000 KitKat bars were stolen mid-transit across Europe after thieves intercepted a truck carrying 12 tonnes of chocolate en route from Italy to Poland. The shipment remains missing as authorities investigate.

With Easter demand approaching, Nestlé has flagged potential shortages and warned that stolen stock could leak into grey markets despite traceable batch codes.

Let’s dive into today’s edition.

FedEx has launched a same-day delivery program through a partnership with last-mile logistics firm OneRail, expanding its push into ultra-fast shipping. The service will enable retailers to offer end-of-day and two-hour delivery windows, with pricing determined by individual merchants.

The move comes amid intensifying competition, with Amazon rolling out one- to three-hour delivery and retailers like Walmart and Target accelerating their own express offerings. FedEx will leverage OneRail’s AI-driven platform to optimize routing, tracking, and delivery execution across nearly 99% of the U.S.

OneRail operates a network of over 1,000 carriers and 12 million drivers, enabling around 80,000 deliveries to be completed within 30 minutes daily. By integrating with retailers’ existing store networks, the partnership allows companies to scale same-day delivery without heavy infrastructure investment.

The U.S. Postal Service has proposed a temporary 8% surcharge on key shipping products, including Priority Mail and Ground Advantage, to offset rising transportation and fuel costs. The increase, filed with regulators, is set to take effect on April 26 and remain in effect through January 2027, pending approval.

FedEx and UPS have long relied on fuel surcharges to offset delivery costs, but those fees have surged sharply in recent weeks after U.S.–Israeli strikes on Iran on Feb. 28 triggered a more than 40% spike in global oil prices.

The move comes as USPS faces mounting financial pressure, with declining mail volumes and warnings that it could run out of cash within a year without regulatory changes.

H&M Group reported a 1% decline in first-quarter sales, as store closures and portfolio restructuring weighed on performance during a broader strategic transition. The fast-fashion retailer operated 163 fewer stores year over year, reflecting a deliberate shift toward a leaner, more efficient footprint.

The company is prioritizing profitability over scale, closing underperforming locations and exiting brands like Monki while investing in digital channels, which now account for over 30% of sales. Despite weaker top-line growth, tighter inventory control and cost discipline helped support margins during the quarter.

H&M plans to close around 160 more stores in 2026 while opening 80 new locations, targeting growth markets such as Latin America. The restructuring comes amid rising competition from ultra-fast fashion players like Shein and Temu, as well as continued pressure from Zara-owner Inditex.

Gap is partnering with Google’s Gemini to enable direct product purchases within the AI platform, marking the first such move by a major fashion retailer. The integration allows shoppers to discover and buy items without leaving the chatbot, signaling a shift toward agentic commerce.

The initiative gives Gap greater control over product data, customer experience, and transactions, with checkout powered by Google Pay while fulfillment remains in-house. The company is also rolling out AI-driven tools, such as personalized sizing, to improve conversion rates and reduce friction in online shopping.

Most major retailers are deploying AI across operations, but Gap stands out as the first among its direct competitors to integrate checkout within Google’s Gemini, giving it an early lead in AI-native commerce.

Pernod Ricard, the Paris-based spirits giant behind brands like Absolut, Jameson, and Chivas Regal, and Brown-Forman, the U.S. distiller known for Jack Daniel’s, are in talks to combine in a potential “merger of equals.”

Pernod operates over 200 brands with annual sales of about €10.9 billion, while Brown-Forman generates roughly $5.3 billion in revenue. Both companies indicated potential cost synergies, with market values of roughly $17 billion and $11–12 billion, respectively, though no agreement has been finalized.

The deal, which could materialize within weeks, would create a scaled global spirits player combining Pernod’s international distribution with Brown-Forman’s strength in American whiskey.

Amazon is scaling its returns network, offering free, label-free, and box-free returns at more than 10,000 locations across the U.S., including newly added FedEx Office sites. According to the retail giant, the expansion ensures that four out of five U.S. customers have a return drop-off point within five miles of their home.

The move marks a notable reset in relations after FedEx cut ties with Amazon for delivery in 2019.

The network spans major partners such as Whole Foods, The UPS Store, Kohl’s, and Staples, as well as regional retailers, allowing customers to return items without packaging or label printing. Users simply generate a QR code and drop off the item, streamlining the post-purchase experience.

Germany’s consumer goods giant Henkel has agreed to acquire prestige haircare brand Olaplex in a $1.4 billion deal, marking a strategic push into premium beauty. The offer of $2.06 per share represents a more than 50% premium over Olaplex’s last closing price, and the board has unanimously approved the transaction.

The acquisition underscores Henkel’s ambition to scale its haircare portfolio, leveraging Olaplex’s brand equity for innovation and global expansion. Shares of Olaplex surged nearly 50% following the announcement, reflecting investor optimism around the buyout and potential turnaround under private ownership.

Once a high-flying IPO, Olaplex has struggled in public markets, with its stock plunging nearly 95% since its 2021 debut amid competition and legal challenges. The deal offers an exit after years of declining valuation, positioning the brand for restructuring and long-term growth away from public market pressures.

Retailers across Europe are warning that a prolonged Middle East conflict could push up prices and weaken consumer demand, as rising energy costs ripple through supply chains. Crude oil has climbed above $100 a barrel, driving up freight and distribution expenses while disrupting established trade routes.

Companies including H&M and Next plc say the pressure is already building, with some planning price increases in the coming months. Next expects potential hikes of 1–2% in the near term, but warns they could rise to 5–10% if disruptions persist.

At the same time, consumer sentiment is deteriorating across key markets. Retail sales in the UK have fallen at the fastest pace since 2020, while confidence has weakened in Germany and Italy. The combination of rising costs and fragile demand is raising concerns that the war could trigger a renewed inflation cycle in Europe’s retail sector

Macy’s says customers using its AI-powered shopping assistant “Ask Macy’s” are spending significantly more online, as the retailer leans into artificial intelligence to revive sales. The chatbot, powered by Google’s Gemini, has been rolled out across its digital platforms following testing with a large share of site visitors.

Users of the tool spent roughly 4.75 times more than non-users, highlighting the growing impact of AI-driven, conversational shopping experiences. The assistant helps customers discover products, complete outfits, and virtually try items, increasing engagement and conversion rates.

The rollout comes as about 40% of top U.S. retailers deploy AI shopping assistants, signaling a broader shift toward personalized, agent-like commerce.