Good morning,

Amazon is preparing a major reset in its delivery strategy. According to reports, the company plans to cut shipments handled by the U.S. Postal Service by at least two-thirds by September, as contract negotiations between the two sides break down.

The shift could redirect billions in parcel volume across Amazon’s in-house logistics network and alternative carriers, while adding pressure on USPS

Let’s dive into today’s edition.

Walmart has secured new U.S. patents for machine-learning-driven pricing systems, marking a significant shift toward automation in retail price-setting. The company has already been granted nearly 50 patents in 2026, underscoring an aggressive push to embed AI across operations.

Dynamic Pricing: The filings include tools to dynamically adjust e-commerce markdowns and forecast demand to recommend optimal pricing, strengthening the retailer’s $150+ billion online business.

The Process: According to reports, the systems incorporate signals such as purchase behavior, price sensitivity, and demand forecasts to optimize inventory turnover over defined time horizons. This coincides with Walmart’s rollout of electronic shelf labels across 4,600 U.S. stores, enabling real-time price updates at scale.

Opposition: Algorithm-driven pricing is facing growing scrutiny across U.S. states, with lawmakers moving to restrict its use in retail. Several states are proposing bans on “dynamic pricing” for everyday goods like groceries

FedEx delivered a strong fiscal third quarter, beating expectations on both revenue and earnings, as operational efficiency and network optimization drove performance.

FedEx reported fiscal third-quarter revenue of $24 billion, ahead of expectations of $23.43 billion, with adjusted earnings per share of $5.25, compared with estimates of $4.09. Operating income came in at $1.68 billion, exceeding the $1.39 billion forecast, while net income rose to $1.06 billion.

The company raised its fiscal 2026 outlook, projecting revenue growth of 6% to 6.5%, above the 5.6% expected. Adjusted earnings per share are now expected to be in the range of $19.30 to $20.10, up from earlier guidance of $17.80 to $19.

FedEx said cost savings from its Network 2.0 program are now expected to exceed $1 billion, driven by automation and efficiency gains. The company also confirmed plans to spin off its Freight division by June 1.

U.S. retail sales are projected to grow 4.4% in 2026, reaching $5.6 trillion, according to the National Retail Federation (NRF). The forecast exceeds the decade-average growth rate of 3.6%, signaling continued consumer resilience even as macroeconomic conditions remain volatile.

The outlook highlights a divergence between sentiment and spending, with consumers continuing to spend despite weak confidence levels. Growth is expected to be uneven across income groups, with higher-income households driving most of the gains

Geopolitical tensions, including disruptions from the Middle East, and ongoing trade uncertainties, pose downside risks. However, NRF maintains that strong household balance sheets, income growth, and fiscal support—including tax-related refunds—will sustain consumption

Unilever is in talks to separate its food division and combine it with McCormick in a potential all-stock deal, marking a major strategic shift for the $140 billion consumer giant. The move would carve out a business worth tens of billions of dollars, including brands like Knorr and Hellmann’s.

If the deal comes through, it would leave Unilever focused on higher-margin segments such as beauty, personal care, and home products, continuing a broader trend of conglomerates streamlining portfolios. McCormick, with a market value of about $14.8 billion, would significantly scale its position in packaged food and seasonings through the combination.

The discussions come amid ongoing pressure from investors to simplify operations and unlock value, following prior moves such as Unilever’s $8 billion Magnum ice cream spin-off.

Amazon is expanding its logistics playbook by rolling out one-hour and three-hour delivery services in parts of the United States, intensifying the race for faster fulfillment.

The three-hour delivery is now available in roughly 2,000 cities and towns, while one-hour delivery has launched in select markets. The service covers more than 90,000 products, including groceries, medicines, and everyday essentials.

The move marks Amazon’s latest step in compressing delivery timelines, following its shift from two-day Prime shipping to same-day fulfillment. The company has invested heavily in warehouses, routing systems, and gig-based delivery networks to support faster turnaround times, while continuing to test even shorter delivery windows through pilots such as its 30-minute “Amazon Now” service.

Competition is also accelerating. Walmart says it can reach 95% of U.S. households within three hours, while platforms like Instacart, DoorDash, and Uber Eats are expanding rapid delivery across retail categories.

Macy’s reported stronger-than-expected fourth-quarter results, with revenue of $7.64 billion and adjusted earnings of $1.67 per share, both ahead of analyst estimates.

The retailer pointed to early success in its store revamp strategy, with improved merchandising, staffing, and store experience driving modest comparable sales growth. Bloomingdale’s stood out with nearly 10% comparable sales growth, while Bluemercury also posted gains.

Despite the stronger quarter, Macy’s issued a cautious outlook for 2026, forecasting annual revenue between $21.4 billion and $21.65 billion, down from $21.8 billion last year, and earnings below market expectations. Comparable sales are expected to remain flat to slightly negative, reflecting a challenging consumer environment.

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UK retailers are urging the government to scrap a key tax exemption that allows low-value imports to enter the country duty-free, arguing it is giving Chinese e-commerce giants a structural advantage. The so-called de minimis rule lets goods valued at £135 or less bypass customs duties, a threshold widely used by platforms like Shein and Temu to undercut domestic retailers.

The U.S. eliminated similar exemptions last year, while the EU will impose a €3 duty on small parcels from July, raising concerns that the UK could become a dumping ground for low-cost imports. Data already point to a diversion: Chinese low-value parcel exports to the UK rose 26% in 2025, even as shipments to the U.S. fell 30% following tariff changes.

Retailers warn that delaying action until the government’s current 2029 deadline risks further erosion of market share and loss of tax revenue.

Lycra, the spandex manufacturer, has filed for Chapter 11 bankruptcy in the U.S. to restructure its balance sheet and cut roughly $1.2 billion in debt. The company has secured $75 million in new financing from lenders and received near-unanimous support for a prepackaged restructuring, allowing it to move through the process quickly. It expects to emerge from bankruptcy within 45 days.

Despite the filing, Lycra said operations will continue without disruption, with no impact on manufacturing, customers, suppliers, or its 2,000 employees. The company operates eight manufacturing facilities and multiple research centers globally, and remains a key supplier of stretch fibers used across apparel and textiles.

The bankruptcy follows years of financial strain following its 2019 acquisition by China’s Ruyi Group, compounded by declining demand, rising competition from low-cost generic spandex, tariff pressures, and ongoing legal disputes. The restructuring is aimed at stabilizing the business and positioning it for long-term recovery in an increasingly competitive textile market.

DoorDash has launched Tasks, a new offering that allows its network of over 8 million Dashers to complete short, non-delivery activities such as taking photos, checking store layouts, or capturing real-world data for businesses.

The move expands DoorDash’s model beyond logistics into on-ground data collection and operational intelligence. The company said businesses increasingly need real-time visibility into physical operations—from shelf availability to storefront access—but struggle to gather this data at scale

DoorDash is also piloting a standalone app to support AI and robotics training, including recording everyday activities and environments. The platform is currently live in select U.S. markets and excludes major regions like California and New York City.