Good morning,

Tariffs were supposed to make it harder for Chinese goods to reach American consumers. Instead, Chinese logistics companies are expanding across the U.S.

COSCO Shipping recently opened a 32,602-square-meter warehouse in Savannah, while Chinese-backed delivery companies like UniUni, GoFo, SwiftX, and Cainiao are rapidly grabbing U.S. market share. At the same time, Chinese companies accounted for most of the warehouse space leased by Asian firms in the U.S. last year.

According to experts, Chinese logistics firms aren't just shipping products into the U.S.— they're building the infrastructure to deliver them, making it harder for American logistics companies to compete on their own turf.

Let’s dive into today’s edition.

For the past few months, we've been speaking directly with 3PL operators across the United States to understand the industry's current reality. 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 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 is making its biggest acquisition in two years, agreeing to buy French ad-tech startup Vibe.co for $1.4 billion as it pushes deeper into the fast-growing retail media business.

What’s the deal? Vibe.co helps brands—particularly small and mid-sized businesses—run and measure ads across connected TVs. Walmart said the technology will make it easier for advertisers to launch CTV campaigns and track their effectiveness.

The deal includes a $1.2 billion cash payment, plus roughly $180 million in retention payouts for Vibe executives and key employees who will join Walmart's advertising division.

Why does this matter? The deal strengthens Walmart's ability to sell connected TV (CTV) advertising, putting it in a stronger position to compete with Amazon's rapidly expanding ad business.

Ad Time: The acquisition follows Walmart's $2.3 billion purchase of Vizio in 2024, giving the retailer another platform to expand its advertising ecosystem.

Big Picture: While Walmart's advertising business has grown steadily in recent years, it remains well behind Amazon, making the Vibe acquisition another major investment in one of retail's fastest-growing and highest-margin businesses.

Amazon's four-day Prime Day delivered another record sales event, with U.S. online shoppers spending more than $26.4 billion, up 9.3% year over year, according to Adobe Analytics. Strong discounts on electronics, appliances, toys, and household essentials encouraged shoppers to open their wallets, but the data suggests consumers remain highly price-sensitive.

Conscious Spending: Rather than splurging freely, shoppers focused on value. Numerator found the average Prime Day order fell to $47.66, down from $53.34 last year, as consumers stretched their budgets across smaller purchases. Many also stocked up on back-to-school supplies, personal care products, and everyday essentials instead of purely discretionary items.

Key Detail: Retailers may have to keep the promotions coming. Adobe found discounts were largely unchanged from last year — 24% off electronics, 24% off apparel, and 20% off toys — signaling that aggressive markdowns could continue into the holiday season as retailers compete for shoppers whose spending remains constrained despite larger tax refunds earlier this year.

Target will open 11 new stores across 10 U.S. states in July as part of its plan to add more than 30 stores in 2026 and over 300 by 2035. The expansion is backed by a $5 billion capital investment plan, which also includes more than 130 store remodels and increased spending on store payroll and employee training.

Fulfillment Hub: The expansion is about more than adding retail locations. Each new store is designed to serve as both a shopping destination and a micro-fulfillment hub, supporting Target's omnichannel strategy. The retailer says its stores already fulfill 95% of digital orders, including Drive Up, Order Pickup, and same-day delivery, helping it get closer to customers while speeding up fulfillment.

Big Picture: As retailers race to deliver orders faster and more efficiently, stores are increasingly becoming logistics assets. By expanding its store network while investing in fulfillment capabilities, Target is strengthening last-mile delivery, improving inventory availability, and positioning its physical stores as a competitive advantage in the growing omnichannel retail market.

U.S. Customs and Border Protection (CBP) will launch Phase 2 of its IEEPA tariff refund process on June 29, expanding the number of importers eligible to reclaim duties paid under the International Emergency Economic Powers Act (IEEPA).

The rollout extends the agency's Consolidated Administration and Processing of Entries (CAPE) system to cover certain reconciliation-flagged import entries for which reconciliation filings have not yet been submitted.

Key Details: Under the new phase, eligible claims remain limited to unliquidated entries and those within 80 days of liquidation, matching the requirements established under Phase 1. CBP said the filing procedures and processing rules will remain unchanged, with both phases operating simultaneously through the Automated Commercial Environment (ACE) portal.

Big Picture: The phased expansion is expected to make the refund process available to a broader group of importers seeking reimbursement for IEEPA tariffs.

Unilever is exploring a potential acquisition of U.S. supplements maker Thorne, which could value the company at up to $4 billion. The health and wellness brand, owned by private equity firm L Catterton, is expected to generate $650 million in revenue this year and has attracted interest from multiple bidders.

Key Details: The potential acquisition follows Unilever's recent push into the wellness sector through brands such as Liquid I.V., Nutrafol, Olly, SmartyPants, and Grüns. The company has increasingly shifted its portfolio toward higher-growth beauty and wellbeing products after separating its food business, viewing the category as a key driver of future growth.

Growth Time: Thorne has grown rapidly under L Catterton's ownership, with CNBC reporting that annual revenue growth has exceeded 30%. The company is expected to generate $650 million in revenue this year, helping justify a potential valuation of up to $4 billion.

H&M's turnaround effort lost momentum after the retailer reported weaker-than-expected second-quarter results, with sales falling 1% in local currencies versus expectations for flat growth. The company also said June sales are expected to be unchanged from a year ago, sending its shares down as much as 5.2%.

Key Numbers: The retailer posted an operating profit of about $608 million, missing analyst estimates of roughly $648 million. Excluding about $70 million in one-time restructuring costs, operating profit rose 11% to around $678 million, with margins improving to 12% from 10.4% a year earlier. Looking ahead, H&M warned that higher airfreight rates and fuel surcharges are expected to increase transportation costs, although a weaker U.S. dollar is expected to provide some relief.

The Weakness: CEO Daniel Ervér acknowledged sales remain below expectations, citing weak consumer demand in Western Europe and product availability gaps in womenswear. While H&M continues to shorten lead times, improve pricing, and streamline operations, cautious consumer spending continues to weigh on growth.

Saks Global has emerged from Chapter 11 bankruptcy after nearly five months, rebranding itself as Exemplar Luxury Group (ELG) with a significantly smaller footprint and a much lighter balance sheet.

Key Details: The company, which owns Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, cut its debt by nearly 75% and now operates 49 stores, down from more than 100 before restructuring.

Store Closures: The retailer closed 62 off-price stores, including 57 Saks OFF 5th locations and all five Neiman Marcus Last Call stores, while also shutting 12 Saks Fifth Avenue and three Neiman Marcus stores. Saks also ended its partnership with Amazon after luxury brands raised concerns that selling on a mass-market marketplace could dilute their image.

When it filed for bankruptcy in January, the company had $3.4 billion in debt, including $337 million owed to key luxury suppliers such as Chanel and Kering.

Next Steps: CEO Geoffroy van Raemdonck will continue leading the newly formed ELG as it seeks to rebuild relationships with brands and stabilize operations.

Bath & Body Works is widening its retail footprint beyond its own stores, announcing that a curated selection of its products will launch in 600 Ulta Beauty stores and on Ulta's website beginning July 12. The move follows the brand's recent expansion onto Amazon and U.S. college bookstores as it looks to reach new shoppers.

New Consumers: The assortment will include body care, home fragrance, hand soaps, three-wick candles, and Wallflowers, along with several Ulta-exclusive products, including the return of the nostalgic Juniper Breeze scent.

The partnership is part of CEO Daniel Heaf's Consumer First Formula strategy, which focuses on expanding distribution, strengthening core product categories, and attracting younger beauty consumers.

Dual Benefit: Bath & Body Works said the Ulta partnership complements, rather than replaces, its own retail stores. The company plans to monitor customer response before pursuing additional distribution partnerships, while Ulta sees the deal as an opportunity to expand categories such as home fragrance, body care, and self-care within its beauty ecosystem.

The global shortage of memory chips is beginning to ripple through the consumer electronics market as retailers and manufacturers prepare for higher costs. Demand from AI data centers has tightened supplies of DRAM and other memory components, leaving less capacity for laptops, smartphones, and tablets.

What’s Happening? Apple has already announced price increases for MacBooks and iPads, while Best Buy said its computing business is likely to see the biggest impact.

Gartner estimates global PC shipments will fall 10.4% and smartphone shipments 8.4% in 2026, while average PC prices are expected to rise 17% and smartphone prices 13% from 2025 levels. The research firm does not expect memory prices to normalize before the end of 2027.

What’s Next: Retailers have so far softened the impact by building inventory ahead of expected shortages, but analysts say that buffer will not last. The National Retail Federation has warned that prolonged supply constraints could lead to higher consumer prices and reduced availability of electronics as AI infrastructure continues to compete for the same memory chips.