Amazon to shut down speedy brick-and-mortar delivery service
Amazon is shutting down a service that offers same-day delivery from mall and brick-and-mortar retailers, CNBC has learned.
The company has stopped any new development of the service, called Amazon Today, and will begin to wind it down, according to two people with knowledge of the matter. The people asked not to be named because they were not authorized to speak to the press.
The bulk of the program will be shut down by Dec. 2, the people said. Select retail partners will be able to continue fulfilling orders with Amazon Today through Jan. 24, 2025, Amazon told CNBC.
A small amount of employees will be laid off and provided with severance, while others will be transitioned to other positions within Amazon, the company said.
Employees who work on Amazon Today learned the news in a meeting on Monday, where some staffers were informed they would be laid off, the people said. Roughly 300 employees were working on Amazon Today, the people said. Amazon disputed the figure, saying there were approximately 175 employees in the unit.
The closure of Amazon Today is the latest example of the company’s broader cost-cutting efforts.
Walmart will start delivering prescriptions to customers’ doorsteps as CVS and Walgreens struggle
As CVS and Walgreens shutter hundreds of stores nationwide to shore up profits and investor sentiment, Walmart said Tuesday that it is offering a new option for customers: delivering prescriptions to their doorsteps.
The nation’s largest retailer said deliveries are now available in six states: Arkansas, Missouri, New York, Nevada, South Carolina and Wisconsin. The company said in a news release that it expects to deliver prescriptions in 49 states by the end of January. Prescription deliveries will not be available in North Dakota due to state laws, Walmart said.
The prescription delivery service is another example of how Walmart is trying to outmatch competitors on convenience along with low prices. With the new service, customers can get a mix of items dropped off during the same delivery, such as a box of tissues, blanket or chicken noodle soup.
Walmart’s new delivery offering could be another blow to drugstore chains, which are falling out of favor with consumers in a trend that has hit their profits and stock prices and forced them to reconsider their strategies. Still, it is unclear how much market share Walmart could win from CVS and Walgreens, both of which offer same-day, one-day and two-day prescription deliveries.
Shein's revenue growth slows in first half amid IPO plans
Online retailer Shein's revenue growth slowed to 23% in the first half of this year, from 40% last year, The Information reported on Tuesday, citing two people familiar with the matter, as it prepares for a highly anticipated listing in London.
The deceleration in growth coincides with rising competition from Chinese bargain shopping site Temu, which has grown in popularity in recent years in the U.S., the report said.
The company's profit declined more than 70% to just below US$400 million in the first half of this year, according to the report. Revenue during the period reached US$18 billion.
Shein, which sells US$5 tops and US$10 dresses, has seen rapid growth fueled by its low-cost business model of sending parcels to customers worldwide straight from factories in China.
The company was valued at US$66 billion in a fundraising round last year and held informal investor meetings this month for a planned London initial public offering, Reuters reported.
Shein does not publicly report its global results.