The Amazon you love if you’re a consumer or hate if you’re a competing retailer won’t be the Amazon of the future.
According to Forbes contributor Michael Kanellos, Amazon eventually will focus on providing logistics and it’s biggest competitors “will be men in shorts: logistics companies like UPS and FedEx.”
Sound farfetched? Maybe. But Kanellos offers an interesting take on some recent Amazon moves.
“Amazon is at a crossroads. The company garners billions a year in revenue from selling e-books, household items and vacuuming up rising retailers like Zappos. Retailing, though, can be a difficult single-digit margin business,” Kanellos writes.
Here’s his full story: Will Amazon Become the Next FedEX?
Talk is heating up that Memphis-based FedEx Corp. will make a bid for European shipping company TNT Express.
TNT late last week rejected an offer from FedEx competitpor UPS.
Here’s some of the speculation on FedEx:
Bloomberg: FedEx Seen as Possible TNT Suitor
Wall Street Journal: Will There Be A Bidding War for TNT Express?
“Pull up! Pull up! You’re not going to make it. ….. Uh, you have exceeded the capacity of the landing gear.”
Those words crackled over my headphones some years back after I failed to safely land a cargo jet at the Louisville airport.
Fortunately, I was flying a UPS flight simulator and not a real jet. One of the perks of my job is that sometimes I’ve been allowed try fun stuff in pursuit of a story. I was reminded of my flight simulator mishap today when I read that FedEx planned to invest a bunch of money in its flight-training simulator operations in Memphis.
Here’s an interesting take from Bloomberg on how Internet shoppers have given a boost to the
rail freight business.
And that includes companies like FedExs and UPS, which are using railroads to ship goods long distances before putting them on trucks.
“Railroad intermodal units, the containers and trailers often used for retail goods that can move by rail, road and sea, rose 4.7 percent in the week ended Dec. 3, the Association of American Railroads said today. That growth rate may increase in coming weeks as shippers such as FedEx Corp. (FDX) and United Parcel Service Inc. (UPS) use railroads for delivery of online purchases,” Bloomberg reported.
Bloomberg: Rail Freight Gains as Record Retail Sales Buoy December Rush
Photo: Containers and trailers are transferred between trucks and trains at Norfork Southern Corp. Intermodal Transportation hub. (Norfolk Southern)
Watching Fox news at the gym every morning is good motivation for burning calories, but I always need a reality check when I get to work.
Here’s a dose of reality that I didn’t see on Fox this morning:
Ford posts best 1Q profit in 13 years
UPS raises 2011 forecast as 1Q profit soars
Consumer Confidence Index rises in April
Together, these reports indicate that consumers are willing to spend, they’re feeling somewhat better about job creation and businesses are reaping the benefit.
Recent announcements by Toys ‘R’ Us, Kohls and other retailers indicate holiday hiring will be significantly improved this year, says global consultancy Challenger, Gray & Christmas, Inc.
Last year, temporary holiday hiring was up 54 percent as retail payrolls nationwide saw a net increase of 501,400 workers in October, November and December.
Retailers are expected to add even more holiday jobs this year.
Global delivery company FedEx today boosted its earnings forecast, providing a glimmer of hope for better times in 2011.
The Memphis-based company upped its earnings outlook for its current quarter and the fiscal year that ends next May.
The answer to the headline question is “yes,” especially when you consider that FedEx’s competitor UPS last week raised its own earnings outlook.