Logistics Pulse by FulfillYN

After years of investing in robot-powered warehouses, Kroger is admitting defeat on part of its automation strategy. The grocery giant announced Tuesday it's closing three automated fulfillment centers in January and leaning harder into good old-fashioned store-based fulfillment.

Despite seven straight quarters of double-digit e-commerce growth (16% in Q2 alone), Kroger's digital business remains unprofitable. The company is targeting $400 million in e-commerce profitability improvements for 2026, but that comes with a painful $2.6 billion in impairment charges for Q3 2025.

What's changing: Kroger is pivoting hard to third-party partnerships. Instacart is now the primary delivery provider across Kroger's app and website. The company also expanded deals with DoorDash (covering nearly 2,700 stores) and Uber (kicking off early 2026). Kroger will pilot "capital-light, store-based automation" in high-volume markets—translation: less robots in giant warehouses, more tech inside existing stores.

Why this matters for logistics: The shift signals that expensive, dedicated e-commerce infrastructure isn't always the answer, especially when you already have thousands of stores that can double as fulfillment centers.

The U.S. trade deficit dropped 24% in August as Trump's global tariffs finally hit the books—but don't mistake this for good news.

The numbers: The gap between imports and exports fell to $59.6 billion in August, down from $78.2 billion in July. Imports plunged 5% to $340.4 billion as companies stopped buying foreign goods ahead of the August 7 tariff deadline.

The bigger picture: Despite the August drop, the U.S. trade deficit is up 25% year-to-date through August ($713.6 billion vs. $571.1 billion in 2024). Companies front-loaded imports earlier in the year to beat the tariffs, which means the "improvement" is mostly timing games, not a structural shift.

The political fallout: After voters punished Democrats in the November 4 elections over inflation, Trump backed down last week and dropped tariffs on beef, coffee, tea, fruit juice, cocoa, spices, bananas, oranges, tomatoes, and certain fertilizers. He admitted these tariffs "may, in some cases" have contributed to higher prices—a rare concession from the administration.

The legal drama: The Supreme Court heard arguments on November 5 about whether Trump can bypass Congress and impose unlimited tariffs by declaring a national emergency. The justices sounded skeptical, according to reports from the hearing.

What this means for you: If you're in logistics, the August data is ancient history (the report was delayed seven weeks by the government shutdown). The real story is ongoing uncertainty—tariffs go up, tariffs come down, lawsuits pile up, and supply chains stay in chaos mode.

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October was brutal for the trucking industry. Class 8 retail sales fell 29.6% year-over-year to 14,690 units, marking the fourth straight month of declines. Every single major truck manufacturer saw sales drop.

The culprit: ACT Research Vice President Steve Tam didn't mince words: "The current political administration is undermining the economy." With the effective tariff rate around 18%, truck prices have jumped, making fleet operators hesitant to buy. Add in the recent government shutdown and the looming January 30 deadline for another one, and you've got business leaders paralyzed by uncertainty.

The context matters: October 2025 posted the second-lowest October numbers since 2010—not even COVID years were this bad. Year-to-date sales are down 11.4% to 175,664 units.

Bottom line: If you're a carrier looking to expand your fleet, you've got leverage right now. If you're a truck dealer, buckle up—this isn't getting better anytime soon.

While other retailers struggle with digital profitability, Walmart just posted another monster quarter. CEO Doug McMillon, who's retiring from the role, went out with a bang: 27% global e-commerce growth and market share gains across every segment.

The digital dominance: U.S. e-commerce sales jumped 28%, marking the seventh consecutive quarter of 20%+ growth. Even more impressive: 35% of store-fulfilled orders were expedited or delivered in under three hours, with sales through these fast channels up nearly 70%.

The membership play: Walmart+ just had its best quarter ever for net additions since launch. CFO John David Rainey credited faster delivery, better accuracy, and the new OnePay credit card (offering 5% back on Walmart purchases). Membership income rose 17% globally.

U.S. marketplace sales climbed 17%, with categories like apparel, electronics, and toys expanding more than 40%. Walmart Connect advertising grew 33% in the U.S. and 53% globally (including Vizio).

More than 60% of U.S. stores now receive freight from automated distribution centers, and over 50% of U.S. e-commerce fulfillment center volume is automated.

For 3PLs: Walmart now offers store-fulfilled fast delivery to 95% of U.S. households in under three hours. If you're competing on speed, you're competing with that. The bar just keeps rising.

November brought another wave of trucking and logistics bankruptcies, including a company that just celebrated its 100th anniversary.

P. Judge & Sons: The New Jersey-based warehousing and trucking company filed for Chapter 11 protection earlier this month. Founded in 1924, P. Judge listed assets and liabilities between $1 million and $10 million. The company operates 71 power units with 71 drivers, but its safety record is concerning—a 46.2% vehicle out-of-service rate compared to the 22.26% national average.

Other November filings:

The pattern: Companies of all sizes—from two-truck operations to century-old institutions—are struggling with soft freight demand, high operating costs, and relentless economic uncertainty.

Smart labels get $10.4M to kill the barcode: Reelables raised Series A funding to scale production of printable Bluetooth and 5G labels that track cargo without manual scanning. The company grew 200%+ this year and plans to hit 100 million labels annually. Tom Carter joined as COO.

GE Appliances drops $150M on U.S. suppliers: The manufacturer is investing in domestic vendors and involving them earlier in design—another bet on reshoring as tariff chaos continues.

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