Logistics Update: 2023 Mall Productivity Rankings, Last Mile Delivery and e-Commerce Challenges

by | Apr 26, 2024 | Logistics

Toronto’s Yorkdale Shopping Centre topped Canadian mall productivity with significant sales. Aggressive discounting by FedEx and UPS is shaking up carrier diversification. A 2024 survey shows that 98% of Shopify merchants in the U.S. and Canada struggle with fluctuating inventory demands. Canada’s Transport Minister emphasized supply chain resilience and a cleaner economy at the 2024 G7 meeting, and apparel brands are transitioning to direct-to-consumer sales.

Yorkdale Shopping Centre Tops Canadian Malls in ICSC Productivity Rankings

In 2023, Yorkdale Shopping Centre in Toronto led Canada’s mall productivity, generating $2,402 per square foot and over $2 billion in sales, thanks to its strategic location and a strong mix of luxury and flagship stores. CF Toronto Eaton Centre followed with $1,457 per square foot. Other notable performers included Scarborough Town Centre and Square One in Mississauga, both benefiting from new tenants and diverse retail offerings.

Source: Retail-Insider

Fewer Providers, Last Mile Success Formulas, and the Sustainability of Faster Deliveries

In the rapidly evolving logistics sector, aggressive discounting by FedEx and UPS challenges carrier diversification, though competitors are adapting. With 73% of customers likely to switch over a single issue, experts suggest that the industry must offer quick, personalized, and sustainable services. Despite adaptations to pandemic disruptions and changing consumer preferences, cost-cutting could slow progress.

Source: Supply Chain Dive

Survey: Inventory Issues Plague Small Businesses

A 2024 survey of U.S. and Canadian Shopify merchants revealed that 98% struggle with inventory management due to fluctuating consumer demands. Amid economic challenges, 80% have raised prices and 53% sought cheaper materials, potentially affecting quality. However, 73% are using technology to improve efficiency, and 77% anticipate e-commerce growth. Many are investing in SaaS and AI to enhance operations.

Source: Inside Logistics

Minister Rodriguez Promotes Canada’s Supply Chain Goals

At the G7 Transport Ministers’ Meeting in Milan, Italy, from April 11-13, 2024, Canada’s Minister of Transport, Pablo Rodriguez, emphasized enhancing supply chain resilience and advancing a cleaner economy. He initiated a G7 Working Group on Transport Supply Chains to foster collaboration and sustainability. Discussions also focused on strengthening cooperative efforts in sustainable supply chains and greening transportation sectors. Additionally, Rodriguez announced a $300,000 investment to support Ukraine’s greener transportation rebuild, aligning with Canada’s upcoming G7 presidency in 2025. The meeting ended with a joint declaration on transportation safety and sustainability.

Source: News Wire

Challenges of Direct-to-Consumer Logistics

Apparel brands like Levi Strauss and Canada Goose are transitioning to direct-to-consumer sales, necessitating a shift from wholesale to complex retail logistics. This includes managing home delivery and their stores to increase profits and customer engagement. However, this strategy involves challenges in logistics and inventory management, as evidenced by Nike’s reversal from a DTC-heavy approach due to inventory issues and the need to reduce costs.

Source: The Wall Street Journal

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NLS Logistics Team
As a leading Third Party Logistics (3PL) firm, we have the strategic infrastructure, technology relationships, and insights to help Canadian and international brands reach and serve the Canadian market.

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