[#193] Supply Chain in Numbers - Aug 21, 2023
Vuori aims 20 to 25 new stores a year, Tata Motors is investing $5.2B in UK, AutoStore to pay $257M to Ocado, Amazon's new 2.2M sqft DC in Australia, TJ Max expects easy supply for 12 months
Welcome to “Supply Chain in Numbers.” This newsletter tracks significant digits from the world of the supply chain. Five prominent numbers are published every Monday. If you have any feedback, please send it to me.
20 to 25 new stores a year
Athleisure retailer Vuori says it’s aiming for a “sweet spot” of 20 to 25 new stores a year as it continues its massive brick-and-mortar expansion. The California-based company operates 35 stores in major markets such as Los Angeles, Seattle, San Francisco, and Boston. Vuori has opened 10 stores since January and plans to bring that number to “just over 20” by the year’s end. Vuori, which launched in 2015 and has been profitable since 2017, has invested more money in its physical footprint over the last few years, largely thanks to a $400 million cash infusion from Softbank. [Modern Retail]
$5.2 billion battery factory
Tata Motors, the owner of Jaguar Land Rover, plans to build a large battery factory in the U.K. to supply electric vehicles, throwing a lifeline to Britain’s auto industry and highlighting the global race for green investment as carmakers shift to EVs. Tata Motors is investing $5.2 billion (or 4 billion pounds) and expects the plant to start delivering batteries in 2026 and supply future electric vehicles built by its JLR business. The British government said the planned Tata factory was a boost to the country’s automotive sector that would create up to 4,000 new direct jobs. [WSJ]
$257 million settlement
Norwegian robotics firm AutoStore will pay 200 million pounds ($257.1 million) to British online supermarket group Ocado as part of a deal between the warehouse tech pioneers to settle all outstanding patent litigation claims. Under the deal, all the patent litigation claims will be withdrawn globally, and both firms can continue to use and market all their existing products without challenge. It also grants access to both companies to certain portions of each other’s patent portfolios for them to use or manufacture their products. [Reuters]
2.2 million sqft FC
Amazon’s Australian branch is set to move into the country’s biggest warehouse, where a fleet of robots will help operate a facility of about 29 soccer pitches. The 209,000 square meters (2,249,657 square feet) four-level fulfillment center will be complete in 2025 and will house as many as 25 million small items. The new facility is 9,000 square meters bigger than Amazon’s existing Western Sydney robotics site, which opened in 2022. [BNN Bloomberg]
12 month supply
Comparable sales in Q2 were up across all TJX Cos. banners and up 6% overall as the off-price retailer once again benefited from the industry’s excess inventory. “All indicators are there will be a continued additional supply over the next six to 12 months,” CEO and President Ernie Herrman told analysts. Aside from the excess stock from brands and retailers, TJX’s assortment has also benefited from the demise of Bed Bath & Beyond’s physical retail business. [Supply Chain Dive]