[#224] Supply Chain in Numbers - Mar 25, 2024
Americold plans 335k sqft reefer DC, Shadowfax raises $100M, 3PLs leased 30 to 40% of space, Google prepares 240k meals per day, Dollar Tree plans to close 1,000 stores
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.
335,000 sqft reefer DC
Americold Realty Trust will spend $127 million on a 335,000-square-foot cold storage facility in Kansas City, Mo., the first in a series of planned facilities to be located along the Canadian Pacific Kansas City (CPKC) rail network. Americold said it plans to create nearly 190 new jobs in the region. Pending local approvals, the company plans to begin construction in the first half of 2024. CPKC and Americold announced their collaboration last year. The first facility would be in Kansas City. [Trains]
$100 million Series E
Shadowfax, one of India's largest logistics service providers to hyper-local and on-demand delivery businesses, has raised $100 million in a new funding round as it clocks a yearly growth of 35%. Shadowfax is tackling the country’s highly fragmented last-mile delivery infrastructure. Today, Shadowfax’s network reaches over 2,500 cities and over 15,000 zip codes. The company says it makes over 2 million packages delivered daily and has amassed over 3.5 million registered users. Shadowfax operates a logistics and delivery network of over 125,000 monthly active delivery personnel and works with numerous firms, including Flipkart, Meesho, and many direct-to-consumer brands. [Tech Crunch]
30% to 40% leased by 3PL
3PL leasing activity accounted for more than 30% to 40% of bulk transactions (over 100,000 sq. ft.) across the US, Europe, and Asia Pacific, according to the latest report from CBRE. In Europe, while 3PLs have become a more significant part of logistics leasing demand, increasing over ten percentage points since 2019, the trend is different for XXL warehouses. XXL facilities (over 50,000 sq. m. or 538,000 sq. ft.), final occupiers have increasingly preferred to control the lease themselves and contract a 3PL to operate the warehouse. [CBRE]
240,000 meals per day across 386 cafes
Google is best known as a tech company, but it’s got a formidable food business nonetheless, as it seeks to feed its armies of workers in a crucial tech perk that helps it maintain talent. However, the company’s food waste threatens its ambitious climate goals, so it’s trying to make the whole operation more efficient without ticking off workers. The company prepares over 240,000 meals daily across 386 cafes, 1,500 microkitchens, and 49 food trucks in a reasonably expansive operation. For perspective, there are only 360 Cheesecake Factory restaurant locations in North America, so the company is operating at an impressive logistical scale, and a tweak as simple as adjusting when eggs are prepared cut food waste for the dish by 44 percent. [NumLock]
1,000 stores to close
Dollar Tree Inc. plans to close 600 Family Dollar stores during the year's first half. As leases expire, the retailer also intends to close an additional 370 Family Dollar stores and 30 Dollar Tree stores in the coming years. Dollar Tree said in November that it planned to review its Family Dollar portfolio and identify underperforming stores for closure, relocation, or re-bannering. This Virginia-based company has 16,774 stores in the U.S. and Canada as of February 2024. Persistent inflation and reduced government benefits continue to pressure lower-income consumers, comprising a sizeable portion of Family Dollar’s customer base. [Retail Dive]