Walmart Diary Plant In Indiana Will Bring 200 Jobs In Area

Walmart is constructing a milk processing plant in Indiana which might benefit the area by bringing 200 jobs next year

Walmart is opening a milk-processing center in Indiana, bringing 200 jobs in the area next year. The strategy of increasing milk supply was set out by Indiana a year ago which is being implemented by the giant retailer now, according to its announcement.

Walmart Stores is opening its very own dairy plant in the State of Indiana, Fort Wayne. The ISDA director, Ted McKinney, believes that this move will help the state to add value to its dairy product through more processing opportunities as 4 million pounds of milk leave Indiana unprocessed each day, which could change in the future. The construction of Walmart’s plant is expected to begin this year occupying land of 250,000 square feet. Upon completion it will be the biggest one in the entire industry.

This dairy plant of Walmart Stores Inc. will consist of the most innovative and latest tech to ensure the efficiency of the production. Products that will be manufactured in this plant include chocolate milk, which will be supplied to the company’s 600 stores and to Sam’s Club stores in Ohio, Indiana, Northern Kentucky and Illinois. The production will begin upon the completion of the plant, which is estimated to be in summer next year.

Walmart Wholesale dairy plant in Allen County will even benefit the locals with 200 jobs upon its completion, according to the announcement of the retailer on Friday. The project is going to be worth $180 million and will be receiving almost $1 million in incentives and utility extension from Indiana. The grocery chain specifically chose Indiana for its plant because of its dairy industry. This promises the plant an efficient supply of milk, which exists in the area. Some of the milk will be attained from Michigan and Ohio.

The company’s own plant for the production of dairy products is going to prove to be very successful for profit and business as it will reduce the operating costs. The company is seeking for efficiencies in its supply chain and is making success so far by creating its own produce delivering affordable product to customer of higher quality. Walmart already has 38,000 workers in just Indiana that are working in 10 distribution centers of the retail chain, it spent $1.7 billion providing support to 33,000 jobs.

Indiana already has 21 milk processing plants and 14 farmstead operations. This new addition of is going to help the economy of the area even more in the future.

Amazon to Start its very on Fleet of Boeing Aircrafts

The retail giant will not get packages delivery via its very own freight aircrafts.

After relying on package delivery companies for year, Amazon.com has finally announced plans of starting its own delivery network. Before getting the packages delivered through drones, the retail giant will be taking to the air a much bigger forms of transport. A deal between Amazon and Air Transport Services Group, an air cargo operator has been signed according to which the retailer will be leasing 20 Boeing 767 cargo planes.  

The deal, announced March 9, 2015 will last between five to seven years. The jets that have been leased by the company can carry up to 88 tons of freight across the country. Following the deal, Air Transport Service Group’s stock went up by 16.65%. 

This fleet of freight aircrafts is expected to ‘operate an air cargo network to serve Amazon customers all across the United States’ and with the help of this partnership Amazon will be able to ship as much as 15% of its orders, according to an analyst at Stephens, Jack Atkins. Presently, the retailer already has its own trucking fleet; with the help of these freight aircrafts the company will move further away from FedEx and UPS, and would not need to rely on them.

Joe Hote, the Chief executive officer of ATSG stated that the air cargo operator has been working with the e-commerce giant since last summer in an effort to serve it with a fully customized air cargo network. Amazon is aiming at reducing shipping costs; last year it spent over $11.5 billion on shipping cost which in comparison to the year before that was up by as much as 32% while in a two years’ time, the shipping cost has been up by 74%.

Despite that fact that the online shopping company reported an increase in sales as well as profits for the previous year, shareholders were concerned regarding the significant increase in the shipping costs. It has been looking at alternate ways to reduce shipping costs and speed up its delivery process. As per this effort, the company made an announcement in December, according to which it has introduced a fleet of thousands of trucks to speed up deliveries.

As per the deal signed between the two companies, Amazon will have a right to buy almost 20% of the air cargo operator. Outside package delivery services will still be used by the retailer, along with the U.S. postal service. This deal had a great impact on the shares of two of Amazon’s competitors, FedEx and UPS as their shares went soaring down after the deal was announced on Wednesday.

The reliance between Amazon and package delivery providers such as FedEx Corporation and UPS has been a long one as these companies have helped get packages delivered to the doorstep of the retailer’s customers. However, this reliance between the two have not always had positive results as many a times there have been cases where packages were undelivered especially during the holiday season.

Ebay, Inc. Fell By 20% After The Company Reported Earnings For Q4FY15

The online shopping company has facing immense competition from Amazon and other retailers in the market.

The share price of eBay Inc. fell in the after-market trading on Wednesday since it reported to a flat fourth quarter fiscal year 2015 revenue. The Street had predicted that the company will report revenue of $2.32 billion and so it did – completely aligned with the estimates of the analysts.

Additionally, the online shopping organization was not able to provide an appealing earnings forecast for the upcoming quarter (Q1FY16). According to the estimates of eBay, it will report revenue of somewhere between $2.05 to $2.1 billion. These figures are below the estimates of the analysts who believe it could report revenue of $2.16 billion in the first quarter of the latest fiscal year.

As of January 28, 2016, eBay stock plummets by 20% and was being traded at $23.18 per share. In a time span of six months, the stock has fallen by 5.64%. Despite of the fact that the e-commerce industry is blooming, eBay has not been able to live up to the expectations of the market. Furthermore, the San Jose based organization is predicting earnings per share of 45 cents while the analysts are estimating it be at 48 cents.

Adjusted net income fell by as much as 12% to an amount of $600 million – on a year over year basis it fell by 10% to 0.05, surprising they aligned with the calculations of the analysts. According to the earnings report, there was flat gross merchandise volume – GMV due to the company’s top line which was at $21.9 billion.

However for fiscal year 2016, it is expecting to report revenue generation of $8.5 billion to $8.8 billion along with currency neutral growth of 2% to 5%. Adjusted earnings per share are estimated to be between $1.82 and $1.87 while Wall Street analysts were at least expecting the giant to report EPS of $1.98. Furthermore, they were hopeful that eBay might just post revenue of $8.99 billion for 2016. However, that is yet to find out.

Presently, the biggest competitor in the market is Amazon.com, the retail giant, which has managed to take the bigger piece of the pie. Amazon has provided its customers with Prime Now, faster and free delivery service and many additional options for online shopping. The San Jose, California based retailer is finding it hard to coup with the retail giant’s success.

The entire e-commerce sales grew by as much as 13.6% - making the industry worth $106 billion as of last quarter while the online shopping business managed to have a total value of goods sold on the platform were of $21.9 billion.

Devin Wenig, the chief executive officer of eBay Inc. needs to get his business back on track; mostly it needs to gain back its share of the market from other retail companies. A smartly build marketing strategy to attract merchants and shoppers is highly needed as presently so many alternates/substitutes have come in the market. Customers want a single platform where they can buy and sell product – with a fast delivery system and better experience. 

Jefferies Turns Bullish Towards Alphabet And Amazon Before Black Friday

The e-commerce giants are expected to report great sales in holidays and shopping seasons, and analysts believe that the investors and shareholders can sit back and relax while this happen.

Alphabet is expected to score some massive positives in the upcoming holiday season, as that is when the e-commerce activities are at their highest as more and more people choose to stay indoors and shop for their favorite products online. Equity firm, Jefferies, has carried out research on companies who hold an important position in the e-commerce industry and has concluded that the top most giants are unarguably Alphabet and Amazon.

These two companies have already started to hike up strategies to carry out before the big sale of Black Friday takes place and analysts in the market have analyzed which giant is currently showing more strength for the near term future.

According to Jefferies analysts, it has been noted that the Amazon has been experiencing an elevation in the same store sales with an increase of around 16% on a year over year basis as recorded I October, while it rose by 19% in the month of September. The highest increment on the sales was seen in August, with the sales going up by 25%. All positives that the e-commerce giant has been showing have made analysts very bullish, and they believe that the organization has been showing signs of growth, which are faster than any other sellers in the industry.

Amazon Web Services is another wing of the organization that has been drawing a lot of business and has been boosting the revenue of the giant in a very positive manner. All this has made the analysts present a price target of $775 to the retail giant. On the other hand, Alphabet seems to be getting highly bullish remarks from Jefferies backed up by the great earnings report it has posted in the third quarter of the year with the revenue growing by 21% compared to the previous year.

As per reports, the mobile monetization that the giant has been observing with the increasing mobile searches in every quarter is another factor, which can change the concerns of the analysts to some more bullishness. Alphabet business also reported the same store sales to experience increment of 32% in October as compared to the same quarter figures that were reported last year. The highest growth was seen in September, when the same store rose by 46% year over year and made jaws of industry pundits drop with the stunningly strong figures. This is why the analysts have turned extremely bullish towards both the e-commerce giants.