Editor's note: Hedgeye Retail Sector Head Brian McGough sees good news all around on news that the US Postal Service has entered a partnership with online retail giant Amazon to deliver its packages on Sundays for the first time.
From the Wall Street Journal:
- "Amazon.com Inc. will begin delivering packages on Sundays in the nation's two largest cities later this month with...the United States Postal Service."
- "Amazon said Sunday delivery will begin on Nov. 17 in Los Angeles and New York and expand next year to Dallas, New Orleans, Houston and Phoenix, among others. Amazon will bring packages from its warehouses to Postal Service locations on Saturday evening or Sunday morning. The agency will then deliver them to doorsteps."
- "Sunday delivery will be available for all Amazon customers in markets where the program is available at no additional cost. Customers won't specify Sunday delivery; eligible items will show up on Sunday if that is when they are ready."
Takeaway: This is a win, win, win. Consumers win, for obvious reasons. Amazon wins, as it can advertise Sunday delivery for the first time ever (and does so on the cheap by taking advantage of the USPS when it's on the ropes). Finally, the beleaguered Post Office wins. This partnership with Amazon is a cash flow stream -- albeit a minor one -- that helps prolong its inevitable demise.