Michael Rubin, CEO of online sportswear giant Fanatics, told CNBC on Wednesday that retail sales this holiday season were negatively impacted by shipping problems.
“There was so much pressure on the various shipping networks to deliver, I think there was more demand that could have been had,” Rubin said “Squawk Box.” “As good as the business is, it could have been better.”
Overall, the e-commerce sales are as a result of Coronavirus pandemicand increased by 22% to hit $ 9 billion on Black Friday aloneaccording to Adobe Analytics. However, this growth comes at a price that puts a strain on warehouse and logistics networks. For example on Cyber Monday UPS should have told his drivers Stop picking up packages at some large retailers after those companies reached their established capacity allocations.
The rollout of the coronavirus vaccine, which began this month after the Food and Drug Administration granted emergency approval, adds to the complexity of the situation Pfizer– –BioNTech and Moderna Vaccines that start the distribution of millions of additional doses in the US.
Rubin, a partner with the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils, said the pandemic had generally sped up e-commerce adoption by two or three years.
“I think ecommerce, you will see 30% plus [growth] across the border. We had a great year, “said Rubin, whose fanatics were valued at $ 6.2 billion in August during a Series E funding round “But the most interesting thing was that the demand could have been even better if the shipping networks only had more capacity. But with Corona, which is the first to deliver vaccines, this year there is A lot of pressure on the shipping networks. “
Fanatics announced earlier this week that it has partnered with Barnes and Noble Education To operate e-commerce operations for sporting goods sold in bookstores on campus. The partnership includes Lids, with the companies making a $ 15 million equity investment in Barnes & Noble Education.
“I think somehow the company was misunderstood, and from our perspective, we looked at it and said, ‘We really believe we can work together to strengthen this offering,'” said Rubin of Barnes & Noble Education. “We’re going to leverage all of Fanatics’ e-commerce capabilities and place them behind the 775 universities to give them the best deal – better technology, better mobility, wider range.”
Barnes & Noble Education stocks rose 1.7% on Wednesday. The partnership with Fanatics was announced ahead of Monday’s opening, and the stock is up about 12% this week.