J.C. Penney Loses Ground as Sales Slide, Wegmans Bets $110M on Supply Chain & Presto Powers Toast's Drive-Thru AI

Hello, everyone. This is OmniTalk Retail. I'm Chris Walton, and you are listening to the Retail Daily Minute, your quickest, fastest breakdown of all the day's top retail news. Today's podcast is brought to you once again with the help and support of R&S Logistics. Are you looking for a fulfillment and distribution partner? That's just right. Well, RNS Logistics is small enough to provide custom solutions and that personal touch, while also still boasting 2 million square feet across 10 locations in the Southeast. With technology that can scale your growing e-commerce operations, visit rswarehousingsolutions.com and get your quote today. And I'm also pleased to introduce Zenline AI because you have likely heard about AI agents a thousand times this year. They're also probably wondering what they can do for you as a retailer. Visit tryzenline.ai to book a call and see how agents can bring you more margin. I just arrived in the Las Vegas for grocery shop and this morning we've got news on Wegmans $110 million supply chain investment in Rochester and Presto's new drive-through voice AI integration with Toast. But we begin today with JCPenney's rough second quarter and a story about a retailer that's, quote, not going anywhere, end quote, but not exactly thriving either. Total net sales fell more than 8% year over year to $1.3 billion, and net income shrank by over half. Penny's decline came even as rivals like Dillard's, Macy's, and Kohl's posted flat to positive sales in a department store segment that actually grew during the quarter. There were a few bright spots, a few. Active apparel grew about 12%, helped by Nike, team sports, and World Cup merchandising. Furniture jumped 41%, and beauty got a lift from skincare and K-beauty launches, filling some of the void left by Sephora's departure to Kohl's nearly four years ago. JCPenney also launched a marketplace late in the quarter that's reportedly also outperforming expectations. Penny's has the backing of Catalyst Brands, we should all remember, which should keep it stable for now. But stable isn't the same as fixed.

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All right, we are back, and our next story comes from Wegmans, which is putting $110 million behind a supply chain overhaul centered on its hometown of Rochester, New York. The plan includes a new refrigerated facility for perishables, produce, meat, seafood, deli, and restaurant foods, plus a modernized return center to replace its current Winton Road site. The company says the investment will also let it lean less on third-party logistics providers, and it's consolidating its general merchandise distribution into its Pottsville, Pennsylvania facility by spring of 2027, with Wegmans emphasizing that no layoffs are tied to the changes. This all comes as Wegmans keeps expanding its footprint outward, a Charlotte-area store opening next month and new construction