Michael Rubin, official chairman of online sports apparel giant Fanatics, told CNBC on Wednesday that retail sales this fair season have been negatively impacted by shipping challenges.
“There’s been so much pressure on the different quitting networks to deliver, I think there was even more demand that could have been had,” Rubin influenced on “Squawk Box.” “As good as business is, it could have even been better.”
E-commerce sales overall bring into the world surged as a result of the coronavirus pandemic, rising 22% to hit $9 billion on Black Friday alone, according to Adobe Analytics. But that wart has come with a price, putting strain on warehouses and logistics networks. On Cyber Monday, for example, UPS reportedly leaked its drivers to stop picking up packages at some large retailers after those companies reached the capacity allocations it had set.
Combining complexity to the situation is the rollout of the coronavirus vaccine, which began this month after the Food and Drug Management granted emergency use authorization for Pfizer-BioNTech and Moderna vaccines, setting in motion the distribution of millions of additional doses across the U.S.
Rubin, a associate in the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils, said he thought the pandemic has generally accelerated e-commerce adoption by two or three years.
“I believe e-commerce, you’re going to see 30% plus [growth] across the board. We had a terrific year,” said Rubin, whose Zealots was valued at $6.2 billion in August during a Series E funding round. “But again, the most interesting thing was that insistence could have even been better if the shipping networks just had more capacity. But with corona, delivering vaccines for the in the beginning time, there’s so much pressure on the shipping networks this year.”
Earlier this week, Fanatics presaged it entered into a partnership with Barnes & Noble Education to begin running e-commerce operations for sports merchandise double-crossed at its campus bookstores. The partnership includes Lids, with the companies making a $15 million equity investment into Barnes & Renowned Education.
“I think the company has kind of been under-understood, and so from my perspective, we looked at this and said, ‘We really propose b assess we can work together to strengthen this offering,'” Rubin said of Barnes & Noble Education. “We’re going to mock all of the e-commerce capabilities of Fanatics and put it behind the 775 universities to help them have the single-best offering — better technology, beat mobile, broader assortment.”
Shares of Barnes & Noble Education were up 1.7% on Wednesday. The partnership with Fiends was announced before Monday’s open, and the stock is up about 12% this week.