The official holiday peak season got underway with record online Thanksgiving and Black Friday sales. According to Adobe Analytics, consumers spent $6.1 billion online on Thanksgiving Day, up almost 9% compared to last year while Black Friday online shopping reached $10.8 billion.
In another analysis of Black Friday spending, MasterCard said online retail sales rose 14.6% compared to last year, while in-store sales only inched up 0.7%.
Record online sales should bode well for parcel carriers. However, during UPS’ Q3 earnings call, CEO Carol Tome told analysts, “Recently, shippers have tempered their volume expectations. More than 100 of UPS’s top customers, who represent 60% of network volume and 85% of the peak surge, have tightened their forecasts for the holiday season.”
Tome continued, “part of this, we believe, is influenced by the tight, compressed peak period. There are only 17 shipping days between Thanksgiving and Christmas Eve. And what forecasters and some of our customers are saying is, because of the [short] shipping season, many customers will go into a store to complete their holiday purchases.”
Despite the shorter peak period, FedEx expects December 2 to be its single busiest day of the 2024 holiday peak season.
Meanwhile, the USPS is ready for whatever the season may bring. “Thanks to the substantial progress we have made under the Delivering for America plan, we are ready and confident to handle the holiday surge,” said USPS Chief Retail and Delivery Officer and Executive Vice President Dr. Joshua Colin.
Ready or not, retailers and carriers are cautious in their expectations for the holiday peak season. It’s likely to be a short-lived success for some while for others, just another day…
For more:
AP – Retailers coax Black Friday shoppers into stores with big discounts and giveaways
https://apnews.com/article/black-friday-shopping-stores-2678816a0683519071426a991d89fecb
New York Times – With Discounts on Offer, Shoppers Began to Bite
https://www.nytimes.com/2024/11/29/business/black-friday-holiday-shopping.html
What does this mean for you?
If you haven’t started planning for 2025, do so before the 2025 rate increases take effect. Remember, there are various ways to keep your parcel spend at a reasonable amount. A non-biased third-party consultant, such as SLB Performance, can review invoices and help you get up to 20%, if not more, in reduced shipping costs.
Why am I telling you this?
I’m Jay Kent, managing director of SLB Performance, a consulting firm that helps companies, like yours, reduce supply chain costs, implement BI tools, improve in-stocks and customer service. After 25 years of leading some of the most complex supply chains in the industry, I began advising companies like yours in how to mitigate costs and improve efficiencies. I am here to help you better understand the market. So twice a month, I’ll share relevant small parcel and supply chain news.
Let’s talk! An initial consultation with me will cost you nothing. Click here to schedule a call:
https://calendly.com/jaykent/30-minute-touch-base?month=2024-07
Look for the next Jay’s Parcel Notes, a twice a month LinkedIn newsletter for additional news and thoughts: