Peak season is just about to kick off. Yet there is no doubt that this year will be a year unlike any other. But that isn’t because of the countless great deals on Black Friday or Singles Day. Instead, retailers around the world worry they may feel the pinch of double-digit inflation rates and a looming recession. But how can they prepare for a successful peak season?
Long hours, bad traffic, bad weather, amongst other things. No, that’s not a sum-up of this year’s peak season. According to the New York Times, that is how Black Friday got its name. Their story claims that the Philadelphia police coined the term in 1974. Law enforcement agencies in the City of Brotherly Love referred to November 29, the day before the Army-Navy football game, as Black Friday. After all, it delivered all the above challenges for them. But local retailers immediately recognized the potential of large crowds stuck within the city limits. So, they cut some great deals for by-passers.
The opportunity for a great deal is always a good motivation to encourage shoppers. It proves to be contagious. So, today these opportunities are numerous. From Black Friday to Cyber Monday or Singles Day. The latter is a perfect example that bargain hunting during peak season would turn out to be a global phenomenon. It originated in China, celebrated on November 11 it highlights the double “1”. It is a day for unmarried people to treat themselves to a special gift.
This peak season may be an indicator
Typically, sales soar around the world during peak season. For example , the payment provider Klarna states that online transactions increase on Black Friday by 64% compared with a regular Friday. Singles Day, on the other hand, turned out to be the biggest online shopping event in the world. According to Reuters, the “24-hour shopping frenzy generated a record $38.4 billion in total sales” in 2019. Therefore, retailers prepare to leverage the opportunity to rake in some major profits.
Unsurprisingly, the focus is on e-commerce and sheds a spotlight on logistics, fulfilment, and on-time delivery. TikTok’s” Aquaman” project is just one piece of evidence to demonstrating peak season’s global nature and implications. While consumers will see many tempting deals, businesses face several struggles. This may indicate what the near future holds for retail.
A race for consumers’ money is imminent
The very nature of a discount is that it will diminish the retailer’s profits. But this year’s peak season could trigger a proliferation of discounts. This could lead to a race for customers’ money that lasts until Christmas. Except that, consumer spending could soon noticeably plummet as inflation progresses and the cost of living rises. So, the last thing retailers can afford is a poor customer experience.
How can retailers respond? The pandemic, supply chain disruptions and the never-ending labor shortage are still lingering. Add a potential recession to the mix, and you feel like you’re out of the frying pan and into the fire. Not to mention, that warehouse operations are grappling with their productivity, as a recent survey commissioned by ProGlove found.
Agility is indispensable this peak season
Hence retail businesses will need to invest smartly to safeguard their warehouse and logistics operations. Therefore, agile inventory management, fast fulfillment, and the flexibility to adjust quickly are paramount this peak season. The key is to do more with the same through using the right technology. This calls for easy-to-implement solutions that augment the human workforce, allow for space and layout optimizations, and secure a better customer experience.
These peak-season investments can be economical, though. Yet they can deliver an immediate impact including fewer errors, enhanced worker well-being, and the identification of untapped potentials. These are just some of the benefits that come with technology that enables human-centered productivity.
Are you interested in finding out more? Check out the “Profitability in the Warehouse” report and contact us with any questions you might have!