Hello, it’s IINO.
I would like to broadcast IINO san’s Logistics Radio today.
Today’s theme is about the logistics disruption due to Christmas sales in North America.
On article in the logistics section of the Wall Street Journal, there was the headline, “Christmas is coming early this year”. It is the story from Radial, an American e-commerce logistics company, that mainly does warehouse work.
About the U.S. Christmas shopping season
First of all, I would like to explain about the Christmas shopping season in the U.S.
“Schedule of the Christmas shopping season in the U.S.”
Thanks Giving Day: Fourth Thursday in November (holiday)
Christmas shopping sales in North America : From Black Friday to Christmas
Black Friday Sale
There is a holiday called Thanks Giving Day on the fourth Thursday of November every year. The next day is called Black Friday, and there is the biggest sale in the U.S.
There is special sale, such as large TV at very low prices. The month from Black Friday to Christmas is the sales period and the Christmas shopping season in the U.S.
Black Friday in 2021
But this year’s Black Friday is a little different. Wal-Mart, the largest retailer in the U.S., will hold three Black Friday sales in November.
The reason is that the Delta variant of Corona is spreading in the U.S. this year and they need to take precautions against infection to prevent the spread of the disease since consumers are getting too close together in the store.
The reason for the increase in cargo to North America revealed
Here we found out why there has been such an increase in cargo bound for the U.S.
The economy is recovering in the U.S. due to the Biden administration handing out benefits to the people. In addition to that, the sellers have been extending the sale period to stimulate the market.
If the sale period is long like this, the retailers have to keep stock. That’s why the transportation volume was increasing.
Difficult to predict how consumers will buy
Returning to the topic of warehouse logistics in the U.S., it is said that it is difficult to predict the Christmas shopping season this year. It is because that it is harder to see where consumers will spend their money than in previous years.
Will they buy in a store or online? Or there can be “Mix”.
Mix means: (1) buy online and pick up at the store, and (2) try on at the store and buy online, etc.
Difficult to adjust inventory
The problem with this is that it is difficult to determine where to put inventory. Whether it will be sold in stores or online is a problem for eCommerce and warehouse companies.
Consumption may speed up
In addition, consumers may buy earlier because they fear that the products they are looking for may be out of stock because the situation is different from previous years. In that sense, the logistics people are saying that Christmas is coming early this year.
Difficult to secure warehouse workers
And from a warehouse operator’s point of view, it will be difficult to secure seasonal warehouse workers. It may be difficult to gather them due to the influence of Corona. On the other hand, companies may need to raise wages as they compete to secure workers each other due to the growing demand.
Summary
I realized with this news that the flow of logistics is linked to the flow of the market economy, which is really interesting.
If we can understand the flow of the market economy, we can not only predict the future flow of logistics, but we can also verify the information like this time. I would like to keep you updated with market information as it becomes available.
