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FedEx Set to Deliver 100 million more packages than it did between Black Friday to Christmas in 2019 Featured

FedEx Set to Deliver 100 million more packages than it did between Black Friday to Christmas in 2019 Bannon Morrissy

FedEx is busy delivering holiday packages to consumers all around the world. While some companies are trying to get back to the pre-pandemic level – FedEx is shattering records. The American multinational conglomerate holding company expects to deliver 100 million more packages than it did between Black Friday to Christmas in 2019.

But how does it compare to 2020? Satish Jindel, CEO of ShipMatrix, a data software that helps retailers, distributors, and manufacturers understand their data is optimistic. Speaking to CNBC, Jindel stated,  “This season looks pretty good compared to last year. The increased number of people shopping in-store, shopping early has reduced the demand” - for delivery all at once.

This year shipping companies are better prepared then they were last year. According to ShipMatrix, the overall amount of shipments will increase by 13% to approximately 3.4 billion packages. Delays will be reduced by 82% or six million packages.

As to why this is – Jindel speculates that the carriers are more prepared than they were this time last year. “This season, the carriers have added capacity. That helps them manage costs, that helps them manage margins.”

Ryan Kelly, vice president of global e-commerce at FedEx believes consumer spending is a bit different then years past. “We’ve seen a lot of people actually starting their Christmas shopping in the month of October, which is fundamentally different than we have seen traditionally in the past,” he said. He presumes this is because of messaging from retail stores encouraging their clients to “shop and ship early.” “A lot of retailers have really leaned into that this year,” he mentioned.

Shoppers are also taking advantage of shopping in-person – a luxury that many couldn’t afford last year during the height of the pandemic. According to Sensormatic Solutions, in-store shopping on Black Friday jumped a staggering 48% from 2020 – although it’s still lagging behind 2019’s Black Friday by 28.3%. “While in-store shopping is still not back to 2019 levels, more shoppers felt comfortable visiting stores in person this Black Friday than in 2020,” said Brian Field, senior director of global retail consulting, Sensormatic Solutions.

The shipping and consumer industry is unsure how the new covid variant omicron will affect the remaining holiday shopping season. Coresight founder and CEO Deborah Weinswig expects the new variant to affect how people shop for the holidays. “We expect BOPIS [buy online, pick up in store] to grow in popularity through the remainder of the holiday shopping season and beyond, as consumers value convenience,” Weinswig said.

While holiday plans may change, analysts aren’t worried. While there’s still time for omicron to throw a wrench into holiday shopping, National Retail Federation CEO Matt Shay is optimistic noting that most people are now fully vaccinated. Therefore, they may feel more comfortable shopping in a store then they were last year. He adds, “We think there’s a reason to be aware, a reason to follow the kinds of protocols we have been following all along about safe practices and getting vaccinated, but there’s not a reason to panic,” he said.

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Danielle Loughnane

Danielle Loughnane earned her B.F.A. in Creative Writing from Emerson College and has been working in the marketing and data science field since 2015. 

https://danielleloughnane.com/

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