retail news in context, analysis with attitude

From the Wall Street Journal, a report that "United Parcel Service Inc. imposed shipping restrictions on some large retailers such as Gap Inc. and Nike Inc. this week, an early sign that the pandemic-fueled online shopping season is stretching delivery networks to their limits.

"The delivery giant on Cyber Monday notified drivers across the U.S. to stop picking up packages at six retailers, including L.L. Bean Inc., Hot Topic Inc., Newegg Inc. and Macy’s Inc., according to an internal message viewed by the Wall Street Journal and confirmed by UPS workers in different regions.

"'No exceptions,' the message said."

The Journal also provides some context for the decision:

"The move comes during a holiday season when retailers are increasingly dependent on delivery companies to move online orders, as store traffic has plummeted during the coronavirus pandemic—a dynamic that has shifted power significantly. UPS and rival FedEx Corp. have raised prices and promised to hold merchants to volume agreements.

"The temporary limits, which some drivers say they haven’t seen during previous holiday seasons, are a sign that UPS is metering the flow of packages into its network to preserve its performance during one of the busiest shipping weeks of the year. The National Retail Federation estimated that online shopping jumped 44% over a recent five-day stretch that included Black Friday and Cyber Monday."

KC's View:

An MNB reader made the point - the full email is posted in "Your Views," below - that "this is the first year that I have done all my shopping on-line; I doubt I will ever go back to going to the store to hunt and peck for what I need – no crowds, no fuss, and I can do it completely at my leisure.  Talk about Peace on Earth!"

People will go back to stores, just as they will go back to ballparks and theaters and trade shows.  But it will be up to stores and the people in charge of all those other experiences to make them compelling enough to attract customers and attendees - they can't just expect them to return.  Habits are being created that will not be easily discarded.