{"id":14382,"date":"2024-12-10T19:57:18","date_gmt":"2024-12-10T19:57:18","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/how-retailers-prepped-their-supply-chains-for-2024s-holiday-crunch\/"},"modified":"2024-12-10T19:57:18","modified_gmt":"2024-12-10T19:57:18","slug":"how-retailers-prepped-their-supply-chains-for-2024s-holiday-crunch","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/how-retailers-prepped-their-supply-chains-for-2024s-holiday-crunch\/","title":{"rendered":"How retailers prepped their supply chains for 2024\u2019s holiday crunch"},"content":{"rendered":"<p> <p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.retaildive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"\"\/><br \/>\n            Listen to the article<br \/>\n            <span class=\"text-to-speech__button__audio-length\">6 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"http:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1733511531\/news\/text_to_speech\/holiday-shopping-peak-season-retail-supply-chains_krrb3d.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have feedback.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p>The holiday season is the most important time of year for retailers. But what happens when the critical stretch between Black Friday and Christmas is five days shorter than usual?<\/p>\n<p><span><span><span><span><span><span>In 2024, the time crunch is expected to push more shoppers to open their wallets earlier, especially online.<\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><strong><span><span> <\/span><\/span><\/strong><\/span><\/span><\/span><span><span><span><span><span><span>During Black Friday alone, <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>online sales rose more than 10%<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> compared with 2023, while Cyber Monday spending <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>jumped more than 7%<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>, per Adobe Analytics.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>But with Black Friday sales now in the rearview mirror, retailers have less time than usual to capitalize on the busy shopping season, causing potential challenges.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Lowe\u2019s EVP and CFO Brandon Sink said the trimmed <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>timeframe could create volatility that impacts holiday demand. Meanwhile, Target expects the shortened period to amount to a nearly one percentage point headwind to its Q4 2024 comparisons, according to CFO Jim Lee<\/span><\/span><\/span><\/span><\/span><\/span>.\u00a0<\/p>\n<p><span><span><span><span><span><span>Others, however, are less concerned by the calendar, given how early consumers now start their holiday shopping.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe&#8217;ve seen over the last handful of years, that holiday shopping season really extending, and that that kind of Black Friday to Christmas timeframe isn&#8217;t quite the kind of landmark that it maybe historically was in the past,\u201d said Jess Dankert, VP of supply chain for the Retail Industry Leaders Association, in an interview with sister publication Supply Chain Dive.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span>Regardless of how worried retailers are about the shorter shopping period, the key to navigating the volatility is planning early. \u00a0<\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>J.C. Penney, for example, began its product and supply chain planning more than a year ago and adjusted its strategy based on trends as the year progressed, SVP of Supply Chain Chad Duennes said in an email.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Gearing up for peak season<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Beyond a shortened stretch between Black Friday and Christmas, retailers have had to navigate other pre-peak season disruptions, including <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>the three-day strike at East and Gulf Coast ports<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> in October. Despite the turbulence,<\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><strong><span><span> <\/span><\/span><\/strong><\/span><\/span><\/span><span><span><span><span><span><span>holiday sales are <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>expected to increase<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> as much as 3.5% year over year in 2024, according to multiple forecasts.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p>For many retailers, the <span><span><span><span><span><span>work stoppage proved to be another exercise in supply chain planning.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe knew for a fact that retailers were, in some cases, all developing contingency plans in the event of a potential strike at that Oct. 1\/Sept. 30 expiration deadline,\u201d Dankert said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Contingency plans varied from company to company. Some opted to pull cargo ahead of the deadline while others diverted shipments to West Coast ports.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Retailers that decided to bring in goods ahead of the strike may have been forced to start selling holiday inventory earlier than usual, effectively lengthening the season, according to Dankert. But an earlier onset of the holiday shopping season can be a strategic benefit by alleviating fulfillment and product replenishment pressure while building on other high-volume periods.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe had a good back-to-school [year]. We had a good Halloween, and it&#8217;s important to string these holidays together so we go into the season with momentum,\u201d said Walmart U.S. President and CEO John Furner on<\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>a Nov. 19 earnings call<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>. \u201cWe&#8217;re excited about that and we think we have a great plan for the season.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The retail giant has been particularly focused on automating its supply chain and <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>expanding its delivery reach<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> ahead of the holiday season. The efforts have helped it <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>consistently cut delivery costs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> this year.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<div class=\"pullquote\">\n<hr\/>\n<div class=\"pq-hr-wrapper\">\n<p class=\"pq-quote\">\u201cWe&#8217;ve seen over the last handful of years, that holiday shopping season really extending, and that that kind of Black Friday to Christmas timeframe isn&#8217;t quite the kind of landmark that it maybe historically was in the past.&#8221;<\/p>\n<div class=\"pq-headshot\"><img decoding=\"async\" alt=\"\" class=\"pq-headshot-img-hidden\" src=\"https:\/\/d12v9rtnomnebu.cloudfront.net\/diveimages\/corporate_site\/teampage\/square_profiles\/placeholder-200.png\"\/><\/div>\n<div class=\"pq-speaker-details\">\n<p class=\"pq-speaker\">Jess Dankert<\/p>\n<p class=\"pq-speaker-title\">VP of supply chain for the Retail Industry Leaders Association<\/p>\n<\/div>\n<\/div>\n<hr\/>\n<\/div>\n<p><span><span><span><span><span><span>Walmart was not alone in experiencing improved sales performance as the holidays approached<strong>. <\/strong>Retail sales grew 6.1%\u00a0year over year in October in the segments covered by Retail Dive per <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>the U.S. Census Bureau<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cOctober\u2019s pickup in retail sales shows a healthy pace of spending as many consumers got an early start on holiday shopping,\u201d National Retail Federation Chief Economist Jack Kleinhenz said in<\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>a Nov. 15 press release<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>. \u201cOctober sales were a good early step forward into the holiday shopping season, which is now fully underway.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Coordinating for the holidays<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>As the holiday shopping season has extended over the years, the ways retailers coordinate their strategies have also shifted, according to Dankert.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<section class=\"storylines-carousel-wrapper hide-small show-large\" id=\"desktop-carousel\"\/>\n<p><span><span><span><span><span><span>\u201cThere&#8217;s really no room for silos within the retailers anymore,\u201d Dankert said. \u201cThere&#8217;s so much more of a collaborative planning approach, particularly as something as high stakes as the holiday shopping season.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Such collaboration means companies are lining up their sales and marketing pushes with inventory and fulfillment timelines.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>For example, retailers like Foot Locker and Macy\u2019s began their holiday marketing campaigns early, while others launched their Black Friday sales in early November.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<div class=\"pullquote\">\n<hr\/>\n<div class=\"pq-hr-wrapper\">\n<p class=\"pq-quote\">\u201cWhile we anticipate earlier shopping this year, there will still be plenty of last-minute shopping, so our investments in modernizing our supply chain will help us offer more efficient and cost-effective ways to fulfill orders and reduce delivery times this holiday season.&#8221;<\/p>\n<div class=\"pq-headshot\"><img decoding=\"async\" alt=\"\" class=\"pq-headshot-img-hidden\" src=\"https:\/\/d12v9rtnomnebu.cloudfront.net\/diveimages\/corporate_site\/teampage\/square_profiles\/placeholder-200.png\"\/><\/div>\n<div class=\"pq-speaker-details\">\n<p class=\"pq-speaker\">Chad Duennes<\/p>\n<p class=\"pq-speaker-title\">SVP of supply chain at J.C. Penney<\/p>\n<\/div>\n<\/div>\n<hr\/>\n<\/div>\n<p><span><span><span><span><span><span>Similarly, J.C. Penney began rolling out its \u201c<\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>Really Big Deals Reveals<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>\u201d marketing strategy in September with advertisements on Amazon Prime Video\u2019s Thursday Night Football broadcasts.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The retailer, which made<\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>AI a major<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><strong><span><span><span><span> <\/span><\/span><\/span><\/span><\/strong><span><span><span><span>pillar<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> of its $1 billion supply chain investment, has developed flexible staffing and AI-enabled shipment models for the holidays as well, Duennes said. The moves have allowed the company to extend customer shipping cutoffs for orders around key holidays and events.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWhile we anticipate earlier shopping this year, there will still be plenty of last-minute shopping, so our investments in modernizing our supply chain will help us offer more efficient and cost-effective ways to fulfill orders and reduce delivery times this holiday season,\u201d <span>Duennes<\/span> said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>J.C. Penney is one of several retailers leveraging new technology as part of its holiday preparation tactics. Companies are also leaning into AI-enabled demanding planning and forecasting to set more effective plans, according to Dankert.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIt&#8217;s much more integrated and much more collaborative and much more enabled by technology,\u201d Dankert said.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Listen to the article 6 min This audio is auto-generated. Please let us know if you have feedback. The holiday season is the most important [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14383,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-14382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/14382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=14382"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/14382\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/14383"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=14382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=14382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=14382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}