Retailers Expect Middle-Market Demand This Holiday Season
U.S. retailers are gearing up for a cautious but steady holiday season, focusing on mid-range price items, according to a CNBC Supply Chain Survey. The survey indicates that consumers are looking for deals and discounts, with nearly 80% of current freight orders for mid-range items.
Retailers are prepping for back-to-school and holiday shopping by placing orders earlier. Import volumes for the holidays are expected to be slightly higher than last year. While consumers are still spending, they are more value-driven, avoiding impulse buys and seeking the best prices.
Retail logistics expert Noah Hoffman notes that shoppers are being more selective, which affects orders for promotional items. Despite some optimism, there's concern about a potential consumer pullback later in the year.
Additionally, a potential strike at East Coast and Gulf ports could disrupt the supply chain, pushing more freight to the West Coast. This shift may cause congestion at key terminals.
For logistics professionals, staying adaptable and prepared for these changes is crucial to ensure smooth operations during peak season.
Why This Matters
Understanding consumer behavior helps the transportation and logistics industry anticipate demand and plan accordingly. Retailers’ focus on mid-range items and potential supply chain disruptions highlight the need for flexibility and proactive planning.
Hot Take
Retailers are playing it safe this holiday season with a focus on mid-range items. Logistics pros need to stay nimble and ready for any disruptions, especially with potential port strikes and shifting freight volumes.
U.S. retailers are gearing up for a cautious but steady holiday season, focusing on mid-range price items, according to a CNBC Supply Chain Survey.