Uncertainty around UPS Is ‘Kryptonite’ to Supply Chains, Rila Warns
Stalled talks between UPS and the International Brotherhood of Teamsters union put supply chains and the entire economy at risk, the Retail Industry Leaders Association warned on July 19. Their five-year contract expires July 31.
Retailers have been setting up alternatives as negotiations have wobbled, but that “won’t shield retailers or consumers from the impact of shutting down a key component in the supply chain as we head full-steam into back-to-school and then holiday shopping seasons,” RILA said in a statement.
Earlier in July labour and logistics experts said a strike by UPS workers is increasingly likely as disagreements around pay and benefits remain roadblocks. The retail industry group urged a “quick resolution” to the impasse.
To read the full article, visit the Retail Drive website.
Back-to-School Spending Is Forecast to Drop 10% As Inflation Bites
Shopping for back-to-school essentials, such as clothes, shoes and electronics, will be a bigger struggle for families this year who are trying to manage their household budgets with less disposable incomes because of inflation. Back-to-school spending by parents with children in grades K-12 is expected to decrease 10% this year over last year to $597 per student, according to a new forecast from Deloitte. The last time Deloitte expected a decline in back-to-school spending was in 2014.
Although US consumer spending has remained strong, even as inflation has taken a bite out of discretionary purchases, the economy is starting to show cracks. Retailers, including Target and Home Depot, have reduced their profit and sales outlooks in recent months as Americans start to hold back on their discretionary purchases.
The report said spending on clothing is expected to fall 14% year-over-year and technology-related purchases are forecast to decline 13%. In contrast, purchases of school supplies are expected to be up 20% compared to last year.
To read the full article, visit the CNN website.
Back-to-School Spending to Hit Record Highs
Back-to-school and back-to-college spending are expected to reach record high levels this year, according to an annual survey released by the National Retail Federation and Prosper Insights & Analytics. Spending for K-12 is expected to reach $41.5 billion, up from $36.9 billion in 2022, while spending for college students is expected to reach $94 billion, up $20 billion.
Spending on retail electronics is expected to drive the uptick. The report says 69% of back-to-school shoppers plan to buy electronics or other computer-related accessories. Families with kids in grades K-12 plan to spend an average of $890.07 on back-to-school shopping, while college students and their families expect to spend $1,366.95 per person.
To read the full article, visit the Retail Dive website.
Prime Day Helped Push Us E-commerce More than 6% To $12.7B
Prime Day, open only to Prime members, has paved the way for summer sales across retail. Here are the highlights:
- Amazon that July 11, the first day of its Prime Day sale, was the single largest sales day in its history. The e-commerce giant didn’t provide revenue numbers for the two-day event, but said Prime Day shoppers saved more than $2.5 billion worldwide, surpassing previous Prime Days.
- It was a record event for U.S. e-commerce in general. Along with competing sales at other retailers, Prime Day 2023 helped push U.S. e-commerce up 6% year over year on July 11, and 6.4% on July 12, according to Adobe Analytics. Across both days, U.S. online sales rose 6.1% to $12.7 billon, Adobe found.
- More than half of Prime Day shoppers said they purchased items they’d been holding off on buying until they were on sale, according to research from Numerator. Many stocked up on everyday essentials rather than buying larger ticket items, according to Numerator Analyst Amanda Schoenbauer.
To read the full article, visit the Retail Dive website.
