I have already seen projections, predictions, and political oriented statements about Holiday 2018 for both online and in-store sales for the U.S.
My view of these statements is:
My approach is very different. I have spoken to many C-level executives, based on these conversations below are my top 10 Ah-Ha’s for Holiday 2018:
1. The economy, consumer confidence, unemployment, stock market, corporate profits, and virtually all macro factors are all very positive and all signs point to an awesome Holiday 2018.
2. The early Thanksgiving and Chanukah, early start to Black Friday sales will stretch the selling season and require retailers to do a better job of promotion planning for their unified store and online (Unichannel) execution.
3. Major inventory problems will occur throughout Holiday 2018. Stories of inventory shortages by channel, location, and availability will be frequent, as will major mark downs starting around mid-December. Companies will grasp the need for advanced tools to forecast merchandise volumes and for allocating the inventory based on a smart flow of inventory through a distributed inventory ecosystem. The impact of poor inventory planning will be a huge revelation for Holiday 2018.
4. Attempts to guess the level of promotions are totally crazy, as are attempts to guess the impact of weather (to include Hurricane Florence and Hurricane Matthew), or the mid-term elections on Holiday 2018. These factors are only used by firms making excuses for doing a poor job.
5. The supply chain will continue to grow in importance both from a customer experience perspective and from a revenue growth perspective. A slow delivery promise for online orders will be an important reason for missing projections. Problems in meeting holiday shipping promises will be a major topic of discussion.
6. The analysis of shopper demographics is for the most part a waste of time. The facts are that both men and women, old and young, like the excitement of shopping in-store and the convenience of online. It is very clear that Unichannel is the key. The only sure solution is to have great in-store experiences and great online convenience, supported by a unified high-performance supply chain.
7. Giving customers choices is a big deal (buy online pickup in store, buy in-store, deliver to home, buy online, same day delivery, next day delivery, two-day delivery, three-day delivery, etc.) along with free shipping and returns.
8. Labor shortages and robotic solutions will be in the news. As companies try to hire over one million temporary holiday workers to staff their stores, their fulfillment centers, and their delivery drivers, they will find a shortage of qualified applicants. The cost of temporary workers will continue to rise, and more and more companies will wish they had entertained robotic solutions and/or automated distributed logistics solutions like MonarchFx.
9. Fulfillment center capacity offering automated picking, packing, and shipping is in short supply. These shortages are forcing many online retailers to utilize inadequate high cost manual operations, providing low customer satisfaction. This challenge is further exasperated by retailers and wholesalers being asked to do store replenishment in “Each” quantities as opposed to “Cases”. With the huge growth of online shopping there simply is not enough capacity to handle the volume.
10. I believe retail sales for Holiday 2018, excluding automobiles, gas, and restaurants, will be up by 6%. This is considerably higher than what most are forecasting, but we see it in-line with the economy, year-to-date, and consumer confidence. I disagree with the estimates being put forth by the National Retail Federation but see their 4.3% to 4.8% forecast consistent with their under promise and over deliver perspective. I also believe eCommerce for Holiday 2018 will grow by 25% over eCommerce 2017. Therefore, what I find most interesting is 66% of this year’s growth is due to online growth and only 34% of the growth came from in-store. My overall growth retail forecast for 2018, consists of a 25% growth in online sales and only a 2% growth in-store, continuing the trend we have seen over the last five years.
Hopefully you are forewarned on the above and have a very happy holiday season.
In response to COVID-19 and limiting travel, Tompkins Robotics is now offering interactive virtual tours using a variety of stationary and roaming cameras throughout the facility. We have the capability to demonstrate five t-Sort systems with various configurations, robots and functionalities. The main demonstration system includes three different induction types: manual, robotic and A-frame. Our systems are capable of e-commerce order fulfillment, store replenishment, backroom and parcel / postal sortation. We can demonstrate the original t-Sort robotic system in multiple dual level configurations and an elevator system to move robots between the levels. Our larger t-Sort Plus robots run on single level systems with both tilt tray and crossbelt options. In the very near future we will demonstrate the new t-Sort Mini in an additional system. We have a wide variety of inventory to demonstrate products including general merchandise, apparel, grocery, fragile goods, odd sizes and shapes and a wide range of product weights. You will also have a chance to learn about the technologies that are integrated into our system such as automated induction, automated charging, integrated weight and dimension capture, our proprietary wireless network and Warehouse Execution System (WES), new innovations such as our automated sorter exit solution and more. And if mobility and flexibility are important to you, we can demonstrate how easy it is to reconfigure a system, remove or add a sort table, and even fold a table into a smaller footprint for move or transport.