Future of Retail Outlook: Insights Gleaned from Holiday Delivery Practices

In the bustling world of retail and delivery services, 2019 saw significant shifts and partnerships that reshaped the landscape.

One of the most notable trends was the increasing adoption of Buy Online Pickup In-Store (BOPIS) services. About half of U.S. consumers who use BOPIS have picked up goods from Walmart in the past year, while approximately 34% have done so with a Target location. Target CEO Brian Cornell revealed that the retailer's costs drop 90% when customers utilize BOPIS services.

FedEx, a key player in the delivery industry, made strategic moves this year. They ended their contracts with Amazon and partnered with Dollar General to offer in-store package pickup and dropoff at 8,000 Dollar General locations. This partnership increased FedEx's retail presence to about 62,000 stores in the United States, as FedEx Office opened its 2000th retail location. However, FedEx hasn't released a total expected holiday parcel delivery estimate for 2019.

UPS, another major delivery service, announced that it would hire 100,000 workers for its peak season, with plans to expand UPS Access locations to 20,000 by the end of 2020, having already added more than 5,800 locations via collaborations with Michael's stores, Advance Auto Parts, and CVS Pharmacy.

The United States Postal Service forecasted that it would deliver 800 million packages between Thanksgiving and New Year's Day. Notably, Cyber Monday was the biggest shopping day on record in the United States with $7.9 billion in sales, while the total online sales for Black Friday were $7.4 billion.

Retailers were not immune to the challenges of 2019. Research from accounting and consulting firm BDO revealed that retail bankruptcy filings accelerated in 2019 compared to last year, with about 7,300 stores closed as of fall 2019, more than in any other full year on record.

In a positive note, one significant partnership in 2019 involved Mastercard collaborating with TransferGo to enable international money transfers via Mastercard payment cards, facilitating fast and convenient transactions.

Delivery services were not spared from the issue of package theft. Approximately 1.5 million packages are delivered daily in New York City, with over 90,000 packages reported stolen each day.

Amazon, in response to the seasonal demand, hired 200,000 workers to help with peak season roles across fulfillment, sortation, and delivery functions.

A survey revealed that 93% of consumers who pick up purchases in store this holiday season will do so to save time and money. As the holiday season approaches, these trends are expected to continue shaping the retail and delivery landscape in the United States.