• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Last Mile Delivery » Black Friday Plus Covid Add Up to Crunch Time for Retailers

Black Friday Plus Covid Add Up to Crunch Time for Retailers

Holiday Shopping Season
November 17, 2020
Bloomberg

The formula for retailers on Black Friday is usually pretty simple: Cut prices, stock shelves, prepare for crowds and make sure orders arrive on time. This year — like everything in 2020 — it’s anything but.

America’s biggest apparel retailers and department stores are anxious ahead of the crucial holiday period. That’s because all the new tools they’ve hastily rolled out and scaled up amid the global pandemic, like in-store and curbside pickup and direct shipping from stores, haven’t really been battle-tested. So if they fail, an already disastrous year could get that much worse.

“These companies are used to somewhat regular patterns,” said David Silverman, a retail analyst at Fitch Ratings Inc. “All of that has gone out of the window.”

Companies have laid out how they’re getting ready: Kohl’s Corp. Chief Executive Officer Michelle Gass, for example, said she’s pushing shoppers to retrieve their online purchases at stores, instead of getting them shipped to their homes. This would relieve the company’s distribution centers. Old Navy CEO Nancy Green, meanwhile, said the budget apparel chain is shipping more products directly from stores to customers’ homes.

But it’s clear that this year is different. Levi Strauss & Co. CEO Chip Bergh has said he’s concerned enough about the potential crunch around the holidays that he may move the guaranteed ship-by date earlier than usual. That means the window of time around the holidays in which shipping times aren’t guaranteed, due to the high volume of orders, would start earlier this year.

Cause for Concern

Data show companies have cause for concern. More than half of U.S. shoppers said they wouldn’t buy from a store again if they were unsatisfied with the delivery experience, according to a September survey from Accenture. Online sales are expected to spike 33% to $189 billion, testing the limits of fulfillment networks across the U.S., according to Adobe Analytics.

Shares of Amazon.com Inc. and essential retailers like Target Corp. and Walmart Inc. have gained this year, while department stores and many apparel chains have slumped amid declining sales. Many of these non-essential retailers closed down during the lockdown earlier in 2020 and used that time to refine their e-commerce operations with an eye on the holiday season.

But Fitch’s Silverman said he’s concerned that new programs adopted by retailers may not be precise enough for them to accurately report inventory and limit delays and snags, which could potentially impact sales.

Additionally, consumer habits are changing dramatically during the pandemic, and many industry observers say that shifts toward e-commerce and socially distanced shopping methods could be permanent. So if shoppers don’t have a good experience, retailers risk losing them for good.

Department stores in particular want to keep shoppers happy. It’s been one of the worst performing areas in retail, and Macy’s Inc. and Kohl’s — both of which report earnings this week — have shed more than $7 billion in market value this year. The mandatory lockdowns erased millions in sales earlier this year.

Big-box stores Walmart and Target, which have benefitted from pantry loading this year, also report quarterly results this week. The latest round of disclosures is expected to shed light on how retailers are handling shipping and higher demand in the final weeks of 2020.

Companies should be ready for a flood of shoppers picking up orders, both inside stores and outside in the parking lot. Analysts at Adobe Analytics expect pickup lines to lengthen as Christmas approaches and usage of pickup options to spike 40% compared to last year, surpassing standard mail shipping as the most popular buying option.

At the same time, higher levels of e-commerce will strain traditional carriers like FedEx Corp. and United Parcel Service Inc., which retailers fear may limit shipping capacity from stores as orders ramp up. Both companies are preparing for elevated demand at the end of the year amid a rise in e-commerce.

Roadie, a crowd-sourced last-mile delivery platform that works with companies like Walmart, Home Depot Inc. and Tractor Supply Co., has been getting more calls from retailers asking for help to fulfill same-day orders. It now works with an additional 5,000 store locations — up more than 250% since the start of the pandemic.

“You will see a pretty large clog in the system once you get past Thanksgiving,” CEO Marc Gorlin said. “The burden is on retailers.”

    RELATED CONTENT

    RELATED VIDEOS

    Last Mile Delivery Logistics Transportation & Distribution E-Commerce/Omni-Channel Retail
    • Related Articles

      Black Friday Backlog: Canada’s Postal Strikes Near ‘Crisis Territory’ for Retailers

      It's Crunch Time for World’s Supply Chains to Deliver Masks and Meat

      Beyond Black Friday: New Challenges for Holiday Retailers

    • Related Directories

      Tecsys, Inc.

      ProcureAbility

      GLS US

    Bloomberg

    Panama Canal Traffic Jam Spurs $4M Line-Jumping Payment

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • An overhead view of a port, with stacks of containers and vehicles moving through rows

      Podcast | AI in Supply Chain Planning: Impact, Promise and Limits

      Artificial Intelligence
    • A BLUE CROSSOVER AUTOMOBILE SITS ON A GREY SHOWROOM FLOOR

      Toyota Commits to Making Cars in Canada as U.S. Rivals Downsize

      Global Supply Chain Management
    • A cartoon illustration of a man sitting at a desk in front of a laptop, surrounded by five faceless humanoid robots

      The Productivity Story Everyone is Missing

      Technology
    • A row of semi-truck cabs, with a red truck in the foreground, parked next to four white trucks, two more red ones, and three blue ones

      USDOT Announces $200M in Funding for Commercial Truck Parking

      Logistics
    • Planet earth from space showing realistic earth surface and world map as in outer space point of view

      Beyond Traditional Trade Agreements: A Proposal for Creating ‘Rules of Resilience’

      Global Supply Chain Management

    Digital Edition

    Scb q3 26 cover

    100 Great Supply Chain Partners 2026: The Secret to Supply Chain Success

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Amazon Freight Anaplan
    Arkieva AutoStore Blue Yonder
    Canadian National Railway Company Carton Cloud CoEnterprise
    Dassault Descartes Dexory
    Duravant E2Open EPG
    General Logistics Systems GEP Hy-Tek
    iGPS Knapp Korber
    Lyngsoe Odyssey Logistics OMP
    PeakAI Procurability Quinyx
    SAP Sikick Staples
    S&P Global Mobility Systech TADA
    Tive TransImpact US Bank
    Werner WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing