As a growing number of consumers are skipping the crowded malls this holiday season, many of them are turning to the Internet to purchase Christmas gifts for friends, family members, colleagues and mailmen. E-commerce and shipping have become the major topics of the holiday shopping season as many stores are offering free shipping, while delivery companies are trying to keep up with demand.
Target entering the foray
In order to compete with online retailers like Amazon, Target announced Wednesday that it will begin to offer free holiday shipping on all items for the very first time in the company’s history. The retailer stated that the free shipping promotion will begin Wednesday and last until Dec. 20.
Many say this is quite an early move for any retailer especially considering there is still a month until Thanksgiving. However, experts purport this is a sign that retailers are willing to do whatever it takes to attain consumers in the ultra competitive Christmas season, a time when it accounts for one-fifth of the year’s total sales.
“We know shipping costs play a big role in online purchasing decisions. We believe our free shipping offer will create excitement and incremental sales for Target,” said Kathee Tesija, Target’s executive vice president and chief merchandising officer, in a statement.
The promotion comes as the company recently introduced free shipping for customers spending at least $50 on its website. Both initiatives are part of an attempt to bring consumers back who have been victims of security breaches.
FedEx forecasts big holiday
As more retailers head online for enticing offers and consumers take the bait, delivery companies could be squeezed. FedEx released its forecast Wednesday and it expects a record holiday season with an estimated 22.6 million shipments for its predicted peak day on Dec. 15.
Between Black Friday and and Christmas Eve, the package delivery company noted it could move approximately 290 million packages. In order to accommodate this growth, FedEx plans to hire 50,000 seasonal workers, up from last year’s 40,000.
“We’re very proud of our performance last year when we faced the most challenging weather in our company’s history,” said Patrick Fitzgerald, vice president of integrated marketing and communications at FedEx, in a statement. “We have worked in a very collaborative way with our retail partners to see what their needs are going to be and we stand ready to deliver.”
FedEx has also expanded its technology systems, including Radar, a FedEx reporting system allowing the company to monitor each shipment arriving into the depot.
