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31st Oct 2023
The economic situation in the UK has placed increasing pressure on retailers due to rising costs. This has led consumers to focus more on essentials and less on frivolous spending.
Spending during the festive season is expected to decrease, however it is predicted that a significant number of savvy consumers will seize opportunities to shop on Black Friday. According to the Retail Technology Innovation Hub, UK consumers are set to spend £17.9 billion on online marketplaces this Black Friday and Christmas as they search for the most competitive prices. But what is the impact on retailers and their packaging supply strategy?
While it is anticipated that the festive season won’t be as profitable for retailers compared to previous years, one thing remains constant: the requirement for packaging. Duo’s Commercial Director, Anthony Brimelow, explains how changing behaviours in festive shopping habits have impacted packaging supply chains.
“We work closely with our customers to deliver their packaging in preparation for their busiest time of year, Black Friday. We condense deliveries to reduce the number of vehicles and in turn, reduce traffic to sites during peak times, plus there is the added benefit of a reduction in carbon emissions too.
In response to growing business costs, some retailers have reduced their stock holding of packaging items. In peak trading weeks, this can be a high-risk strategy especially if packaging is imported from overseas. If sales volumes exceed the amount of packaging items in stock, there could be shortfalls creating delays in customers receiving their orders or additional costs for express delivery services.”
Having a robust returns strategy in place and keeping stock of clear re-pack bags can help retailers to quickly process returned items back into the inventory and ready for resale. For more on customer returns and how to streamline them to benefit from increased customer satisfaction, cost savings and sustainability read our next article here.
If you are interested in discussing how we can help enhance your packaging supply chain, please contact the team by emailing enquiries@duo-uk.co.uk or call 0161 203 5767
*Source: Retailtechinnovationhub