The Dark Horse behind this year’s Black Friday Weekend?
An 80” Ultra HD SMART flat screen TV for $800? A Michael Kors handbag for under $100?? Black Friday (and it’s younger sibling, Cyber Monday) is a capitalistic consumer’s candy store…we just can’t get enough! But beyond providing an annual boost to both retail giants and small businesses alike, there is an entire shadow economy that thrives from the Black Friday fallout.
One of the biggest beneficiaries of the feeding frenzy before and after Thanksgiving is the logistics industry. Obviously, vibrant supply chain activity reverberates all the way back to manufacturers weeks before Grandma makes her famous pecan pie. That said, there is an added emphasis on making sure warehouses are full by mid-November. This focus on ample inventory leads to more inbound freight by plane, train, boat, and truck. Each one of these delivery methods employ tens of thousands of pilots, conductors, crew, and drivers. Let us not forget, each of those employees get paid overtime when that extra pallet of Harry Potter Hogwarts LEGOs must be delivered at the eleventh hour!
While surging employment in the logistics industry prior to the big weekend is nothing new, an exciting and overwhelming shift in demand has occurred after the turkey has been carved. With over 164 million shoppers expected to take part in last weekend’s holiday shopping, over 46% of them did so online. Once these online sales have been consecrated, the vast majority will have to be delivered to households across the nation. This is where the more explosive surge in logistics has taken off; “last mile delivery”. The expectation for fast (and free) delivery of online goods has created a huge need for fleets of vans to be disseminated to every corner of the globe. This gap in demand has been quickly filled by large multinational corporations and small family-owned businesses alike.
One thing is for certain, whether the latest and greatest gizmo is on a 4-week voyage across the Pacific Ocean or you just heard the light knock of the Amazon driver at your front door…the shopping season is here and with it comes economic opportunity.
https://nrf.com/media-center/press-releases/nrf-survey-says-more-164-million-consumers-plan-shop-over-five-day