Major retailers are gearing up for the busy holiday shopping season.
The number of seasonal employees hired for online orders and in-store help has decreased compared to the previous year.
Amazon continues to hire with a steady plan
Amazon has announced that it will hire the same number of full-time employees as last year, including seasonal and part-time workers.
The hiring trends of other large retailers, such as Bath & Body Works or Target, are similar. Both companies have a seasonal staffing level that is approximately 100,000.
Target is also offering its current employees additional work hours during the holiday season.
Some reduce holiday workers
Some retailers are reducing their holiday hiring. Macy’s for example, has revealed that it plans to hire over 31,500 seasonal jobs across all of its brands, down from 38,000 last year.
Kohl’s, Walmart and other retailers have not released specific numbers of new hires. Walmart has instead opted to use its current workforce during busy periods.
The cautious attitude this year is a response to concerns about a cooling US employment market.
The Bureau of Labor Statistics reports that job openings are down since March 2022, when they peaked at 12,2 millions.
Companies are not scrambling as much to fill vacant positions in recent years due to the stabilization of demand following the pandemic.
Sales expected to increase over the holidays, but inflation is a concern
Retailers remain confident about the consumer demand for the holiday shopping season, despite the cautious outlook on hiring.
Deloitte predicts that US retail sales will increase between November and the end of January by 2.3% to 3.3%, bringing total sales to $1.59 trillion.
According to a recent report by AP, EY-Parthenon also predicts a 3% increase in sales for the period November-December.
They warn, however, that the inflation may account for a large part of this growth. Real volume sales are expected to increase by only 0.5% on an annual basis.
Adobe projects that online sales will grow by 8.4% to a new record of $240.8 Billion.
The trend is a reflection of the changing consumer behaviour, as more people are choosing to shop online instead of in-store.
Recruitment and hiring events ramp up
Retailers continue to actively recruit through national hiring events.
Macy’s, JCPenney and other retailers conduct on-the spot interviews in order to fill vacant positions quickly.
Macy’s already held its first event, and plans to host three more over the next few weeks. JCPenney is aiming for 10,000 seasonal employees, which will be in line with numbers from last year.
UPS has also announced plans to hire an additional 125,000 seasonal workers, up from the 100,000 hired the year before.
Radial, a logistics company that specializes in e-commerce, has adopted a flexible approach to hiring, adjusting its staff based on the real-time demands of customers, so as not overcommit.
Holiday spending could be affected by economic pressures
Consumers are feeling the strain of an economic downturn, despite retailers’ optimism about the holidays.
Many shoppers will approach this season cautiously due to the increasing credit card debt rates and declining savings rates.
Retailers are already noticing that consumers tend to gravitate towards the store brand and look for bargains, which could influence spending patterns in months to come.
The possibility of rising prices as a result of ongoing disruptions in the labor market further complicates the situation.
The strike of port workers has shut down dockyards on the US East Coast and Gulf Coast.
If the strike continues, there could be significant delays in shipments and higher prices for goods as shoppers prepare to start their holiday shopping.
The holiday season is still a critical period for retail, despite the uncertainty in the economy and labor market.
The companies are planning to hire cautiously while keeping in mind inflationary pressures, and possible supply chain disruptions.
The retail industry’s success in the fourth quarter will depend on how consumers react to these issues.
As new information becomes available, this post may change.
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