RETAILERS URGE SHOPPERS TO BUY EARLY AMID SHIPPING CRUNCH

A number of retailers, including J.C. Penney, Lowe’s and Kohl’s, are telling shoppers they need to place their online orders soon or else pay expedited shipping fees if they want to get their packages delivered in time for the holidays.

The earlier-than-usual deadlines come as more people turn to online shopping during the pandemic, creating a logjam for shipping companies as well as delivery delays. For some retailers, like H&M and Lego, the deadlines have passed.

Jason Goldberg, chief commerce strategy officer at Publicis Communications, part of Publicis Groupe SA, estimates that a majority of retailers have pushed up deadlines by at least a day or two, and about a quarter by at least a week. Meanwhile, behemoths like Walmart, Target and Best Buy haven’t had to make big changes because they’ve already transformed their stores into shipping hubs for online orders. That makes them less dependent on major carriers’ national networks.

“Everyone knows there is going to be a problem 10 days from now, but we just don’t know how big it’s going to be,” said Rob Hahn, chief operating officer at Whitebox, a fulfillment service for retailers. “So everyone is being conservative, and everyone is trying to pull forward that purchase behavior.”

The earlier deadlines could drive more last minute shoppers into physical stores at a time when coronavirus cases are spiking. The U.S. Centers for Disease Control and Prevention says holiday shopping in crowded stores is a “higher risk” activity.

Ken Perkins of RetailMetrics, says he doesn’t expect “a massive crush,” but he believes customer traffic will be heavier than what stores have seen so far during the season. Shoppers will also turn more to curbside pickup in the days before Christmas.