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Ecommerce is accelerating the increase in peak season retail sales, but with it comes new challenges and a greater demand for innovation
E-commerce is accelerating the rise in peak season retail sales, but it also brings new challenges and a growing need for innovation.
This time of year has always been crucial for UK retailers and industrial businesses, with the final quarter of the year typically bringing a surge in sales. Known as "peak season," this period can account for a large portion of annual revenue. As a result, companies are now starting their preparations earlier than ever before. A major driver behind this shift is the move from traditional high street shopping to online platforms. Recent trends, such as Black Friday and other retail events, have further encouraged consumers to shop online, especially during the holiday season.
In 2015, e-commerce saw a significant boost during the fourth quarter (September-December), with online retail accounting for nearly a quarter of all retail spending. This trend is expected to continue, with forecasts suggesting an 11% increase in Christmas sales in 2016, according to the IMRG Capgemini Retail Sales Index. Mobile devices have played a key role in this growth, with 31.6% of Christmas spending in the UK made through smartphones and tablets—amounting to £5.87 billion.
The way people shop online has evolved over the years, with key dates like Cyber Monday, Black Friday, and Peak Packaging Monday becoming central to the retail calendar. These events drive increased demand and put pressure on logistics and supply chains. Businesses must now plan even further ahead to manage inventory, delivery, and operational capacity effectively.
Black Friday 2015 was a record-breaking day for online retail in the UK, with Amazon selling 7.4 million items in a single day. E-commerce sales grew by 15.1%, making up 24.6% of total spending that day. Cyber Monday also delivered impressive results, with UK e-commerce sales rising by 34% compared to the previous year, reaching £968 million. Online traffic spiked by 60% compared to a typical day, causing technical issues for many well-known brands due to the overwhelming number of visitors.
Peak Packaging Monday, which occurs one week before Cyber Monday, is a critical date for B2B packaging and freight companies. Kite Packaging reported a notable increase in orders and order values during November, while a major corrugated manufacturer saw a 20% rise in Q4 revenues. During the 2015 holiday season, the volume of parcels surged, creating logistical challenges for third-party logistics providers and many retailers struggling to meet customer demands.
Royal Mail also experienced a massive increase in parcel deliveries during the fourth quarter. To handle the surge, they added 6,800 extra vehicles, employed 19,000 temporary workers, and opened 10 new parcel centers. However, relying on the same packaging and couriers during peak times often leads to delays, damaged goods, and excessive waste.
To avoid these issues, businesses need to plan early and seek expert advice from packaging specialists like Kite Packaging. Choosing the right packaging and courier services is essential to maintaining service quality and protecting brand reputation. Some of the largest courier companies have faced criticism for poor performance, highlighting the importance of careful selection.
As Black Friday, Cyber Monday, and Peak Packaging Monday approach, distributors and suppliers are preparing for another busy season. National carriers are expecting a 40% increase in delivery demand, with some seeing up to an 80% spike during the busiest weeks. Being prepared early is vital for all stakeholders involved.
For more information about Kite Packaging, visit www.kitepackaging.co.uk or call 02476 420065.