Transport and shipping specialist LTS Global said it predicted a significant jump in warehouse demand ahead of the festive season and that it was detecting confidence among retail customers.
It said 2024’s Christmas sales were lacklustre after a strong Black Friday, but that retailers were entering this year’s peak period with a different mindset, particularly regarding stock management.
Black Friday and the run-up to Christmas – often referred to as the Golden Quarter – are seen as vital for retailers, with the period accounting for a significant share of annual sales.
Dave Hands, LTS Global MD, projected a 30% spike in warehousing demand: “There is certainly a quiet confidence among our retail customers as they gear up for the festive season that this year’s sales performance over peak will surpass last year’s numbers, despite consumer spending confidence remaining somewhat dubious, especially as the budget will be announced in late November,” he said.
“From working with our retail customers closely over the summer we’re projecting that storage requirements will increase by a sizeable percentage which wasn’t necessarily the case last year, this is a positive sign for both the retail market as a whole and the warehousing sector, which have both limped through recent peak seasons under the weight of external challenges.”
Hands added that as well as retailers ensuring they had enough stock to meet demand but not too much that they were left with excess post-season inventory, it was also observing other variables within the market:
“For instance, more businesses across retail are stretching out seasonal promotions over a longer period to give consumers more time to shop and spread out their spending which is driving a more sustained demand curve and in turn, another facet potentially contributing to the capacity spike we’re seeing in warehousing in this quarter,” he explained.
