August is the time that many school districts across the US go back to school. Besides many parents being glad to return to the school routine, retailers also look forward to this time of year. Why? Because of back to school sales.
The National Retail Federation (NRF) reports in their most recent annual survey that the back to school season is the 2nd biggest consumer spending time for both online and brick-and-mortar storefront retailers. Back to school spending has increased by 55% over the past 10 years to an estimated spend in 2016 of $75.8 billion. Average spending per household is $674, with 46% of shopping done online and the rest in discount, clothing and office supply stores.
In comparison, Deloitte’s Back to School Survey 2016 says the average spend per shopper will be $488, with in-store shopping dominating online sales for traditional school supplies and apparel.
While the two surveys disagree about which channel will dominate back to school purchases, it is clear that retailers need to make sure their order fulfillment systems are geared up to deal with both online and in-store purchasing. Deloitte tells us that over 60% will research online before purchasing products in the store and that the preferred channel varies enormously depending on whether parents are buying school supplies, apparel or computers and hardware. Fortunately for retailers, only 10% expect same-day delivery but savvy shoppers are planning to take advantage of free shipping, in-store pick-up and free tax holidays (in some areas).
Like many events during the year, the pressure piles up on retailers when it comes to order fulfillment for peak periods. Retailers offering same-day or next-day deliveries need to make sure they can fulfill orders for the back to school deadline to get full marks with parents and students alike.
Order fulfillment obviously covers delivery to home, delivery to stores for pick-up or delivery to click & collect locations. Regardless of the fulfillment method, smart retailers need automated routing and scheduling systems that optimize routes for lowest transportation spend and to make sure orders arrive on time and in the right location. Getting it right removes the pressure on internal teams and ensures that customers have a positive brand experience.
Click here to find out how Paragon’s order fulfillment systems can help retailers balance customer convenience and cost-efficient transport costs. Or alternatively Why not get in touch with our local team to talk through your fulfillment operation.
