Peak Bulletin 2024

Peak Bulletin 2024 – Issue 3

Introduction

The festive season is in full swing, and it’s shaping up to be a record-breaking period for both retail and delivery. This week, we’re focusing on two visible trends:

  • The Rise of Social Commerce
  • Delivery Excellence Despite High Volumes and External Challenges

This week’s bulletin provides insights and actionable tips on these trends. From leveraging social commerce to ensuring smooth operations during the busiest shopping weeks, let’s make the most of this pivotal period!

Retail & Consumer Pulse

Powered by:

Retail Economics

Social Commerce: The Key to Capturing Festive Shoppers

The festive season is a prime opportunity for retailers to connect with shoppers seeking gift inspiration, and social commerce is rapidly reshaping how people shop.

Platforms like TikTok and Instagram are now vital tools for engaging tech-savvy consumers who use social media to discover, explore and purchase gifts.

This year the UK social commerce market is forecast to reach almost £7.4 billion in sales, making this festive period a critical time for retailers to embrace this growing trend and align with younger shoppers’ habits.

Fig 1: UK social commerce market to reach £15.7 billion in sales by 2028

Source: Retail Economics, TikTok

The Rise of Social Commerce

  • Engaging Younger Shoppers – Platforms like TikTok are leading the charge, with 68% of UK users under 39 years old spending an average of 2 hours 42 minutes daily on the app. With 44% of younger shoppers actively planning to participate in Black Friday and festive shopping, TikTok offers an unrivalled opportunity to capture their attention.
  • Driving Discovery and Conversions – TikTok has become a discovery engine, with 74% of UK users finding new brands and products through the app. It’s live shopping features enable users to make instant purchases, reducing barriers and turning social browsing into immediate sales.
  • Seamless Shopping Experiences – Social platforms now provide an integrated path to purchase, where consumers can browse, interact, and buy directly within the app. This frictionless experience is essential for capturing sales during the fast-paced festive season.

Fig 2: Preferred channel for product inspiration by age

Source: Retail Economics, TikTok

Social commerce is transforming the way shoppers find and buy gifts during the festive season. Platforms like TikTok and Instagram have become essential spaces for discovery, inspiration, and instant purchasing. By embracing social commerce with captivating content, live events, and seamless shopping experiences, retailers can boost customer engagement over Peak season.

Read the latest from our blog

Delivery Spotlight

Strong Performance Amid Record Volumes

This past week has seen strong parcel volumes across the board, with numbers exceeding customer forecasts as consumers embraced early Black Friday promotions.

Weekend Surge into Cyber Monday

Weekend volumes leading into Cyber Monday were particularly strong, with many retailers reporting an over 50% increase compared to the previous weekend.

Retailers are now transitioning their campaigns from Black Friday banners to Cyber Week sales, continuing to drive volume with heavily discounted promotions. With three weeks of Peak sales still to go, the momentum remains robust.

Carrier Networks Recover and Deliver

Despite localised flooding challenges at the start of last week, carrier networks recovered quickly. Service performance has been outstanding, with no delays reported across the major networks throughout the week and into the weekend.

Positive Outlook Ahead

The outlook for the remainder of Peak is highly positive. Mild weather continues to support smooth operations, reducing potential risks to delivery networks. The focus remains on maintaining exceptional service levels as we progress through this crucial period.

Pro Tips

  • Plan for Unexpected Demand / Maintain Operational Agility – With parcel volumes exceeding forecasts, ensure your stock, resources and fulfilment processes can handle surges. Over-prepare to avoid capacity constraints. With three weeks of Peak left, stay flexible. Be ready to pivot if consumer behaviour shifts unexpectedly.
  • Communicate Delivery Confidence – Highlight the reliability of carrier networks in your customer communications. Reassuring shoppers of on-time delivery builds trust and encourages conversions during this high-pressure season.
  • Optimise for Mild Weather – Take advantage of the favourable conditions to offer extended delivery windows or next-day delivery for late shoppers. This can enhance the customer experience and reduce last-minute pressure.

Join the Conversation

“We’ve developed a great rapport with the team at GFS and have found them to be a real support to the Bodycare team.”

Bodycare

2024-12-02T16:18:40+00:00December 2nd, 2024|
Read More

Peak Bulletin 2024 – Issue 2

Introduction

Black Friday is here, bringing a key opportunity to drive sales momentum ahead of the festive season. With more enthusiasm from consumers to bag sale offers and younger generations leading the way, the focus is on delivering competitive deals and a seamless online experiences — from browsing, to checkout and right up to the doorstep.

This week’s bulletin explores key trends, delivery performance insights, and strategies to capitalise on this pivotal retail event.

Retail & Consumer Pulse

Powered by:

Retail Economics

Younger Shoppers Lead the Way

This year, over two in five consumers (44%) plan to shop during Black Friday, but enthusiasm skews heavily towards younger generations. A striking 68% of shoppers under 30 intend to participate, compared to just 10% of those aged 60 and above. For retailers, this highlights the need to focus on seamless online experiences and competitive pricing strategies to capture the attention of younger audiences.

Q. What proportion of Black Friday shopping do you plan to do online this year?

Source: Retail Economics, n=2000

Key Trends To Watch:

Digital Dominance
Black Friday’s online roots continue to define the event, with 72% of shoppers planning to make most or all of their Black Friday purchases online. This shift underscores the importance of robust digital strategies, from mobile-friendly interfaces to smooth checkout processes.

Rising Median Spend
The median spend this year is expected to hover around £180, with younger shoppers (under-45s) leading the charge and spending just under £200 on average. Retailers should align offers with the preferences of these high-spending demographics to maximise sales.

Flexible Payment Options
Checkout flexibility is crucial for converting sales, with nearly a third (31%) of shoppers planning to use credit cards or buy now, pay later (BNPL) services. Offering diverse payment options can make the difference between a completed purchase and an abandoned cart.

Category Highlights
Despite cautious spending this year, Electricals and Clothing & Footwear are set to dominate shopping lists. Retailers in these categories have a vital opportunity to attract value-conscious buyers with competitive deals and exclusive offers.

Q. What types of products are you interested in purchasing during the Black Friday discounting period?

Source: Retail Economics, n=2000

Black Friday remains a golden opportunity for retailers to boost sales, particularly among younger, digitally savvy shoppers. By tailoring strategies to their habits and expectations, businesses can end the year on a high note, setting the stage for a successful festive season.

Read the latest from our blog

Delivery Spotlight

A Strong Start to Peak 2024

The 2024 Peak season is off to a robust start, with parcel volumes surging by over 20% compared to Week 46. Weekend volumes have consistently grown over the last two weekends, and overall activity remains aligned with forecasts.

A key driver of this growth has been the early rollout of Black Friday promotions by many retailers, resulting in notable volume increases across all major sectors.
Despite Storm Bert bringing snow, severe weather and flooding, the wider network delivery performance remains resilient. While some areas faced significant challenges, carrier partners have maintained excellent service levels, ensuring minimal disruption for customers.

The outlook for the next two weeks is promising, with milder weather expected to support smooth operations and avoid broader delays.

As Black Friday and Cyber Monday hit their stride, significant uplift in volumes is anticipated this week as consumers use November pay packets to secure sales offers, marking a critical moment in the Peak season for retailers and carriers alike.

Pro Tips

  • Maximise Weekend Performance: With parcel volumes already up 20%, ensure your operations are ready to handle the surge. Pro-active communication with carriers and real-time visibility of your delivery network will be key to staying ahead.
  • Collaborate with Carriers / Carrier Partners: Strong performance from carriers has been a bright spot this season. Maintain close coordination to ensure service levels remain high as volumes peak.
  • Be Weather-Ready: Storm Bert showed us the impact of severe weather on deliveries. Stay agile by monitoring weather forecasts and keeping customers informed about potential delays in affected areas.

Join the Conversation

“Partnering with GFS has transformed our logistics. With their multi-carrier sophistication, we’ve introduced weekend deliveries and gained the flexibility to switch carriers effortlessly. GFS simplifies everything with their efficiency through one contact, one relationship, one invoice, and one integration. Plus, they opened up new horizons with smooth international shipping options. Even onboarding just before Black Friday, we sailed through peak deliveries without a hitch. GFS’ reliability and efficiency have been game-changing for us!”

Sophie Kennett, Senior Operations Manager, Mahabis (ECA Footwear 21 Ltd)

2024-11-26T12:55:07+00:00November 26th, 2024|
Read More

Peak Bulletin 2024 – Issue 1

Introduction

Peak season 2023 brought significant challenges for UK retailers. The cost-of-living crisis weakened consumer confidence, while global supply chain disruptions increased costs and delays.

As we dive into the heart of Peak season, cautious optimism is building among consumers despite ongoing economic uncertainty. With festive spending on the rise, retailers face a pivotal opportunity to balance financial pressures with delivering exceptional customer experiences.

This first bulletin explores the evolving dynamics of consumer confidence, and the critical role of delivery in shaping perceptions and strategies to navigate peak challenges with simple things like transparent communication.

gifting

Retail & Consumer Pulse

Powered by:

Retail Economics

Cautious Optimism Among Consumers as Black Friday Approaches

Signs of optimism are emerging among consumers despite ongoing economic uncertainty and a mixed response to the Chancellor’s Budget.

Nearly one in four consumers (24%) plan to increase spending on non-essential items during the golden quarter (October to December), up from 21% in Q3.

Q. Now, thinking about your spending on non-essential items over the next three months, which statement best describes your intentions?

Source: Retail Economics, n=2000

Despite fragile financial confidence — with just under a third (32%) of consumers expecting their finances to weaken compared to 26% anticipating improvement — many are still willing to prioritise festive indulgence.

Concerns around rising mortgage and rent costs, alongside the potential ripple effects of higher taxes on businesses, are top of mind for consumers heading into next year. However, consumers have become adept at balancing financial pressures with carefully planned seasonal spending, turning to savvy shopping strategies.

Retailers will look to capitalise on pent-up demand during events like Black Friday and Cyber Monday, with over a third (36%) of shoppers delaying seasonal purchases in anticipation of discounts.

Categories such as Electricals, Clothing & Footwear, and Health & Beauty are expected to benefit most, emphasising the importance of compelling offers and targeted promotions.

As the season progresses, this cautious yet improving confidence underscores a balance between financial prudence and the desire to celebrate. By focusing on value, quality and meaningful connections, retailers can capitalise on increased willingness to spend and make this peak season a success.

Q. Have you delayed purchasing retail products in anticipation of Black Friday discounts?

Source: Retail Economics, n=2000

Read the latest from our blog

Delivery Spotlight

UK retailers are operating in the third-largest eCommerce market globally, where customer perceptions are heavily influenced by delivery quality.

63% of customers who experience a delivery problem during this high stakes period, take action that directly impacts a retailer’s reputation and bottom line. While 19% decide not to order from the retailer again.

The good news? Consumer preferences are evolving in ways that give retailers more control. Speed of delivery is becoming less important, with fewer customers willing to pay for next-day delivery.

Instead, many consumers prefer:

  • Cost-effective options: Price-conscious shoppers are open to slower delivery if it lowers costs.
  • Precise delivery windows: Customers value certainty over speed, opting for deliveries that fit their schedules.
  • Sustainable choices: Green delivery options resonate, particularly with younger, eco-conscious shoppers.

Pro Tips

  • Present achievable delivery options: Offer a range of realistic delivery dates and prices based on real-time capacity insights.

  • Pro-active updates: Keep customers informed throughout the delivery journey, especially during unexpected delays.

  • Proof of delivery: Use photo and signature capture to provide assurance for high-value items, which are often purchased during peak season.

By aligning delivery promises with operational capacity, businesses can reduce missed deliveries and reinforce customer confidence.

Join the Conversation

Delivery Mistakes
hampers logo

According to Hannah Lia, Operations Director at Hampers.com:

“It’s usually close to the ‘Strictly Come Dancing’ finale when we see people really get into Christmas, and all of a sudden our orders more than double overnight. So for us, it’s all about using clever and creative ways to spread out the demand in December.

We work closely on carrier capacities daily with GFS and our account managers. So if we need to chop and change carriers, we were able to do that with great flexibility because we’ve got multiple carriers.”

2024-11-25T14:17:05+00:00November 19th, 2024|
Read More
7p per minute plus your standard network service charge

  • 9 Piries Place
    Horsham
    RH12 1EH

Sitemap | Terms & Conditions | Privacy Policy | Modern Slavery Statement | Environmental Policy | Cookie Policy
© Global Freight Solutions Ltd | Company No. 04144492 | VAT No. 777 3903 87
Registered Address: Global Freight Solutions Ltd, Irwin Mitchell LLP Riverside East, 2 Millsands, Sheffield, South Yorkshire, S3 8DT
Website design and build by Tweak Marketing

Go to Top