Turning the 2024 Holiday Rush into 2025 Readiness

Broken Records and the Challenges Ahead

On Cyber Monday alone, U.S. consumers spent a staggering $13.2 billion online, a 6.1% increase from the previous year. Black Friday followed suit, with online sales reaching $10.8 billion. Overall, holiday spending grew by 2.5% - 3.5%, demonstrating robust consumer activity despite economic pressures (Hadero & Grantham-Philips, 2024). These successes, however, came with certain complexities for planning. Companies like Amazon, Target, and UPS adopted cautious yet strategic approaches to seasonal hiring based on the dynamics of the business. Amazon maintained its 250,000 seasonal workers from last year, while UPS expanded its seasonal workforce to 125,000, up from 100,000 in 2023 (Logistics operators ). Meanwhile, shifts in employment patterns, such as an 11,000-job decline in warehousing and storage employment in September 2024, highlighted the sector's ongoing volatility, which impacted peak season hiring needs (Current employment statistics). Rate fluctuations and capacity constraints added further complexity, compelling companies to embrace flexible, responsive labor strategies. Now, as businesses transition from the chaos of peak season to the calm of regular operations, the focus shifts to maintaining momentum, improving processes, and preparing for 2025’s peak season—a task that (we hope you’re sitting down) should start now.

Preparing for the Next Peak: Start in January

Every peak season is a learning opportunity. By analyzing 2024’s performance, businesses can identify gaps and strengths—to build a more robust foundation for the future. This year’s record-breaking numbers reinforce the importance of adapting to evolving consumer behaviors and refining operational strategies. Preparation for the next peak season begins with actionable insights and proactive planning.

How Can You Transition from Frenzy to Focus?

Pivoting smoothly from the hustle of peak season to regular operations requires intentional planning. Here are some actionable steps to ensure a seamless transition while also setting the stage for future success:

1. Review Performance Data: Analyze metrics that compare the 2023 peak season to the 2024 peak season. Use this data to forecast trends and demand, stock inventory efficiently, and identify areas for improvement. Also, gather input from employees and customers. Their perspectives can provide valuable insights into what worked and what didn’t. This feedback, coming from those closest to the process, can also help you prepare better for next year. 
2. Maintain Customer Experience: Gradually reduce temporary labor to ensure fulfillment speeds and communication standards remain consistent. Customer loyalty hinges on maintaining service levels, even post-peak.
3. Plan for Scalability in Your Tech and Automation: Confirm that your tech infrastructure is ready to scale. For instance, implementing an automated bagger system can take up to eight months from analysis to integration, so planning must start early. In addition, cross-training your workforce will equip your remaining team to handle multiple roles effectively, providing operational flexibility for future growth.
4. Adjust Operations Strategically: Scale back operations gradually to avoid bottlenecks. Be prepared for potential post-peak demand spikes as people recoup spending money and cash in on holiday gift cards.
5. Evaluate Inventory Levels: Assess current inventory and consumption rates to refine future planning. Understanding how fast or slow inventory moves in January can offer critical insights.
6. Celebrate Your Wins: Often forgotten! Peak season is a marathon, not a sprint. Take a moment to pat yourself on the back, recognize your team’s hard work, and celebrate the successes. You deserve it!

Building on 2024’s Lessons

The post-peak period is not just about recovery; it’s about building resilience. Small, proactive steps taken now will pay dividends during the next holiday rush. By focusing on refining operations, engaging feedback loops, and investing in scalable technology, businesses can position themselves for greater efficiency and growth.

Need a packaging solutions partner to help guide you through and take the next step? Click here to contact a Pregis rep today.

Hadero, H., & Grantham-Philips, W. (2024, December 2). Cyber Monday shoppers expected to set a record on the year’s biggest day for online shopping. AP News. https://apnews.com/article/cyber-monday-sales-online-holiday-shopping-59d13c2e184cc10b17c3f0bdd7573323

Logistics operators set cautious seasonal hiring plans. (n.d.-b). https://www.wsj.com/articles/logistics-operators-set-cautious-seasonal-hiring-plans-e4976739