With the holiday season fast approaching, major retailers in the US are preparing for the busiest shopping period of the year.
However, despite the usual ramp-up in hiring, there’s a noticeable pullback in the number of seasonal workers being taken on for in-store assistance and online order fulfillment compared to previous years.
Amazon leads with steady hiring plans
Amazon announced plans on Thursday to hire 250,000 full-time, part-time, and seasonal employees, matching the figure from last year.
This mirrors hiring decisions by other major retailers like Bath & Body Works and Target, which are also holding steady with approximately 100,000 seasonal hires each.
Target has further committed to offering current employees the opportunity to work additional hours throughout the season.
Others scale back on holiday workforce
Some retailers, however, are scaling back on holiday hiring. Macy’s, for instance, revealed it will add over 31,500 seasonal positions across its various brands—down from the 38,000 hired last year.
Kohl’s and Walmart have both refrained from releasing specific hiring numbers, with Walmart opting to rely on its existing workforce for extra support during peak periods.
This year’s cautious approach comes amid concerns over a cooling US job market.
According to the Bureau of Labor Statistics, job openings have been declining since peaking at 12.2 million in March 2022.
With post-pandemic demand stabilizing, companies are no longer scrambling to fill vacancies at the same rate as in the past two years.
Holiday sales expected to grow—but inflation looms
Despite the cautious hiring outlook, retailers remain optimistic about consumer demand during the upcoming holiday season.
Deloitte forecasts a 2.3% to 3.3% increase in US retail sales between November and January, with total sales expected to hit $1.59 trillion.
Similarly, EY-Parthenon predicts a 3% growth in sales during the November-December period, as per a report in AP.
However, they warn that inflation could account for much of that growth, with real volume sales anticipated to rise by just 0.5% year-over-year.
E-commerce continues to be a bright spot for retailers, with Adobe projecting online sales to grow 8.4%, reaching a record $240.8 billion.
This reflects the ongoing shift in consumer behavior, with more shoppers opting to buy online rather than in stores.
Hiring events and recruitment efforts ramp up
Retailers are still actively recruiting through nationwide hiring events.
Macy’s and JCPenney, for instance, are conducting on-the-spot interviews to quickly fill positions.
Macy’s has already hosted its first event and is planning three more in the coming weeks, while JCPenney aims to bring on 10,000 seasonal workers, in line with last year’s numbers.
UPS is also preparing for the holiday rush, announcing plans to hire 125,000 seasonal employees—an increase from 100,000 the previous year.
Radial, an e-commerce logistics company, is adopting a more flexible hiring strategy, scaling its workforce based on real-time demand to avoid overcommitting.
Economic pressures could impact holiday spending
While retailers are optimistic about the holiday season, signs of economic strain are emerging among consumers.
Rising credit card debt and decreasing savings rates suggest that many shoppers may approach the season with caution.
Retailers have already observed consumers gravitating towards store brands and looking for deals, a trend that could shape spending in the months ahead.
Further complicating the outlook is the possibility of higher prices due to ongoing labor disruptions.
A port workers’ strike has already shut down key dockyards along the US Eastern Seaboard and Gulf Coast.
Should the strike continue, it could lead to significant delays and price hikes on goods just as holiday shopping ramps up.
Despite the uncertainties in the labor market and broader economy, the holiday shopping season remains a crucial period for retailers.
Companies are preparing to meet demand while balancing cautious hiring strategies with inflationary pressures and potential supply chain disruptions.
How consumers respond to these challenges will be critical in determining the overall success of the retail sector in the final quarter of the year.
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