BearingPoint warns of huge Black Friday logistical challenge

Despite 30% of the estimated 30 million UK Black Friday orders this year being Click and Collect, the 17 million for shoppers’ homes are set to drive an additional 210,000 van deliveries, according to research by BearingPoint.

Black Friday will generate in excess of £1.5 billion of online sales this year – an anticipated increase of 12% over 2017. As a result, retailers and their third-party logistics providers will need to cope with an increase of over five times their usual daily home delivery volumes.

BearingPoint warns that one of the consequences of online ordering is that around 20% of orders worth £300 million will be returned following Black Friday – just when retailers and their logistics providers are gearing up for the Christmas rush.

“Black Friday places a huge logistical challenge on retailers, with massive incremental volume peaks on the day itself combining with a returns surge just as retailers are managing the subsequent Christmas peak. This could explain why more retailers than ever this year are moving away from Black Friday as a single day event and instead spreading promotional activity over several weeks leading up to Black Friday to smooth demand and costs,” says Stuart Higgins, Partner at BearingPoint.

“Returns are now expected to be seamless … with a frictionless returns process being rated almost as highly as delivery capability when customers select which retailer to shop with.”