Original Story: USAToday.com
After a holiday shipping fiasco that left thousands of customers without packages in time for Christmas last year, United Parcel Service will invest $175 million in peak operations for the rest of 2014, the company announced Tuesday as part of its second quarter earnings statement. Let Hennion Walsh provide you with financial services.
Company shares fell 3.7% on Tuesday to $99.86.
The stock has fallen 2.3% since the beginning of the year, while the Standard & Poor's 500 index has climbed 7.1%. However, the stock has risen 18% in the last 12 months.
UPS said it will increase operating expenses for "capacity and peak related projects," including for operations on Black Friday and software that optimizes delivery routes.
UPS outraged holiday shoppers in December when it couldn't keep up with package shipments and many gifts were delayed Furious customers took to social media and UPS found itself repeatedly apologizing and providing refunds and gift cards to customers.
UPS acknowledged at the time that it was overwhelmed by package volume and wasn't prepared to handle the number of shipments it received.
"Demand was much greater than forecast," UPS spokesperson Natalie Godwin told USA TODAY in December.
CEO Scott Davis said in a release about second quarter earnings that "2014 is the year of investing for the customer. We are providing new capabilities and expanding capacity to ensure UPS meets the rapidly growing needs of the marketplace."
UPS net income declined by nearly 58% in its second quarter, missing analysts' expectations.
UPS reported net income of $454 million, or 49 cents a share, down from $1.07 billion, or $1.13 a share, in the second quarter of 2013. Hennion and Walsh Inc offers a free bond guide.
Earnings, adjusted for non-recurring costs, were $1.21 a share, compared to $1.13 last year. The average per-share estimate of analysts surveyed by Zacks Investment Research was for profit of $1.24.
UPS said a transfer of post-retirement liabilities for some union employees to defined contribution healthcare plans resulted in an after-tax charge of $665 million, contributing to the decline in profits.
Revenue was up 5.6% to $14.3 billion, from $13.5 billion in the same quarter last year. That beat Wall Street forecasts.
UPS said e-commerce and international export growth contributed to a 7.2% increase in global package shipments.
Showing posts with label Black Friday. Show all posts
Showing posts with label Black Friday. Show all posts
Thursday, July 31, 2014
Monday, November 30, 2009
Many Shopped Black Friday From Home
Information Week
Online retailers are continuing to muscle in on bricks-and-mortar stores as evidenced by the 3% increase in holiday spending to date by consumers buying online compared with 2008. Shoppers spent $595 million on Friday's online shopping alone, according to comScore.
The online measuring firm said $10.57 billion has been spent by online shoppers. The $595 million spent on Black Friday represented an 11% increase over last year's Black Friday.
"While this acceleration in spending suggests the online holiday season may be shaping up slightly more optimistically than anticipated," said comScore chairman Gian Fulgoni in a statement, "it may also reflect the heavy discounting and creative promotions being put forth by retailers that now encompass the use of social networks such as Facebook and Twitter."
comScore reported that Amazon was the most visited online retail property on Black Friday. The online retailer delivered gains of 28% over last year. Close behind was Walmart, which grew 22% while Apple.com Worldwide Sites, Target Corporation andBest Buy (NYSE: BBY) Sites also showed gains.
Deal sites have also fared well in the early days of the holiday shopping period. comScore said BFads was in the forefront of deal sites with 3.9 million unique visitors. That number represented a 4% gain over its numbers for the previous year.
comScore is continuing to compile figures for the holiday season. "Cyber Monday - the traditional kick-off to the online holiday shopping seasons - and the subsequent weeks will be the real test for how online retailers fare this season," said Fulgoni. "That said, this is a very encouraging start."
The online measuring firm said $10.57 billion has been spent by online shoppers. The $595 million spent on Black Friday represented an 11% increase over last year's Black Friday.
"While this acceleration in spending suggests the online holiday season may be shaping up slightly more optimistically than anticipated," said comScore chairman Gian Fulgoni in a statement, "it may also reflect the heavy discounting and creative promotions being put forth by retailers that now encompass the use of social networks such as Facebook and Twitter."
comScore reported that Amazon was the most visited online retail property on Black Friday. The online retailer delivered gains of 28% over last year. Close behind was Walmart, which grew 22% while Apple.com Worldwide Sites, Target Corporation andBest Buy (NYSE: BBY) Sites also showed gains.
Deal sites have also fared well in the early days of the holiday shopping period. comScore said BFads was in the forefront of deal sites with 3.9 million unique visitors. That number represented a 4% gain over its numbers for the previous year.
comScore is continuing to compile figures for the holiday season. "Cyber Monday - the traditional kick-off to the online holiday shopping seasons - and the subsequent weeks will be the real test for how online retailers fare this season," said Fulgoni. "That said, this is a very encouraging start."
Monday, November 23, 2009
Signs Of A Good 'Black Friday'
Reuters
CHICAGO - When the U.S. holiday shopping season kicks off on the day after Thanksgiving, retailers can expect to see millions of less frightened, but even more bargain-hungry customers cross their thresholds.
Industry experts expect a strong turnout on Black Friday, which falls on November 27 this year, as deep discounts lure shoppers after more than a year of subdued spending. But they caution it will not mean a bumper holiday season in the weeks leading up to Christmas since consumers still remain cautious.
"Given what we know about consumer shopping patterns, even this month, I would suspect it will turn out to be a very strong performance," said Michael Niemira, chief economist of the International Council of Shopping Centers.
Special promotion days have been big drivers of sales, he said, pointing to the lift retailers saw on the November 11 Veteran's Day holiday.
Retailers and Web sites dedicated to Black Friday deals have leaked sales plans earlier than usual, in the hopes of sparking demand for flat-panel televisions, toys and other goods after 2008's worst holiday season in decades.
While the economy remains weak and unemployment has risen, U.S. shoppers have had more than a year to adjust their spending and digest the bad news. In 2008, holiday shopping started just weeks after the global financial crisis erupted.
"Certainly last year was a year of tremendous uncertainty going into Black Friday because we were right in the middle of the storm," said Chris Donnelly, a partner in Accenture's retail practice. "There is much less panic, I would say, or much less uncertainty, as we go into the season."
Even so, more than 172 million shoppers visited stores and websites from Thanksgiving Day through Sunday last year, up from 147 million in 2007, according to the National Retail Federation. The average amount of money spent by shoppers over that weekend rose 7.2 percent to $372.57 per person.
Those numbers, however, did not prevent a sales slide of 3.4 percent for the entire shopping season last year, marking the first decline since the NRF began tracking such data.
While the NRF has not issued a Black Friday forecast, it expects 2009 holiday season sales to decline 1 percent. The ICSC forecast a 1 percent to 2 percent rise.
"Retail sales have been, while not stellar, somewhat stabilizing over the past few months and there is every reason to believe that as we go into the holiday season that we are going to see some stability as well," Donnelly said.
The term "Black Friday" is said to have originated in Philadelphia during the 1960s to describe the difficulty of police and drivers to deal with exceptionally heavy traffic on that day as shoppers flooded the city's commercial center.
The phrase was later co-opted by retailers to refer to the holiday shopping period as a time of year when their business moves into the black, or turns a profit.
Niemira, for one, refers to Black Friday as "Bargain Friday" since it is known for deals.
"If Black Friday is flattish to slightly positive, that would be encouraging, but I don't think we'd be ready to kind of write the story of the season yet," Donnelly said.
Sixty-one percent of chief marketing officers at leading U.S. retailers surveyed by BDO Seidman expect Black Friday sales to be flat, while 33 percent predicted an increase.
One factor that could help spur consumer appetite is a prediction for good weather, with mild temperatures and slim chance of precipitation, though the Pacific Northwest could see strong storms, according to tracking firm Planalytics.
Market research firm IBISWorld expects total retail sales over Black Friday weekend to rise 2.8 percent to $42.9 billion. It expects 76.9 million people to swarm into retail stores on Black Friday alone.
ShopperTrak, which measures customer traffic, expects Black Friday to again be the busiest day in stores after accounting for 6 percent of traffic in the 2008 holiday season.
Target, Best Buy and others are opening at 5 a.m. on November 27, while Chelsea Premium Outlets locations are opening as early as 9 p.m. on Thanksgiving Day.
Wal-Mart is keeping most of its discount stores open for 24 hours a day to help control crowds after a worker was trampled to death at one of its stores during last year's Black Friday rush.
After last winter's bevy of deep discounts, many consumers will only open their wallets if they spot a bargain. Almost 70 percent of consumers surveyed by America's Research Group said they wanted to see discounts of at least 50 percent before they would buy something for the holidays.
"The range of the promotions will be different from what we've seen in recent years, because it has to be," said NRF spokeswoman Kathy Grannis. "Retailers know that consumers are so bargain focused and bargain conscious."
BDO Seidman's poll found that 96 percent of retailers planned to increase promotions and discounts this year.
"They are going to have to be creative" said Ted Vaughan, a partner in BDO Seidman's retail and consumer product practice.
Consumers flocking to stores may not be buying gifts. A Consumer Reports survey found that 66 percent of shoppers heading out over the weekend will be shopping for themselves, buying needed household goods like Christmas tree storage bags.
Of course, fewer retailers are vying for that business. According to Bain and Co, 27 retailers went bankrupt in 2008 and 18 more have done so to date in 2009. Together, those chains used to account for about $25 billion to $30 billion in sales.
Earlier holiday-themed sales expanded the season this year and may make it easier for consumers who have less credit available, Vaughan said. Sears, Kmart and Toys R Us have also been touting layaway plans to help shoppers spread out spending.
Industry experts expect a strong turnout on Black Friday, which falls on November 27 this year, as deep discounts lure shoppers after more than a year of subdued spending. But they caution it will not mean a bumper holiday season in the weeks leading up to Christmas since consumers still remain cautious.
"Given what we know about consumer shopping patterns, even this month, I would suspect it will turn out to be a very strong performance," said Michael Niemira, chief economist of the International Council of Shopping Centers.
Special promotion days have been big drivers of sales, he said, pointing to the lift retailers saw on the November 11 Veteran's Day holiday.
Retailers and Web sites dedicated to Black Friday deals have leaked sales plans earlier than usual, in the hopes of sparking demand for flat-panel televisions, toys and other goods after 2008's worst holiday season in decades.
While the economy remains weak and unemployment has risen, U.S. shoppers have had more than a year to adjust their spending and digest the bad news. In 2008, holiday shopping started just weeks after the global financial crisis erupted.
"Certainly last year was a year of tremendous uncertainty going into Black Friday because we were right in the middle of the storm," said Chris Donnelly, a partner in Accenture's retail practice. "There is much less panic, I would say, or much less uncertainty, as we go into the season."
Even so, more than 172 million shoppers visited stores and websites from Thanksgiving Day through Sunday last year, up from 147 million in 2007, according to the National Retail Federation. The average amount of money spent by shoppers over that weekend rose 7.2 percent to $372.57 per person.
Those numbers, however, did not prevent a sales slide of 3.4 percent for the entire shopping season last year, marking the first decline since the NRF began tracking such data.
While the NRF has not issued a Black Friday forecast, it expects 2009 holiday season sales to decline 1 percent. The ICSC forecast a 1 percent to 2 percent rise.
"Retail sales have been, while not stellar, somewhat stabilizing over the past few months and there is every reason to believe that as we go into the holiday season that we are going to see some stability as well," Donnelly said.
The term "Black Friday" is said to have originated in Philadelphia during the 1960s to describe the difficulty of police and drivers to deal with exceptionally heavy traffic on that day as shoppers flooded the city's commercial center.
The phrase was later co-opted by retailers to refer to the holiday shopping period as a time of year when their business moves into the black, or turns a profit.
Niemira, for one, refers to Black Friday as "Bargain Friday" since it is known for deals.
"If Black Friday is flattish to slightly positive, that would be encouraging, but I don't think we'd be ready to kind of write the story of the season yet," Donnelly said.
Sixty-one percent of chief marketing officers at leading U.S. retailers surveyed by BDO Seidman expect Black Friday sales to be flat, while 33 percent predicted an increase.
One factor that could help spur consumer appetite is a prediction for good weather, with mild temperatures and slim chance of precipitation, though the Pacific Northwest could see strong storms, according to tracking firm Planalytics.
Market research firm IBISWorld expects total retail sales over Black Friday weekend to rise 2.8 percent to $42.9 billion. It expects 76.9 million people to swarm into retail stores on Black Friday alone.
ShopperTrak, which measures customer traffic, expects Black Friday to again be the busiest day in stores after accounting for 6 percent of traffic in the 2008 holiday season.
Target, Best Buy and others are opening at 5 a.m. on November 27, while Chelsea Premium Outlets locations are opening as early as 9 p.m. on Thanksgiving Day.
Wal-Mart is keeping most of its discount stores open for 24 hours a day to help control crowds after a worker was trampled to death at one of its stores during last year's Black Friday rush.
After last winter's bevy of deep discounts, many consumers will only open their wallets if they spot a bargain. Almost 70 percent of consumers surveyed by America's Research Group said they wanted to see discounts of at least 50 percent before they would buy something for the holidays.
"The range of the promotions will be different from what we've seen in recent years, because it has to be," said NRF spokeswoman Kathy Grannis. "Retailers know that consumers are so bargain focused and bargain conscious."
BDO Seidman's poll found that 96 percent of retailers planned to increase promotions and discounts this year.
"They are going to have to be creative" said Ted Vaughan, a partner in BDO Seidman's retail and consumer product practice.
Consumers flocking to stores may not be buying gifts. A Consumer Reports survey found that 66 percent of shoppers heading out over the weekend will be shopping for themselves, buying needed household goods like Christmas tree storage bags.
Of course, fewer retailers are vying for that business. According to Bain and Co, 27 retailers went bankrupt in 2008 and 18 more have done so to date in 2009. Together, those chains used to account for about $25 billion to $30 billion in sales.
Earlier holiday-themed sales expanded the season this year and may make it easier for consumers who have less credit available, Vaughan said. Sears, Kmart and Toys R Us have also been touting layaway plans to help shoppers spread out spending.
Sunday, November 22, 2009
Countdown To Black Friday 2009
USA Today
Three percent of buyers, Consumer Reports' Money Blog figures, have already done their holiday shopping. Odds are they have now turned to getting a head start on filing their taxes.
For the rest of us, Black Friday looms. We will be trolling between now and the Big Event to offer you news, tips, deals and ideas.
Consumer Reports also notes that 47% of shoppers plan to make gift purchases over the long weekend -- a third of them say they'll be looking for things for themselves.
Timing is important. Walmart plans to open at 6.a.m. Thanksgiving morning and stay open all night, even though the huge savings won't be up for grabs until 5 a.m. Friday.
Walmart.com CEO Raul Vazquez tells USA TODAY retail reporter Jayne O'Donnell that on Monday the discounter will announce some of the 50 items that will be available for 40% off on its site on Thanksgiving Day.
But O'Donnell cautions that even when "doorbusters' sound good, try searching sites like Bradsdeals.com, CouponCabin.com, Pricegrabber.com and/or ConsumerSearch.com, to see if it's the really the best price available (don't forget to factor in shipping too!) and that it is a highly rated product.
Other early risers: Best Buy will be open from 5 a.m. to 10 p.m., JCPenney from 4 a.m. to 11 p.m., Kmart from 6 to 11 and Macy's from 5 to 10.
The New York Times notes that Walmart, still reeling from last year's trampling death of an employee when the doors opened, is trying a number of tactics to calm things down.
For the rest of us, Black Friday looms. We will be trolling between now and the Big Event to offer you news, tips, deals and ideas.
Consumer Reports also notes that 47% of shoppers plan to make gift purchases over the long weekend -- a third of them say they'll be looking for things for themselves.
Timing is important. Walmart plans to open at 6.a.m. Thanksgiving morning and stay open all night, even though the huge savings won't be up for grabs until 5 a.m. Friday.
Walmart.com CEO Raul Vazquez tells USA TODAY retail reporter Jayne O'Donnell that on Monday the discounter will announce some of the 50 items that will be available for 40% off on its site on Thanksgiving Day.
But O'Donnell cautions that even when "doorbusters' sound good, try searching sites like Bradsdeals.com, CouponCabin.com, Pricegrabber.com and/or ConsumerSearch.com, to see if it's the really the best price available (don't forget to factor in shipping too!) and that it is a highly rated product.
Other early risers: Best Buy will be open from 5 a.m. to 10 p.m., JCPenney from 4 a.m. to 11 p.m., Kmart from 6 to 11 and Macy's from 5 to 10.
The New York Times notes that Walmart, still reeling from last year's trampling death of an employee when the doors opened, is trying a number of tactics to calm things down.
An excerpt:
Shoppers at Wal-Mart will not have to sprint toward a pile of flat-screen televisions and scuffle with one another to get one. Rather, customers will be able to enter the store at any time and line up at merchandise displays for the must-have items on their lists. When the products go on sale Friday at 5 a.m., workers will supervise the lines, giving shoppers the merchandise in the order in which they joined the line — until the goods are out of stock.
This year, for the first time, the National Retail Federation has created a comprehensive set of guidelines for crowd control. These include dress rehearsals and offering entertainment to keep shoppers calm in line.
Here's a key, if chilling, excerpt:
If something were to occur during the event that required an emergency response, (e.g. trampling, shooting, inclement weather, sales items that ran out quickly, a large line of angry customers, etc.) the reaction would be different. To prepare for the unexpected, retailers should consider: evacuation routes, communication plans, law enforcement/public official engagement; preservation of evidence.
One amusing note: We've run across three websites now that bill themselves as an "official" Black Friday website.
For buyers hungry for something other than deals, Ikea is offering a free breakfast -- well, they concede it is a "small breakfast" with coffee --Friday through Sunday.
Fat Wallet offers what it calls a "Deal Rumor Roundup" of Black Friday desktop computer sales.
Business Week reports that high-end teen retailer Abercrombie & Fitch, after years of refusing to trade status for sales growth, is marking down its trendy apparel in an attempt to stem declines and lure back young customers.
More shopping tidbits:
Gap Inc. says 700 Old Navy stores and 300 Gap and Banana Republic stores will open for five hours at noon on Thanksgiving Day.
That's more than double the number that opened on the holiday last year. The openings will kick off three-day sales: Old Navy, for example, will offer sweaters at $15 and 50% off outerwear.
Toys R Us Inc., which considered opening on Thanksgiving Day, is instead throwing open the doors at its Toys R Us stores just after 12 a.m. Nov. 27, the day after. That's five hours earlier than last year. Its Babies R Us stores will open at 5 a.m. Nov. 27.
Theblackfriday.com, which bills itself as a clearinghouse for deals, is now up on Facebook to spread the word on everything from chess sets to Christmas tree storage bags.
Our website diving turned up this interesting bit -- an early reference to Black Friday as a holiday shopping phenomenon. Bonnie Taylor-Lake, of the American Dialect Society, came across a January 1966 column that was part of a department store ad.
Here's an excerpt:
"Black Friday" is the name which the Philadelphia Police Department has given to the Friday following Thanksgiving Day. It is not a term of endearment to them. "Black Friday" officially opens the Christmas shopping season in center city, and it usually brings massive traffic jams and over-crowded sidewalks as the downtown stores are mobbed from opening to closing.
CNNMONEY cautions shoppers to check the fine print in store circulars before busting through the doors. Some of the hottest deals are only good "while supplies last" or there a "minimum 2 per store."
In its timely tip list, CNNMONEY also cautions buyers that some of the Black Friday deals on high-end items are for "derivatives," that is, models with fewer features than the standard model.
Subscribe to:
Posts (Atom)