David DuBose Quoted in Wall Street Journal Article on Holiday Ecom Fulfillment ConcernsDecember 1, 2016 Topics: Media, News
Traditional retailers, such as Toys “R” Us and Kohl's Corp., still struggle to manage hundreds of brick and mortar stores while growing online sales, according to an article in The Wall Street Journal. With $650 billion in holiday sales expected and continued growth in online sales, it is critical that retailers build as much fulfillment capacity into their supply chains as possible.
“You build the church for Easter Sunday,” said David Dubose, director of supply chain solutions. Otherwise, the WSJ article noted, the holiday surge can force some retailers to take drastic measures. It gave the example of Toys “R” Us, which last year pulled back some holiday online promotions out of concern that orders would not arrive by Christmas.
In addition to overstocking stores to enable ship from store capabilities for online orders, the article noted, some retailers are also raising wages for seasonal laborers to maintain consistent service levels – particularly in areas where the distribution center is in close proximity to similar opportunities for employment.
“People will go down the road, and if they can make an extra buck an hour, they will leave,” DuBose said in the article.
Time will tell if these measures save revenues for retailers this holiday season.