Holiday Shipping Will Be Wild This Year. That’s Good News for FedEx and UPS Stock. - Barron's
The Grinch couldn’t steal Christmas, and neither could Covid-19. But it is moving more shopping online and that’s good news for shipping companies.
Despite an economic recession, experts still expect holiday shopping to climb between 1% and 1.5%. That’s smaller than recent years’ gains, but given that many consumers will opt to do their shopping online, e-commerce could increase between 25% and 35% year over year, according to consulting firm Deloitte. For context, online sales in 2019 increased 15%. All those packages must get delivered on time, and United Parcel Service (ticker: UPS) and FedEx (FDX) will be the ones to deliver Christmas cheer.
The still-raging Covid-19 pandemic, combined with cold and flu season, is already reworking the outlook for retailers’ most crucial season, with companies vowing to close on Thanksgiving.
The Grinch couldn’t steal Christmas, and neither could Covid-19. But it is moving more shopping online and that’s good news for shipping companies.
Despite an economic recession, experts still expect holiday shopping to climb between 1% and 1.5%. That’s smaller than recent years’ gains, but given that many consumers will opt to do their shopping online, e-commerce could increase between 25% and 35% year over year, according to consulting firm Deloitte. For context, online sales in 2019 increased 15%. All those packages must get delivered on time, and United Parcel Service (ticker: UPS) and FedEx (FDX) will be the ones to deliver Christmas cheer.
The still-raging Covid-19 pandemic, combined with cold and flu season, is already reworking the outlook for retailers’ most crucial season, with companies vowing to close on Thanksgiving.
