As the holiday shopping season approaches, major retailers like Amazon and Target are gearing up to meet increased customer demand, but the overall trend shows a reduction in seasonal hiring across the retail industry. This year, fewer temporary holiday jobs are expected to be available compared to previous years, with many retailers adopting new strategies to manage the shopping rush.
Amazon, Major Retailers Announce Hiring Plans
Amazon has announced plans to hire 250,000 employees for full-time, part-time, and seasonal roles ahead of the holiday season. This figure is consistent with last year’s hiring spree and includes warehouse workers, drivers, and customer service representatives who will help manage the high volume of online orders. Amazon’s commitment to maintaining a strong seasonal workforce underscores the importance of the holidays for its operations, both online and in fulfillment centers.
Similarly, Target and Bath & Body Works have both announced plans to hire approximately 100,000 seasonal workers to support their stores and distribution centers during the busy shopping period. In addition to bringing on new staff, these companies are offering their existing employees the opportunity to work additional hours, a strategy designed to ensure smooth operations without the need for excessive hiring.
Different Strategies for Different Retailers
Not all retailers are ramping up their hiring efforts. Some, like Walmart, are taking a different approach. Walmart, the largest retailer in the U.S., has been steadily hiring associates throughout the year and will rely on its existing workforce to meet the demands of the holiday season. The company believes that its current staff is sufficient to handle the holiday rush, negating the need for a massive seasonal hiring push.
Kohl’s, another well-known department store, is encouraging applications for seasonal positions but has not disclosed a specific hiring target. This cautious approach reflects a broader trend among retailers to be more conservative with staffing, particularly in light of economic uncertainties and changing consumer behaviors.
Retailers Scale Back Seasonal Hiring
One notable trend this year is the scaling back of seasonal hiring by some retailers. Macy’s, which is a staple of holiday shopping in the U.S., plans to hire 31,500 seasonal workers this year, down from 38,000 in 2022. The decision to reduce seasonal hiring comes as many retailers anticipate shifts in consumer demand and are looking to streamline their operations.
The reduction in seasonal positions reflects a broader concern over the slowing U.S. job market. Since reaching a peak in March 2022, job openings have been gradually decreasing, and companies are now facing increased economic pressures that have forced them to adjust their hiring strategies. This shift is particularly notable in the retail industry, which heavily depends on temporary workers during the holiday season to manage the surge in customers and online orders.
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Optimism Amid Cautious Hiring
Despite the cautious approach to hiring, forecasts for retail sales during the holiday season remain optimistic. Deloitte projects that U.S. retail sales will grow by 2.3% to 3.3% between November and January, potentially reaching a total of $1.59 trillion. Similarly, EY-Parthenon predicts a 3% rise in sales during the traditional November-December shopping period. However, much of this growth is expected to be driven by inflation, with real volume sales projected to increase by only 0.5%.
Online sales are expected to play a key role in driving this growth. According to Adobe’s analysis of e-commerce trends, online sales in the U.S. are forecast to grow by 8.4% to a record $240.8 billion this holiday season. This continued expansion of e-commerce highlights the ongoing shift in consumer preferences toward online shopping, a trend that has been accelerated by the COVID-19 pandemic and shows no sign of slowing down.
Early Discount Events and Changing Consumer Behavior
To encourage early holiday shopping, many retailers have already launched discount events and sales promotions. These early deals are designed to capture consumer interest and spread out demand over a longer period, helping retailers manage inventory and staffing more efficiently.
As the holiday season approaches, retailers are preparing for the busiest time of the year, albeit with fewer seasonal hires. The combination of cautious hiring, optimistic sales projections, and the growing importance of online shopping will shape the holiday retail landscape in 2024. For consumers, this means an emphasis on early shopping, both in stores and online, as retailers adapt to new market conditions and evolving consumer behaviors.
