Managing Multiple Retail Warehouse Peaks: From School to the Holidays

As we wrap up summer (and apologies to those who think summer is just getting started), warehouse managers are gearing up for not one, but two major retail peaks: the back-to-school season and the upcoming holiday rush of Halloween and Christmas. I’ve written before about fulfilling holiday peak orders, but wanted to broaden that now to cover retail warehouses that have multiple peaks and how automating your warehouse can help you navigate them successfully.

Back-to-School: The First Test of Peak Season Readiness

The back-to-school shopping season serves as a perfect warm-up for the holiday peaks. According to the National Retail Federation, as of early July, more than half (55%) of back-to-school and college shoppers had already begun buying items for the upcoming school year. How much will that shopping cost families? Families with children in elementary through high school plan to spend an average of $874.68 on school items in 2024, highlighting the significance of this shopping period.

Key challenges for retailers during the back-to-school rush include:

• Diverse inventory: From notebooks and backpacks to electronics and clothing, the range of items needed varies every season.
• Time-sensitivity: Orders need to be fulfilled quickly as school start dates approach, and some schools are now already in session.
• Unpredictable demand: Different regions have varying school schedules, leading to staggered peaks.

Automating your retail warehouse can help address these challenges by:

• Improving picking efficiency across diverse product categories
• Enabling faster order fulfillment to meet tight deadlines
• Providing the flexibility to scale operations up or down as demand fluctuates
• Helping to better manage labor allocation, seasonal hiring needs, and impact of volume on your existing workforce

Transitioning Between Peaks

You may think that holiday peak doesn’t start until October at the earliest, but the Halloween season has become a new peak for retail warehouses thanks to spending habits. According to the National Retail Federation, total Halloween spending reached a record $12.2 billion in 2023, exceeding 2022’s record of $10.6 billion. Quite a bit of that was spent on Halloween decorations like Target’s 8-foot talking pumpkin, Lewis, who’s back again this year.

The period between back-to-school and Halloween and Christmas holiday shopping provides a short window of opportunity to assess your warehouse's performance and make necessary adjustments. Here's how to leverage your back-to-school experience for holiday success:

• Analyze data: Review productivity metrics, error rates, and bottlenecks from the back-to-school period.
• Refine processes: Use insights gained to optimize your warehouse automation. 
• Train and retain: Keep seasonal associates from the back-to-school period if possible, reducing training needs for the holiday rush.

Preparing for the Holiday Peak

As mentioned in the original post, holiday retail sales are expected to grow 4.5% year-over-year in 2023. To handle this increased volume on top of the back-to-school rush, consider these additional strategies for your warehouse:

• Gradual scaling: Gradually increase your AMR fleet as volumes scale with the Robots-as-a-Service (RaaS) model from back-to-school through the holiday season.
• Cross-training: Ensure your staff can handle multiple tasks, increasing flexibility during peak times.
• Predictive analytics: Use data from both peak periods to better forecast demand and staffing needs.

The Power of AMRs for Peak Season

The benefits of AMRs — improved productivity, increased accuracy, and faster training — apply equally to both the back-to-school and holiday peaks. By implementing AMRs before the back-to-school rush, you can:

• Build staff confidence and expertise with the technology
• Gather valuable data to optimize performance for the larger holiday peak

By viewing the back-to-school and holiday periods as interconnected peak seasons rather than isolated events, warehouse managers can create a more cohesive and effective strategy for handling increased demand. 

AMRs like LocusBots provide the flexibility, efficiency, and scalability needed to navigate both of these critical shopping periods successfully.

As you prepare for the upcoming peaks, consider how AMRs can not only help you meet the immediate challenges but also build a foundation for long-term success in your warehouse operations. With the right approach and technology, you can turn these demanding periods into opportunities for growth and excellence.

Want to learn how Locus Robotics can help your warehouse thrive in peak season? Let’s talk!