Retailers have to figure out how to handle all our online returns
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Reverse logistics: That’s a fancy name for what a lot of us are going to be asking retailers to do this year. Namely, handle our online returns. And a new report from the real estate consultancy CBRE says we’re running out of space to put all those items we’ve sent back.
More online shopping, which the pandemic has accelerated, means more returns because, well, if you can’t try on a dress or test out a gadget before you buy it, it might be going back. Chad Autry at the University of Tennessee said that creates logistical challenges for the companies selling that stuff.
“Can something be gotten back into the supply chain as fast as if it were at a brick and mortar retail location?” he said.
Autry said a lot of times, it can’t. Some things have to be tested to make sure they still work.
And even the items that can go back into circulation for sale need to be stored somewhere. So, where is that space going to come from? John Morris is head of industrial, logistics and retail at CBRE, the group that wrote the study.
“So you might see some retailers decide store seven in Chicagoland is going to be the store that all of the returns go back to and then we’ll process them from there,” he said.
Morris said those spaces would likely, for now, be run by third party logistics companies that already have the staff and systems to take care of that gift you got from your grandma that you’re just not into.
COVID-19 Economy FAQs
What are the details of President Joe Biden’s coronavirus relief plan?
The $1.9 trillion plan would aim to speed up the vaccine rollout and provide financial help to individuals, states and local governments and businesses. Called the “American Rescue Plan,” the legislative proposal would meet Biden’s goal of administering 100 million vaccines by the 100th day of his administration, while advancing his objective of reopening most schools by the spring. It would also include $1,400 checks for most Americans. Get the rest of the specifics here.
What kind of help can small businesses get right now?
A new round of Paycheck Protection Program loans recently became available for pandemic-ravaged businesses. These loans don’t have to be paid back if rules are met. Right now, loans are open for first-time applicants. And the application has to go through community banking organizations — no big banks, for now, at least. This rollout is designed to help business owners who couldn’t get a PPP loan before.
What does the hiring situation in the U.S. look like as we enter the new year?
New data on job openings and postings provide a glimpse of what to expect in the job market in the coming weeks and months. This time of year typically sees a spike in hiring and job-search activity, says Jill Chapman with Insperity, a recruiting services firm. But that kind of optimistic planning for the future isn’t really the vibe these days. Job postings have been lagging on the job search site Indeed. Listings were down about 11% in December compared to a year earlier.
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