UPS Shipping Delays Show Perils of Stores Overpromising - Bloomberg
The failure of United Parcel Service Inc. (UPS) and FedEx Corp. (FDX) to deliver packages in time for Christmas has exposed the perils of retailers promising to get last-minute gifts to customers.
Merchants battling for market share during a ho-hum holiday season have been trying to outdo one another with deep discounts and promises that shoppers can wait as long as they want to order gifts online. While analysts say the shipping snafu is unlikely to make Americans abandon online shopping, they say parcel-delivery companies will have to boost capacity and retailers may need to seek alternatives to prevent a recurrence.
The failure of United Parcel Service Inc. (UPS) and FedEx Corp. (FDX) to deliver packages in time for Christmas has exposed the perils of retailers promising to get last-minute gifts to customers.
Merchants battling for market share during a ho-hum holiday season have been trying to outdo one another with deep discounts and promises that shoppers can wait as long as they want to order gifts online. While analysts say the shipping snafu is unlikely to make Americans abandon online shopping, they say parcel-delivery companies will have to boost capacity and retailers may need to seek alternatives to prevent a recurrence.