Due to the increase consumer spending during the holiday season, Wal-Mart Stores and Amazon.com are preparing for the expected online spending. In early October, Wal-Mart announced that it is opening two new fulfillment centers, one in Pennsylvania and one in Texas. These new fulfillment centers will help deliver online orders to its customers faster. At the same time, Amazon said it is creating 70,000 full-time seasonal jobs across its fulfillment centers to handle the increased holiday spending. This increase comes after Amazon said it was hiring 5,000 fulfillment workers two months prior.
What does this show? For starters, the similar reactions to the increased online shopping by both Wal-Mart and Amazon proves that American consumers have changed their shopping habits. For example, research firm ComScore studied and determined that online spending during last year’s holiday season jumped 14% to $42.3 billion compared to the same period the prior year. In addition to these responses to the increased holiday spending, both Wal-Mart and Amazon also react to the increased trend of online spending even during non-peak periods. By creating two more fulfillment centers, it appears that Wal-Mart is investing in more fulfillment centers in order to react to the increasing demand of online shopping. Similarly, since its customer demand rose by 40% over the last year, Amazon expects to convert thousands of its seasonal workers into full-time employees.