UPS places shipping cap on some of its largest retailers as holiday shopping booms

UPS is placing shipping limits on some of its largest retailers as online shopping picks up steam during the holidays.



a person standing on a sidewalk: A United Parcel Service Inc. (UPS) driver carries packages in the Lincoln Park neighborhood of Chicago, Illinois, U.S., on Monday, Nov. 30, 2020. Online shoppers in the U.S. are expected to drop a record-busting $12.7 billion on Cyber Monday -- the busiest e-commerce day of the year -- presenting a valuable opportunity for retailers whose websites, customer service departments and delivery operations can withstand the period of crushing traffic. Photographer: Christopher Dilts/Bloomberg via Getty Images


© Christopher Dilts/Bloomberg/Getty Images
A United Parcel Service Inc. (UPS) driver carries packages in the Lincoln Park neighborhood of Chicago, Illinois, U.S., on Monday, Nov. 30, 2020. Online shoppers in the U.S. are expected to drop a record-busting $12.7 billion on Cyber Monday — the busiest e-commerce day of the year — presenting a valuable opportunity for retailers whose websites, customer service departments and delivery operations can withstand the period of crushing traffic. Photographer: Christopher Dilts/Bloomberg via Getty Images

The restrictions will take effect this week and run throughout the holiday season, the company said. Retailers were notified of their shipping capacity in tandem with the newly enforced limits.

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“UPS continues to work closely with our largest customers to steer volume to capacity and ensure the UPS network is reliable for all customers,” the company said in a statement.

UPS didn’t provide names of the retailers that would be affected by the new limits.

The new limits were first reported by the The Wall Street Journal, which said the retailers included brands such as Nike and Gap.

“Knowing the unique constraints the industry is facing this peak season, we worked with our carriers early on to collectively build a strategic plan of execution,” Gap said in a statement. “We have been very satisfied with the level of partnership and commitment we have received from our carrier base, and especially that of UPS, and expect that to continue through the holiday season.”

Nike didn’t immediately respond to requests for comment.

The shipping company is imposing the restrictions to ensure it can meet customers’ needs, including small and medium-sized businesses that have been hit hard by the pandemic. The shipping limits come as the pandemic has pushed more shoppers to buy online, especially for the holidays.

Holiday sales so far this year have broken records. Thanksgiving day sales jumped to $5.1 billion, up 22% compared with last year, while Black Friday sales totaled $9 billion, also a 22% increase, according to Adobe Analytics.

Cyber Monday sales also saw an upswing, bringing in $10.8 billion in sales, a 15% bump from the previous year. That made Cyber Monday the largest online shopping day in history, per Adobe Analytics.

UPS says it has agreed on strategies with some if its retail customers which include “shifting package volume away from the heaviest demand shipping days, fully utilizing weekend capacity, and aligning promotional strategies with capacity.”

Many parcel delivery services have struggled with the surge in demand for shipments and have began imposing measures to deal with the influx. Other shipping services such as FedEx and USPS have increased their pricing premiums for the holidays and hired thousands of temporary workers to handle shipments.

UPS says it added 20 new facilities and 14 additional aircraft for the peak season. It also expanded its weekend operations and the speed of its ground delivery.

Meanwhile, Amazon,

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Cyber Monday 2020 sets record for largest online shopping day ever, report says

The online shopping industry has grown in popularity this year due to the coronavirus pandemic, and Cyber Monday 2020 was just another example of that.

Shoppers spent a whopping $10.8 billion on Monday, the biggest U.S. e-commerce day ever, according to a report by CNBC, citing data collected by Adobe Analytics.

Sales spiked 15.1% compared to 2019 during the unofficial industry holiday, the report said. The Adobe data showed curbside pickup orders increased 30% from 2019.

Among Adobe’s other key findings: 37% of sales came via mobile devices, and consumers spent $2.7 billion during the final four hours of the day.

Holiday sales started earlier than ever this year, as companies have offered more online deals. The brick-and-mortar retail industry, which has long been struggling, received a crippling blow this year as a result of the pandemic.

Walmart offered Black Friday sales in early November and ran deals all month long, while Coach has been holding an ongoing 70% off sale for weeks. Even Lululemon, which rarely promotes sales, had big discounts on Black Friday and Cyber Monday.

Many big-box retailers have extended Cyber Monday sales to a week-long event. If you missed out on the online shopping event, here are some ongoing deals you can still shop for online:

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Nicolette Accardi can be reached at [email protected]. Follow her on Twitter: @N_Accardi. Find NJ.com on Facebook. Have a tip? Tell us. nj.com/tips

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Noem encourages shopping as South Dakota reports largest death total

  • The South Dakota Department of Health on Saturday reported 54 new deaths from COVID-19, surpassing the state’s previous record death total of 53.
  • The same day, South Dakota Gov. Kristi Noem encouraged state residents in a tweet to go shopping, writing that small “businesses are the lifeblood of so many South Dakota communities.”
  • Noem, a Republican, has refused to issue a statewide mask mandate and has otherwise disputed science and calls to enact stricter measures to contain the virus in the state.
  • Over the past week, more than 42% of COVID-19 tests in South Dakota administered have come back positive, according to data analyzed by Johns Hopkins University. 
  • Visit Business Insider’s homepage for more stories.

The South Dakota Department of Health on Saturday reported 54 new COVID-19 deaths since Friday, the highest single-day increase in deaths of all time in the state as cases of the virus surge statewide.

The previous record, 53, was set earlier this month on November 14, the Rapid City Journal reported. As the outlet noted, there have been 942 deaths in the state from the disease caused by the novel coronavirus since the pandemic began, with more than half of those — 517 — occurring in the month of November. There were more than 800 new cases diagnosed in the state Saturday.

But hours earlier, South Dakota Gov. Kristi Noem, a Republican, encouraged state residents to go shopping to support local businesses.

“Remember, today is #SmallBusinessSaturday,” Noem tweeted Saturday morning. “These businesses are the lifeblood of so many South Dakota communities. Please support them today and every day! #shopsmall.”

Earlier in the week, Noem, who has been in office since 2019, celebrated the Supreme Court’s 5-4 ruling against New York Gov. Andrew Cuomo’s restrictions that imposed limits on capacity at religious services to curb the spread of the coronavirus.

“Another thing to add to the list of reasons to be very thankful today,” Noem said in a tweet Thursday.

In addition to refusing to issue a statewide mask mandate, Noem has also defended individuals who neglect to wear masks despite repeated recommendations from the Centers for Disease Control and health experts who have pleaded that widespread adoption of mask-wearing would curb the spread of the disease.

A CDC study in Kansas reported last week reaffirmed that mask mandates are effective in curbing the spread of COVID-19.

“We talk often about the government’s role in a situation like this in dealing with a pandemic,” Noem said on November 18, disputing that the lack of a mask mandate was responsible for a surge in cases, according to The Associated Press. “At this point, frankly, I’m getting more concerned about how neighbors are treating neighbors.”

Noem said that it was an individual’s “personal decision” to wear a mask, refused to encourage residents to wear a mask or to practice social distancing, and claimed the most effective way to combat COVID-19 spread was through handwashing, according to the AP.

There have been

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