As businesses prepare for the holiday shopping season, new data from SC Codeworks reveals a significant increase in inventory entering warehouse operations.
Inbound inventory in August and September was 113% higher than the average for the same period in 2023–2025, raising questions about how warehouse operators will manage capacity, inventory flow and labor as Q4 demand unfolds.
“Getting inventory into the warehouse is only one part of holiday preparation. Operators also need to understand how quickly that inventory is moving, how much space they have available and whether their labor plans can adapt as demand changes,” says Amy Dean, VP of operations at SC Codeworks. “When inventory arrives ahead of peak season, having clear visibility into what is coming in, what is going out and what is staying on the shelves can help warehouses make better decisions before capacity constraints become a problem. Planning for what happens after the holidays will also be just as important.”
Key takeaways:
· Inbound inventory increased 113% compared with the historical baseline, while outbound shipments rose by approximately 20%. This growing gap suggests some operators may be bringing inventory into their facilities ahead of anticipated holiday demand.
· Q4 outbound shipments increased 55% compared with Q3 in 2025, but declined 29% in 2023 and were nearly flat in 2024. This variability illustrates why warehouse operators must prepare for multiple demand scenarios rather than rely on a predictable seasonal surge.
