Global shipping and mailing solutions provider Pitney Bowes is preparing for a bustling fourth quarter, anticipating significant year-over-year growth in parcel volumes fueled by 32 new domestic parcel clients acquired since Q3. The addition of fast-fashion giant Shein stands out as a particularly strategic win that could substantially boost the company's performance.
Client-Driven Growth: Shein Leads New Business Expansion
Ana Maria Chadwick, Pitney Bowes' Executive Vice President and CFO, revealed during a recent earnings call that new clients are expected to contribute approximately 20% of Q4 domestic parcel volume. Alongside Shein, the new client roster includes Hudson's Bay and subscription box service Japan Crate.
President and CEO Marc Lautenbach confirmed that the company began processing Shein's parcels in Q3, with volumes projected to increase substantially during the holiday season. "We anticipate material year-over-year and sequential growth in Q4 parcel volumes," Lautenbach stated, attributing this projection to strong seasonal performance.
Q3 Performance: Declining Chinese Imports Impact Results
Despite the optimistic Q4 outlook, Pitney Bowes reported a year-over-year decline in Q3 domestic parcel volumes, citing slowing e-commerce activity and reduced import volumes from China. However, weekly parcel processing showed modest improvement throughout the quarter, rising from 2.8 million to 2.9 million parcels. The company has seen significant acceleration in early Q4, with weekly volumes jumping to approximately 3.6 million parcels during the first three weeks.
"We entered Q4 with a robust pipeline of potential business," Lautenbach noted. "We've secured contracts representing over $100 million in revenue currently undergoing integration." This early momentum positions the company for recovery after last year's disappointing holiday season, when U.S. parcel volumes fell 20% below projections due to widespread supply chain disruptions.
Strategic Investments Enhance Service Capabilities
Industry analysts predict a smoother peak season in 2022 compared to last year's supply chain chaos. Pitney Bowes has made substantial investments in automation and other technologies that have improved service levels, helping attract new domestic parcel clients while expanding business with existing customers like Victoria's Secret and BarkBox.
"Our ability to win new clients and regain business from existing customers directly results from enhanced service levels that strengthen our competitive position," Lautenbach emphasized.
Future Outlook: Diversification and Technology Focus
The partnership with Shein represents more than just short-term volume gains—it signals Pitney Bowes' strategic adaptation to evolving logistics markets. As a global fast-fashion leader with massive parcel processing needs, Shein provides stable business flow while strengthening Pitney Bowes' cross-border e-commerce capabilities.
By diversifying its client base across retail sectors, the company mitigates dependence on any single customer. Looking ahead, Pitney Bowes plans continued investment in technological innovation and service upgrades to maintain competitiveness while exploring new market opportunities.
While economic uncertainty and supply chain challenges persist, the sustained growth of e-commerce continues to create significant opportunities in the logistics sector. Pitney Bowes' strategic client acquisitions and operational improvements position the company to capitalize on these trends, though market volatility remains a consideration for investors.