The holidays are coming and it’s time to hit the shops! Unfortunately, suppliers are cautioning us to expect supply shortages, shipping delays, and higher price tags.
Here’s what to expect during this holiday shopping season.
Supply Shortages
Seen any empty store shelves recently?
Suppliers are struggling to stay ahead of shopper demands while catching up on the manufacturing lag experienced during the lockdown. They’re also dealing with a labor shortage, which makes it challenging to meet manufacturing quotas. Finally, many manufacturers rely on other suppliers for the materials they need for developing their products — shipping delays and worldwide supply chain bottlenecks are slowing down their production processes even further.
Shipping Delays
Even when manufacturers keep the supply of their products ahead of the demand, there can be significant delays when the goods land in the U.S. For example, in mid-September, 70 cargo ships were waiting to dock in the LA and Long Beach ports, which handle about 40% of the country’s imported goods. The logjam is caused by a scarcity in storage containers, as well as uneven deliveries of shipped goods as suppliers race to meet demand. The backup will probably continue to be a kink in the delivery chain deep into 2022.
Understaffed Shops
Salespeople will probably be even more overworked than usual this time of year, because of massive staff shortages, resulting in extra worker responsibilities and overtime hours. The harried salespeople you encounter may do the jobs of several workers.
Higher Prices
Don’t count on finding that last-minute bargain gift this year. The prices you’ll find on toys, clothing, electronics and other items will probably be higher than usual, thanks to inflation, the rising cost of fuel and supply that falls well below demand.
Shop Early
Suppliers and retailers are urging consumers to start on their holiday shopping as soon as possible for the best selection at the best prices. If you’re the shopper who doesn’t think about gift shopping until mid-December, this may be the year to rethink your approach.
Plan to shop early this holiday season to avoid empty shelves and sky-high prices.
Happy shopping!
