For the holidays, expect fewer deals and shipping delays: Here’s why.
As the holiday season approaches, buyers may not be able to take advantage of the discounts this year, as merchants are unlikely to offer deep discounts as they have in the past. When shoppers do make purchases, they should do it quickly, as shipping delays are expected to delay the receipt of goods in time for Christmas.
According to Bain, as reported by CNBC, retail analysts believe that Christmas spending would grow dramatically this year, with sales projected to hit $800 billion between November and December.
Other analysts cited by the news outlet expected strong sales rises for the holidays, including Mastercard SpendingPulse, which predicted a 7.4% increase, and Deloitte, which predicted a 7% to 9% increase.
However, the difficulties that shoppers would confront when shopping could be dangerous.
Parts interruptions, particularly for semiconductor chips, which are utilized in devices such as computers, phones, tablets, and autos, are producing product shortages, resulting in plant closures across numerous industries.
Shipping containers are also in short supply, causing congestion in ports and increasing the cost of raw materials, as well as lengthening manufacturing and delivery periods.
“I half-jokingly tell people, ‘Order your Christmas presents now, because otherwise, on Christmas Day, there might just be a picture of something that won’t be available until February or March,’” says the author. According to Agence France-Presse, UPS’s international president Scott Price.
These problems are exacerbated by a tight labor market, where merchants are short-staffed, making it harder to get products into stores promptly.
According to data from the Department of Labor and job hunting site Indeed, there are around 10 million job opportunities in the United States, with about 1 million more unemployed people, as reported by CNBC.
According to CNBC, Salesforce expects that the cost of goods sold for US retailers will increase by more than $223 billion this holiday season compared to 2020 due to increased freight, manufacturing, and labor costs.
Because of the difficulties that businesses will experience, in-store and online bargains will be limited, and they may not be on the things that consumers are looking for.
Aaron Cheris, chairman of Bain’s Americas retail business, told CNBC, “There will always be sales, but they won’t be as deep and as plentiful.”
“The consumer has woken up to some of the supply chain challenges,” Deloitte Vice-Chair of the U.S. retail and distribution, Rod Sides, told the news source. There will be several categories in which. Brief News from Washington Newsday.