Supply chain problems that hampered retailers and covered U.S. ports this year is expected to continue until 2022, as the effects of the Delta COVID-19 variant persist. This means shoppers face possible delays at retailers replenishing from video games to clothing, especially over the upcoming holidays.
“I’m half-jokingly telling people,‘ Ask for your Christmas presents now so that if you don’t, on Christmas Day, there might be a picture of something that doesn’t arrive until February or March, ”he said. say Scott Price, the international president of the giant ship UPS.Wiring Service AFP.
Some consumers already buy holiday gifts. More than one in 4 people who buy holidays are scheduled to start later this month, while more than half are scheduled to start before Halloween, according to a new CreditCards.com survey.
According to the survey, nearly two-thirds of vacation shoppers plan to make these purchases online. That’s less than last year, but more so than in pre-pandemic times, a sign of strong consumer demand, Ted Rossman, a senior analyst at CreditCards.com, told CBS MoneyWatch.
Semiconductor shortage it bothered industries, from automobiles to consumer electronics earlier this year. The scarcity of raw materials, such as wood, slowed down the housing repair and construction industry. But less advertising industries, such as clothing and toys, may not be able to get supplies on store shelves quickly enough in what is expected to be a robust and long-lasting holiday season, he said. dir Rossman.
“It’s a good idea to start early,” Rossman told CBS MoneyWatch. “And if you see something you want and want to get for one of your friends or family, it’s probably good to jump in there.”
Part of the problem, according to UPS Price to AFP, is that low vaccination rates in countries that supply raw materials and components will continue to slow shipments, as higher COVID-19 rates will lead to port closures. Once these shipments arrive in U.S. ports, they are likely to wait to be unloaded in the midst of a labor shortage here.
Experts say retailers are preparing for the inevitable accumulations.
“Retailers are well aware of shipping bottlenecks and place their holiday orders amid healthy and retail demand from consumers,” Coresight Research CEO Deborah Weinswig wrote this week. “They face concerns that the ordered items will not arrive in time to reach the shelves for the holidays, given the recent unforeseen closures of ports.”
A wide range of retailers, from Best Buy to Nordstrom, expect a bit of stress, the recent earnings calls compiled by the Retail Dive industry publication. Many are arranging for more transportation, smoother logistics and earlier deliveries in preparation for the end of the year, according to transcripts of the various calls. A Walmart and Target, open positions include more associated with the supply chain.
“It can vary from company to company, industry to industry, even from store to store,” Rossman said. “Sometimes, and we saw it during the back-to-school shopping, there are fully stocked stores. And a few miles away, they were very well stocked. So I think that’s one more reason to start early. Give it to yourself, you know, don’t be surprised by that. “