According to what LSU Marketing Professor Dan Rice said, the issues in supply chains are most likely to disrupt the holiday sales plans of most retailers. This year, businesses that were looking forward to make up for their lost sales during the Christmas season have been set back with a lot more pressure.
Professor Dan Rice said, “This year, with generally strong spending, shoppers are eager to get back out and spend, and enjoy things that maybe they couldn’t during the pandemic. The interesting issue now will be how much the ongoing supply chain issues may impact sales or potentially limit growth.”
While several major retailers announced that they expected to have full shelves for holiday shoppers, the recent supply chain disruptions have resulted in the rise of raw materials prices, fuel prices, worker wages and delays that cost companies a hefty sum of money. In fact, a lot of sectors are also struggling to hire enough workers to handle demand, which indirectly increases the costs to the consumer.
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That said, it has been noted that online sales have grown significantly during the pandemic. This is also what outpaced brick-and-mortar sales growth percentage-wise for the past few years. However, in places where the number of COVID-19 cases have fallen, it is predicted that more people will start to step out of their homes to shop as compared to regions where the coronavirus cases are surging.
According to what Professor Rice says, the local retailers might also see “revenge shopping” wherein people have a pent-up need to just spend their money on things they didn’t or couldn’t buy during the lockdowns. We also heard that after the storms this year, people in Louisiana, US, who are still struggling to put a roof over their heads will presumably be spending more on necessities and much less on gifts.
Conclusion: Revenge shopping is a key driver for retailers during the Christmas season and is most likely the only hope that most of them are keeping before this year ends.
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